There’s usually something at the cause of a shift in pattern, and looking past Black Friday’s whirlwind, there was a definite shift in consumer…
US president-elect Donald Trump has slammed numerous companies and people, but defense firms haven’t been in his crosshairs too often.
However, this week saw Trump slam Lockheed-Martin for the horribly expensive, much delayed F-35 fighter jet programme.
“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,” the president-elect tweeted on Monday.
The tweet saw Lockheed-Martin’s shares dip by over 4% before closing down by 2.47%.
The F-35 programme has courted a ton of negative publicity
Lockheed Martin’s fighter jet has been hit with numerous cost overruns and delays. In fact, a memo earlier this year found that the multi-role jet was “on a path toward failing” to deliver by 2018.
Issues cited in the memo include an inability to perform close air support as effectively as older planes, teething issues with the on-board gun and target-tracking woes.
It’s not the only spot of bad news for the F-35 either, as the Canadian government has announced plans for a new competition and effectively cancelled the existing F-35 order. Instead, Canada will order Super Hornet fighters as an interim measure until new fighters are acquired.
Trump’s tweet also comes after he attacked Boeing’s new Air Force One, alleging that it would cost US$4-billion.