Lockheed Martin (NYSE: LMT ) announced today that it is moving production of its Joint Light Tactical Vehicle from BAE Systems' (LSE: BA ) (NASDAQOTH: BAESY ) Texas facility to its own Camden, Ark., manufacturing complex.
"Lockheed Martin is implementing a low-risk production plan that will take advantage of the proven, outstanding Camden manufacturing operation and help make our JLTV more affordable for the U.S. Army and Marine Corps," Scott Greene, vice president of ground vehicles for Lockheed Martin Missiles and Fire Control, said in a statement today.
Prototypes of the vehicles were produced at BAE Systems' facility in Sealy, Texas, but Lockheed's announcement is concurrent with BAE's plans to shutter the plant. According to Lockheed's release, BAE will continue to provide "integrated cabs, protection solutions, and other vehicle manufacturing expertise."
For BAE's part, Vice President and General Manager of Combat Vehicles Mark Signorelli noted in Lockheed's press release that, "Recognizing the budget pressures our customers face, the team is reshaping our efforts to provide the most cost competitive offering with exceptional technical capability and product quality to our end users." The Houston Business Journal reports that BAE Systems decided to close its Sealy facility because of declining U.S. defense spending.
The Joint Light Tactical Vehicle is meant to serve as a more cost-effective and safer version of the Army and Marine Corps' Humvee fleet, with smarter technology, better fuel efficiency, and more crew protection.