23 juillet 2020 | International, Terrestre

Private equity firm buys Humvee-maker AM General

By: and

WASHINGTON — Humvee-maker AM General has been acquired by KPS Capital Partners, a private equity firm known for buying financially distressed manufacturers, the companies announced Wednesday.

KPS acquired AM General of South Bend, Indiana, from MacAndrews & Forbes in a deal in which terms were not disclosed. AM General has largely been stagnant since losing the competition for the U.S. Army's Joint Light Tactical Vehicle in 2015 to Oshkosh.

Following its loss in the JLTV competition, the company turned to the international market to continue growing its Humvee business, such as through offering to foreign customers a multipurpose truck with a military-grade rolling chassis from its Humvee design with a la carte add-ons.

KPS Partner Jay Bernstein said in a joint statement that the firm would continue to work with AM General's chief executive, Andy Hove, as well as its management and employees “to build on this great platform, organically and through acquisition.”

“We intend to leverage the Company's commitment to research, technology, innovation and new product development, as well as its heritage and iconic brand name,” Bernstein's statement read.

Hove said the firm would work with KPS “to continue to execute our strategy and invest in our very ambitious growth plan.”

“KPS' demonstrated commitment to manufacturing excellence, continuous improvement and commitment to invest in technology and innovation will only enhance the Company's ability to compete in today's military and commercial marketplace,” Hove said.

“Plenty of industrial companies and investment firms had considered buying AM General,” James Hasik, senior fellow at the Center for Government Contracting at George Mason University, told Defense News July 22. “And plenty of companies have considered teaming with AM General for a bid on a forthcoming production program.”

AM General has continued to try to adapt to the needs of the U.S. military, bringing a robotic combat vehicle to an Army demonstration last year as the service mulls the future of robots on the battlefield. The company also competed for the Squad Multipurpose Equipment Transport vehicle program but was not selected.

Yet, AM General has remained a single-product firm with the Humvee, Hasik noted, and the future of the Humvee is “hard to call.”

Many militaries around the world use Humvees, and the U.S. Army plans to keep some in its fleet, but the U.S. Marine Corps is divesting its stock. According to Hasik, it's possible that since the Humvee is less expensive than the JLTV and would likely be relegated to noncombat roles, the Army might choose to purchase pickup trucks instead.

“The Humvee was developed in part because the Army's pickup trucks of the 1970s were unimpressive, but that was 50 years ago, and automotive technology has advanced,” he said. “Today's pickup trucks are much cheaper to buy and operate, and that's what the Canadian Army has done.”

While AM General has come up with some novel ideas, “nothing has stuck,” Hasik said. For several years, the company has shown up at trade shows touting a howitzer on a Humvee, like it did at London's DSEI exposition in late 2019. Still, the U.S. Army is struggling to figure out how it would fit into formations.

The good news for KPS is that the company has a running factory with “efficient, medium-speed production of 4x4 military trucks and a production team who know how to do that,” Hasik said. “That's an important skill set, as it works better for military programs than enlisting a pickup truck factory, which must make them in the hundreds of thousands to make money.”

AM General has advertised on its website that it could build bigger trucks, and the Army has just issued a request for information for a program to replace all of its heavy trucks, Hasik pointed out. “It could also build small trucks, similar to the Humvee, for future autonomous applications. There's no guarantee, but we might see lots of those in a few years.”

“All in all, I suspect that KPS didn't buy AM General just to wring some more efficiencies out of the Humvee program. The folks there probably see some of these upside possibilities as well,” he added.

https://www.defensenews.com/land/2020/07/22/private-equity-firm-buys-humvee-maker-am-general/

