UPDATE 1-Pentagon chief lauds Oshkosh's Afghan truck out

* Gates tours Oshkosh MRAP truck production line

* Says Pentagon may buy more Oshkosh trucks

* Hails Oshkosh performance (Changes dateline, updates throughout)

By Jim Wolf

OSHKOSH, Wisconsin, Nov 12 (Reuters) - U.S. Defense Secretary Robert Gates heaped praise Thursday on Oshkosh Corp (OSK.N), a Wisconsin truck maker, for speeding potentially lifesaving all-terrain trucks to U.S. troops in Afghanistan.

"What is taking place here is an amazing display of industry and dedication to the war effort," he said after touring the main production plant for a new class of sand-colored, armored, off-road vehicles.

Rushing the trucks to the field is a high priority because more than 80 percent of U.S. casualties in Afghanistan are caused by roadside bombs and other improvised explosive devices, or IEDs, Gates said.

The company aims to build 1,000 of the vehicles per month by the end of this year, up from 46 it built in July after receiving the initial contract on June 30.

Overall, Oshkosh is due to produce about 6,600 of the MRAP All-Terrain Vehicle, or M-ATV. Gates, speaking to reporters on his flight here, said the Pentagon might buy more if President Barack Obama decides to add troops as part of a review of Afghanistan options expected to wind up soon.

Gates said he was setting up a Defense Department-wide task force to boost U.S. offensive and defensive efforts against roadside bombs and other improvised explosive devices, or IEDs. He said he would make this a top personal priority for the next six months and he wanted monthly updates from the task force. It is be co-chaired by the Pentagon's chief weapons buyer, Ashton Carter, and Lt. Gen. John Paxton, the joint chiefs of staff official in charge of operations.

The new M-ATVs are lighter, more nimble and better suited to Afghanistan's rugged mountain terrain than the MRAP used in Iraq, its larger mine-resistant, ambush-protected predecessor.

Gates made speeding the larger MRAPs to Iraq the Pentagon's top acquisition priority months after becoming defense secretary, initially in for President George W. Bush.

The last time the U.S. military had moved from concept to full production of new equipment in less than a year was World War 2, he told assembled Oshkosh workers. Gates said Oshkosh's quick increase in production of the M-ATV's was a reminder that "the best solution isn't always the most elaborate."

On the eve of Gates' visit, the company said Wednesday it had received a new, $438 million order for the Afghanistan-bound armored trucks.

The order, the fifth in a series, was for 1,000, boosting the number it is under contract to deliver to 6,219 for more than $3.2 billion, the company said.

The first seven MRAP All-Terrain vehicles, or M-ATV, were shipped to Afghanistan in September. The Pentagon, concerned by the growing toll of roadside bombs on troops there, is now flying them as well as shipping them by sea.

Oshkosh also won a potential $3.5 billion U.S. Army contract in August to build mid-sized supply trucks.

However, BAE Systems Plc (BAES.L), the incumbent and larger manufacturer, and Navistar International Corp (NAV.N), another rival, have formally challenged that award, known as the Family of Medium Tactical Vehicles.

Oshkosh Chief Executive Robert Bohn said last week the company expected the contract award to withstand the protests. The Government Accountability Office, Congress's audit and investigative arm, is due to rule on the matter by Dec. 14.

(Reporting by Jim Wolf; Editing by Bernard Orr)