GM Defense Bags $36.4M Contract To Build Heavy-Duty Suburbans For US Government Agencies

General Motors Co’s GM subsidiary GM Defense LLC has secured a contract from the U.S. Department of State to develop next-generation Large Support Utility Commercial Vehicles (SUV).
The total development contract is valued at $36.4 million. GM Defense will create a purpose-built Heavy-Duty (HD) Suburban, building 10 vehicles over the next two years.
GM Defense plans to deliver the vehicles in two phases, with the first delivery scheduled for next spring.
The HD Suburban will feature a new body-on-frame chassis and suspension to support increased government vehicle performance requirements with a higher payload capacity and greater ground vehicle weight.
GM expects a production contract to build a fleet of 200 HD Suburbans per year for nine years to help complete the contract in or about May 2023.
Price Action: GM shares are trading higher by 2.13% at $51.82 on the last check Wednesday.