Sweden’s military vehicles manufacturer BAE Systems Hägglunds has filed an appeal against the Swedish army over a controversial armored cars order.

Last week Finnish Patria, producer of a wide range of defence, aviation and aerospace technology, was awarded a €240 million contract with the Swedish army including 113 Patria AMV (Armoured Modular Vehicle) and system equipment.

The verdict was a blow to Swedish Hägglunds, a subsidiary of the British defence contractor BAE Systems, who was hoping to sell its combat vehicle SEP.

As a result between 300 and 400 employees will lose their jobs at BAE Systems Hägglunds in Örnsköldsvik, which equals 30 - 40 percent of the total workforce, the company said.

In a move to win back the contract BAE Systems Hägglunds has filed a lawsuit with the Stockholm District Court. Hägglund claims that the administration department has violated rules for public bidding, Swedish state television's Rapport reports.

Due to the lawsuit, the contract with the Finnish company is temperately postponed. The deal will not get a go-ahead until the Stockholm District Court has came to a conclusion whether the public bidding was made correctly or not. 

The decision to go with the Finns, that was made by the Swedish Defense Material Administration, FMV, has raised a political debate in Sweden since the taxpayers have invested some 1 billion kronor (€91 million) in Hägglunds’ SEP.

The opposition party Social Democrats urged FMV to choose Hägglunds in order to save Swedish jobs.

However, FMV said that the Finnish company simply delivers a better vehicle. 

“After a comprehensive evaluation of test results, performance, economy etc, we are convinced that we have reached the best decision based on the operational requirements the Swedish Armed Forces has set”, said Peter Elmlund, project manager for the contract at the Swedish Defense Material Administration.