Thanks for the article Andrew.
Via CTVNews.
Some will call it the price of doing business, but make no mistake about it. This is a threat being levied at the Canadian Govt and its people.
This alone should cause Canada to reject the F-35.
But this points to a larger issue. Why would the Pentagon allow contracts to be awarded not on the basis of getting the best manufacturing practices AND cheapest price possible? It is as I've suspected. A business scheme designed to get countries into the program. Not because the F-35 meets the needs of those buying it, but because it is tied to their economies.
Did Lockheed just expose another reason why this plane costs so damn much?
Via CTVNews.
Canada's aerospace industry could lose about $10.5 billion worth of contracts over several decades if the federal government ultimately decides not to purchase the controversial F-35 Stealth Fighter, says a senior executive at Lockheed Martin.Economic blackmail.
Orlando Carvalho, executive vice-president of the U.S. defence giant, says Lockheed will honour $500 million worth of business already awarded to Canadian partners but that other work would be in jeopardy without a Canadian jet order.
"If in fact the Canadian government were to decide not to select the F-35 we will certainly honour the contracts that we have here with the Canadian industry but our approach in the future would be to try to do business with the industries that are in the countries that are buying the airplane," he said in an interview after officially opening its new engine overhaul facility in Montreal.
Some will call it the price of doing business, but make no mistake about it. This is a threat being levied at the Canadian Govt and its people.
This alone should cause Canada to reject the F-35.
But this points to a larger issue. Why would the Pentagon allow contracts to be awarded not on the basis of getting the best manufacturing practices AND cheapest price possible? It is as I've suspected. A business scheme designed to get countries into the program. Not because the F-35 meets the needs of those buying it, but because it is tied to their economies.
Did Lockheed just expose another reason why this plane costs so damn much?
It's a fucking jobs program/Corporate welfare scam.
ReplyDeletewell said. they need to drop the pretense about the plan being uber essential to national defense. the very structure tells all.
Deleteits a money maker. i laughed when Peter called it a ponzi scheme but he was right. this is nothing but fraud on a scale that rivals the Wall Street scandal.
Back when Canada made that F-35 decision in 2010 (F-35 prop flown in and all) there was this statement which on face value means something completely different. That is that part of the deal is that LM invests $10B.....regardless...
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“Ms. Testa said that Lockheed would buy about $10 billion of components and parts from Canadian aerospace companies as part of the deal. That is in line with Canada’s usual demand that foreign companies spend about $2 in Canada for every dollar they receive through government contracts.”
Canada Plans to Buy F-35s, but Hurdles Remain
By IAN AUSTEN and CHRISTOPHER DREW, NY Times
Published: July 15, 2010
Just remember that this is for a POTENTIAL $10.5 billion. Other than that $500 million already signed off on thanks to Canada's Teir 3 partner status, there is no guarantee.
ReplyDeleteConsidering any other manufacturer would likely guarantee at least 100% of the $9 billion procurement cost, it seems pretty obvious that this is pure extortion on LockMart's part.
Boeing already produces 1billion of components in Canada per year.
ReplyDeletehttp://www.aiac.ca/en/member.aspx?id=281
P.Witney, Rolls Royce, Bell and off course Bombardier aeronautique also produces a lot of components for the industry that it's at full capacity.
Canada don't need to spend a fortune to receive just 10 Billions in contracts from L.Martin
a bigger question is if this is what Canada has to look at then what were the other countries promised?
ReplyDeleteTurkey? Israel? Japan? Australia? UK? oh and notice Singapore hasn't actually bit yet. it does make me wonder what the REAL cost of the airplane is.
the "pro" F-35 articles have increased exponentially. the desperation is obvious. i wonder what shoe is about to drop that is gonna seal the deal that has all of them shitting their pants.
That shoe already dropped. It was S. Korea.
Delete60 fighters ain't much, but it's 60 fighters less than the 3100 or so projected for the JSF. It's also proof that not all the F-35's "potential" sales will turn out to be "actual" sales.
S. Korea also highlights the fact that nobody knows how much the F-35 will cost yet. The fact that an F-15 (an F-15!) came out as the cheaper option should have the LockMart marketing guys shitting their pants. The F-15 is not a cheap aircraft. This is like someone buying a Cadillac because the Ford Focus they test drove costs more.
I'm sure China would happily build parts for them! Seriously, what a shitty way to treat on of our closest allies.
ReplyDeletewe;re not doing it. Lockheed Martin is. big, huge difference. but you just pointed out a problem when you have US companies acting irrationally in a multi-national world. the blowback comes on the US.
DeleteExactly, unfortunately(usually) private citizens and companies act as "unofficial ambassadors" for countries these days..
Deletewww.youtube.com/watch?v=FVZYnOLRQQI
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