Friday, January 13, 2017
Lockheed Martin Corp (LMT.N) announced today that it close to finalizing a deal that will significantly lower the cost of its F-35 fighter jets, after CEO Marillyn Hewson’s meeting with President Elect Donald Trump.
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.
Lockheed has been working to lower the program’s price, which has cost $379 billion to date, since Trump blasted the firm using his twitter account last December—threatening to ask rival company Boeing if they could provide a cheaper alternative.
Based on the tremendous cost and cost overruns of the Lockheed Martin F-35, I have asked Boeing to price-out a comparable F-18 Super Hornet!
— Donald J. Trump (@realDonaldTrump) December 22, 2016
Lockheed’s share price fell by 2%.
Trump’s twitter strategy has so far proven extremely effective in motivating companies to invest billions in America—from Ford to Chrysler, Alibaba to Amazon.
Not only have they lowered the price, Hewson also promised the company would create 1,800 new jobs in its Fort Worth, Texas, facility.
She anticipates this will create “thousands and thousands of jobs” by bolstering domestic supply chains.
Time will tell.