Will Lockheed Martin's
Yesterday, the current sole-source provider of the engine that will fly Lockheed's new bird announced a plan to cut costs on said engine. "We have activities planned and in place to bring the cost down" when outfitting Lockheed's fifth tranche of F-35s slated for delivery to the U.S. Air Force. What's more, UTX says it will improve engine performance even as it lowers prices!
Word has it that UTC's move is in response to General Electric's
I don't know whether UTX is cutting prices out of altruism, patriotism, or just good ol' capitalistic efforts to head off a rival at the pass. Whatever management's motivation, the move bodes poorly for GE's regaining funding for its engine. UTX investors should be pleased.
The ball is once again in GE's court to respond. How will it respond to UTX's move? Add General Electric and United Technologies to your Fool Watchlist, and find out.
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