U.S. Army Signs New HMMWV Contract Despite Shift to JLTV

The U.S. Army has awarded AM General a new contract to produce HMMWVs, with an initial value of $82.2 million. The U.S. Army had previously planned to end further purchases of the outdated vehicles in favor of the JLTV.

Defence Blog reported on this.

The contract was awarded under a framework agreement that allows the total value of orders to reach $754.6 million by August 2028.

The estimated completion date for the contract is August 31, 2028. The contracting authority is the U.S. Army Contracting Command, based at the Detroit Arsenal in Michigan.

According to the publication, the new agreement is separate from the existing HMMWV production contract, whose value the U.S. Army repeatedly increased over the past year. Its total value has already exceeded $3.2 billion.

In June 2025, the existing contract funded an order for M1165A1B3 vehicles worth $126.5 million. In September 2025, it funded more than 200 vehicles in two variants worth $50.9 million, while in July 2026, the value of the contract was increased by another $98.7 million.

The U.S. Army’s 2025 transformation initiative called for ending further HMMWV purchases in favor of the Joint Light Tactical Vehicle. These vehicles are also produced by AM General, which won the competition to manufacture the second-generation JLTV A2.

The initial term of the JLTV A2 contract is five years, with an option to extend it for another five years. The agreement provides for the production of up to 20,682 vehicles and 9,883 trailers for the U.S. Army and Marine Corps. Despite the announced transition from the Humvee to the JLTV, the U.S. Army continued placing large HMMWV orders in 2025 and 2026 amid delays in ramping up JLTV A2 production.

In late June, AM General CEO John Chadbourne issued a public statement defending the JLTV A2 tactical vehicle production program. The move came in response to the threat of funding cuts by the U.S. Congress, as well as the Marine Corps’ decision to seek an alternative vehicle supplier.

Lawmakers justified the funding cuts by saying that the program was more than 20 months behind schedule and that the delivery backlog was approximately 2,000 vehicles. As a result, the U.S. Marine Corps had already suspended purchases of new vehicle batches in its 2026 budget to allow AM General time to eliminate the backlog.

Oshkosh Defense received the first JLTV production contract in August 2015 and produced more than 24,000 vehicles. In 2023, the U.S. Army selected a new manufacturer following another competition. AM General won the contract, receiving a five-year agreement, with an option to extend it, to produce more than 20,000 vehicles at a total value of up to $8.66 billion.

According to John Chadbourne, the delays are related to the unsatisfactory condition of inherited technical documentation, the need to modify the design and problems with suppliers. The company had to process more than 2,100 change requests and qualify new component suppliers. AM General management expects to reach full production capacity in early 2027.