(IsraelNN.com) The Merkava has been one of the most expensive projects in the history of the Israeli military, with estimated costs ranging from US $ 7.5 billion to US $10 billion since its conception in 1969 by Major-General Israel Tal.

Thousands of Israelis are employed in production plants and other related military industries that are involved in manufacturing the tank. It is not yet clear how the shutdown will impact the economy. It is certain that many workers will lose their jobs and primary source of income.

According to the Globes business news website, the IDF made the decision to end production of the tank shortly before the recent war with Hizbullah terrorists in southern Lebanon broke out. Although the Merkava has enjoyed a reputation for years as being the safest tank in the world, it proved vulnerable to the new, advanced Russian-made anti-tank missiles used by Hizbullah. During the war, 47 tanks were hit by rockets and two were destroyed by roadside bombs, resulting in the deaths of 33 IDF soldiers.

Defense officials are currently debating whether the tank is still useful altogether in modern-day ground warfare, having been designed primarily for classic tank-on-tank battles. The cost-benefit ratio over the years has been questioned, not only by defense officials, but by others as well.