President Trump’s input with Lockheed is definitely producing results and cutting costs. The latest batch of F-35 fighters that we just put on order, will be produced at the lowest cost in history. Lockheed gives credit to the successful negotiations to President Trump for this outcome. They ended with a savings of $728 million… not bad for the start of Trump’s presidency.
Even better, it saved $128 million more than even Trump thought it would. This was one of President Trump’s campaign promises… that he would cut costs and he is doing just that. And he’s doing it in the military, which is even better. But not in a way that hurts us on the battlefield, like Obama did. Trump’s original tweet on all this: “The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.” Trump is indeed a man of his word.
From Western Journalism:
Citing the involvement of President Donald Trump, Lockheed Martin announced Friday the new batch of F-35 fighters ordered by the government will be supplied at the lowest price in the history of the program.
The deal Lockheed and the Defense Department agreed upon brought the price per jet to below $95 million for the first time, compared to $102 million in the previous batch, a savings of $728 million for the entire order.
Lockheed Martin said in a statement that “President Trump’s personal involvement in the F-35 program accelerated the negotiations and sharpened our focus on driving down the price.”
The savings announced by Lockheed exceeds what Trump said only days ago would be saved in the newest round of F-35 purchases.
“We cut approximately $600 million off the F-35 fighter, and that only amounts to 90 planes out of close to 3,000 planes,” Trump said on Monday.
The negotiations took several meetings with Lockheed chief executive Marillyn Hewson. “The agreement represents $728 million in savings and a nearly 8 percent reduction in price over our last contract for the air vehicle delivered by Lockheed Martin and our industry partners,” Lockheed Martin said in a statement. “This is a good deal for the American taxpayer, our country, our company and our suppliers.”
Lt. Gen. Chris Bogdan, F-35 program executive officer, also said the deal was fair “for the taxpayers, the U.S. government, allies, and industry. “(W)e are substantially bringing the cost of each aircraft down, and at the same time the F-35 program will continue to add thousands of additional jobs to the U.S. economy as we increase production year over year,” said Jeff Babione, Lockheed Martin F-35 vice president and general manager, in a statement. More jobs is music to Americans’ ears.
And Lockheed is looking to reduce costs even further. This is what you get when a businessman sits down and deals intelligently with contractors. Lockheed may be hurt in the short run by all this, but in the long run, it will actually make them more money with more contracts. Everyone wins here.
The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th.
— Donald J. Trump (@realDonaldTrump) December 12, 2016
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