Brazilian Army Signs €2.5 Billion Defence Vehicle Supply Contract

IVECO Defence Vehicles announces that
on December 18, 2009 the Brazilian Army
signed a contract for the supply of 2044
units of the base model of the new family
of armoured personnel carriers (VBTPMR).
The vehicles will replace the old
models Urutu used today by the Brazilian
armed forces. The contract is valued at 6
billion Brazilian Reais (about €2.5 billion)
over 20 years and also includes logistic
support.

The manufacturing batch of 2044 units is
planned to start in 2012, with completion in
2030. The production of models, including
engines, will take place in Brazil, where
Iveco LA supported by Iveco Defence
Vehicles will prepare a defence dedicated
unit including Research, Sales &
marketing, Production, Quality and
Aftersales organization. The local supply
chain will involve more than 100 direct
suppliers and some hundreds of indirect
suppliers.

The agreement was signed at a ceremony
held at the Army Headquarters in Brasilia,
attended by General Enzo Martins Peri,
Commander of the Brazilian Army,
General Fernando Sérgio Galvao, Chief of
Army Staff, the President of Iveco Latin
America, Marco Mazzù and the General
Manager of Iveco Defence Vehicles, Pietro
Borgo.

The VBTP-MR project is part of the National Defence Strategy which includes the
reorganization of domestic defence to ensure that the equipment needs of the Brazilian armed
forces are supported by best-in-class technology.

For the Brazilian Army, the VBTP-MR project will increase the effectiveness of the land forces,
increasing capacity to act in several missions where the use of this type of vehicle is suitable,
with different settings (personnel carrier, reconnaissance, rescue, ambulance, etc.) to meet
various operational needs.

THE VBTP-MR VEHICLE

The VBTP-MR is a family of diesel engined vehicles with a GVW of 18 tonnes, 6×6 drive,
amphibious capability and capable of carrying 11 soldiers. The basic dimensions are 6.91
metres long, 2.7 metres wide and 2.34 metres high. The model can be equipped with a turret
armed with remote control operation for several different applications. The model can be
transported by an aircraft of type C-130 Hercules.
This family of armoured vehicles is currently under development. The work is being carried out
jointly by the Brazilian Army (through the project Mobility Strategy and the DCT – Department of
Science and Technology) and Iveco. Around 30 million Brazilian Reais (€12 million) has been
applied to the definition of this project in which major specialist Brazilian companies are also
involved. The whole development project has was made in Brazil with throughout support by
IVECO Defence Vehicles and its dedicated research and development organisation for specific
expertise and know-how in military vehicles.
The first prototype is under construction in Brazil and will be ready in the first half of 2010.

Another 16 units of a pilot batch will be produced by Iveco in Brazil between 2010 and 2011.
The VBTP-MR family is the result of the bidding process launched by the Army in 2007 and
won by Iveco. One of the decisive factors in this choice was the experience of Iveco Defence
Vehicles, which designs, produces and markets a full range of military vehicles, including
models similar to the Brazilian VBTP-MR. A full-scale mock-up of the VBTP-MR was exhibited
at the Latin America Aero and Defence (LAAD), the largest military equipment fair in Latin
America, held in Rio Centro, Rio de Janeiro in April 2009.

Pietro Borgo, General Manager of Iveco Defence Vehicles, commenting the contract, said “The
aim of the project is to develop a highly specialized knowledge base in military vehicles at
IVECO LA and to establish an IVECO Defence Vehicles presence in Brazil through the creation
of an Iveco Defence Vehicles do Brazil dedicated to the Brazilian Army”.

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