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."

 

Record numbers for DMG Mori event

More than 1,300 people attended DMG Mori's Manufacturing Days event, held November 12-15, held at the company's Davis, CA, facility.

Invest in Canada: Government message at Paris Air Show

The Canadian government thinks global companies should invest in Canada's world-class aerospace sector and that's the message it delivered at the 2017 International Paris Air Show, which runs June 19 to 25.

Hypertherm named world's most ethical company

Hypertherm, a manufacturer of plasma, laser, and waterjet cutting systems, has been named the 2015 World’s Most Ethical Company by the Ethisphere Institute.

Formtek to distribute Italian line in North America

Formtek Inc., Cleveland, OH, has become the exclusive North American distributor for Bossi, an Italian manufacturer of inline and secondary surface processing equipment for roll forming and tube mill systems, based in Milan.

Robert Cattle new head for tooling, machining group

Robert Cattle has been named executive director for the Canadian Tooling and Machining Association (CTMA). He succeeds Les Payne, who has served as a volunteer director, president (2002-2004) and executive director for the past 30 years.

Manufacturing Day improves industry profile: survey

Manufacturing Day 2015 events across North American have helped to improve the perception of industry among the public, according to a Deloitte survey.

New R&D institute for Ontario’s Niagara region

Pictured at the announcement from left are Niagara Region chair Jim Bradley, St. Catharines MP Chris Bittle, Brock president Gervan Fearon, Cool Climate Oenology and Viticulture Institute director Debbie Inglis, Brock vice president, research Tim Kenyon, Brock chemistry instructor Paul Zelisko and Niagara Centre MP Vance Badawey. Photo: Brock University.

Ottawa is contributing $5 million to the establishment of a new facility for R&D at Brock University in St. Catharines, Ont.

Montreal's TechFab joins Komet network

TechFab, Montreal, QC, is the second Canadian partner to join Komet Service, a network Komet created that consists of specialists in the fabrication and refurbishment of solid carbide tools who adhere to Komwr processes and quality standards to provide customers superior tooling for their applications. 

APMA names Project Arrow concept design winner

The Automotive Parts Manufacturers’ Association (APMA) has unveiled the winning design for the first all-Canadian full-build, zero-emission concept vehicle named Project Arrow.

Ontario provides $1.3M to train workers in London, Ottawa

The Ontario government is pumping $1.3 million into skills training to help the Excellence in Manufacturing Consortium (EMC) develop workers in London and Ottawa for new opportunities in the manufacturing sector.

Stay In Touch

twitter facebook linkedIn