Saab Proposes Canadian Aircraft Manufacturing Plan to Create 12,000 Jobs

Key Takeaways

• Saab AB has delivered new proposals to Ottawa to build the Gripen fighter jet and the GlobalEye surveillance plane in Canada, forecasting the creation of 12,600 jobs.
• The proposal includes building Gripens for Ukraine and possibly other export markets, with a total of 150 to 200 aircraft being built in Canada.
• Industry Minister Mélanie Joly confirms that the Saab pitch has strong industrial development and job-creation aspects, with 9,000 jobs created by building the Gripen and 3,600 jobs created by building the GlobalEye.
• The Canadian government is considering the proposal as a way to offset job losses in the tariff-battered auto, steel, aluminum, and lumber industries.
• The government is also reviewing the F-35 procurement deal, with some former Canadian military officials urging Prime Minister Mark Carney to proceed with the full F-35 order.

Introduction to Saab’s Proposal

Saab AB has submitted a new proposal to the Canadian government to build the Gripen fighter jet and the GlobalEye surveillance plane in Canada. The proposal forecasts the creation of 12,600 jobs, with 9,000 jobs created by building the Gripen and 3,600 jobs created by building the GlobalEye. Industry Minister Mélanie Joly confirms that the Saab pitch has strong industrial development and job-creation aspects, making it an attractive proposal for the Canadian government.

Canadian Government’s Consideration

The Canadian government is considering the Saab proposal as a way to offset job losses in the tariff-battered auto, steel, aluminum, and lumber industries. The government has been trying to find ways to diversify Canada’s defence and pharmaceuticals industries, and the Saab proposal is seen as a potential solution. Ms. Joly has been supporting the Saab campaign to build the Gripen and GlobalEye in Canada, and the federal and provincial governments are offering incentives to some manufacturers to preserve their payrolls.

F-35 Procurement Deal Review

The Canadian government is also reviewing the F-35 procurement deal, with some former Canadian military officials urging Prime Minister Mark Carney to proceed with the full F-35 order. However, Ms. Joly says that the government needs to have greater autonomy from the U.S. on defence, and the Saab proposal is being taken seriously. The review of the F-35 purchase has not been released yet, and no date for its publication is known.

Impact on Canadian Manufacturing

The tariffs imposed by U.S. President Donald Trump have cost Canada manufacturing jobs, with Ontario’s Financial Accountability Office reporting that the province has lost more than 20,000 manufacturing jobs in the past two years. The federal and provincial governments are offering incentives to some manufacturers to preserve their payrolls, including low-interest loans, job-training packages, and freight-price reductions. The government is also preparing to launch a lawsuit against Stellantis for breach of a taxpayer-funded contract, and Ms. Joly says that the government is sending a message to all companies that decide to leave the country after receiving generous subsidies.

Conclusion and Future Plans

In conclusion, the Saab proposal to build the Gripen fighter jet and the GlobalEye surveillance plane in Canada is being considered seriously by the Canadian government. The proposal has strong industrial development and job-creation aspects, and the government is looking for ways to diversify Canada’s defence and pharmaceuticals industries. The review of the F-35 procurement deal is ongoing, and the government is preparing to launch a lawsuit against Stellantis for breach of a taxpayer-funded contract. As the Canadian government continues to navigate the complexities of the Saab proposal and the F-35 review, it is clear that the future of Canadian manufacturing and defence industries will be shaped by these decisions.