Helsinki - BAE Systems Hägglunds plans to file a legal challenge to a preliminary decision by the Swedish government to acquire an initial 113 AMVs from Patria in Finland, while abandoning plans to continue funding for the Spitterskyddad Enhets Platform (SEP) modular armored tactical vehicle project headed by parent company BAE Systems.
"We are not happy with the government's decision and we feel a legal challenge is warranted," said Jan Söderström, BAE Systems Hägglund's managing director.
The distress caused to BAE by the setback to the SEP project is reflected in the company's plan to reorganize its Swedish business operations and lay off 320 personnel in its Örsköldsvik vehicles unit. The first of the cuts are due to take place in the fourth quarter of 2009. The Örsköldsvik unit has 1,000 employees at present.
"This redundancy program is a great disappointment for all involved, but it is necessary in view of the announcement. We hope that our government will take a different decision to the FMV, as this would remove the need for any redundancies at this time," said Söderström.
The Swedish government has a "wider responsibility" than FMV and needs to consider economic, technical and social arguments in its decision, said Söderström.
FMV, Sweden's defense material administration, announced on June 25 that it had placed an order worth $338 million with Finland's Patria Land & Armament to deliver 113 Patria AMV eight-wheel-drive vehicles. That decision is conditional on the Riksdag, Sweden's national parliament, approving the deal. The Riksdag is not expected to vote on the deal until mid-September.
The Patria AMVs, and not the SEP, will serve as the Swedish Land Force's new-generation armored wheeled vehicle. The order was placed after a bidding competition by FMV that included the SEP.
The Army's Future Combat Systems (FCS) program is ready to test a few components that soldiers may have in their hands by 2010.
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