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Lockheed, partners pledge to pump $170 million into F-35

Fort Worth Star-Telegram // July 10, 2014

Lockheed Martin and its two main partners in the F-35 program have agreed to invest $170 million over the next three years to help bring down the cost of the over-budget, next-generation fighter jet by the end of the decade.

Under the agreement with the Department of Defense announced today, called a “Blueprint for Affordability,” Lockheed, Northrop Grumman and BAE Systems said they will implement cost-reduction initiatives to lower production costs on the Fort Worth-made jet, with the goal of reducing the average cost of a F-35 to about $80 million. It currently exceeds $100 million apiece.

“This is a significant change in business approach within the F-35 program,” said Lt. Gen. Chris Bogdan, the Pentagon’s F-35 program manager. “Industry partners will make an upfront investment into cost-cutting measures that the government and taxpayers will reap benefits from by buying F-35s at a lower cost. By 2019, we expect that the F-35 with its unprecedented 5th equal in cost to any other fighter on the market, but with far more advanced capability.”

Read the full story from the Fort Worth Star-Telegram.

Photo by Lockheed Martin.