In May 2004, it was reported that the company was considering selling its shipbuilding divisions, BAE Systems Naval Ships and BAE Systems Submarines. It was speculated that General Dynamics wanted to acquire the submarine building facilities at Barrow-in-Furness, while VT Group would have been interested in the remaining shipyards on the Clyde. [57] Instead, in 2008, BAE Systems merged its surface fleet business with VT Group`s shipbuilding business to form BVT Surface Fleet, a key objective of the UK government`s defence industrial strategy. [58] [59] BAE Systems inherited the “golden” share of the UK government set up when British Aerospace was privatized. This single share prevents any amendment of certain parts of the articles of the corporation without the approval of the Secretary of State. [12] According to these articles, no foreign person or person acting in concert may hold more than 15% of the shares of the company. [34] It plays an important role in the production of military aircraft. The company`s Typhoon fighter is one of the RAF`s most important front-line aircraft. [115] The company is a key partner in the F-35 Lightning II program.
[116] The advanced Hawk jet trainer was widely exported. [117] In July 2006, the UK government declassified the High Endurance Rapid Technology Insertion (HERTI), an unmanned aerial vehicle (UAV) capable of navigating autonomously. [118] The company, in collaboration with the UK Ministry of Defence, Rolls-Royce, Leonardo S.p.A. and MBDA, is currently developing a sixth-generation fighter aircraft for the RAF, marketed as the “Tempest”. It is due to enter service from 2035 and replace the Eurofighter Typhoon, which is in service with the RAF. [119] This company is a joint venture with a French arms manufacturer. It focuses on the development of guided missiles for use on land, in the air and at sea. It recently won a contract to produce the Meteor air-to-air guided missile for the Eurofighter project. The company has an order book of £2.5 billion and employs around 6,100 people (2850 in the UK and 3250 in France). BAE SYSTEMS owns 50% of this company.
As the world`s largest arms manufacturer and owner of a large majority of the British shipbuilding industry, BAE can exert massive pressure on the Ministry of Defence. He has a history of government threats of relocation and withholding investment if he doesn`t get the contracts he wants. For example, in 2001, the company lobbied the Ministry of Defence to award the 12 new Type 45 destroyers to BAE, although it was initially planned to split their production between Vosper Thornycroft and BAE SYSTEMS. He threatened that if he did not win the contract in full, he would abandon his planned £150 million investment in Scotstoun on the Clyde and effectively withdraw from shipbuilding, crippling Britain`s manufacturing sector. [64] As befits a “truly global” company, BAE SYSTEMS covers a wide range of products and projects. However, few of them are something the average consumer would ever buy. BAE products are mainly intended for the purchase of weapons from nation states and, to a lesser extent, the huge budgets of airlines such as British Airways. In September 2003, the Sunday Times reported that BAE Systems had hired a private security guard to gather information on people working in the campaign against the arms trade and their activities.
[197] [198] In February 2007, it was reported that the company had again received confidential confidential information from CAAT. [199] Steven Lewis Mogford Chief Operating Officer of BAE SYSTEMS Mogford joined British Aerospace Military Aircraft in 1977 as a procurement engineer at the Preston site in Lancashire. In 1994, he was appointed Director of Programs at Al Yamamah and, at the end of 1995, General Manager of Systems and Services. Following the merger of British Aerospace and Marconi Electronic Systems in November 1999, he was appointed Group Managing Director of Programmes and Managing Director of Eurofighter, BAE SYSTEMS. Zum 1. In April 2000, he became Director of Operations – Programs, responsible for major projects and customer support at BAE SYSTEMS, and joined the company`s Board of Directors. [29] Togethr was founded on May 1, 2001. According to BAE, it “will provide staff support services to BAE SYSTEMS and the growing global integrated HR services market.” Services include recruitment, learning, benefits, pension administration, and HR systems and records. BAE SYSTEMS` stake is 50%, the remaining 50% is held by Xchanging Ltd. BAE Systems and its previous incarnation, British Aerospace, have long been the subject of corruption allegations related to its operations in Saudi Arabia.
The UK`s National Audit Office (NAO) has investigated Al Yamamah`s contracts and has yet to publish its findings, the only NAO report ever published. [170] The Defense Ministry said, “The report remains sensitive. The disclosure would harm both international relations and the UK`s commercial interests. [171] The company was accused of maintaining a £60 million Saudi bribery fund and was investigated by the Serious Fraud Office (SFO). In November 2006, Saudi Arabia pressured the British government to end the SFO investigation by suspending negotiations on a new agreement for seventy-two Typhoon fighter jets. [172] On December 14, 2006, it was announced that the SFO was “terminating” its investigation of the company. The U.S. defense market is highly competitive, but largely between U.S. companies, while foreign companies are excluded.