Stewart & Stevenson TVS UK Limited, based in Birmingham, England, teamed with UK firms LDV Limited, Multidrive Limited and Lex Defence to compete for the British Support Vehicle Programme.
"We are certainly disappointed with the Ministry of Defence decision; however, we are proud of the efforts of our employees and business partners in putting forth a competitive proposal for this program," said Max L. Lukens, President and Chief Executive Officer.
"Our work with the U.S. Army continues to thrive and we are excited that we are beginning production under our new five-year contract to produce Family of Medium Tactical Vehicles (FMTV)."
"Our long-standing relationship with the U.S. Army demonstrates Stewart & Stevenson's ability and commitment to provide our customers with proven technical solutions, in-depth production knowledge and a demonstrated commitment to on-time, within budget deliveries."
"We are confident that leveraging the skills that we have developed in working with the U.S. Army and the success of our industry leading FMTV vehicles, together with the experience gained from participating in this highly competitive process, will enable us to pursue additional opportunities in other markets with similar products as well as future UK programs," added Mr. Lukens."
Stewart & Stevenson will comment further on the loss of this program at its third quarter earnings conference call.
Stewart & Stevenson's Tactical Vehicle Division is the U.S. Army's manufacturer for the Family of Medium Tactical Vehicles (FMTV) and is currently in the first year of its third multiyear contract for the FMTV. Over 23,000 FMTV trucks have been built to date at its Sealy, Texas facility.