During Tuesday, the industry site Infodefensa published information that the USA is attempting to block Saab’s sale of the Gripen fighter jet to Colombia. The Gripen consists of some American-made parts and technology, and a potential veto from the USA would affect these components, starting with the delivery of the F414-G engine from General Electric.
After the information spread in Swedish media on Wednesday, Saab came out to refute the claims. Saab’s head of communications and sustainability, Viktor Wallström, wrote, “Fighter jet procurement is often surrounded by rumors.”
Danish Bank’s Saab analyst, Björn Enarson, expressed confidence in Saab but acknowledged that negotiations in Colombia may be tough. He stated, “When Americans are competing for orders, we always see tough negotiations.”
A previous deal that faced scrutiny from the USA was the Brazil deal last year, where the Brazilian government decided to expand its existing contract for Gripen planes. In connection with this, the US Department of Justice requested information from Saab’s subsidiary, Saab North America, regarding Brazil’s purchase of the aircraft.
“This was the case under previous US administrations, but with the current Trump-led administration, I can imagine Saab will face even greater challenges,” said Björn Enarson.
In terms of the negotiations with Colombia, Enarson mentioned that they are quite advanced, with Colombia considering the purchase. When asked about the risk of the Colombia deal falling through, he commented that while the deal is not finalized, reports like these increase the risk. He also highlighted the importance of diversifying the sources of components in light of geopolitical tensions, similar to how many companies are cautious with Chinese firms.
Despite the potential challenges, Enarson emphasized that the Colombia deal is not crucial for Saab’s operations. Currently, around 46% of Saab’s revenue comes from the Dynamics and Surveillance business areas. He described the Gripen deal as more of a political statement, showcasing a commitment to working with Sweden.
In conclusion, the situation surrounding Saab’s Gripen deal with Colombia is complex, with geopolitical factors and US involvement adding layers of uncertainty. While the outcome remains uncertain, Saab’s ability to navigate these challenges will be crucial for its future success in the global defense market.