GENERAL DYNAMICS LAND SYSTEMSGeneral Dynamics (NYSE: GD) headquartered in Falls Church, Virginia, employs approximately 72,700 people worldwide and had 2005 revenues of $21.2 billion. The company has four main business segments: Aerospace, Combat Systems, Information Systems and Technology, and Marine Systems. General Dynamics has leading market positions in business aviation, aircraft services, land and amphibious combat systems, mission-critical information systems and technologies, shipbuilding and marine systems. The company is a leading supplier of sophisticated defense systems to the United States and its allies, and sets the world standard in business jets. Land Systems, headquartered in Sterling Heights, Michigan, is a wholly owned subsidiary of General Dynamics Corporation. The company designs and builds armored vehicles and subsystems for the U.S. Army, U.S. Marine Corps, and international customers, and is the defense industry's largest supplier of armored military vehicles HistorySince World War II, Land Systems and its predecessor company, Chrysler Defense, have produced more than 57,000 tanks and other combat vehicles. General Dynamics Land Systems was formed in 1982 when General Dynamics acquired Chrysler Corporation's defense operations. In March 2003 the assets of GM Defense were purchased by General Dynamics Corp. and combined with Land Systems. Today Land Systems has approximately 7,400 employees in 11 states; Alabama, California, Florida, Kentucky, Maryland, Michigan, Minnesota, Ohio, Pennsylvania, Virginia and Washington, and at several international operations in Canada, Switzerland and Australia. Land System's principal products are the U.S. Army's M1A2 SEP Main Battle Tank, the U.S. Marine Corps' Expeditionary Fighting Vehicle (EFV), the Army's Stryker armored wheeled vehicle, and various robotic initiatives. Land Systems operates the United States' only main battle tank production facility in Lima, Ohio, as well as satellite plants, where Abrams components are fabricated and assembled. The company also designs and manufactures medium weight wheeled combat vehicles, and amphibious combat vehicles. As a systems integrator, the company designs, engineers and manufactures land and amphibious combat vehicles for domestic and international sale. It was the world's first contractor to provide command, control, and communications systems developed and integrated on armored combat vehicles. Engineering research, development, and technological innovation keep Land Systems in the forefront of the U.S. Army's armored force modernization programs. Land Systems has broadened its product and customer base to include armored vehicle systems in the medium and light weight classes. Recent achievements in this strategy were the capture of the Marine Corps Expeditionary Fighting Vehicle contract (1996), and being selected by the U.S. Army in 2000 to provide a new lightweight, wheeled combat vehicle for its Medium Brigade Combat Team (Stryker). The acquisitions of AV Technology (1998) , Robotic Systems Technology (1999) and GM Defense (2003), significantly expanded Land Systems portfolio in the international wheeled combat and robotics vehicle market. MissionGeneral Dynamics Land Systems provides a full spectrum of land and amphibious combat systems, subsystems, and components worldwide. Our strengths are world-class design and systems integration, superior production and innovative life cycle support. We will deploy these strengths to meet our customer's needs in a changing world. VisionWe will secure our future by meeting the needs of our customers, engaging our employees, empowering strong work teams and rewarding our shareholders. A Broadening Product and Customer BaseLand Systems plays an integral role in the U.S. Army's core product development programs and in its modernization plans. The Abrams tank, Future Combat Systems, Mounted Warrior, Land Warrior, Autonomous Navigation Systems, Stryker, Fox, and AIM programs are key to the Army's future. Land Systems is also partnering with the USMC on its highest priority ground combat vehicle program, the Expeditionary Fighting Vehicle (EFV). For NATO and allied nations, Land Systems provides various configurations of the Light Armored Vehicle (LAV). General Dynamics is America's sole source for main battle tanks and is responsible for the M1A2 Abrams tank upgrade program in which 588 early model M1 tanks are being upgraded to the latest M1A2 System Enhancement Package (SEP) configuration. The upgrade work is done at the Joint Systems Manufacturing Center (JSMC) in Lima, Ohio. The M1A2 SEP program upgrades Abrams tanks with the Army's newest command and control system, second-generation thermal sights, color displays, and improved armor. Land Systems is playing a significant role in the Army's Future Combat System (FCS) effort. In January 2003, the Defense Advanced Research Projects Agency (DARPA) and the U.S. Army selected Land Systems to work with the FCS Lead Systems Integrator (Boeing/SAIC) to form an Integrated Design Team ("One Team") for the Manned Ground Vehicle portion of the FCS program. FCS, the U.S. Army's flagship transformation program, is a networked "system of systems" that uses advanced communications and technologies to integrate the soldier with "families" of manned and unmanned platforms and sensors. This highly agile and lethal force will provide the tactical formations required to fulfill the Army's vision for an Objective Force. The Army plans to "spin-out" FCS capabilities into the current force in 2008, 2010, 2012, and 2014, when the 1st FCS unit of action is fielded. The Mounted Warrior Soldier System represents the integration of command, control and communications, and computer equipment into the protective clothing and equipment of the soldier. This gives the soldier situation awareness and battle command similar to what is available in combat vehicles. Land Warrior soldiers will be equipped to develop the battlefield situation interoperable with the Stryker vehicles. The Land Warrior system gives battlefield leaders the ability to effectively update the tactical plan and communicate that plan to the infantry soldiers using the tactical internet via the Stryker The Stryker is an important product for Land Systems. In November 2000, the former GM Defense and General Dynamics Land Systems, were awarded a six year $4 billion contract to equip its new Brigade Combat Teams with 2,131 interim-wheeled vehicles through a series of orders through 2007. Total vehicle orders now