Switzerland seeks direct deals with U.S. defense manufacturers following F-35 pricing dispute and Patriot delivery delays

By Hannah Miller (Defence Industry Europe)

United Kingdom |
Switzerland seeks direct deals with U.S. defense manufacturers following F-35 pricing dispute and Patriot delivery delays

Photo: Swedish Armed Forces.

Switzerland’s defense procurement agency wants to buy equipment directly from U.S. manufacturers where possible, citing problems encountered with government-to-government purchases. Armasuisse chief Urs Loher said selected Patriot components could be candidates, although any direct purchase would need U.S. approval.

“That is one of the key lessons learnt from the F-35 purchase,” Loher told the Neue Zürcher Zeitung in an interview reported by swissinfo.ch. He said buying advanced fighters such as the F-35 directly from the manufacturer was out of the question.

Switzerland normally uses Washington’s Foreign Military Sales program to acquire American defense equipment. Loher said it avoids lengthy negotiations with manufacturers and offers economies of scale, but also leaves customers dependent on U.S. priorities.

The F-35 procurement exposed “significant pitfalls,” he said, including the absence of jurisdiction for disputes over matters such as an alleged fixed price. Buyers generally cannot impose contractual penalties when deliveries are delayed.

“As this is a system that has been tried and tested for years, selected components are certainly available directly from the manufacturer,” Loher said of Patriot. It remains uncertain whether Washington would authorize that approach.

Swiss Patriot deliveries are delayed by five to seven years, and the United States intends to supply Germany with systems originally planned for Switzerland. Loher said Armasuisse had assessed an additional air defense system, with the final decision resting with the Federal Council.

“We’ll come away empty-handed for the time being, but at least we’ll get some – if not all – of the advance payments back,” Loher said. Switzerland has paid just over CHF1 billion in advances, but the timing of any partial repayment remains unclear.

 

Source: swissinfo.ch.