SOUTH BEND — AM General is no longer making many Humvees for the U.S. military but it will remain busy producing the vehicles for the nation's allies.
The company late Tuesday announced a new contract with the U.S. Army to produce 11,560 High Mobility Mulitipurpose Wheeled Vehicles, valued at $2.2 billion, over the next five years. Under the contract, AM General will provide a wide range of Humvee models including protected weapons carriers, cargo transporters, communications vehicles and ambulances.
There are already more than 250,000 Humvees in use in more than 60 countries, the company said in a statement.
When AM General in 2015 lost out to competitor Oshkosh on an Army contract to supply the new Joint Light Tactical Vehicle, which can better withstand impacts from improvised explosive devices in Iraq and Afghanistan, some observers wondered about the company's future with the military, said Sydney J. Freedberg Jr., deputy editor of BreakingDefense.com, a website that covers the defense contracting industry.