Saab Offers 10,000 Jobs as Canada Reviews F-35 Fighter Deal

URGENT UPDATE: Canada’s Industry Minister Mélanie Joly revealed that Swedish defence contractor Saab is offering 10,000 jobs in a bold challenge to the ongoing review of the $27 billion contract for 88 F-35 jets from Lockheed Martin. This announcement comes as the government seeks more substantial economic benefits for Canadian workers from its military procurement.

In a press conference earlier today, Joly confirmed that discussions with Saab are underway, emphasizing the need for a deal that not only enhances military capabilities but also boosts job creation in Canada. “We think that we can use military procurement to get more,” Joly stated. “That is why we’re looking, indeed, at the Gripen,” referring to Saab’s Gripen E fighter jet.

The backdrop of Joly’s comments includes a high-profile visit from Sweden, featuring the royal family and key political figures, aimed at strengthening ties and promoting Saab’s proposal. The urgency of these negotiations is heightened by the fact that Canada is currently evaluating its options amid ongoing delays in the F-35 review, initially expected to conclude in September.

The Gripen E, which ranked as the runner-up in Canada’s previous fighter jet competition, promises substantial job opportunities in aerospace manufacturing—a critical factor for the Canadian public. Joly’s remarks signal a shift in focus as the government weighs the economic implications of its defense choices.

Canada’s decision-making process surrounding the F-35 has faced scrutiny since a trade war erupted under former U.S. President Donald Trump, leading Prime Minister Mark Carney to initiate a review of the procurement strategy. Currently, the first batch of 16 F-35s is set to be delivered between 2026 and 2030, as part of an agreement signed in 2023. However, critics argue that the existing deal does not deliver enough jobs or economic stimulus for Canadians.

Opposition Conservative leader James Bezan has raised concerns about the potential risks to existing jobs tied to the F-35 program, which has seen over 1,000 aircraft built in Canada. “There are jobs tied to the F-35 right across this country in places like Richmond, Winnipeg, and Montreal,” Bezan emphasized during a recent House of Commons committee meeting.

As this story develops, the stakes are high for both Saab and Lockheed Martin, with the Canadian government poised to make a pivotal decision that could reshape its fighter jet procurement strategy and significantly impact job creation in the aerospace sector.

WHAT’S NEXT: Watch for the government’s upcoming announcements regarding the F-35 review and Saab’s proposal, as the potential for job growth in Canada hangs in the balance. Will Saab’s job creation promises sway the government away from the F-35 deal? Stay tuned for the latest updates as this critical situation unfolds.