| Western Europe’s armoured vehicle manufacturers enter the 21st century facing an uncertain future. The continuing decline in spending on ground forces equipment in many NATO countries since the end of the cold war looks set to continue. The only ray of hope is an upsurge in demand of light armoured vehicles to meet the needs of rapid reaction forces.
United Kingdom
The British armoured vehicle scene has been dominated by the fate of the country’s main battle tank manufacturer, Vickers Defence Systems, since its sale to engine manufacturer Rolls-Royce in September 1999. The armoured vehicle segment of Vickers seems out of place with Rolls-Royce’s main business lines so there is intense speculation that it will be spun off. A hot contender would be Alvis Vehicles, that last year merged with GKN Defence, to create a potential giant armoured vehicle manufacturer.
With Vickers under its wing, Alvis would be able to offer an impressive line of products from main battle tanks through to Warrior and CV90 infantry fighting vehicles made in the UK and Sweden respectively, to light scout vehicles made by Vicker’s new South African subsidiary Reumech.
Another rival could be BAe Systems, that took the old armaments division of Vickers Shipbuilding and Engineering Ltd (VSEL) under control when it merged with Marconi Electronic Systems at the end of November 1999. The armament division produces the large AS-90 self-propelled guns and is the only other manufacturer of tracked armoured vehicles in the UK.
By acquiring Vickers Defence System, BAe Systems would round-out its capabilities to include armoured fighting vehicles. Alvis’ future looks secure after it won its first orders to develop the MRAV wheeled armoured vehicles in November 1999 for the British Army. The Anglo-German MRAV looks like being the biggest armoured programme for the British Army until the TRACOR scout vehicle comes on line in 2002, when production of around 355 vehicles will be launched.
Other contracts being contested include the replacement for the combat engineer tractor, the future armoured engineer vehicle and the armoured battlegroup support vehicle (ABSV).
Germany
The signing of the MRAV contract in November 1999 was a major coup for Krauss-Maffei Wegmann. It secured the company’s future, ending years of uncertainty. The decision by London and Berlin to push ahead without Paris was a blow to the European credentials of the programme, but the British and German armies had urgent requirements for the vehicles that could not be put off much longer.
The Krauss-Maffei Wegmann portfolio of products ranges from Leopard tanks through to MRAV, Fennec scout vehicles and Pzhaube 2000 self-propelled artillery. The latter has strong export prospects in Sweden, Italy and elsewhere. The company has been negotiating for some time with Spanish armoured vehicle manufacturer Santa Barbara to co-produce the Leopard tank and to take an equity stake. This deal has yet to be concluded.
France
France has a requirement for 50 MRAV command post versions but has decided to go its own way on the development of 550 tracked infantry fighting vehicles. This looks like being GIAT Industries major new priority during the next decade if French defence budget funding can be secured. Production of the Leclerc will continue until well into the first decade of the 21st century for the French Army and foreign customers. The company also is in the process of diversifying into high technology artillery and ammunition as a means of diversifying its portfolio.
Export prospects
Europe’s tank manufacturers are locked in two high-profile battles to win massive export contracts in Greece and Turkey. With the middle east market still depressed by low oil prices, the Greek and Turkish orders look like being the major purchases of tanks in the first years of this new decade. The contenders are essentially similar. France’s GIAT Industries is proposing the Leclerc and Krauss-Maffei has entered the Leopard 2. Russia is offering the T-90 and the Ukraine is trying to sell its T-84. American General Dynamics is trying to generate business for its M1A1 Abrams tank. Britain’s Vickers Defence Systems is offering its Challenger 2 to Greece only.
While both contracts are likely to be worth several billion dollars, none of the contenders is relying on either of them to give a major boost to their businesses. Both Greece and Turkey are demanding local production and a high degree of industrial production.
UK and Germany
Both Britain and Germany are starting to evolve new concepts for armoured vehicles to replace their existing main battle tanks during the second decade of the century. In spite of the work on main battle tank replacements, Europe’s AFV manufacturers will be increasingly preoccupied with work on light armoured vehicles. MRAV will have a priority in the UK and Germany, while UK companies also will be heavily involved in the TRACOR programme and the ABSV. Export markets in the middle and far east also look like being dominated by products based on light vehicles. Who will own the European armoured vehicle industry, however, is still an open question. ©
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GKN Warrior-based reconnaissance vehicle |
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