Sen. Baldwin Blasts Army for Awarding Vehicle Contract to Out-of-State Firm
Switch from Oshkosh Corp. to private equity backed company will cost taxpayers, she charges.
Oshkosh Defense said it was “laser focused” on keeping manufacturing of the Joint Light Tactical Vehicle (JLTV) in Wisconsin when the contract is rebid in early 2023. Courtesy of Oshkosh Corp.
A Wisconsin U.S. senator says the Army mishandled a major vehicle contract by giving it to a private equity-backed company instead of a Fox Valley manufacturer.
Democratic Sen. Tammy Baldwin sent a letter to U.S. Army Secretary Dan Driscoll last week, raising concerns about production delays for Joint Light Tactical Vehicles, or JLTVs, and calling for the military to pursue new contracts for the vehicles.
In 2023, the Army awarded a five-year, $8.6 billion contract to produce 20,000 JLTVs to Indiana-based AM General instead of Oshkosh Defense, a subsidiary of Oshkosh Corp. Oshkosh Defense had produced the original JLTVs under the previous contract, according to the letter.
Baldwin first objected when the contract was awarded to AM General three years ago, noting the company was sold to a New York-based private equity firm in 2020.
Now, she says those fears have been validated.
“The failed attempt to pivot away from Wisconsin’s metal-tested companies and workforce has come at a cost to taxpayers and put our service members at risk,” Baldwin said in a statement to WPR.
The senator wrote that AM General is “nearly two years late in delivering JLTVs” and the Department of Defense has yet to accept a single “production standard” JLTV. That’s “despite nearly $2 billion in taxpayer dollars being obligated to AM General since the contract was awarded,” the letter adds.
Last year, the Army announced plans to move away from the JLTV and did not request funding to procure the vehicle for the 2027 budget, according to the letter.
But the Army still administers the JLTV contract for the entire Defense Department. And Baldwin says other service branches continue to need the vehicles.
Last month, the U.S. Marine Corps issued a request for information “to identify potential sources capable of providing” JLTVs or similar vehicles.
In a statement to WPR, Baldwin said the military needs to “get JLTV production back on track immediately” and to “allow for other service branches to use experienced companies like Oshkosh.”
Senator Tammy Baldwin speaks at a press conference on November 12, 2025. Steph Conquest-Ware/WPR
Oshkosh Corp. is trying to position itself as a viable second supplier of the vehicles following the Marine Corps’ request for information, according to Breaking Defense.
According to Baldwin’s office, the Wisconsin company has capacity to produce around 1,200 JLTVs per year once fully ramped up.
“Once production lines shut down and skilled workers are laid off, it’s difficult to bring them back online,” Baldwin said in a statement to WPR. “Wisconsin workers have a proud history of contributing to our nation’s defense, including nearly a decade of experience building JLTVs.”
An Oshkosh Defense spokesperson said the company has a “long history” of building military vehicles and “stands ready” should the Marine Corps or Defense Department request additional JLTV production.
Oshkosh Corp. is the largest employer in the city of Oshkosh, with about 2,800 employees, according to the Greater Oshkosh Economic Development Corp.
The loss of the JLTV contract contributed to a decline in Oshkosh Corp.’s sales and income in 2025 compared to 2024.
Specifically, the company’s defense transport sales fell from roughly $2.05 billion in 2024 to $1.62 billion in 2025, according to its end-of-year earnings report.
“As expected, defense vehicle revenue was lower compared with last year due to the wind down of the domestic JLTV program,” said Matthew Field, chief financial officer for Oshkosh Corp., during the fourth quarter 2025 earnings call.
Oshkosh Corp.’s corporate headquarters in Oshkosh, Wis. Joe Schulz/WPR
Last year, Oshkosh Defense also announced it would lay off approximately 160 workers in early 2026. At the time, United Auto Workers Local 578, which represents workers at defense plants in Oshkosh, said the company hadn’t properly responded to the loss of the JLTV contract and criticized the firm for shifting work outside Wisconsin.
Earlier this month, Oshkosh Defense announced that it had received $142 million in orders for its Family of Medium Tactical Vehicles from the U.S. government and its international allies.
A spokesperson for the company said via email that work on those orders “will be done in Oshkosh.”
Bob Lynk, president of UAW Local 578, said in a statement that if Oshkosh Defense won back JLTV production he wants the work to come to union-represented plants in Oshkosh.
About 15 years ago, the local had more than 3,000 members, he said. Today, that’s fallen to a little more than 1,000.
“With our workforce that is trained to handle the stress of the obligation of providing quality for the customer, we want everyone back from layoff, (as well as) growth and continued sustainable income for an area that has relied heavily on Department of Defense spending,” Lynk said. “Our people will take on any challenge.”
Sen. Baldwin blasts Army for giving vehicle contract to out of state firm was originally published by Wisconsin Public Radio.
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