In a bit of disconcerting news, the Australian government has revoked its previous agreement to have Australian based BAE Systems armor the next batch of government limos.
Previously, the $6 million AUD contract had been awarded to BAE Systems in 2012 to fortify and armor the Holden Caprice for state use, but the latest report from CarsGuide has the government completely nixing the agreement in favor of German automaker, BMW.
The Aussie government deemed the contract it had struck with BAE to build and fortify the Holden Caprice was “too risky.” At the time, the government argued Holden had not tendered a bid, but new information in the report shows the company did indeed submit a bid, and were successful.
After the newest Australian party came to power, it withdrew industry support for Holden. Almost immediately after the announcement, Holden announced it would cease manufacturing in 2017.
A South Australian senator is questioning the whole process saying the government is waging an “irresponsible campaign against the Australian car industry.”
Countering this statement, the Aussie government said it had received four bids total for the new limos. But shortly after awarding the contract to BAE/Holden, it realized the two could not guarantee the required level of production.