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. 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 - 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.
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."
He said the naval expansion would also 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.
(Reporting by Steve Holland; Additional reporting by Steve Gorman and Jarrett Renshaw; Editing by Howard Goller and Rosalba O'Brien)
