Thursday, March 24, 2011

GE (GE) Fighter Jet Engine Work will be Ordered to be Stopped

U.S. Defense Department will probably order General Electric (NYSE:GE) and Rolls Royce Group Plc. to stop working on the alternative engine the F-35 Joint Strike Fighter.

Reports are the Pentagon’s acquisition chief, Ashton Carter, will issue the order Thursday for work on the engine to stop, according to industry and defense officials.

Defense Secretary Robert Gates and Obama have both opposed the project, rightly noting it was a waste of taxpayer money.

Hopefully the order to stop working on the engine will halt the alternative engine program, something that should have been done long ago.

General Electric closed Wednesday at $19.53, gaining $0.04, or 0.21 percent.

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