Non-Subscriber ExtractBAE plans to appeal Swedish AWV decision, axes Hägglunds jobs |
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By Matthew Bell
02 July 2009
BAE Systems plans to contest Sweden's decision to select Patria's Armoured Modular Vehicle (AMV) 8x8 platform in preference to its Modular Armoured Tactical System (SEP) to meet the country's armoured wheeled vehicle (AWV) requirement, Jane's learned on 1 July.
Sources close to BAE indicated that the appeal will focus on the Sweden Defence Materiel Administration's (SDMA)'s evaluation of technical factors: in particular the issue of mine protection.
Jane's reported the award of Sweden's AWV contract to Finnish company Patria on 26 June. Valued at about EUR240 million (USD338 million), the agreement covers the supply of 113 AMVs.
If the SDMA's selection of Patria's AMV is approved by the Swedish government, BAE will need to decide whether to cancel its SEP product or fund it privately, since Jane's believes it currently has no other prospective customers for the vehicle.
BAE Systems announced on 1 July that it would cut 320 jobs (or 16 per cent of its Swedish workforce) in its Hägglunds division as a direct result of the failure of SEP to achieve selection.