October 29, 2021 | International, Aerospace
What will replace the Army's Shadow UAS?
The Army is on a mission to replace its aging Shadow Unmanned Aerial System, but with what? Jen Judson rounds up the competitors.
August 14, 2020 | International, Land
AM General CEO on acquisition by a private equity firm
WASHINGTON ― KPS Capital Partners is acquiring Humvee-maker AM General, the private equity firm announced last month, marking a new chapter for the South Bend, Indiana-based vehicle maker.
AM General President and CEO Andy Hove will continue to lead the company, and KPS Partner Jay Bernstein said the firm would continue to build on the ubiquitous Humvee, leveraging the company's “research, technology, innovation and new product development, as well as its heritage and iconic brand name.”
The Humvee appears to have some growth ahead. For one, U.S. Army budget documents call for $1.5 billion through 2025 to pay for modernization of its fleet of High Mobility Multipurpose Wheeled Vehicles and their up-armored variant. That can include replacing major components, applying new technologies or replacing vehicles entirely. After the Army reaches its procurement objective for the Joint Light Tactical Vehicle, made by Oshkosh, it will have an enduring requirement for 54,800 Humvees.
Otherwise, AM General ― which has advertised both its Brutus 155mm and Hawkeye 105mm mobile howitzers ― is expected to participate in the Army's mobile howitzer shoot-off evaluation at Yuma Proving Ground, Arizona, next year.
Meanwhile, the Army is expected to complete a new tactical wheeled vehicle strategy in fiscal 2021, which has thus far received congressional support, per the House and Senate versions of the annual defense policy bill.
Hove, who has said KPS will continue to execute AM General's existing strategy, spoke with Defense News on Aug. 6. This interview has been edited for brevity and clarity.
Private equity firm KPS Capital Partners is in the process of acquiring AM General. At this preliminary stage, what would you say are KPS' plans and vision for the company?
I think [KPS partner] Jay Bernstein represented it in his quote in the announcement that they feel really good about the capabilities of AM General and the strategy we've been executing. We've discussed with them where we can go. They're confident in our business and the growth prospects of AM General. They feel good about and stand behind our strategy, and we're going to work together with them.
Will the company focus more on the Humvee, or do you see it becoming more flexible? What is the future for the Humvee? Who are its customers these days?
To say we're only focused on the Humvee today would not be a correct premise. We've made investments across the board, in base automotive systems, and then automotive systems that have a particular special use. Our core focus is in solving very complex mobility challenges for customers. So the Humvee has a great future. I would offer that you turn to not what I say about what the Army will do but what the Army says they're going to do on the Humvee fleet, which is to steadily and systematically manage a very large fleet by systematic replacement of that fleet and recapitalization of that fleet going forward.
They've been buying new-built Humvees to replace old Humvees over the last four years at a pretty heavy clip and have announced their intention to continue to do that going forward.
We're obviously going to focus on the Humvee because there's significant demand. It is today the world's leading military 4x4 in its class, and we build more of them than any other military vehicle manufacturer in the world, and especially more than anybody in our weight class.
That won't be the only thing we invest in. You can see our investments in the Hawkeye, which brings game-changing breakthrough technology [in relation to] how artillery systems are moved around and employed on the battlefield, together with a whole other range of implementing technologies such as autonomous navigation, off-board power and those kind of things. The U.S. Defense Department is an important customer, but a considerable portion of our businesses is global business, so we take a global view of how we solve mobility challenges for our customers around the globe.
The Army recently issued a request for information about replacing heavy trucks. Is that a potential opportunity?
We certainly feel like we have something to offer, a range of things to offer there, and that RFI's only been out for a couple of weeks. We'll will certainly take a closer look at that. We're also taking a look at the JLTV competition they announced back in February.
Defense News recently characterized AM General as “largely stagnant” since losing the competition for the JLTV in 2015 to Oshkosh. Do you want to push back at all to talk about AM General's time under McAndrew & Forbes?
The JLTV decision was 2015, and the four years since the announcement on the JLTV competition we've built more military vehicles than Oshkosh or any other military vehicle manufacturer by a long shot, and sold them to more customers around the globe than anyone else. I think that's far from being stagnant. There are a lot of adjectives you can apply to the company. “Stagnant” would not be the one I would apply.
