GM Defense Bags Contract For Heavy Duty SUVs From U.S. State Dept.

(RTTNews) - Automobile major General Motors Co. (GM) Wednesday announced that its unit GM Defense LLC has bagged a 10-year Indefinite Delivery Indefinite Quantity or IDIQ full-rate production contract from the U.S. Department of State.

As per the terms of the contract, GM Defense has to deliver Original Equipment Manufacturer integrated HD SUVs that have a ceiling value of $300 million.

Initially, the company was awarded a task order through the IDIQ contract for vehicles, training, and engineering services valued at around $25 million.

The newly designed HD SUV incorporates protective armor into the original design and manufacturing process, deviating from the current after-market, tear-down, and rebuild practices. It also includes a high percentage of commercial-off-the-shelf parts.

The vehicle comes with a new and unique body-on-frame chassis and suspension, specifically designed to support the increased vehicle weight and performance requirements.

In pre-market activity, GM shares are trading at $31.96, up 1.43% on the New York Stock Exchange.