Saudis Sign $10B Vehicle Deal With GDLS-Canada
Feb. 14, 2014 - 06:43PM | By PAUL McLEARY
http://www.defensenews.com/article/20140214/DEFREG02/302140037/Saudis-Sign-10B-Vehicle-Deal-GDLS-Canada

WASHINGTON — Saudi Arabia has entered into a 14-year, $10 billion agreement
with General Dynamics’ Canadian subsidiary for an undisclosed number of
military and civilian armored vehicles, Canada’s Trade Minister Ed Fast
announced Friday.

The vehicles will be produced by General Dynamics Land Systems-Canada (GDLS)
in London, Ontario, and the deal could be worth up to $13 billion if all
options are exercised by the Saudi government.

Ken Yamashita, a spokesman for GDLS said that while the company is
contractually unable to divulge the number or make of the vehicles that are
part of the deal, “these will be new vehicles” and the company is “starting
to do design and development work immediately,” with the first vehicles
rolling off the production line in 2016.

He wouldn’t say whether the vehicles were wholly new or a variant on an
existing platform.

The international competition to win the Saudi work began about five years
ago.

The facility in London employs about 2,400 people, and is the producer of
the Canadian Army’s Light Armoured Vehicle (LAV), an eight-wheeled infantry
carrier that serves as the basis for the US Army’s Stryker infantry carrier.
Some Stryker chassis are also made at the facility.

In addition, the facility makes the Ocelot, a four-wheeled tactical vehicle
used by British forces.

The deal includes a full maintenance and training package. Yamashita said
the training of Saudi crews would likely take place in Canada and in Saudi
Arabia, though because of clauses in the contract, he couldn’t confirm that
the customer was Saudi Arabia.

Other parts of General Dynamics will also feel the effects of the deal, as
work will be done by the US-based GD Land Systems facility in Sterling
Heights, Mich., European Land Systems in Madrid, GD’s Ordnance and Tactical
office in Saint Petersburg, Fla., and GD C4 Systems in Scottsdale, Ari.

One of the big concerns for the Saudis is its long, desolate land borders
with neighbors like Iraq and Yemen, both of which have sizeable
al-Qaida-inspired violent Islamist groups operating within their borders.

As a result, it’s long been known that the Kingdom was looking for fast,
light, maneuverable ground vehicles that can traverse distances and operate
in austere, unpaved environments. Other US and international military
vehicle manufacturers were bidding for the work, including Oshkosh, which
was at one point late last year in talks with the Saudis about their M-ATV,
but whatever it is that General Dynamics showed them apparently won the day.

Email: pmcleary@defensenews.com.