As high-level negotiations between BAE Systems Hägglunds and five European nations for a massive joint procurement of CV90 infantry fighting vehicles intensify, the Swedish manufacturer is doubling down on its expansion plans. Despite Estonia’s recent decision to withdraw from the multi-million dollar program, company leadership remains confident, describing the move as having only a „marginal” impact on the overall strategic trajectory.
Silver Lining: Faster Deliveries for Remaining Allies
The withdrawal of Tallinn, which has opted to prioritize air defense over expanding its armored fleet, is being viewed by BAE officials as an opportunity for the remaining partners. With Estonia out of the loop, Finland, Sweden, Norway, Lithuania, and the Netherlands may see their delivery timelines shortened. While Estonia intends to focus on upgrading its existing fleet of 50 vehicles, the current negotiations with the other five nations are moving ahead at full speed, with expectations to close the deal by the third quarter of this year.
Industrial Overhaul: Aiming for One Vehicle Per Day
To meet the soaring demand for armored platforms, BAE Systems is executing a massive industrial upgrade at its Örnsköldsvik facility. Having already invested $300 million and tripled its workforce since 2020, the firm has announced an additional $150 million capital injection planned for 2026-2028. This expansion is designed to push production capacity to roughly one CV90 per day. With an order book already sitting at 600 units and the joint European procurement expected to add at least 500 more, the production lines are projected to remain at full tilt until at least 2032.
Lessons from the Frontline: Redesigning for the Drone Era
The combat performance of 50 CV90s deployed in Ukraine has provided invaluable data for the program’s future. While the vehicle has earned a reputation for exceptional crew protection—with company reports stating no fatalities have been recorded inside the vehicles during combat—the conflict has also highlighted new vulnerabilities. The „drone war” in Ukraine has prompted BAE to integrate specialized upgrades into newer models to counter unmanned aerial threats, ensuring the CV90 remains relevant in an increasingly technological battlespace.
