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Bombardier’s Northern Ireland workforce could play a much bigger role in building its long-delayed CSeries passenger jets, including producing key parts such as the fuselage, the Belfast Telegraph understands. 570 more words
UPDATE: Today Bombardier received another $1.5 billion to shore up its liquidity to keep its 'pet' projects (CSeries and Global 7000/8000) alive and breathing. Caisse du depot et placement du Quebec (CDPQ) the provinces largest public and private pension manager will take a 30% share in Bombardier Transportation (rail), as Bombardier prepares to burn through $US+1.0 billion next year on the CSeries (entry into service, production, and on every delivered aircraft which should be 20) and another $1.0 billion on the Global 7000/8000 in development and certification costs ($2.6 billion was spent on the failed Lear 85 - how ?). The CSeries is now 49.5% owned by the Province of Quebec, and you know where jobs will be going, as the medium term future of Downsview is now questionable (remember Canadair's home airport of Cartierville ? sold to make a golf course and a residential area at a good profit to Bombardier) as the Q400 and CRJ lines are in their final 2-3 years of production, as backlogs for both are less than 130 (currently 5 x CRJ's and 2 x Q400's are being produced per month), you can do the math right ? They want federal money too as they make plans to send Q400 wing and cockpit work to Mexico as the product life cycle is firmly in the decline phase for both lines, and Quebec wants job guarantees for its stake in the Cseries. At some point in the next 2-3 years look for business jet work (inc. G7000/8000) going to Montreal. Why does the public put in money when the Beaudoin and Bombardier family control 54% of voting rights with 14% of equity ? and they are responsible for the current mess, company needs good corporate governance. The reality is that there are at best only "REALISTIC" 140 CSeries orders after 7 years of sales effort, Airbus was approached, Embraer was approached and no takers were found for the program and now they are stuck with it, slowly writing it down with huge losses. It is not only about the state of finances, but the segment (110 to 149 seats) it is positioned in, but also the huge discounting by Airbus and Boeing which will require +40% discounts by Bombardier to win any large order. Time to change the Board as you cannot solve your problems with the same people that created the problems in the first place, the Lear 85 was written down by $US 2.6 billion and the CSeries was written down by $US 3.2 billion, due to mismagement of both programs.The stock, (TSX:BBD.B) closed at $1.28 today down from $1.36 a week ago and down 70.3% from a year ago, a further drop of 22% and its a penny stock ! The financial markets are NOT impressed, everyone knows that its all a indirect BAILOUT as the company lost $4.9 billion last Quarter ($700 million without write downs) and now you have the Quebec Government in the CSeries program, and that is never good for any business as Canadian Governments have shown that they have NO idea how to run a business, we saw that with Canadair, de Havilland, Air Canada, etc. Lastly, no one discusses it but the BIG problem for the CSeries is that it will NOT make money in an industry discounting 40% off List Price today, and production of narrow body airliners is going to 125 units per month, and Bombardier plans 10 per month and it too will have to discount 40% down, making profitability at best a long term proposition, if ever.
Today Bombardier got another bail out from the Province of Quebec, this time by getting Caisse de depot et placement du Quebec (CDPQ), Quebec’s long term public and private pension fund, to buy 30% of its Bombardier Transportation (rail business) for $1.5 billion (valuing the division at only $5.0 billion), on top of the recent $1.0 billion it received from the Province of Quebec for a 49.5% stake in the CSeries program. 1,880 more words
A new $2-billion cash infusion from the Caisse de dépôt et placement du Québec will give embattled transportation company Bombardier Inc. the liquidity it needs to complete its current aerospace programs, including the C Series jet, and have a “nice safety net” in case market conditions toughen, Bombardier chief executive Alain Bellemare said Thursday. 681 more words