Donald Trump and Lockheed Martin Agree on Defense Spending

President Donald Trump and Lockheed Martin, both have the same view when they talk about the defense spending and providing value for money for US taxpayers, says CEO Marillyn Hewson during an interview with CNBC.

US President Trump criticized Lockheed Martin for the out of control cost of the F-35 fighter jet program. Since then the market value of the company fell by nearly $4 billion.

Lockheed’s Hewson was speaking to CNBC at the Paris Air Show and stated that she thinks that President Trump wants to communicate to the American people that he will increase the defense spending and he wants to ensure that those dollars are wisely spent and the company agrees with him.

According to reports from Reuters, Lockheed Martin is on the brink of finalizing a deal that is worth nearly $ 37 billion. It will sell a record 440 F-35 fighter jets to a group of 11 countries, which also includes US.

Hewson also stated that as there has been an increase in global security, the defense contractor based at Maryland will be able to deliver nearly 160 jets every year.

The Paris Air Show will see the stealthy F-35 fighter jet from Lockheed Martin for the first time this week.

As and when this deal is finalized, it will form the biggest deal till now for F-35.

There has been a major shift in sales practices this time. In place of an annual purchase it will be more of a multi-year deal which will lower the cost of each jet.

According to news published on Reuters, the price of jets is not yet clear, however, it is expected that the average cost of 440 jets will be $85 million.

A representative of Lockheed Martin stated that the company does not discuss the details of the contract and any announcement about the purchase will be made by the US government.

Last week, 11 customer nations of Lockheed Martin’s F-35 met to discuss the deal at Baltimore, Maryland. The 11 customer nations include Israel, Denmark, Australia, Netherlands, Japan, Italy, South Korea, Turkey, Norway, Britain and United States.

One thought on “Donald Trump and Lockheed Martin Agree on Defense Spending

  • June 26, 2017 at 4:48 pm
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