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The ‘Hyundaization’ of the Global Arms Industry
The Wall Street Journal ^ | 04/05/2015 | JOE KATZMAN

Posted on 04/17/2015 3:45:03 AM PDT by sukhoi-30mki

Precision weapons and networked targeting have helped maintain America’s military superiority for decades. But technology marches on. New defense exporters are joining the global game with advanced and well-priced offerings, creating potential threats to the U.S. and its allies, and weakening Western influence. The Pentagon has a plan to cope with these evolving threats, but is it enough?

To understand what’s happening, consider the global automotive industry. South Korea’s Hyundai Motors became a serious global competitor by leveraging the rapid diffusion of technology, an initial edge in cheap labor, and a “good enough” product for value buyers. Their success wasn’t obvious in 2001, but by 2015 the proof was in our parking lots. A similar “Hyundaization” process is under way in the global defense industry.

A few examples: NATO allies Turkey and Poland didn’t buy their latest self-propelled howitzers from the U.S. or even Germany. Instead they turned to Samsung. South Korea’s Daewoo is building Britain’s next naval supply ships, and Korea Aerospace Industries is exporting TA-50 and FA-50 fighter jets to Iraq, Indonesia and the Philippines. The F-16 is America’s cheapest fighter; the new Korean, Pakistani and Indian fighters cost about 33%-50% less. If you’d rather pocket a 67% savings, Brazil’s A-29 Super Tucano has become the global standard for counterinsurgency. An urgent order from the United Arab Emirates is likely to see combat in Yemen soon.

The long-term threat involves the spread of precision-strike weapons that can hit what modern surveillance “sees.” In addition to Russian and Chinese exports, Turkey has begun to export new guided weapons, including a stealthy cruise missile. India’s Mach 3 Brahmos antiship missile is available, as are GPS-guided equivalents to Boeing’s JDAM, including the UAE-South-African Al-Tariq or Brazil’s Acauan. Pakistan has already bought Brazil’s MAR-1 radar-killer missiles for its JF-17 fighters.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: aerospace; armsindustry; fa50; pentagon; southkorea

1 posted on 04/17/2015 3:45:03 AM PDT by sukhoi-30mki
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To: sukhoi-30mki

thanks for these great military articles you post ...

what’s your take on the FA-50 ?


2 posted on 04/17/2015 4:05:16 AM PDT by Patton@Bastogne
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To: sukhoi-30mki

When my company worked with the Koreans to develop their M1-K1 tank they used espionage, intimidation and theft to obtain the technical data package, which they had not bought. They then started selling pin-for-pin compatible spares to our customers at a fraction of our price.


3 posted on 04/17/2015 4:33:18 AM PDT by Gen.Blather
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To: Patton@Bastogne

Seems like a fine aircraft for countries looking for a ‘affordable’ fighter but not one to talk one on the big guns. That its essentially a half-American product will ensure it won’t go into a lot of wrong hands, but also undermine its export potential in some countries against some Chinese/Russian offerings.


4 posted on 04/17/2015 4:33:54 AM PDT by sukhoi-30mki
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To: sukhoi-30mki

Our fouled up acquisitions process prices us out of the market and will eventually cause us to lose our military superiority.


5 posted on 04/17/2015 5:31:26 AM PDT by 1010RD (First, Do No Harm)
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To: sukhoi-30mki

Well at least they’ll come with terrific warranties.


6 posted on 04/17/2015 5:46:07 AM PDT by Buckeye McFrog
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