OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Baldwin Questions Army's Decision to Award Contract to Private Equity-Owned Company With "Very High Credit Risk' and No Experience Making JLTV Instead of Oshkosh Defense

Press Release

Date: June 7, 2023
Location: Wisconsin
Issues: Defense Government Budget and Spending

"The JLTV is one such important vehicle, and I believe the Army is risking a gap in production of this platform. I am concerned that the Army overlooked critical company information during the award process--specifically AM General's "very high credit risk" as a result of the leveraged buyout its private equity ownership group used to acquire the company--and the impact of high leverage on the company's ability to stand up a new production line in a timely fashion.

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In closing, I urge the Army to carefully scrutinize the business model of AM General's ownership group and its commitment and ability to successfully execute the contract. I also ask that you fully review AM General's finances and make a determination that the company is able to execute the contract…"


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