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Indiana Military Contractor Loses Multi-Billion Dollar Deal

One of Indiana's biggest military contractors has lost out on a big defense contract.

The Department of Defense was deciding between the South Bend-based company AM General and two other businesses for a contract that would replace about 55,000 Humvees over the next 25 years.

The contract, which was worth about $6.7 billion, will instead be given to a Wisconsin company.

Indiana's total defense industry has declined by about $6 billion since 2008, largely because of a drop in contracts for AM General, as well as national defense cutbacks.

AM General has landed some major contracts this year, though.

The company was selected for a $373 million multi-year deal to build vehicles for foreign militaries.

AM General will also be moving some of its production of the Mercedes-Benz R-Class to their Mishawaka plant. Those cars are being sold on the Chinese market.

Network Indiana contributed to this report.