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You are here: Home / General Dynamics Cautions Canada Against Backing Out Of $13 Billion Saudi Deal

General Dynamics Cautions Canada Against Backing Out Of $13 Billion Saudi Deal

December 24, 2018 by www.ibtimes.com

Dec 26, 9:56 AM EST Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Lou Whiteman 12/24/18 AT 2:47 AM General Dynamics (NYSE:GD) is launching a counteroffensive after Canadian government officials expressed desire to scrap a $13 billion armored vehicle sale to Saudi Arabia.This article originally appeared in The Motley FoolCanadian Prime Minister Justin Trudeau in a Dec. 16 television interview said he is looking at ways to back out of the planned sale in response to the killing of journalist Jamal Khashoggi and Saudi Arabia’s involvement in the Yemen war. The Saudi deal with General Dynamics Land Systems-Canada for Canadian-made LAV 6 armored personnel carriers was negotiated by the previous government, led by Conservative Stephen Harper. A General Dynamics F-16 Fighting Falcon fighter jet performs during an air display at the Farnborough Airshow Photo: Reuters Following the prime minister’s television appearance, GD’s Canadian operations issued a written statement, noting that backing out of the deal could leave the government on the hook for significant penalties.”Were Canada to unilaterally terminate the contract, Canada would incur billions of dollars of liability to General Dynamics Land Systems-Canada,” General Dynamics said in the statement. “We hope that we will be allowed to continue to keep building sophisticated, high-value… Read full this story

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