BAE on Track for June 21 Signing of CV90 Deal
PARIS — BAE Systems expects to sign a $750 million armored vehicles deal with Norway on June 21 now that Parliament in Oslo has approved the move, said Alan Garwood, the company’s business development chief.
The Norwegian government agreed to a deal with the Swedish arm of BAE in April to buy new CV90 armored combat vehicles and upgrade existing machines used by the army.
The first of 43 new CV90s will be delivered next year, and the program will be completed by 2018.
The upgrade program on the existing 103-strong fleet of vehicles will include additional armor protection, new rubber tracks, a remote weapons station and improved C4ISR integration.
BAE is ramping up its CV90 sales effort across the border as Nordic neighbors Denmark look to replace at least part of their M113 fleet with either tracked or wheeled vehicles.
The Danes, existing CV90 users, have issued a request for information for a fleet likely to number around 360 vehicles, although the parameters of the requirement given by the RFI range between 206 and 450 machines.
The final numbers will likely reflect whether all or part of the M113 fleet is replaced.
BAE is to focus its offer on the new Armadillo version of the CV90 in a competition likely to attract a wide spread of interest from Nexter, General Dynamics, Patria and others across the wheeled and tracked sector.
A win would give BAE’s Swedish operation its first deal for the Armadillo.
John Kelly, vice president of business winning at BAE’s land and armaments operation in the U.S., said the company hadn’t excluded wheeled offerings from its bid.
“They have spread the net wide, and we will be talking about the breath of our tracked and wheeled capability. RFIs are due back on June 25, and with a smaller number of requests for proposals due out July 10, that will give us a better idea of whether Denmark is heading in the wheeled or tracked direction,” Kelly said.
The requirements cover six different configurations with an armored personnel carrier being the main focus. Executives at the show in Paris reckon Denmark wants to have a deal secured by the end of 2013 or early 2014.
Another upcoming opportunity in Europe for the CV90 is Poland, where there is talk of a armored combat vehicle competition getting underway later this year with a request for information.
Garwood said BAE was also ready to re-enter a stalled Canadian requirement for armored vehicles in the CV90 class. “I am confident we will meet the new Canadian requirement when the competition restarts in August,” he said..