Originally Posted by
joel payne
Lewis Campbell, Textron's chairman and chief executive, said in an interview that lower manufacturing costs in China would allow Cessna to sell the airplane for $71,000 less than it would if it had built the plane at its factories in Wichita, Kan. The move also positions Cessna to play a larger role in the developing private- and corporate-aviation market in China.
It's a $100K airplane!!! How can you save $70K on a 100K airplane by building it in china???
1) You still have to buy the expensive parts (engine, avionics) in the US and ship them to china.
2) Labor is not THAT cheap in china...there is a strong demand for skilled labor, especially in aviation manufacturering and repair. Multiple MRO's and China's national manufacturers and airlines are currently fighting for the skilled labor pool, driving wages in an upward spiral.
3) You have to ship or fly the airplanes back to the US, which is still likely to be the primary market.
I wonder if this isn't just a ploy to scare the US workers who make Cessna's bizjets...which is where they make their real money.