Sur le même sujet

  • Why the Navy wants more of these hard-to-find software developers

    20 avril 2018 | International, Naval

    Why the Navy wants more of these hard-to-find software developers

    By: Mark Pomerleau With a relative dearth of cyber expertise in the military, Congress mandated last year the services begin direct commissioning pilot programs. The Navy, however has been doing direct commissioning for highly skilled software engineers for a few years, albeit on a small scale. The cyber warfare engineer (CWE) program is a highly competitive program with officers on five year rotations performing software or tool development for cyber operators. CWEs serve as members of the cyber mission force, the Navy's cyber mission force teams that serve as the cyber warriors for U.S. Cyber Command, producing cyber tools, but can also conduct target analysis, vulnerability research, and counter-measure development against malicious cyber activities. Since 2011, the Navy has only recruited 25 of these commissioned officers to its ranks. “Twenty-five developers in the Navy as military officers is definitely not enough,” Lt. Christopher Liu, the most senior cyber warfare engineer told Fifth Domain in an interview at the Navy League's Sea Air Space conference April 9. With a relative dearth of cyber expertise in the military, Congress mandated last year the services begin direct commissioning pilot programs. The Navy, however has been doing direct commissioning for highly skilled software engineers for a few years, albeit on a small scale. The cyber warfare engineer (CWE) program is a highly competitive program with officers on five year rotations performing software or tool development for cyber operators. CWEs serve as members of the cyber mission force, the Navy's cyber mission force teams that serve as the cyber warriors for U.S. Cyber Command, producing cyber tools, but can also conduct target analysis, vulnerability research, and counter-measure development against malicious cyber activities. Since 2011, the Navy has only recruited 25 of these commissioned officers to its ranks. “Twenty-five developers in the Navy as military officers is definitely not enough,” Lt. Christopher Liu, the most senior cyber warfare engineer told Fifth Domain in an interview at the Navy League's Sea Air Space conference April 9. “We definitely need to increase the billets and increase the amount that we can hire ... to have more talents to be able to work on the cyber mission,” he said. “As soon as the number increases, we'll be able to expand the program rather than just five years to eight years, hopefully make it into a 20 year career so people can get trained up and work on missions and not be forced into different fields.” The Pentagon has been besieged by concerns about the DoD's ability to both retain and attract cyber talent among its ranks when similar jobs in the private sector pay significantly more. Vice Adm. Michael Gilday, commander of 10th Fleet/Fleet Cyber Command, acknowledged in recent congressional testimony that the military is not competitive with the private sector and noted that the base pay for the CWE position is around $37,000 a year. “That's what we pay somebody to answer the phones around here,” Senator Claire McCaskill, responded to Gilday interrupting him in frustration. “We're asking them to have incredible expertise. That seems to me totally unrealistic.” Some current CWEs feel the work they're doing inside the Navy has greater meaning than similar work they did in the private sector. “I find that this is a lot more fulfilling,” Ensign Jordan Acedera, the most junior CWE told Fifth Domain. “You finish a project, you're given something that's a lot more challenging and that really tests you.” For Lt. (j.g.) George John, who was formerly writing software at a stock trading company, work with the CWE provides a better environment that's not driven so much by profit margins and hitting quarterly revenue targets. “We don't have to worry about profitability or bringing to market,” he said. “We can pursue a little more ... what's possible. Throw stuff against the wall, see what sticks, take our time to figure out a plan of action.” One of the biggest challenges, however, is lack of knowledge of the program, even inside the Navy. “You still walk across captains and commander who say 'CWE, what in god's name is that,” John said. With more CWE personnel in the force, the Navy could build a more informed and skilled software engineering cadre, the group said. “There's tons of software. Everybody has some type of software pet project,” John said. “To be able to get more CWEs on those things and coordinate with one another and say here's what [Consolidated Afloat Networks and Enterprise Services] is doing with their communications and their infrastructure. How are we doing that differently on the base side? You can talk and address security concerns with one another. Just within the cyber operations realm, Liu said, as the headcount increases, the CWEs could work on the requirements the operational community within the cyber mission force rather than having to prioritize projects. They could even start to look at developing capability prior to a specific requirement coming in as a means of staying ahead of the game as opposed to waiting for and reacting on requirements from operators. https://www.defensenews.com/digital-show-dailies/navy-league/2018/04/11/why-the-navy-wants-more-of-these-hard-to-find-software-developers/

  • US Army turns to predictive maintenance to cut mishaps

    19 janvier 2023 | International, Terrestre

    US Army turns to predictive maintenance to cut mishaps

    The Army says it is increasingly catching problems before they generate in-flight issues for their aircraft.

  • Europe's Vega-C rocket returns to space after two-year gap

    5 décembre 2024 | International, Aérospatial

    Europe's Vega-C rocket returns to space after two-year gap

Toutes les nouvelles