This Just In: Army Vehicle Redesign Taps into Michigan Innovation

General Dynamics Land Systems and American Rheinmetall Vehicles will compete in the final round to replace the Bradley Infantry Fighting Vehicle, reinforcing Michigan’s leadership in the defense industry

The U.S. Army announced this week that two Michigan companies – General Dynamics Land Systems and American Rheinmetall Vehicles – have been chosen as finalists to replace the 80s-era Bradley Infantry Fighting Vehicle, bringing new 21st century capabilities and transforming Army operations for the future.

“We are proud that the U.S. Army has recognized the innovation and expertise of the defense sector here in Michigan to build its next generation of vehicles,” said MEDC CEO Quentin L. Messer, Jr. “We are grateful for the sacrifices of our men and women in uniform. As home to the nation’s largest ground vehicle defense companies, the Make It in Michigan economic development strategy continues to yield dividends for Michiganders and protection for our uniformed forces as Michigan companies win projects that will enable Michigan to remain as the nation’s Arsenal of Innovation.”

According to the Army’s press release, the two firm-fixed price contracts for the Optionally Manned Fighting Vehicle (OMFV) Phase III and IV Detailed Design and Prototype Build and Testing phases are valued at approximately $1.6 billion in total. The Army is redesignating the OMFV program as the XM30 Mechanized Infantry Combat Vehicle (XM30), bringing an emphasis on modernization by investing in new technologies and reducing risk for its soldiers.

The Sterling Heights-based companies, which already created digital designs for the Army as part of the competition, will now create up to 11 prototypes for testing. Following the detailed design and prototype build and testing phases, the Army intends to select one of the competitors by the end of fiscal year 2027, with plans to equip the first unit by fiscal year 2029.

According to Reuters, the deal could be worth up to $46 billion, presenting a transformational opportunity for the Michigan-based companies and the state’s role in supporting and transforming the defense industry.

American Rheinmetall Vehicles

In July 2022, American Rheinmetall Vehicles received state support for a new North American headquarters facility in Sterling Heights through a $1.5 million Michigan Business Development Program performance-based grant. The company will house office and manufacturing space for its prototyping operations in the new facility, which is expected to generate a minimum capital investment of $3 million and create more than 150 jobs.

“We’re very grateful for all that MEDC has done to support our effort to grow our business here in Michigan,” said American Rheinmetall Vehicles Managing Director Matt Warnick in July 2022. “This new facility allows us a growth path that positions us to increase critical capacity and competition in the combat vehicle defense industrial base in Michigan and the U.S. as a whole.”

The project will continue to grow Michigan’s advanced manufacturing and defense sectors and create opportunity for future investment in the state.

As a finalist in designing the new XM30, Rheinmetall Vehicles received a nearly $831 million contract for the next phase of the competition.

General Dynamics Land Systems

As a global leader in the design, development, production, support and sustainment of tracked and wheeled military equipment, General Dynamics Land Systems is one of the key Michigan companies contributing to the state’s defense industry.

In 2008, the company announced a $10 million investment to expand its operations in Sterling Heights and Shelby Township, reinforcing Michigan’s position as a leader in defense-related research and manufacturing. As a finalist in designing the new XM30, General Dynamics Land Systems received nearly $769 million for the next phase of the competition.

“We are proud that our years of innovation, research, development and investment have led to this next-generation XM30 solution for the Army,” said Gordon Stein, vice president and general manager of U.S. operations at General Dynamics Land Systems in a company press release. “Our highly affordable XM30 development approach maximizes performance to the Army’s requirements and delivers a vehicle that is purpose-built for the mission.”

Top universities, R&D facilities, defense OEMs and a 4,000-member supply chain make Michigan a defense industry leader. The MEDC, through the Michigan Defense Center, offers a range of defense industry services including the Bid Targeting System, CyberSmart Grant Program and Proposal Writing Services Grant Program, which supports companies with federal proposal writing to assist in the federal bid process.

Learn more about Michigan’s defense industry at michiganbusiness.org/defense/.

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