Lockheed’s Next CEO On The F-35, Sequestration
By Joseph C. Anselmo , Anthony L. Velocci, Jr.
Source: Aviation Week & Space Technology
Will you have to go to a third shift?
Those are decisions we work with our customer. We can, but it tends to drive up the cost of the aircraft.
The JSF's 2A software was running behind. Is that back on schedule?
It was a little behind, but we're gaining on it. Software is tough to measure. We [estimate] we were 90 days behind, and we're working to reduce that. I'm reluctant to give a specific number, but we probably can cut that challenge in half.
Lockheed Martin Skunk Works built the RQ-170 unmanned aerial vehicle that went down over Iran. Why was it not equipped with a self-destruct mechanism?
You'll have to ask the Air Force about that. It was their platform.
What contingency plans do you have in place if sequestration kicks in five months from now?
There could be at least a 10% cut at a program-by-program level, so in the near term we worry about the workforce. We've talked about the need to issue WARN notices [federally mandated layoff warnings] to comply with the law. We're preparing to issue those later this year, if there's no change to sequestration. We've been reviewing the impact on our supply chain and have begun preliminary correspondence with our 29,000 suppliers worldwide to make sure they are aware of the potential impact sequestration could have on them. We won't be financing or carrying liabilities for our suppliers.
We're also trying to figure out how it will actually be implemented and what it does to our programs. If we're 10% smaller, [we] assume [we]'ll have 10% fewer employees and 10% less square footage. We have locations in just about every state, and every one of them will not be here in a year if sequestration kicks in. We will have to shut down some facilities in their entirety.