Penske Australia Awarded $40 Million Contract For Australian Army’s Boxer Combat Reconnaissance Vehicles

Penske Australia has signed a deed of agreement with Rheinmetall Defence Australia for the assembly of powerpacks for Boxer Combat Reconnaissance Vehicles.

In a deal worth approximately $40M, more than 100 power packs for the Land 400 Phase 2 Boxer vehicles will comprise of Rolls-Royce Power Systems mtu 8V199 engines and Allison 4800SP transmissions.

In addition to the assembly of the powerpacks, the agreement also includes the establishment of local assembly and testing capability, training, and the provision of compliance documentation.

Penske Australia’s team of specialist technicians will conduct local assembly and acceptance testing with production to be conducted at Penske Australia’s Wacol, QLD facility.

“This important agreement builds upon our long-standing history in supporting the Australian Defence Force platforms, both land and sea,” said Hamish Christie-Johnston, managing director of Penske Australia.

“It’s also a welcome extension of our relationship with Rheinmetall Defence Australia as a key industry capability provider and a member of Rheinmetall’s global supply chain.

“The combination of the highly reliable and powerful mtu engine and Allison transmission will deliver a robust powerpack solution that will serve the Australian Defence Force well for decades to come.”

Upon completion, Penske Australia will deliver the power packs for integration into the vehicles to Rheinmetall Defence Australia’s Military Vehicle Centre of Excellence (MILVEHCOE) at Redbank, South-East Queensland.

Rheinmetall Managing Director, Gary Stewart, said: “Rheinmetall is delighted to sign this agreement with Penske Australia today to deliver the Australian Army’s stated operational needs.

“Rheinmetall, as the largest supplier of military vehicles to the Australian Defence Force, recognises that agreements like this one contribute to paving the way for Boxer to be deployed, enabling Australian soldiers to operate in high threat environments.

“With the Australian Army’s recent declaration of the Boxer Combat Reconnaissance Vehicle initial operational capability, Penske joins the Rheinmetall Australia industry network for this critical capability.

“What we do matters to those who serve,” Mr. Stewart said.

Penske Australia anticipates delivering the first powerpacks in late 2023, with the final delivery expected in early 2026.

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