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Trump: F-35 costs 'out of control'

By Agencies in Seattle | China Daily | Updated: 2016-12-14 07:34

Lockheed Martin's stock tumbles, wiping nearly $2 billion off its market value

Donald Trump has widened his attack on defense contractors, slamming Lockheed Martin Corp's F-35 fighter jet program as too expensive as aides to the president-elect said he intends to keep pushing to cut the costs of military hardware.

Trump's latest tweet sent defense shares tumbling and fanned concerns that the incoming administration will reduce defense contractors' profit margins and cut broader federal spending, threatening US factory jobs even as Trump promises to boost manufacturing employment.

"The F-35 program and cost is out of control," Trump said on Twitter on Monday, echoing campaign promises to cut waste in federal spending. "Billions of dollars can and will be saved on military (and other) purchases after Jan 20."

Lockheed Martin's stock tumbled after the tweet, wiping nearly $2 billion off the company's market value. The company's shares fell $6.42, or 2.5 percent, to close at $253.11 on Monday.

Last week, Trump targeted Boeing Co with tweets for "out of control" costs on new Air Force One planes, urging the federal government to "Cancel order!"

Trump's F-35 tweet drew support from US Senate Armed Services Committee Chairman John McCain, who has voiced support for the fighter jet in the past. While a president cannot cancel a program after funds have been allocated, it can purchase less.

"He can reduce the buy over time, next year, as we look at it again," McCain said.

But Trump's remarks bristled others in Congress.

Senator Richard Blumenthal, a Democrat from Connecticut, home to F-35 engine maker Pratt & Whitney, said the program supports 2,000 Pratt jobs and thousands more at suppliers.

Trump should "learn more about the facts" before discussing "arbitrary cuts in the program," he said.

Different configurations

The F-35, which uses stealth technology to avoid being detected by radar, is being built in different configurations to be used by the Air Force, Navy and Marine Corps. The Navy's version, for example, is designed to take off and land on an aircraft carrier.

Australian and Japanese defense officials both said they have no plans to alter their commitments to the F-35.

Australia has ordered 72 F-35s, while Japan has agreed to purchase 42 fighters to replace its aging F-4 fleet.

The Pentagon is now paying about $110 million each for the conventional takeoff A-model. The savings reflect larger quantities and the ironing out of technical issues.

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