EXECUTIVE

Trump wants at least a 10 percent cut in F-35 costs, report says

President-elect Trump blasts defense contractors for overpricing

 

The chairman of a key subcontractor in the F-35 program told Bloomberg News Tuesday that President-elect Donald Trump wants to reduce the cost of the project by at least 10 percent.

“We’ve been told through Lockheed that the president has an ambition to reduce the cost of the aircraft by a material amount of money, many percent, into the double digits over a period,” Roger Carr, the chairman of BAE Systems Plc, said. “We respect that and we’ll work towards a contribution towards that.”

Trump has been an outspoken critic of the price tag for projects like the F-35 fleet and the new Air Force One.

In December, Trump tweeted that he asked Boeing to “price-out a comparable F-18 Super Hornet.” He did not go into specific details, but aviation experts pointed out differences in the two planes…for one, the F-18 is not stealth.

The F-35 program made up 20 percent of Lockheed's total 2015 revenue of $46.1 billion. And U.S. government orders made up 78 percent of its revenue last year. The F-35 program directly or indirectly supports more than 146,000 U.S. jobs, according to the company's website.