Bombardier CSeriesClick image to enlarge

In a somewhat of a surprise but bold move, Bombardier has partnered with Airbus on its CSeries aircraft program to help resolve the current trade issue with competitor Boeing.

In the deal announced late Monday, Airbus will acquire a 50.01 per cent stake in the C Series division for no cash and incorporate the plane into its product lineup.

The move by Bombardier could circumvent duties being imposed on the CSeries. The CSeries headquarters will remain in the Montreal area, but a second assembly line for the 100 to 150-seat plane will be set up at Airbus's facility in Mobile, AL, so the plane can be sold in the US.

In press reports in The Globe and Mail and CBC, Bombardier CEO Alain Bellemare said having Airbus as a strategic partner "increases confidence that the aircraft is here to stay."

He said Bombardier will secure more orders and double the value of the program. "By securing the US market you end up securing the program." 

According to a Financial Post online story by Chris Byrant, says it's a great move, especially for Airbus. "For the European aerospace giant, this deal feels like a slam dunk. Unlike two years ago, when it first toyed with making a CSeries investment, the aircraft is now a much less risky proposition. It’s been certified by regulators and the first customers seem very pleased with it. True, the program’s still consuming cash, but Bombardier is promising to absorb another US$700 million in losses after closing.

"Airbus can’t really lose here. Indeed, by acquiring warrants over 5 per cent of Bombardier’s stock at the current price, there’s potential for considerable upside. Bombardier has lost two-thirds of its value since 2011 amid fears over the future of the CSeries."

 

Modest growth in manufacturing for Canada: PMI hits 9-month high

Canadian manufacturers signalled an improvement in their overall business conditions during November, which marked three months of sustained recovery, according to data from the IHS Markit Canada Manufacturing PMI.

$300,000 for BC welding programs

BC high schools with welding programs are getting a $300,000 boost after the Canadian Welding Association Foundation (CWA Foundation) announced it's expanding secondary school welding and education support programs across the province because of a donation from the Dennis and Phyllis Washington Foundation in conjunction with Seaspan, an association of Canadian companies in the coastal marine transportation and shipbuilding sectors.

Canada could get break on metals tariffs, White House says

Canada could still avoid being subject to US proposed heavy tariffs on steel and aluminum.

100th military trailer completed at Arne’s Welding

Mack Defense has announced the completion of the 100th Load Handling System (LHS) Trailer, as part of the Canadian Army's MSVS – SMP Program.

Creaform now an ISO/IEC 17025 accredited lab

Creaform, a Levis, QC, supplier of portable 3D measurement solutions, has received the ISO/IEC 17025:2005 accreditation from the American Association for Laboratory Accreditation (A2LA).

TransCanada supports welding camps for kids

TransCanada Corp. has partnered with the CWA Foundation to support the welding organization's Mind over Metal welding camps for students.

Celestica wins ventilator manufacturing contract

Celestica Inc. has won a program to build 7,500 ventilators for StarFish Medical Inc., a Canadian medical device company, at Celestica’s operation in Newmarket, Ont. 

Daimler dives deeper into AM

A pilot project for automated 3D printing of replacement parts and series-production components has been a huge success for Daimler, the automotive manufacturer says.

$6.6 M for manufacturers in southern Ontario

The Federal Economic Development Agency for Southern Ontario (FedDev Ontaro) announces $6.6 million funding for Guelph manufacturers

Guelph, ON, manufacturers Hammond Manufacturing Co. and Ontario Drive and Gear Ltd. will be receiving combined funding of $6.6 million following an annoucement by the Federal Economic Development Agency for Southern Ontario. The projects are expected to create or maintain up to 165 full time equivalent jobs.

Lockheed Martin invests $10 M in Montreal supplier

Canada's aerospace and defence sectors are important contributors to the Canadiane economy and the Federal government has invested tens of millions of dollars in businesses working in these sectors to help spur growth and create jobs. As part of the spinoff activity from these investments via the government's Industrial and Technological Benefits (ITB) Policy, Lockheed Martin's is investing $10 million in Mannarino Systems and Software.

Schunk receives innovation award for intelligent gripper

Schunk is the recipient of the Hermes Award, a technology prize for innovation. Schunk received the award during the opening of the Hannover Messe for its Co-act Gripper JK1, an intelligent gripping module for human/robot collaboration.

U.S. firm Leviton acquires Canadian lighting manufacturer

Canada’s largest independent lighting manufacturer, Toronto-based Viscor, has been acquired by Leviton, a diversified U.S. lighting, energy management and engineering company.

Ford, Magna investing big in advanced R&D

Two of Canada's major manufacturers, Ford and Magna, are investing millions of dollars in advanced research and development for connected vheicles and services and artificial intellingence.

Magna CEO Don Walker on COVID-19 response

Magna International CEO Don Walker spoke to BNN about the company's strategy for dealing with COVID-19 and how he plans to get his company back to work safely, and how Magna will fit into the post-coronavirus supply chain.

Honda, Toyota, Subaru hit record auto sales in Canada

Automotive industry sales continue to stay strong with recent sales reports from Honda Canada, Toyota Canaa and Subaru Canada. Honda Canada set an all time monthly record in March, while Toyota Canada's sales for made-in-Canada vehicles remained strong and Subaru Canada saw its best ever March sales.

Stay In Touch

twitter facebook linkedIn