National GuardCS/CSS

Overview

August 6, 2013

2

AM General Actions to Ensure Future

• Restructured business:

– Renegotiated labor agreement

– Renegotiated supply base pricing, focus on small business viability

– Workforce reductions, both salaried and hourly

• Developed winning JLTV bid – DD250, 14 Aug

• Finalist for SOCOM GMW 1.1 program

• Worked with Congress and Adjutants General to fund National Guard

HMMWV modernization initiative

• Directed significant new resources to cultivating international sales

• Enhanced focus on building commercial business

3

• At the request of National Guard leadership, Congress provided $100M for HMMWV modernization in the FY ‘13 budget

• Program structure being developed by the Army, AM General, and Red River Army Depot (RRAD)– Approx. 800 vehicles will be produced– AM General will be the prime contractor

with support from RRAD– New vehicle chassis including engine,

drive train, suspension built at the AM General HMMWV plant

– RRAD will refurbish existing chassis’ to like new condition and provide to AM General for final integration and test

• This program is envisioned as a multi-year, long-term effort to modernize the National Guard fleet

• House passed FY’14 Defense Appropriations Bill provides additional $100M for the program

National Guard HMMWV

4

Ground Mobility Vehicle (GMV1.1)• Customer: Special Operations

Command (SOCOM)• Purpose:

– Multiple awards possible for R&D Phase and down select to one for Production

• Proposal Delivered July 2013• R&D Award August 2013 (est)• Production Award April/May 2014 (est)

– LRIP - 127 vehicles– FRP – 1170 vehicles

– Total – 1297 vehicles

Joint Light Tactical Vehicle – BRV-O

5

• Customer: Joint Program Office (JPO) at TACOM

• Purpose: Produce and deliver 2000 vehicles for LRIP (FY15-17) and 15,000 for FRP (FY18-22)

• Overview: – Contract: Fixed price award to

either AMG, Lockheed or Oshkosh (est)

– Basis of award will be on the best value to the Government:

• Technical capability• Contract cost• O&S cost • Value of government owned

Tech Data Package• Small business participation

6

International Pursuits

• The HMMWV continues to be the Gold Standard for tactical wheeled vehicles around the world

• Over 40,000 vehicles have been delivered to over 50 countries in every corner of the globe

• Demand continues with a potential global market of over 30,000 new vehicles over the next 5 – 7 years despite the US Army decision to discontinue the purchase of new vehicles

• Five pursuits comprise our near term new business targets with a potential for nearly 5000 vehicles to be under contract in 2013 and 2014

– Ecuador is expected to purchase over 3100 vehicles under two 2013 Foreign Military Sales (FMS) cases for the Army and National Police

– Iraq has identified an initial requirement for 350 vehicles for the Ministry of Interior National Police and Border Patrol Forces to be under contract in 2013

– Tunisia will procure 350 vehicles for Border Patrol and the Army in 2013– In June 2013 AM General successfully concluded a series of very rigorous tests for the

Malaysian Army and expects annual new vehicle procurements of 300 – 500 vehicles beginning in 2014

– Both the Royal Saudi Land Forces and the Saudi Ministry of Interior have requirements for new vehicles. Initial production quantities in 2014 are expected to be 300 – 500 new vehicles