SAAB announces $4,500,000,000 deal with Brasil

[SalemSaab]

I thought this was funny. Wish I owned some SAAB stock.

http://money.cnn.com/2013/12/19/investi ... index.html

Shares in Saab soared by just over 30% Thursday after the Swedish company announced a $4.5 billion deal to supply the Brazilian government with new fighter jets.
The deal came as a surprise to investors who had been expecting Boeing (BA, Fortune 500) to win the lucrative contract.

Boeing shares slipped 0.3% Wednesday, under-performing U.S. markets which posted big gains after the Federal Reserve announced plans to trim its economic stimulus program.

Local media have speculated that Boeing lost out because Brazil was angered by reports that the U.S. government spied on President Dilma Rousseff.

Brazilian officials sidestepped questions about how the spying scandal may have affected the decision.

Speaking at a news conference late Wednesday, Defense Minister Celso Amorim said Saab was chosen for three main reasons: cost, performance and the ease of completing technology transfers.

The competition for the contract had dragged on for roughly a decade, with France's Dassault (DASTF) also in the running.

The deal will see Saab deliver 36 new Gripen aircraft to Brazil's air force by 2023.

The Brazilian air force said the Swedish fighter jets will replace older Dassault-made aircraft.

Countries already using the Gripen include Sweden, Hungary, Czech Republic, South Africa and Thailand.

[hutch]

I of course think its awesome that SAAB got some press for this and it once again reminds me how impressive it is that such a small country, especially one that is ostensibly a defense-only military, can build a competitive product like this. Who knows if any of these stories are true but I had heard that the Viggen was the only plane to ever get a radar lock on an SR-71 in a super high speed run over northern Sweden. Who knows though...

I however definitely doubt that they would put too much weight into the whole spying thing. My guess is they wanted an option for the reasons they mentioned and found a last minute way to try to stick it to American politicians through the media. Sweden seems to be spying a fair amount itself, like everyone does, so I'm not sold on that idea. The Gripen is certainly a cheaper long term commitment and offers nearly the same performance as the sort of things that the US would be allowed or willing to sell.

Aren't some of the PNW Saaber's on here involved with the Aerospace industry? I know you can't tell work secrets but is there any merit to an article like this?

[sjones]

Aren't some of the PNW Saaber's on here involved with the Aerospace industry? I know you can't tell work secrets but is there any merit to an article like this?

we know nothing heh.

[DrewP]

The defense industry is extremely politically driven because that's where the funding all comes from, and the way contracts and bids work is extremely lengthy and weighs many many factors. It's probably impossible to say if the theories in the article about the Brazilian government are invented from observation, mostly true, or all true, or any combination of those.

That being said, Saab Group (formerly Saab AB) =/= Saab Automobiles (now National Electric Vehicle Sweden which markets the Saab cars brand).

Still cool publicity.

[DrewP]

Politics!

http://www.reuters.com/article/2013/12/ ... 0P20131220