F-35 Deal: Bulk orders and Robots
03-17-2016, 03:02 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Aug 2012
Posts: 1,026
F-35 Deal: Bulk orders and Robots
Well folks, seems the simple solution to bring down the cost of each F-35 was to primarily purchase them in bulk lots (think COSTCO) and also use robots.
Stock up now on these beauties and save a bundle.
Lockheed Near F-35 Deal, Sees Progress With Hypersonics
Gillian Rich, Investors Business Daily
ALINGTON, Va. — Lockheed Martin (LMT) said Tuesday it was “optimistic” about closing a deal for nearly 160 F-35s and is upbeat on cost reductions.
Jeff Babione, the defense contractor’s F-35 program general manager, said he expects talks for production lots 9 and 10 to be completed by the end of the month.
“We are happy with how they are going,” he said, though a decision on the production lots had been delayed due to the “scale and complexity” of the orders.
The lots being negotiated are for 157 F-35 fighters, more than double the 71 airplanes under lots 6 and 7.
Meanwhile, the Pentagon already has reached a deal with United Technologies (UTX) for 167 Pratt & Whitney engines in the upcoming F-35 lots.
The F-35 is under fire for being over budget and behind schedule. Right now, the jet costs about $100 million each to make, but Lockheed thinks it can lower cost to $85 million in 2019.
Babione touted the use of robots to help drive down costs. Engineers are using a robot to apply a coating on the fuselage, saving $6,000 per jet for a lifetime savings of $27 million. And robots are attaching nut plates with an estimated savings of $15,000 per plane or $46 million for the life of the program.
But the biggest savings would come from a 450-jet bulk order, or block buy, which Babione estimates would provide $2 billion in savings, in addition to those seen from robots and other efficiencies.
Lockheed had hoped for a block buy starting in 2018, but the Defense Department’s new budget request doesn’t include early funding or seek authorization for one. The Pentagon’s chief weapons tester has said a block buy could mean large batches of faulty planes could enter service that will need several expensive fixes, resulting in no net cost savings.
But partner countries and foreign military-sale customers could still start a block buy in 2018, without the U.S., if they let Lockheed know by June or July, Babione said.
The price could fall even further, as Pratt & Whitney also is building the engines for Northrop Grumman’s (NOC) B-21 bomber.
Lockheed shares closed up 0.5% in the stock market today. Northrop shares ended flat. United Tech shares climbed 1.25%.
Amid the F-35 production, Lockheed is looking past its next-generation fighter and toward hypersonic propulsion.
CEO Marillyn Hewson said the company is making progress with its hypersonic systems and could develop, build and fly a demonstrator aircraft the size of an F-22 for under $1 billion.
Stock up now on these beauties and save a bundle.
Lockheed Near F-35 Deal, Sees Progress With Hypersonics
Gillian Rich, Investors Business Daily
ALINGTON, Va. — Lockheed Martin (LMT) said Tuesday it was “optimistic” about closing a deal for nearly 160 F-35s and is upbeat on cost reductions.
Jeff Babione, the defense contractor’s F-35 program general manager, said he expects talks for production lots 9 and 10 to be completed by the end of the month.
“We are happy with how they are going,” he said, though a decision on the production lots had been delayed due to the “scale and complexity” of the orders.
The lots being negotiated are for 157 F-35 fighters, more than double the 71 airplanes under lots 6 and 7.
Meanwhile, the Pentagon already has reached a deal with United Technologies (UTX) for 167 Pratt & Whitney engines in the upcoming F-35 lots.
The F-35 is under fire for being over budget and behind schedule. Right now, the jet costs about $100 million each to make, but Lockheed thinks it can lower cost to $85 million in 2019.
Babione touted the use of robots to help drive down costs. Engineers are using a robot to apply a coating on the fuselage, saving $6,000 per jet for a lifetime savings of $27 million. And robots are attaching nut plates with an estimated savings of $15,000 per plane or $46 million for the life of the program.
But the biggest savings would come from a 450-jet bulk order, or block buy, which Babione estimates would provide $2 billion in savings, in addition to those seen from robots and other efficiencies.
Lockheed had hoped for a block buy starting in 2018, but the Defense Department’s new budget request doesn’t include early funding or seek authorization for one. The Pentagon’s chief weapons tester has said a block buy could mean large batches of faulty planes could enter service that will need several expensive fixes, resulting in no net cost savings.
But partner countries and foreign military-sale customers could still start a block buy in 2018, without the U.S., if they let Lockheed know by June or July, Babione said.
The price could fall even further, as Pratt & Whitney also is building the engines for Northrop Grumman’s (NOC) B-21 bomber.
Lockheed shares closed up 0.5% in the stock market today. Northrop shares ended flat. United Tech shares climbed 1.25%.
Amid the F-35 production, Lockheed is looking past its next-generation fighter and toward hypersonic propulsion.
