General Motors Company (NYSE: GM) unit GM Defense has received a contract from the U.S. Department of State for next-generation armored heavy-duty sport utility vehicles.
Under a contract with a maximum value of $300 million, GM Defense will supply Original Equipment Manufacturers with integrated heavy-duty SUVs.
GM Defense received a preliminary task order valued at about $25 million for vehicles, training, and engineering services via the IDIQ contract.
This follows a 2021 contract award for developing and validating prototype vehicles for extensive testing and evaluation.
"This is a very important program for GM Defense as it showcases our ability to leverage the proven commercial platforms and world-class engineering and manufacturing processes of GM to provide a first-of-its-kind vehicle for the Department of State," said Steve duMont, president of GM Defense.
GM Defense's HD SUV design integrates protective armor during the initial design and manufacturing phase, moving away from traditional aftermarket modifications.
This method enhances vehicle performance and efficiency in construction and lead-time, allowing quicker delivery to the end user.
Additionally, GM Defense offers a comprehensive manufacturer's warranty and extended vehicle lifespan, presenting greater value than the conventional multi-stage aftermarket armoring process.
"We look forward to continuing this partnership and bringing this exciting new platform to other U.S. government and allied defense and security customers around the world," duMont added.
Price Action: GM shares are trading higher by 0.57% to $31.69 on the last check Thursday.