The Infantry Squad Vehicle shares 90% of its components with a Chevy Colorado. The top Trim Colorado costs $30K usd or so, but the the ISV costs $330k. What makes up the 10% difference between the Colorado and the ISV?

Question

Not trying to hate. Maybe it’s armour, maybe it’s guns, but that is a big difference.

In: Economics

Answer 1

A lot of it is the armor and the guns, but also the radios, navigation aids, first aid equipment, armored windows, heavier suspension, the wheels, tires etc.

The other huge price hog that a lot of people don’t realize at first glance is the certifications — the military doesn’t just buy commercial and throw it into the battlefield. Vehicles and equipment has to be rigorously tested under a variety of conditions to ensure that they will perform as expected. People’s lives are on the line, and that necessitates a bare minimum of performance. And performance is expensive. So all the above gear has to meet stringent guidelines as well, which jacks up the cost.