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Lockheed Chief Pledges Lower Costs for F-35 Fighter Jet Lockheed Chief Pledges Lower Costs for F-35 Fighter Jet and Add 1,800 Jobs
(about 1 hour later)
The chief executive of Lockheed Martin, Marillyn A. Hewson, said Friday that the company was “very close to a deal” to slice the costs for the new F-35 fighter jet, after weeks of talks with President-elect Donald J. Trump and his team about the jet. The chief executive of Lockheed Martin, Marillyn A. Hewson, said on Friday that the company was “very close to a deal” to reduce the cost of the new F-35 fighter jet, after weeks of talks with President-elect Donald J. Trump and his team about the plane.
Speaking after meeting at Trump Tower, Ms. Hewson also pledged to add 1,800 jobs to the contractor’s Fort Worth location, although she did not go into specifics about whether the positions would be new or if they would be shifted from elsewhere. Lockheed was already expected to build more planes. Ms. Hewson, speaking after a meeting with Mr. Trump at Trump Tower, also pledged to add 1,800 jobs at the Lockheed Martin’s Fort Worth location, although she did not provide specifics.
“It’s going to bring a lot of jobs to the United States,” Ms. Hewson said. “I certainly share his views that we need to get the best capability to our men and women in uniform and we have to get it at the lowest possible price.” The government’s next contract in the F-35 project would cover 90 planes, compared with 57 in the previous batch. The increase was in the works before Mr. Trump was elected, and other Lockheed officials said the added positions would come as production increases.
Lockheed Martin depends on the F-35 for nearly a quarter of its revenue. But the cost of building the military’s next-generation fighter jet, the F-35 Joint Strike Fighter, has been a sore point for the Defense Department for years. Mr. Trump has criticized the cost and promised to make changes to the program. “I certainly share his views that we need to get the best capability to our men and women in uniform and we have to get it at the lowest possible price,” Ms. Hewson said of Mr. Trump.
At an estimated $400 billion for 2,443 planes — which are being built in different versions for the Air Force, the Marines and the Navy — the high-tech fighter is by far the military’s largest weapons project, and it is long overdue. Lockheed Martin depends on the F-35 for nearly a quarter of its revenue. But the cost of building the next-generation fighter jet, the F-35 Joint Strike Fighter, has been a sore point for the Defense Department for years. Mr. Trump has criticized the cost and promised to make changes to the program.
But even before the latest pronouncement, the price of the plane had typically been dropping with each batch produced. In early November, days before the election, the Pentagon said it had unilaterally imposed a 3.7 percent price cut on the average cost of the planes over the previous batch after Lockheed had refused to agree to the decrease. The contract is valued at $6.1 billion for 57 planes. At an estimated $400 billion over 15 years for 2,443 planes — which are being built in different versions for the Air Force, Marines and Navy — the high-tech fighter is by far the military’s largest weapons project, and it is long overdue.
Even without Mr. Trump’s pressure, the Pentagon would most likely have pushed for further price cuts. Mr. Trump has been pressing the cost issue very publicly over the last couple of months in a variety of ways, including on Twitter and in meetings with military contractors. In a Twitter post in December, Mr. Trump attacked the cost overruns for the fighter jet and pledged to save money. But even before Ms. Hewson’s announcement on Friday, the price of the plane had typically been dropping with each batch produced. In November, days before the election, the Pentagon said it had unilaterally imposed a 3.7 percent price cut on the average cost per plane over those produced in the previous batch after Lockheed refused to agree to that decrease. The contract for the 57-plane batch is valued at $6.1 billion
At one point, the president-elect said he had asked Lockheed’s rival, Boeing, for a price quote on the most comparable version of its older F/A-18 Super Hornet, although military analysts do not see the two planes as equivalent. Even without Mr. Trump exerting pressure, the Pentagon would probably have pushed for further price cuts. The president-elect has been pressing the cost issue publicly in various ways, including on Twitter and in meetings with military contractors. In a Twitter post in December, he criticized the cost overruns for the F-35 and pledged to save money.
Mr. Trump is just the latest in a long line of critics in both parties who have beaten up on the 15-year project only to see it survive, owing to its deep political support across the country. Lockheed has spread work on the F-35 to hundreds of subcontractors in most of the 50 states, and members of Congress typically oppose any cuts that would cost jobs in their states or districts. At one point, Mr. Trump said he had asked Lockheed Martin’s rival, Boeing, for a price quote on the most comparable version of its older F/A-18 Super Hornet, although military analysts do not see the two planes as equivalent.
The F-35 was designed as a state-of-the-art aircraft for all branches of the military, with the goal of overwhelming adversaries with technological superiority. The jet would be able to evade radar and dodge sophisticated antiaircraft missiles while giving pilots a better picture of enemy threats advancing toward them. Mr. Trump is the latest in a long line of critics from both parties who have assailed the 15-year project only to see it survive, owing to its deep political support across the country. Lockheed Martin has spread work on the F-35 to hundreds of subcontractors in most of the 50 states, and members of Congress typically oppose cuts that would cost jobs in their states or districts.
The F-35 was conceived as a state-of-the-art aircraft for all branches of the military, with the goal of overwhelming adversaries with technological superiority. The jet is designed to be able to evade radar and dodge sophisticated antiaircraft missiles while giving pilots a better picture of enemy threats advancing toward them.