U.S. Department of Justice Seeks Information on Brazil’s 2014 Gripen Fighter Jet Acquisition

Saab North America, a U.S. subsidiary of the Swedish aerospace company Saab, has received a subpoena from the U.S. Department of Justice (DoJ) concerning Brazil's acquisition of Gripen fighter jets.

The DoJ has requested information related to the 2014 contract under which the Brazilian government purchased 36 Gripen E/F aircraft for its air force. Saab has announced its intent to fully cooperate with the DoJ's inquiry.

The fighter jet procurement, part of Brazil’s FX-2 program, was conducted between 2008 and 2014. Saab won the $5.4 billion contract, defeating competitors Boeing (F-18 Super Hornet) and Dassault Aviation (Rafale). The agreement also included provisions for the future production of Gripen jets in Brazil.

This contract has been the subject of prior investigations by both Brazilian and Swedish authorities. However, these probes were closed without uncovering any wrongdoing by Saab. In 2016, Brazilian prosecutors accused former president Luiz Inácio Lula da Silva of using his influence to help Saab secure the contract. Lula’s legal team denied the allegations, calling them politically motivated.

The Brazilian Air Force (FAB) chose the Gripen to replace its aging fleet of Northrop F-5 fighters. Deliveries of the Gripen began in 2021, with nine F-39E fighters currently operational. The remaining aircraft are expected to be delivered by 2027.

Saab’s stock dropped by 6.38% following the news of the U.S. investigation.