Question to the Ministry of Defence:

To ask Her Majesty’s Government why there is to be no assembly or production line for the Scout SV vehicle in the United Kingdom; and what, if any cost savings they anticipate as a result of that arrangement.

The contract let is in accordance with the Armoured Fighting Vehicle Sector Strategy, announced by the Ministry of Defence (MOD) on 23 June 2009. The strategy made clear that it is not necessary to retain industrial capabilities in the UK in order to achieve appropriate operational sovereignty. The strategy was intended to make greater use of the global market, particularly within the EU and NATO. This remains the case for Scout Specialist Vehicle. General Dynamics United Kingdom was selected on the basis of the best value for money for the MOD and has decided to use the production facilities at General Dynamics European Land Systems in Spain. Neither of the final competition bidders planned to assemble the entire vehicle in the UK; both planned to make best use of their established international facilities and supply chains. Following production of the first 100 vehicles, an option does exist to transfer vehicle assembly to the UK subject to an economic case being accepted.