And specifically on how SAAB will ensure that the upgraded Gripen NG will remain cost effective: (paid subscription required)

Moreover, Gripen NG embodies a new business model that aims to cut costs even with low production rates. “The market is extremely price-sensitive,” and the build approach for the new version reflects this, says Bob Kemp, marketing director for Gripen International.

In the past, Gripen embraced technologies that designers modified to fit specific needs—as was the case with the General Electric F404 engine that Volvo turned into the fighter’s RM12 powerplant. For the Gripen NG, Saab went directly to GE and asked for an F414, the latest version of the F/A-18E/F’s engine with minimal changes. The F414G features some adjustments to the full-authority digital engine control and power supply, largely because Gripen is a single-engine fighter (whereas the F/A-18E/F has two engines). This seemingly innocuous change allows Saab to reduce engine costs 20%, even though the F414 is a higher thrust engine with a greater sticker price than the F404.

(emphasis mine)

Another possibility in this model is the use of some commercial systems, with even greater cost/performance advantages.

It’s why I think that it will be see a successful export market. even though it just lost in Norway, because these aircraft, and pretty much all of the high end military systems out there, have gotten too damn expensive.

BTW, here is a nice bit of video from Aviation Week: