GM, General Dynamics Venture Gets $4 Billion Army Pact

A joint venture between

General Motors

(GM) - Get Report

and

General Dynamics

(GD) - Get 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.