Brazilian Army Signs EUR 2.5 billion Defence Vehicle Supply Contract

Iveco Defence Vehicles announces that on December 18, 2009 the Brazilian Army signed a contract for the supply of 2,044 units of the base model of the new family of armoured personnel carriers (VBTP-MR). The vehicles will replace the old models Urutu used today by the Brazilian armed forces.

The contract is valued at 6 billion Brazilian Reais (about EUR 2.5 billion) over 20 years and also includes logistic support.

The manufacturing batch of 2,044 units is planned to start in 2012, with completion in 2030. The production of models, including engines, will take place in Brazil, where Iveco LA supported by Iveco Defence Vehicles will prepare a defence dedicated unit including Research, Sales & marketing, Production, Quality and Aftersales organization. The local supply chain will involve more than 100 direct suppliers and some hundreds of indirect suppliers.

The agreement was signed at a ceremony held at the Army Headquarters in Brasilia, attended by General Enzo Martins Peri, Commander of the Brazilian Army, General Fernando Sérgio Galvão, Chief of Army Staff, the President of Iveco Latin America, Marco Mazzù and the General Manager of Iveco Defence Vehicles, Pietro Borgo.

The VBTP-MR project is part of the National Defence Strategy which includes the reorganization of domestic defence to ensure that the equipment needs of the Brazilian armed forces are supported by best-in-class technology.

For the Brazilian Army, the VBTP-MR project will increase the effectiveness of the land forces, increasing capacity to act in several missions where the use of this type of vehicle is suitable, with different settings (personnel carrier, reconnaissance, rescue, ambulance, etc.) to meet various operational needs.

The VBTP-MR is a family of diesel engined vehicles with a GVW of 18 tonnes, 6x6 drive, amphibious capability and capable of carrying 11 soldiers. The basic dimensions are 6.91 metres long, 2.7 metres wide and 2.34 metres high. The model can be equipped with a turret armed with remote control operation for several different applications. The model can be transported by an aircraft of type C-130 Hercules.

This family of armoured vehicles is currently under development. The work is being carried out jointly by the Brazilian Army (through the project Mobility Strategy and the DCT - Department of Science and Technology) and Iveco. Around 30 million Brazilian Reais (EUR 12 million) has been applied to the definition of this project in which major specialist Brazilian companies are also involved. The whole development project has was made in Brazil with throughout support by Iveco Defence Vehicles and its dedicated research and development organisation for specific expertise and know-how in military vehicles.

The first prototype is under construction in Brazil and will be ready in the first half of 2010. Another 16 units of a pilot batch will be produced by Iveco in Brazil between 2010 and 2011.

The VBTP-MR family is the result of the bidding process launched by the Army in 2007 and won by Iveco. One of the decisive factors in this choice was the experience of Iveco Defence Vehicles, which designs, produces and markets a full range of military vehicles, including models similar to the Brazilian VBTP-MR.

A full-scale mock-up of the VBTP-MR was exhibited at the Latin America Aero & Defence (LAAD), the largest military equipment fair in Latin America, held in Rio Centro, Rio de Janeiro in April 2009.

Pietro Borgo, General Manager of Iveco Defence Vehicles, commenting the contract, said "The aim of the project is to develop a highly specialized knowledge base in military vehicles at Iveco LA and to establish an Iveco Defence Vehicles presence in Brazil through the creation of an Iveco Defence Vehicles do Brazil dedicated to the Brazilian Army".