By Gabriel Araujo

GAVIAO PEIXOTO, Brazil, March 25 (Reuters) - Swedish defense firm Saab SAABb.ST is pressing on with a campaign to sell its Gripen fighter jets to Peru despite political turbulence and signs the country was leaning toward the competing F-16 made by Lockheed Martin LMT.N.

Saab Chief Executive Micael Johansson said on Wednesday the company had made a "cost-efficient and competitive" offer to Peru and was in close contact with the country's air force.

After a 2014 deal to sell 36 aircraft to Brazil, Saab has long viewed Peru as a potential Gripen customer alongside Colombia, which placed an order last year.

"Since these decisions are on a political level, when things are a bit turbulent you may get sort of a pause or hibernation on the process," Johansson told reporters on the sidelines of an event introducing the first Gripen assembled in Brazil.

PRESIDENTIAL TURNOVER

Since 2018, Peru has cycled through a rapid succession of presidents, exposing fissures between the executive branch and Congress.

Last month, Congress ousted President Jose Jeri over a corruption scandal only four months into his term and just before elections scheduled for April 12. Lawmaker Jose Balcazar has been serving as interim president.

Johansson said that Peru had taken decisions toward funding a fighter jet program.

"Now it's more about how do they launch it, and of course it's a competition, so they have to select. But we are still campaigning in Peru, definitely," the executive noted.

The U.S. State Department said last year it approved the potential sale of F-16 aircraft and related elements of logistics and program support to Peru in a deal estimated at $3.4 billion.

Peru's government said last week that the process had not yet concluded, following media reports it had selected the F-16.

PRODUCTION SITES, TWO-SEAT VERSION

Johansson said Saab did not expect to expand its Gripen manufacturing footprint significantly beyond its existing sites in Sweden and Brazil.

"I think Sweden, Brazil and maybe one more," he said. "If Canada selects to go dual-fleet and not only (Lockheed's) F-35, Canada might be that country."

The CEO reiterated Saab expects its production line at Brazilian planemaker Embraer's EMBJ3.SA Gaviao Peixoto plant in Sao Paulo state to serve as an exporting hub.

Johansson also said Saab plans to roll out the Gripen F, a two-seat version of the fighter, in Sweden in June.

(Reporting by Gabriel Araujo; Editing by Brad Haynes and Andrea Ricci)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))