stand at 2,548 for seven Brigade Combat Teams. These new armored-wheeled vehicles are the interim step in the U.S. Army's effort to transform itself into a more agile and deployable force. They are assembled at company plants in London, Ontario and Anniston Army Depot and come in 10 different configurations. Land Systems is working with the U.S. Army Chemical Corps to upgrade 120 Fox NBCRS vehicles with new capabilities at the Anniston Army Depot. The Fox M93A1 Nuclear, Biological, and Chemical Reconnaissance System is a wheeled vehicle that protects its crew as they detect, sample, and mark battlefield contamination. Land Systems' Robotic Systems facility in Westminster, Maryland, also builds the Chemical Corps' M56 Coyote and M58 Wolf smoke-generation systems. In partnership with Anniston Army Depot, Land Systems is also executing a refurbishment program for more than 770 M1A1 Abrams tanks. The unique partnering agreement, called Abrams Integrated Management (AIM), updates the oldest M1A1s to a like-new condition using the skills of both private and public defense industries. The Army is funding the program at a rate of more than 120 tanks per year. Another major Land Systems customer is the U.S. Marine Corps. Land Systems is partnering with the USMC on its highest priority modernization program, the EFV. Land Systems' Amphibious Systems operation in Woodbridge, Virginia is designing and will build the new Expeditionary Fighting Vehicle (EFV) for the Marine Corps in the 21st century. A demonstration/validation contract awarded in 1996 provided for the design, virtual prototyping, systems integration, fabrication, and testing of three prototype vehicles between 1996 to 2001. Under a $712 million contract awarded in 2001, GDLS is completing the design and development of the EFV, building and testing nine new prototypes, refurbishing the three earlier development prototypes, and supporting the Marine Corps initial operational test and evaluation and preparing for the production phase of the program. Initial EFV deliveries begin in 2007 and are planned to continue through FY 2018 when upwards of 1,000 production vehicles will have been delivered. Internationally the company's most successful combat vehicle program is the Light Armored Vehicle (LAV). The LAV has been exported or licensed for production in 19 countries. Originally designed by MOWAG, the Piranha family of 4x4, 6x6 and 8x8 vehicles is in serial production for Canada, Australia, New Zealand, Ireland, Switzerland, Sweden, and Spain. A versatile combat vehicle, it is adaptable to a variety of turret systems. The USA adopted a version called Stryker for its new Brigade Combat Teams. More than 4,000 LAVs are in service worldwide. FacilitiesLand Systems' main production plant (JSMC) is in Lima, Ohio. The JSMC is a government-owned contractor operated facility that fabricates and assembles armored combat vehicles. At a leased facility in Eynon, Pennsylvania, employees machine suspension components and subassemblies for armored vehicles. In Tallahassee, Florida, employees build and assemble electronic units for the M1A2 Abrams tank and M2 Bradley infantry-fighting vehicle. Land Systems' Robotic Systems operation in Westminster, Maryland is an industry leader in autonomous and semi-autonomous unmanned ground vehicle systems. Robotic Systems also produces smoke-generation systems and a variety of commercial products for customers including the U.S. Postal Service. The Sterling Heights Complex in Sterling Heights, Michigan, is Land Systems' headquarters. It houses the engineering, customer service and support, material acquisition, finance, and staff support functions. The Sterling Logistics Center is on the same campus and provides training and logistics technical support to customers around the world. FCS Facility in Warren, Michigan, is leading the design and development of the manned ground vehicle for the U.S. Army's Future Combat Systems program. The Muskegon Technical Center in Muskegon, Michigan, develops cuttiing edge technology and Systems for integration in current and future defense industry miltary applications. The Woodbridge Technical Center, in Woodbridge, Virginia, leads the EFV design and development effort for the USMC. It also designs turret systems for Light Armored Vehicles (LAVs). Examples include the LAV-25 turret, the 30mm turret, the 120mm Armored Mortar System and the Elevated TOW system. General Dynamics Land Systems-Canada operates a plant in London, Ontario, that assembles the Stryker for the U.S. Army and manufactures other LAV products for customers around the world. It is our international sales center for the LAV and 4x4 security vehicles to a variety of international police and military customers. It oversees the operations of General Dynamics Land Systems-Australia. Our facility in Adelaide, Australia, manufactures turrets for the South East Asian market. Business Priorities and CapabilitiesLand Systems' business priorities are to maintain its technological advantage with focused development efforts, continuously reduce cost to its customers, maintain and extend the tank franchise, pursue and develop other close combat vehicle franchises, and grow the combat information system segment of the business. Land Systems is well positioned for the future with a clear market niche and a strong array of capabilities. These capabilities include precision machining, experience with steel and aluminum and special armor, product fabrication, assembly, technical training, total package fielding, manufacturing technical assistance, contract logistics support services, systems integration, combat systems development, electronic production and assembly, software development, and prototype development. A Bright FutureLand Systems continues to evolve to meet the ever changing needs of its customers and the defense industry. Not long ago the company's major business was the heavy Main Battle Tank. Today, Land Systems designs and produces heavy, medium, and light-weight armored combat vehicles that are tracked, wheeled and amphibious. Land Systems has created new international and domestic business opportunities and has become a full-spectrum source for the world's finest armored vehicles, subsystems, and components. More information about General Dynamics Land Systems can be found on the worldwide web at www.gdls.com. More information about General Dynamics Corporation can be found on the worldwide web at www.generaldynamics.com
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