December 20, 2002
GM sells Light Armoured Vehicle business for U.S.$1.1 billion
New York – General Motors has sold its Light Armored Vehicle (LAV) business to General Dynamics Corporation for approximately U.S.$1.1 billion in cash. GM will retain its Military Trucks business, which is located in Troy, Michigan.
GM Defense, headquartered in London, Ontario, is a group of GM-owned business units engaged in the design and production of LAVs and supporting turret systems for military use. The group comprises research, design, and manufacturing facilities in London, Ontario; Goleta, California; Adelaide, Australia and Kreuzlingen, Switzerland, the birthplace for the Light Armored Vehicle (LAV) technology used today by GM Defense around the world.
GM Defense employs approximately 2,400 people. As the leading worldwide producer of LAVs, GM Defense has vehicles in service with the United States Marine Corps, the Canadian Army, and with other military forces around the globe. The operations’ largest order – the U.S. Army’s STRYKER Brigade Combat Team program – is currently being supplied through an established joint venture with General Dynamics Land Systems.
The sale of GM Defense has been approved by the boards of directors of both companies and is subject to regulatory review. The transaction is expected to close in the first quarter of 2003.