Defense manufacturers are in a position to work for the war economy announced by Emmanuel Macron. This Thursday, the Minister of the Armed Forces brings them together again with a message: lower their prices in exchange for more orders thanks to the upcoming military programming law (LPM).
This meeting, chaired by Sébastien Lecornu and the General Arms Delegate (DGA) Emmanuel Chiva, is the third of its kind since President Emmanuel Macron wanted in June to move to a “war economy”, that is, to allow the defense industry to gain momentum against the specter of a major conflict highlighted by the war in Ukraine.
The objective is to “produce quality equipment, in quantity and more quickly,” sums up one from the Ministry of the Armed Forces. The LPM project, which foresees a budget of 413,000 million euros over seven years, gives visibility to manufacturers, who must be able to deliver more quickly, he argues.
The DGA must “simplify its needs” and reduce administrative procedures to avoid additional costs.
“We need orders”
With a higher budget of more than 100 million euros compared to the previous LPM, the orders are there, says the ministry. However, “when the quantities increase, it means optimization of unit costs”, for which the DGA must “discuss with the manufacturers to optimize the prices of the equipment”, according to the firm.
For Senator Cédric Perrin, co-author of a report on the lessons for France from the conflict in Ukraine, the French army must “gain in thickness” and have more equipment. But “new orders, there are none, the target is not being increased,” he told AFP.
The ministry also intends that the cost of maintaining the equipment in operational conditions is addressed from the order phase with the manufacturers and depends directly on the DGA and no longer on the different support services of the armies. To reduce dependence on foreign countries for certain materials and components, production must also be “relocated.”
“The issue is progressing well with issues proposed by manufacturers with a very large part of self-financing” and the support of the France 2030 investment plan, he assures, promising that the relocations will be announced “soon”.
Source: BFM TV