CEO Marillyn Hewson said the company is making progress with its hypersonic systems and could develop, build and fly a demonstrator aircraft the size of an F-22 for under $1 billion.
03-17-2016, 04:52 AM
#2
Moderate Moderator
Joined APC: Mar 2008
Position: Curator at Static Display
Posts: 5,681
Lockheed math: "Robots will paint the RAM and install some nutplates, for a savings of $21,000, and we expect that will lower the cost by $15 million per aircraft."
"How?"
"Uhh....bulk orders....economy of scale? Uh..F-35s are now environmentally friendly! Nine-eleven! No animals were harmed in the testing of the ejection seat, which now accomodates transgendered pilots, regardless of orientation!"
"The first 4 customer nations get 'F-35' bumper stickers; limit 100 per country. Free balloons for the kids; helium is extra! At Honest Bill's Fort Worth Airplane City, we'll give you a minimum of $1 Million on any used 3rd generation fighter on trade-in."
"Need credit? Bad credit? At Uncle Bill's, we finance in-house. If you have a job in government, and your GDP is at least $2 Million, you can fly home in an F-35 today!"
"Ask about our extended warranty plan, and tires for life!" (*Does not include tax, dealer prep, or license. Pilot certification extra).
"Uncle Bill's Airplane City....off Airport Boulevard, on the frontage road....where the future is now!"
"How?"
"Uhh....bulk orders....economy of scale? Uh..F-35s are now environmentally friendly! Nine-eleven! No animals were harmed in the testing of the ejection seat, which now accomodates transgendered pilots, regardless of orientation!"
"The first 4 customer nations get 'F-35' bumper stickers; limit 100 per country. Free balloons for the kids; helium is extra! At Honest Bill's Fort Worth Airplane City, we'll give you a minimum of $1 Million on any used 3rd generation fighter on trade-in."
"Need credit? Bad credit? At Uncle Bill's, we finance in-house. If you have a job in government, and your GDP is at least $2 Million, you can fly home in an F-35 today!"
"Ask about our extended warranty plan, and tires for life!" (*Does not include tax, dealer prep, or license. Pilot certification extra).
"Uncle Bill's Airplane City....off Airport Boulevard, on the frontage road....where the future is now!"
03-18-2016, 06:40 AM
#3
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 40,025
Discussions have already begun within the DoD and services about the NEXT generation strike fighter...
Contrary to popular hysteria, it will almost assuredly be manned (perhaps optionally).
It will also almost assuredly not be a joint project, ie AF and Navy will do their own airplanes, although safe to assume significant tactical systems and munitions commonality.
Contrary to popular hysteria, it will almost assuredly be manned (perhaps optionally).
It will also almost assuredly not be a joint project, ie AF and Navy will do their own airplanes, although safe to assume significant tactical systems and munitions commonality.
03-18-2016, 11:09 AM
#4
Gets Weekends Off
Joined APC: Oct 2014
Position: Downward-Facing Dog Pose
Posts: 1,537
Lockheed math: "Robots will paint the RAM and install some nutplates, for a savings of $21,000, and we expect that will lower the cost by $15 million per aircraft."
"How?"
"Uhh....bulk orders....economy of scale? Uh..F-35s are now environmentally friendly! Nine-eleven! No animals were harmed in the testing of the ejection seat, which now accomodates transgendered pilots, regardless of orientation!"
"The first 4 customer nations get 'F-35' bumper stickers; limit 100 per country. Free balloons for the kids; helium is extra! At Honest Bill's Fort Worth Airplane City, we'll give you a minimum of $1 Million on any used 3rd generation fighter on trade-in."
"Need credit? Bad credit? At Uncle Bill's, we finance in-house. If you have a job in government, and your GDP is at least $2 Million, you can fly home in an F-35 today!"
"Ask about our extended warranty plan, and tires for life!" (*Does not include tax, dealer prep, or license. Pilot certification extra).
"Uncle Bill's Airplane City....off Airport Boulevard, on the frontage road....where the future is now!"
"How?"
"Uhh....bulk orders....economy of scale? Uh..F-35s are now environmentally friendly! Nine-eleven! No animals were harmed in the testing of the ejection seat, which now accomodates transgendered pilots, regardless of orientation!"
"The first 4 customer nations get 'F-35' bumper stickers; limit 100 per country. Free balloons for the kids; helium is extra! At Honest Bill's Fort Worth Airplane City, we'll give you a minimum of $1 Million on any used 3rd generation fighter on trade-in."
"Need credit? Bad credit? At Uncle Bill's, we finance in-house. If you have a job in government, and your GDP is at least $2 Million, you can fly home in an F-35 today!"
"Ask about our extended warranty plan, and tires for life!" (*Does not include tax, dealer prep, or license. Pilot certification extra).
"Uncle Bill's Airplane City....off Airport Boulevard, on the frontage road....where the future is now!"
lmao
/thread
