GE, Shipbuilder HII Reach Settlement on Aircraft Carrier’s Faulty Gears

Shipbuilder HII has settled claims against General Electric Co. that one of its units produced faulty propulsion gears for the USS Gerald R. Ford, the US’s costliest warship, that hobbled the vessel eight months after it was delivered, the companies disclosed.

“Settlement was concluded in the second half of 2023,” GE said in a statement, adding that “there was no lawsuit” and the outcome was “not material” to earnings so its confidential terms weren’t reported in Security and Exchange Commission documents. HII spokesman Danny Hernandez said “the claim has been resolved. Details of the resolution will not be publicly disclosed.”

The $13 billion Ford carrier was forced to return to port after the failure in January 2018 of a “main thrust bearing,” a key propulsion system component. It returned to sea after the damage was contained. The defective gear was the result of “machining errors” by a GE unit, according to Navy documents obtained by Bloomberg News.

The two companies haggled for years before the previously undisclosed agreement was concluded. “The Navy is aware that a settlement has been reached,” Naval Sea Systems Command spokeswoman Jamie Koehler said in a statement.

Top photo: In this handout photo provided by the U.S. Navy, the USS Gerald R. Ford arrives at Naval Station Norfolk after from sea trials.