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Thu January 6, 2011
Defense Dept cuts contract, costing potential jobs in Michigan
The Secretary of Defense says he wants to cancel a defense contract that would eliminate hundreds of potential new jobs in Michigan.
The contract would be for an amphibious vehicle for the U.S. Marine Corps. The Expeditionary Fighting Vehicle was intended to replace a Vietnam era model. A Sterling Heights based division of General Dynamics is the contractor that has been developing the 40 ton vehicle.
Peter Keating is a company spokesman. He says canceling the program now will cost as much as moving forward with production.
"We would expect our congressional delegation in Washington DC to take a look at that and in their wisdom decide if it’s something they’d like to support."
The marine vehicle has been plagued with cost overruns and other problems since the Reagan administration. Escalating costs prompted the U.S. Marine Corps to cut in half the number of Expeditionary Fighting Vehicles it planned to purchase. Keating insists past problems have been resolved.
Wikipedia has a great overview of the Expeditionary Fighting Vehicle program.