U.S. Army awards AM General $99 million more for Humvees despite planned phase-out
AM General, the Indiana-based manufacturer of the Humvee since the 1980s, received a $98.7 million contract modification from the U.S. Army, bringing the cumulative value of the underlying contract to over $3.2 billion. The award was a sole-source, indefinite-delivery, indefinite-quantity deal, with work running through August 28, 2027. This comes despite the Army Transformation Initiative, issued in 2025, which directed the cancellation of HMMWV procurement in favor of lighter, faster formations and new technology. However, production troubles with the intended successor, the Joint Light Tactical Vehicle (JLTV), have created a gap, forcing continued Humvee orders. Additionally, strong foreign military sales demand, including shipments to Lebanon and Israel's gradual transition, sustain production. The JLTV program has faced delays, with the Marine Corps pausing orders and seeking a second manufacturer.
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