because they would induce too much drag without providing sufficient propulsion. Compared against a conventional propeller, the water jet propulsion system is less efficient, but more durable and offers better manoeuvrability. The top speed when swimming in calm waters is ≤11 km/h; the Pandur II has a sea state rating of 1–2. Production The Pandur 8x8 APC is manufactured in Austria while export versions are also built in the Czech Republic and licensed versions in Barreiro, Portugal. Versions Pandur II 8x8 Pandur II 6x6 Variants by country Portuguese variants In 2005, the Portuguese government signed a deal worth 364 million euros to acquire 260 Pandur II armoured vehicles, with an option for further 33 worth 140 million euros, to equip the Portuguese Intervention Brigade of the Portuguese Army and the marines of the Portuguese Navy. Portugal was the first country to buy the Pandur II. The sale of Pandur II to Portugal includes an associated offset agreement for a value of 516 million euro. The Pandur II (Viatura Blindada de Rodas) for the Portuguese Army is fitted with Steyr add-on armour that provides Level 4 protection according to STANAG 4569. The vehicles for the marines are equipped with Level 3 armour and have a cargo ramp instead of the original doors. Legal dispute In 2002, the Portuguese Ministry of Defence decided that they would need new 8×8 APCs. After they had requested for tender on 14 August 2003, three companies – (Finnish arms maker Patria Oyj, Steyr-Daimler-Puch Spezialfahrzeuge (now part of General Dynamics), and MOWAG (also part of General Dynamics)) – made their offers. In December 2004, Steyr-Daimler-Puch Spezialfahrzeuge's Pandur II was chosen; the Portuguese Ministry of Defence signed a 365 million Euro contract about the purchase of 260 units of the Pandur II with General Dynamics on 15 February 2005. The contract also included an option of additional 33 units. The first 260 units of the Pandur II were supposed to be built by General Dynamics European Land Combat Systems in Austria (41 units) and by Fabrequipa in Portugal (219 units), from 2006 to 2009; on 27 January 2007, production at Fabrequipa commenced. In March 2009 General Dynamics announced that they intended to move the production from Portugal to Czechia. On 8 May 2010, the Portuguese Minister of Defence announced that the Ministry of Defence would charge General Dynamics with breach of contract, because they had failed to deliver