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Boeing: Trump's Equity Plan Sidesteps Big Defense Firms
7 Dec
Summary
- Boeing executive stated Trump's equity plan targets supply chain smaller companies.
- Major defense contractors like Boeing are not included in the equity plan.
- The plan is seen as a potential pathway for smaller companies to gain equity.
Steve Parker, CEO of Boeing Defense, Space & Security, stated on Saturday that President Donald Trump's proposal for the government to take equity stakes in strategic industries does not encompass large U.S. defense corporations. Parker clarified that the initiative appears to be primarily targeted towards the supply chain, particularly for smaller companies.
According to Parker, the equity stake plan could serve as a mechanism for these smaller entities to gain a foothold. He explicitly noted that the policy is unlikely to apply to the 'Primes,' a term used for major legacy defense contractors like Boeing, Lockheed Martin, RTX, and Northrop Grumman.
The comments were made during a panel discussion at the Reagan National Defense Forum in Simi Valley, California. This clarification suggests that while the administration explores new ways to support critical industries, established defense giants will remain outside the scope of this specific equity-focused initiative.
