Trump unveils 'Trump-class' battleships, pressures defense contractors on overruns

By Steve Holland

PALM BEACH, Florida, Dec ⁠22 (Reuters) - U.S. President Trump ⁠on Monday ‍announced plans for a new "Trump class" of battleships, marking the start of an expanded naval buildup and signaling increased scrutiny of defense contractors over production delays and cost overruns.

Trump said the ‍new battleships would be larger, faster and "100 times more powerful" than any previously built, forming ​the centerpiece of what he called an expanded "Golden Fleet" aimed at cementing U.S. naval dominance.

The program will begin with two vessels and is ​expected to grow to between 20 and 25 ships, Trump said. The first of the class will be christened the USS Defiant.

The announcement represents the latest example of the president rebranding an aspect of the federal government in his image. Trump, who ​has previously criticized the appearance of U.S. warships, said he will be personally involved in the designs.

He said the ships will weigh more than 30,000 tons, larger than current destroyers, and be equipped with the ​latest technology, including artificial intelligence and directed energy lasers.

"We haven't built a battleship since 1994. These cutting-edge vessels will be some of the most lethal ‌surface warfare ships ... other than our submarines," Trump said.

In addition to carrying conventional naval guns, the new battleships will be equipped with nuclear-armed, sea-launched cruise missiles, U.S. Navy Secretary ​John Phelan said, appearing with Trump in Florida for the ⁠announcement.

Some U.S. officials have warned that a failure to build new battleships in recent years has handed an advantage to economic and military rival China. Trump downplayed China's influence on ‌the decision, saying the expansion was "a counter to everybody."

DELAYS AND OVERRUNS

He said the naval expansion would be paired with renewed pressure on defense contractors to speed up production and rein in costs. He said he will meet with major defense firms next ‌week to address delays and overruns, and to examine whether executive compensation, stock buybacks and dividends are contributing to missed production ‌targets.

"We don't want to have executives making $50 million a year, issuing big dividends to everybody, and also doing buybacks" while production of F35s and other jets languish, Trump said.

Reuters reported last week that the administration was planning an executive order to limit dividends, ‍buybacks and executive pay for defense contractors whose projects are over-budget and delayed.

Trump and the Pentagon have been complaining about the expensive, slow-moving and entrenched nature of the ⁠defense industry, promising dramatic changes that would make the production of war equipment more nimble.

Besides the new battleship class, the expanded fleet envisions increasing numbers of other war vessels, including introduction of a new, smaller class of frigates previously announced by the Navy, Trump said.

(Reporting by Steve Holland; Additional reporting by Steve Gorman, Jarrett Renshaw and Lisa Baertlein; Editing by Howard Goller, Rosalba O'Brien and Stephen Coates)

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