Private equity firms will typically set up companies they buy for faster growth, and then potentially that'll lead to a future sale. Do you think that's something that might happen here, and what do you predict? Is there any indication of time horizons for KPS?
KPS has made a lot of smart investments, they have a pattern, but they're not going to be pigeonholed into a particular time frame for a next-step strategy.
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August 31, 2018 | International, Aerospace
Lockheed Pitching F-22/F-35 Hybrid to U.S. Air Force
BY MARCUS WEISGERBER With a Raptor's body and the JSF's brain, the new jet would aim to answer the next decade's Russian and Chinese threats. Lockheed Martin is quietly pitching the U.S. Air Force a new variant of the F-22 Raptor, equipped with the F-35's more modern mission avionics and some structural changes, Defense Onehas learned. It is one of several options being shopped to the U.S. military and allies as Lockheed explores how it might upgrade its combat jets to counter Russian and Chinese threats anticipated by military officials in the coming decade, according to people with direct knowledge of the plan. “You're building a hybrid aircraft,” David Deptula, a retired Air Force lieutenant general who is now dean of the Mitchell Institute for Aerospace Studies. “It's not an F-22. It's not an F-35. It's a combination thereof. That can be done much, much more rapidly than introducing a new design.” The new variant — similar to one Lockheed is pitching to Japan— would incorporate the F-35's more modern mission system and “other advancements in the stealth coatings and things of that nature,” according to a person familiar with the proposal. Full article: https://www.defenseone.com/business/2018/08/lockheed-pitching-f-22f-35-hybrid-us-air-force/150943/
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April 3, 2020 | International, Aerospace
Editorial: A Code Of Conduct For Aviation’s Recovery
Desperate times call for bold measures, and the $2.2 trillion coronavirus economic rescue package passed by the U.S. Congress and signed into law by President Donald Trump certainly passes that test. Tucked into the gargantuan measure was $58 billion for airlines and cargo carriers, including $29 billion in grants to keep workers paid for the next six months, even if they are staffing empty flights. Boeing did not get the $60 billion directly that it had sought for aerospace manufacturers, but the aircraft giant and its suppliers still qualify for hefty rescue loans or guarantees. The secretary general of the United Nations has called COVID-19 the worst crisis the world has seen since World War II, and governments have a duty to ensure that this unprecedented pandemic does not wipe out vital industries. But the torrent of rescue money could have negative side effects, and it is imperative that governments step back when the crisis subsides. The market distortions of state aid already are apparent in the airline industry, where a lack of coordination among governments—even those within the EU—has tilted the playing field. And what if Boeing receives government backstops that Airbus has said it does not need? It is increasingly likely that when the pandemic subsides, the aviation industry will be facing a long uphill march to recovery, rather than the quick bounce-back that had been hoped for. As such, we urge the industry's stakeholders to start looking ahead and taking steps that will position them to recover as quickly as possible. Consider this Code of Conduct: Take care of your employees. You will need them to excel and work as a team when you recover. Do whatever possible to keep them healthy and well-informed. In the near term, furloughs, wage freezes and hiring freezes may be unavoidable to control costs. But prioritizing shareholders or senior executives over workers would create labor issues that could slow any recovery. Take care of your customers. You will only recover if they recover, so be flexible in responding to their issues during the crisis. Relationships cemented during hard times will pay off, while fractured relationships could cause long-term damage. Take care of your suppliers. Aviation manufacturers have spent decades pushing risk down to suppliers while trying to limit their rewards to reduce costs. If your suppliers do not survive or take too long to recover, all those risks will rebound onto you. Take care of your industrial base. The Pentagon wields an enormous amount of buying power at the taxpayers' expense. That should be deployed to keep its supply base healthy in the near term, even if it is at the expense of delaying long-term capabilities. Take care of your business. You need to come back more agile and flexible than ever to adjust to the immediate challenges of a recovery and to tackle future challenges unrelated to the coronavirus, such as climate change. And what about taking care of shareholders? Consider that in one recent year Boeing returned nearly six times as much money to shareholders through stock buybacks and dividends as it invested in R&D. Or consider that U.S. airlines sent 96% of their free cash flow to shareholders over the last five years. Now that hard times have hit, taxpayers are being asked to step in and foot the bill to save the industry. Shareholders need healthy airlines and healthy manufacturers. They can wait their turn. https://aviationweek.com/aerospace/editorial-code-conduct-aviations-recovery