European Nations Poised for Landmark CV90 Order
LONDON — BAE Systems is preparing for what could become the largest order in the history of its CV90 infantry fighting vehicle program. According to Peter Nygren, business development director at BAE Systems Hägglunds in Sweden, up to six European countries may place a joint order for hundreds of CV90s in the second quarter of 2026.
The group — Finland, Sweden, Norway, Lithuania, Estonia, and the Netherlands — agreed in June to explore a joint procurement plan. While all six are participating in discussions, their final involvement will depend on how far they are willing to harmonize requirements.
Nygren, speaking at the DSEI defense show in London, confirmed that the expected order would surpass previous contracts in scale. “We still don’t know exactly what nations will at the end be there,” he said. “But the number is big.”
The CV90: Europe’s Workhorse Infantry Fighting Vehicle
The CV90 has become one of Europe’s most widely adopted tracked combat vehicles, with more than 1,300 delivered and an additional 600 on order across 10 European operators. The latest CV90 MkIV weighs up to 38 metric tons and is designed with modular armor packages to counter threats including shaped-charge warheads.
Recent contracts in Czechia, Denmark, and Sweden place the per-unit cost between $9.5 million and $13 million, depending on configuration. Sweden’s donation of CV90s to Ukraine has further highlighted the vehicle’s battlefield survivability compared to Soviet-era designs. Ukrainian troops have praised its protection and reliability under high-intensity conditions.
Industrial Expansion to Meet Demand
To prepare for the surge in demand, BAE Hägglunds is investing $300 million to expand production. Nearly $200 million has already been spent, with a target of 250 vehicles per year by 2026 — a fivefold increase from the 50 produced in 2020.
The company is also considering scaling to 350 vehicles annually in subsequent years. A third welding line is being installed at its Swedish facility and should be operational by late 2026.
Nygren emphasized that production speed is now the overriding customer demand: “The customers have been very clear, time to deliver is the priority. That’s why we also in this case build on existing configuration.”
Strategic Interest Beyond Europe
While the upcoming joint procurement dominates Hägglunds’ planning, other nations are expressing interest. Brazil is viewed as a potential new client, and any deal would likely involve a technology transfer to local industry.
Nygren acknowledged growing global demand but stressed the need to stabilize production before taking on new customers. “There are many knocking on the door, but for us now to deliver is the number one priority,” he said.
Analysis: Implications for U.S. and Global Defense
For the United States, the European CV90 deal underscores a broader trend: NATO allies are rapidly modernizing ground combat fleets amid heightened security concerns following Russia’s invasion of Ukraine. The U.S. Army’s own Optionally Manned Fighting Vehicle (OMFV) program — the planned replacement for the Bradley Fighting Vehicle — faces direct comparisons to European platforms like the CV90.
The CV90’s proven battlefield record, modularity, and multinational adoption offer lessons for the Pentagon’s acquisition strategy. Standardization across allied forces could improve interoperability with U.S. troops during joint operations, while highlighting potential challenges if American and European platforms diverge significantly in design and capability.
Additionally, BAE Systems’ industrial expansion in Sweden reflects a global defense industry trend: surge manufacturing to meet wartime replenishment needs. For U.S. policymakers, it demonstrates the necessity of resilient supply chains and scalable production capacity — key issues spotlighted in the ongoing debate over U.S. defense industrial base readiness.
Conclusion: A Turning Point in European Land Warfare Modernization
If finalized, the 2026 CV90 order would cement the vehicle’s role as Europe’s standard infantry fighting vehicle, deepen defense integration among NATO allies, and set a new benchmark for armored vehicle procurement.
For BAE Systems Hägglunds, the deal will mark its biggest industrial challenge yet — scaling output to meet a surge in demand while maintaining quality and delivery speed. For the United States, the program offers both a benchmark and a warning: America’s defense industry must keep pace with allied modernization efforts or risk falling behind in coalition interoperability.
