WASHINGTON — The U.S. Army has awarded Rolls-Royce Solutions America Inc. a $39.1 million contract modification to manufacture additional power packs for Israel’s Eitan 8x8 armored personnel carrier (APC).
The modification, designated P00011 to contract W56HZV-23-C-0054, is the 11th change to the original contract and increases its total value to approximately $158.9 million. Work will be carried out at Rolls-Royce’s facility in Graniteville, South Carolina, and is scheduled to continue through September 11, 2027. Army Contracting Command at Detroit Arsenal, Michigan, is the contracting activity.
The modification is funded entirely through fiscal year 2010 non-expiring Foreign Military Sales (FMS) funds allocated for Israel. Such funds can remain available for eligible defense purchases beyond the fiscal year in which they were appropriated.
The order is part of a broader $180 million FMS case approved by the U.S. State Department in April 2025. The package covers additional Eitan 8V199TE21-D powerpack engines and components, U.S. government and contractor technical assistance, non-recurring engineering, logistics and program support. It expanded an earlier $85.5 million procurement case.
MTU 8V199TE21-D Powerpack
The Eitan uses the MTU 8V199TE21-D, an eight-cylinder turbocharged diesel engine producing approximately 750 horsepower. The engine is supplied as part of an integrated powerpack with an Allison 4800 Specialty Series automatic transmission.
Rolls-Royce Solutions America, headquartered in Novi, Michigan, is the principal contractor for the effort and operates within Rolls-Royce Power Systems. The MTU engine business is part of Rolls-Royce Power Systems and is separate from Rolls-Royce’s civil aerospace operations and Rolls-Royce Motor Cars.
Eitan 8x8 Armored Personnel Carrier
The Eitan was developed by Israel following operational experience during the 2014 Gaza conflict, with the aim of providing a faster wheeled armored vehicle alongside the heavier tracked Namer and replacing some of the capabilities of older M113 carriers.
The vehicle is roughly 8 meters long and weighs about 30–35 metric tons, depending on configuration. It carries a three-person crew and up to nine additional soldiers. Its protection includes a V-shaped hull, composite armor and the Iron Fist active protection system.
The Eitan can reach speeds of up to 90 km/h and is designed to provide protected infantry mobility while offering greater road mobility than heavy tracked platforms.
The first production Eitans entered Israeli service in May 2023. Following the October 7, 2023 attacks, the Israel Defense Forces accelerated their deployment, including operations in Gaza alongside other armored vehicles.
The Army and Rolls-Royce have not disclosed the exact number of engines covered by the new $39.1 million modification. Public information also does not specify how much of the broader $180 million 2025 FMS case has already been obligated.
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