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General Dynamics Unit Gets $4B Army Contract to Produce Modern Battle Tanks

A General Dynamics (NYSE: GD) business unit will produce M1A2 Abrams main battle tanks with modernized configuration for the U.S. Army under a potential $4.62B contract.

The Department of Defense said Friday it expects General Dynamics Land Systems to complete work under the Abrams M1A2 SEPv3 production award by June 17, 2028.

The service branch received initial M1A2 SEPv3 production units from the company in October 2017. The military’s Ohio-based Joint Systems Manufacturing Center and Alabama-based Anniston Army Depot house manufacturing activities for the new iteration.

According to the Army, the latest version of Abrams includes vehicle power generation, ballistic protection, electronic warfare, ammunition data link, joint tactical radio and line replaceable unit improvements.

The branch awarded GDLS a requirements contract in December 2017 to upgrade as many as 435 M1A1 tanks.

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