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AM General Humming Along

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AM General will continue to produce Humvees for several foreign buyers under a five-year deal estimated to reach as much as $2.2 billion in value. Nine countries—Afghanistan, Iraq, Ukraine, Jordan, Slovenia, Bahrain, Columbia, Bosnia and Kenya—have all placed orders for the vehicles, currently valued at $550 million. Sold under the US government's foreign military sales program, the approval allows for production and sale of 11,560 Humvees, but AM General President and CEO Andy Hove told reporters that the company may need to look at raising the $2.2 billion ceiling on the contract to meet demand. According to the firm, there are 250,000 Humvees currently operating in 50 countries, half of which are in the US fleet. The firm lost out to Oshkosh to build the US military's Joint Light Tactical Vehicle (JLTV), the Humvee's eventual replacement, and instead are focusing its efforts on increasing its share of the international market.

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