Terex Corporation announced Jan. 7 that its joint venture, American Truck Company (ATC), of which Terex is a two-thirds owner, has been awarded and entered into a contract with the U.S. Army Tank-armaments and Automotive Command (TACOM) to supply the Ministry of Defense of Israel (IMOD) with 302 medium tactical trucks and associated logistics support.
The trucks are being supplied to Israel by the United States under the U.S. Foreign Military Sales program. The initial value of this order is approximately $54 million before options. IMOD also has options to purchase an additional 243 trucks for value in excess of $40 million.
The announcement follows the conclusion of a lengthy competition between ATC and other U.S. military truck manufacturers that included extended testing of vehicles and an evaluation of after-market support capabilities, as well as lengthy formal discussions with TACOM and IMOD to finalize the contract details.
The procurement includes a combination of cargo carriers (some with material handling cranes) incorporating ATC’s high mobility 12.5 metric ton payload 6x6 tactical vehicles. Additionally, ATC will provide extensive driver and maintenance training, in-country service and spare parts. Delivery of trucks and training materials will be performed over 12 to 14 months.
ATC trucks are based on the proprietary design developed and tested over many years by Terex’s subsidiary, Tatra a.s., and features a “central backbone” chassis design with an all-wheel drive suspension that can be configured as 4x4, 6x6, 8x8, 10x10, and even 12x12.
This modularity of the chassis and suspension design lends itself to a diverse range of vehicle configurations, including cargo carriers, load handling systems, weapon platforms, tankers, firefighting vehicles, aerial work platforms and more in a payload range from 5 to 40 tons (4.5 to 36 t).
“First, it is important to mention that Terex is both proud and grateful for this opportunity to supply one of the military’s most discriminating customers with our trucks and services,” commented Ronald M. DeFeo, Terex’s chairman and chief executive officer. “Terex made the decision to invest in Tatra and ATC in January 2002 with a belief that the Tatra design, combined with Terex’s knowledge and experience in manufacturing, sourcing, and assembly, would provide superior value and performance for our military customers.
“ATC has come together as planned. With Terex solidly driving this process today we expect to learn about doing business with various military establishments around the world so that we can offer a full complement of rugged transport vehicles,” continued DeFeo. “Terex has a lot of interest in this area and is well-positioned to meet or exceed the demanding requirements of this customer base. We have significant off-road vehicle experience that we can bring to this market and we know how to deliver value. We look forward to competing for additional business in the future.”