General Motors (NYSE:GM) shares flexed their muscles Thursday, on news that the U.S. Department of State has awarded the carmaker’s GM Defense LLC subsidiary a 10-year Indefinite Delivery Indefinite Quantity (IDIQ) full-rate production contract to deliver the next generation Heavy-Duty armored Sport Utility Vehicle (HD SUV) in support of the Department's Diplomatic Security Service. GM Defense will deliver Original Equipment Manufacturer integrated HD SUVs under the contract with a ceiling value of $300 million. GM Defense was awarded an initial task order through the IDIQ contract for vehicles, training and engineering services valued at approximately $25 million. This contract follows the development and validation contract awarded in 2021 that delivered prototype vehicles for comprehensive testing and evaluation.
According to Thursday’s press release, “The newly designed GM Defense HD SUV incorporates protective armor into the original design and manufacturing process, diverging from current after-market, tear-down and rebuild practices. The new approach provides superior vehicle performance while improving efficiencies in build and lead-time, resulting in faster vehicle delivery to the end user. GM Defense also provides additional benefits through a robust manufacturer's warranty and extended vehicle lifespan that delivers value as compared to the current multi-stage aftermarket armoring process.”
Said GM Defense President Steve duMont, "This is a very important program for GM Defense as it showcases our ability to leverage the proven commercial platforms and world-class engineering and manufacturing processes of GM to provide a first-of-its-kind vehicle for the Department of State.”
GM shares acquired 65 cents, or 2.1%, to $32.16.
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