GM, General Dynamics Venture Gets $4 Billion Army Pact
A joint venture between
General Motors
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and
General Dynamics
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(GD) - Get General Dynamics Corporation Report
received a contract from the U.S. Army worth about $4 billion to equip brigade combat teams with the LAV III eight-wheeled armored vehicle.
Through a series of delivery orders starting this year, General Motors and General Dynamics will jointly build 2,131 vehicles over eight years. The initial delivery order will be worth $61.7 million in research, development, testing and evaluation, while the second order for 366 vehicles is worth $578.4 million.
Shares of General Motors were recently down 75 cents, or 1.3%, to $56, and General Dynamics shares were higher by 25 cents, or 0.3%, to $73.31 in
New York Stock Exchange
trading.
