FMTV

Reaping the Benefits of a Global Defense Industry

Steve Grundman

After three years of the “age of austerity” in Western military spending, investors’ imperatives and corporate strategies show one indication of how the defense-industrial base will evolve over the next decade. Investors want public companies that demonstrate an attractive risk-adjusted total return, not just M&A-fueled arbitrage plays. In response, companies are husbanding or harvesting their financial… Keep reading →


Three very different teams are contending to build the Humvee’s replacement, the Joint Light Tactical Vehicle. Breaking Defense weighs their strengths and weaknesses.

Last week, the Army and Marines slashed a crowded field of competitors in half, awarding contracts for “engineering and manufacturing development” of JLTV prototypes to aerospace giant Lockheed Martin, truck maker Oshkosh, and Humvee manufacturer AM General. The choices surprised many observers because only one of the three, Lockheed, had won in the previous round, in 2008, when the military awarded three “technology development” contracts. A major restructuring of the program last year had rendered many of the original criteria irrelevant, because — facing a cancellation threat from the Senate Appropriations Committee — the Army and Marines had trimmed back their ambitions for the new vehicle to contain spiralling costs. Keep reading →