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Navistar Affiliate Gets $1.2 Billion Order from U.S. Marine Corps for MRAPs

Making its largest single order to date of Mine Resistant Ambush Protected (MRAP) vehicles, the U.S. Marine Corps today ordered 1,500 additional MRAP vehicles valued at nearly $1.2 billion from International Military and Government, LLC, a wholly owned affiliate of Navistar International Corporation.

Navistar captured nearly 50 percent of the industry-wide orders announced by the military today. Overall, Navistar’s MRAP orders total nearly $3 billion since the first contract was awarded in May.

The new order increases Category I MRAP vehicle orders to 4,471 to be delivered by the end of July 2008. The new order totals $1,183,141,218.40. MaxxPro MRAP vehicles are designed to protect troops from roadside bombs and other threats. This contract award also includes funding for Navistar’s parts and support programs for MRAP vehicles.

A revised engineering design of the Category I MaxxPro MRAP vehicle increases protection and expands payload for greater mission flexibility such as more cargo and crew capacity and vehicle applications.

As orders continue for these vehicles, Navistar has delivered 60,000 parts pieces, components and other field support services to keep the more than 700 MaxxPro MRAP vehicles in theater mission ready. Parts and service contracts thus far total nearly $300 million. In recent months, the Tank-Automotive and Armament Command (TACOM) of the U.S. Army has also awarded the company nearly $80 million in truck orders including water and fuel tankers. Overall, more than 90 percent of Navistar’s total military sales are non-MRAP vehicles to both the U.S. military and U.S. allies.

“With dealerships in Iraq and Afghanistan, Navistar has nearly 1,000 dealership locations worldwide with facilities in 75 countries outside North America.

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