Landmark 5-year contract
American Rheinmetall has definitized a military track order valued at $107.5 million (€94.1 million) under a landmark 5-year long-term contract. An undefinitized contract was awarded in August of 2024, allowing American Rheinmetall to begin production while final price negotiations continued. The 5-year contract is for the production and delivery of T-158 military track for the M1 Abrams Main Battle Tank, reflecting the U.S. Army’s trust and confidence in American Rheinmetall to meet critical supply demands and further advance modernization production efforts. The expedited timing of the original long-term contract award highlights the urgent need for sustainment military track to maintain readiness and support future operations.
Supporting Military Modernization
The T-158 military track system is an integral mobility component of the M1 Abrams Main Battle Tank, renowned for its heavy-duty design and replaceable track pads that ensure peak performance under the most demanding conditions. With a steadfast commitment to delivering advanced mobility solutions, American Rheinmetall’s portfolio boasts six distinct types of track, including T 158 and the T-161 military track system, which is designed for medium-sized tracked vehicles, such as the Armored Multi-Purpose Vehicle (AMPV), Bradley Fighting Vehicle (BFV), M270 Multiple Launch Rocket System (MLRS), and M109A7 howitzer.
“Securing $107.5 million worth of orders for the first year of this pivotal contract demonstrates American Rheinmetall’s dedication to supporting the U.S. Army’s modernization goals,” said Matt Warnick, CEO, American Rheinmetall. “This achievement underscores our commitment to equipping the men and women in uniform with reliable, high-performance systems that enable mission success.”
