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MoD may buy foreign

30th March 1989, Page 16
30th March 1989
Page 16
Page 16, 30th March 1989 — MoD may buy foreign
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Which of the following most accurately describes the problem?

• The row over who should pay for modifications to 2,500 Mark II diesel-engined Land Rovers supplied to the army (CM 21-27 July 1988) has persuaded the Ministry of Defence to invite Land Rover replacement tenders from foreign manufacturers. Land Rover confirms that the MoD has not bought any Land Rovers for more than a year, simply because none have become due for replacement.

The MoD says it wants to pick its next batch of "vehicles of the Land Rover type" through "the competitive pro cess". Land Rover will be invited to tender, but the company fears that high volume Japanese producers may undercut it.

British forces contracts represent about 2% of Land Rover's sales, but a pull-out by the MoD would have a serious knock-on effect on foreign sales as the vehicles are in service with more than 40 armies around the world.

The MoD is now evaluating an Isuzu-powered version of the Land Rover (as used by the Australian army) and a Mit. subishi.

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