BAE Systems has lost the race to build the British army’s next generation of “Scout” armoured vehicles, beaten by General Dynamicsof the US in the competition for a contract worth more than £1bn.
The US company’s victory is a heavy blow for BAE and will put at risk jobs at the UK company’s armaments division.
Quentin Davies, defence minister, is shortly expected to name General Dynamics as the preferred bidder in the deal to build an initial 750 vehicles.
However, there will be a delay of at least a year for a planned upgrade of the Warrior armoured vehicle.