Oshkosh Corp. wins multi-billion-dollar contract to build military vehicles needed in Afghanistan
The Oshkosh Corp., will get up to $12 billion to make thousands of armored vehicles which the Pentagon urgently needs in Afghanistan.
Oshkosh out-bid three competitors to build the Army and Marine Corps' MRAP all-terrain vehicles.
And the military needed them so badly, the company actually started its daily production a few weeks ago before learning Tuesday it would be the sole supplier.
The Pentagon has signed an initial contract of just more than $1 billion, and it has another $5 billion budgeted that would allow for quick orders.
Up to 10,000 vehicles could be ordered in the next two fiscal years.
The work could go on for a number of years, as the military converts to a lighter and more agile vehicle which provides similar protection as the mine-resistant vehicles now used in Iraq.
Parts' production could go on for decades.
Oshkosh CEO Robert Bohn says his company will add jobs but he's not sure how many yet.
The firm is also calling back hundreds of workers laid off at a subsidiary in McConnellsburg, Penn.
It's a huge shot in the arm for a company that has reported some sizable losses in the past year.
Analyst Basili Alukos calls it corporate equivalent of winning the lottery.