Rheinmetall Beats BAE Systems to Win US$4.1 B Australian Armored Vehicle Contract

German firm Rheinmetall was awarded a Aus$5.2 (US$4.1 billion) contract to supply the Australian Army with new armoured combat vehicles defeating a rival bid from BAE Systems.

The deal will see Rheinmetall supply 211 of its Boxer CRV vehicles to be built in Australia with a substantial input of local components and labor.

"The vehicles will provide improved safety to Australian soldiers on deployment and on exercises around the world," Prime Minister Malcolm Turnbull announced adding, "they will boost mobility and firepower on the battlefield in the decades ahead."

The wheeled armored combat machines, will replace the Australian Army's ageing Light Armoured Vehicle fleet. The Boxer CRV is designed to undertake both a range of missions in urban, jungle and amphibious areas.

The Boxers can withstand direct bomb attacks and heavy machine gun fire, and are part of a Aus$200 billion government investment in strengthening its defence force over the next decade.

The armoured vehicles are equipped with a main gun, light machine guns and various sensors to enable them to take on various types of threats. They can respond with a higher speed than many main battle tanks with similar levels of survivability.