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Originally Posted by mesaba13
What happened to the appeal? Why do they need to be built in the US if the appeal over turns the Tariff.
I believe the tarrifs were a done deal, the appeal talk was all talk. Some of the news articles referenced the bombardier didn't even do the paperwork that was required and it could not be submitted later. As if they didn't even show for court. Then we got the stories of bombardier selling off aerospace programs like the crj and q400.
But then came Airbus.
I'd love to know how long this was in the works or did they put this together in a week? Very impressive.
Here is from a recent Bloomberg article:
https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2017-10-20/airbus-puts-price-tag-on-made-in-usa-label-for-c-series-jet
Quote:
Securing a “made-in-US” label for Bombardier Inc.’s C Series jet by building another assembly line in Alabama would cost only “a few hundred million dollars,” Airbus SE’s No. 2 executive said Friday.
The new facility is crucial to Airbus’s strategy for increasing U.S. sales of the Canadian plane while avoiding stiff trade penalties imposed by the Trump administration. Bombardier projects that passenger jets carrying 100 to 150 passengers will generate 6,000 orders over the next 20 years.
“The minute the plane is assembled in Mobile, it will become American; We would have a made-in-USA jet,” Airbus Chief Operating Officer Fabrice Bregier said Friday in an interview in Montreal. “The U.S. market represents about 30 percent of 6,000 planes, so the rewards are sufficiently important to justify the investment.”
...
Bombardier invested more than $6 billion to develop the jet over the past decade, but the project was bogged down by cost overruns and delays.
The partnership is seen as a solution to Bombardier’s trade dispute with Boeing Co., which accused its Canadian rival of selling the C Series to Delta Air Lines Inc. at “absurdly low prices.” The U.S. Commerce Department has so far sided with Boeing, slapping preliminary tariffs of 300 percent on the Bombardier jets in recent weeks.
....
The made-in-USA label is key to exempting plane sales from import duties, Bregier said. Boeing has said duties will still be levied.
Bombardier is already in talks with several potential U.S. customers for the C Series, CEO Alain Bellemare said Friday in Montreal. In addition to the deal with Delta, JetBlue Airways Corp. is another possible customer, Bregier said earlier this week.
Expanding Airbus’s current factory in Mobile, Alabama, to build the C Series would be “quite affordable” given the access it would provide to U.S. customers, Bregier said.
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Rather than pay cash for its 50.01 percent share, Airbus agreed to contribute its commercial and manufacturing expertise in a bid to cut production costs of the C Series and secure thousands of new orders. Among its first priorities will be using its marketing muscle to renegotiate some of Bombardier’s contracts with major suppliers.
“Airbus brings credibility and volume and in exchange, suppliers are ready to make an effort on price,” Bregier said. “We have to get to this win-win logic with a certain number of big partners of Bombardier and the C Series, and I think we will get there.”
In 7 years Airbus can buy the cseries program at a fair price or bombardier can force them to buy it or they just live happily ever after.
Today
