THE AUTO-ORDNANCE BRITISH AND FRENCH CONTRACTS  

By Frank lannamico © 2000
Excerpt from the new book; ‘The Military Thompson” that will be published in 2001.  

Many of the early Savage manufactured Thompsons were sold to the British Purchasing Committee for $168.75 each. By the end of the British contracts the price had been reduced to $130.00 per weapon. The French were charged $175.00 per Thompson gun in their 1939 contracts with Auto-Ordnance. Both Savage and the Auto-Ordnance Corporation were concerned with filling as many of the foreign contracts as possible prior to the enactment of Lend-Lease. They were both concerned that the US Government would question the high profit margin Auto-Ordnance was making on the Thompson. A provision of the Lend-Lease program stated the US Government would take over all foreign contracts with US arms manufacturers. Ironically enough, Auto-Ordnance was able to charge the US Government even more!  The price charged to the US Government was $225.00 minus 10%, which calculates to $202.50. Greasing and packing added an additional $2.50 to the cost adding up to $205.00 per weapon.  The price was eventually reduced through negotiation and by lowering the manufacturing costs.