BAE Systems faces COVID-19 delays

Following the release of BAE Systems half-year results for 2020;

Stelios Kanavakis, Defense Analyst at GlobalData, a leading data and analytics company, offers his view:

“It comes as no surprise that BAE Systems is facing delays in deliveries for a number of vehicle programs for the US Army due to COVID-19, as every production line in the defense industry has suffered similar problems. However, in this case, such delays impede the US Army’s plan to modernize its forces, especially the Mechanized and Armored Brigade Combat Teams.

“COVID-19 has heavily impacted certain programs such as the all new Armored Multi-Purpose Vehicle (AMPV), which is set to replace the legacy M113 and is currently at a Low-Rate Initial Production. BAE Systems was initially planning on delivering the first three of the 457 AMPV (2,897 in total) in March, however, deliveries are now anticipated in mid-August. The program is not expected to face any additional obstacles as BAE Systems expects a strong recovery in the second half of the year and, according to the General Accountability Office’s (GAO) June 2020 report, the US Army considers the program within cost, schedule and performance baselines.

“Next generation combat vehicles and long-range precision fires are some of the plans that the US Army considers as priority in order for its Modernization Strategy to address near-peer competition by Russia and China. Any further delays in the production of the new platforms will risk the ability to field new equipment in a timely manner.”

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