Israel plans to reduce Namer production by 60%
The Israeli Ministry of Defense plans to cut the purchase of the Namer infantry fighting vehicle by more than half.
In accordance with the next multi-year plan currently formulated in Tel Aviv, it is planned to revise the Namer procurement schedule so that no more than 2017 machines will be released before the 170 year. The first batch of Namer cases manufactured in the USA was shipped to Israel at the end of 2013. Seven buildings are currently equipped with Israeli-made systems, before they are delivered to operational units. The Namer infantry fighting vehicle is currently deployed from the Golani Brigade infantry battalions.
According to Israeli and US sources, the American contractor of the program, General Dynamics Land Systems (GDLS), is renegotiating the contract with Israel concluded in the 2011 year. The changes are likely to include fines due to cuts in the overall budget due to a decrease in the number of vehicle sets of heavy armored personnel carriers that Israel agreed to buy from the company. Sources in the Israeli military-industrial complex say they expect the Israeli Ministry of Defense to release a new revised request for proposals (RFP) in early February 2014.
In accordance with the eight-year contract, GDLS plans to supply vehicle kits for assembling 386 machines before 2019, at a cost per $ 730 000, and based on this, mass production was planned at a rate of 60 machines per year. The initial contract extended to the release of 110 machines. To fulfill this contract, GDLS had to invest in equipping the production line, which is state-owned by the United States and operated by the Joint Dynamics-owned Joint Production System (JSMC) center in Lima, Ohio. According to the contract, the Israeli Ministry of Defense was considering an option to buy the Namer additional BMP 276 at a fixed fixed price. Restructuring of the existing agreement will result in fines of about $ 17 million, which will increase the cost of one vehicle kit to almost $ 900 000 due to the loss of scale effect.
While the production of Namer infantry fighting vehicles will be limited to about 170 units, Israel continues to produce the main combat Tanks Merkava, albeit at a much slower pace than before.
A spokesman for the Israeli Defense Ministry said the final approval of the IDF’s five-year plan has not yet been adopted, and therefore the Defense Ministry cannot comment on the proposed future of the Namer program or its contract with GDLS.
While in the best of times, military production at the joint plant between GD and the US government in Lima employed about 1200 workers producing Abrams tanks for the United States and for export, the budget cut has now resulted in JSMC time about xnumx man works.
The reduction of the order for Namer will have a negative effect on JSMC, where the number of personnel has recently decreased by one third. The US Army said it wants to stop the production of Abrams in 2016, and resume work in 2019, when it is ready to start producing the next generation Abrams tank, which it is developing together with General Dynamics. Production Namer, as well as retrofit kits for M-1 Abrams tanks are important in the plans of the US Army to save labor to 2019 year. Although GDLS is one of the finalists selected by the US Army for the new generation of tracked armored vehicles under the Ground Combat Vehicle (GCV) program, even if the program survives the budget in the coming years, and GDLS will win this contract, GCV needs not enough to fill the gap in time.
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