August 14, 2020 | International, Land
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.
February 16, 2022 | International, Naval
The goal of the new strategy is to equip the French military with the ability to reach depths of 6,000 meters, or nearly 20,000 feet, said Minister of Defense Florence Parly in a Feb. 14 press conference.
August 31, 2020 | International, Aerospace
By: Jen Judson WASHINGTON — The newest version of the UH-72B Lakota light utility helicopter will enter the U.S. Army fleet in 2021, aircraft manufacturer Airbus announced Aug. 28 at the National Guard Association of the United States virtual trade show. Beginning with the newest orders placed in 2020, Airbus will deliver 17 UH-72Bs next year after supplying 460 UH-72As across the Army, Navy and National Guard. In September, the last UH-72A (the 463rd) will roll off the production line in Columbus, Missouri, according to the statement. The “B” model will look distinctly different from the “A” variant. The aircraft is based off the Airbus H145 and will feature a Fenestron tail rotor, which the current A model does not have, according to Airbus. The B model will also have more powerful engine technology, “enhanced” controls and the Airbus Helionix avionics suite, the company said. The new helicopter variant will go to the Army National Guard. “Since we first began operations with the UH-72 Lakota some 15 years ago, this helicopter has been the workhorse of the Army and National Guard, saving lives, assisting in disaster relief, training thousands of pilots, and, more importantly, helping to protect our communities and our country,” Col. Calvin Lane, the Army's project manager for utility helicopters, said in the statement. “Procuring the UH-72B Lakota provides tremendous value with no research and development costs for the Army.” Since the program's inception in 2006, the Army and National Guard have logged nearly 800,000 flight hours, serving as the initial entry rotary-wing training aircraft for the Army at Fort Rucker, Alabama, and has flown search and rescue, medical evacuation and disaster relief missions as well counter-drug operations at the Southwest border. The Army chose to make the Lakota the primary training helicopter and retire its TH-67 aircraft when it restructured its entire aviation fleet in 2013. The decision met some resistance. Several companies like Bell Helicopter and AgustaWestland were hoping at the time to sell military training helicopters to several armed services, including the Army. AgustaWestland, a Leonardo subsidiary, filed a lawsuit four years ago in the U.S. Court of Federal Claims over the Army's plan to buy 16 of the aircraft for the training fleet. The court ruled in favor of AgustaWestland, and the Army was barred from buying the Lakotas. But the U.S. Court of Appeals overturned the lower court's decision in early 2018, allowing the service to move forward in procuring Lakotas. https://www.defensenews.com/land/2020/08/28/airbus-unveils-b-model-lakotas-will-enter-us-army-fleet-in-2021/
August 25, 2024 | International, Aerospace
Opinion: Our guest opinion writer argues that AI must be prioritized across military programs and platforms, or else America risks losing the AI race to China.