Larger Production Run Will Help Drive Down Costs

Lockheed Martin will cut the cost of the next batch of F-35 jets by about $600 million by building more of the airplanes in the next production run.

MSN Money reports that a deal for the 10th production lot of Joint Strike Fighters is still in negotiations, but it could be made up of about 90 planes coasting about $9 billion. That would drive the cost of each airplane below $100 million for the first time. Production runs of fewer airplanes have resulted in a cost of about $107 million per copy.

The larger production run will give Lockheed Martin more leverage in negotiations with its suppliers and partner companies. There are some 1,250 suppliers in 45 states and Puerto Rico making components for the Lightning II.

President Donald Trump has been critical of the cost of the program, and had a meeting with Lockheed Martin CEO Marillyn Hewson prior to his inauguration. In a statement released Monday, the company said: "We appreciate President Trump's comments this morning on the positive progress we've made on the F-35 program. We share his commitment to delivering this critical capability for our men and women in uniform at the lowest possible cost to taxpayers."

(Image from file)

FMI: www.lockheedmartin.com