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The Future of Bombardier

Financial Times headline just in:
Brussels set to block Alstom-Siemens rail merger

Brussels is set to block the rail merger between Siemens and Alstom, in a landmark competition decision for Europe.
Margrethe Vestager, the EU’s competition commissioner, is pressing ahead with an internal recommendation to veto the tie-up, after last-ditch concessions from the German and French train manufacturers failed to address her concerns.

This will be a huge relief for BBD, albeit they still have *many* problems, not least management.
 
Nothing new here and I am sure this has been said before...but senior management and the family ownership at Bombardier have been siphoning off cash (aka stealing) from the beleaguered company for years, consistently receiving federal and provincial handouts (in the billions) to secure jobs, while continually paying out millions in bonuses to themselves. What this all looks like to me...is the *management *(if you can call it that) and family (stingy pricks), are no longer in the business of running a successful company, but instead are working behind the scenes to tank all the various Bombardier entities, one at a time. Their intentions remain the same - take the cash, wait and then sell, as was the case for the C-Series to Airbus and the Downsview facility and ultimately the Dash program to Viking. Each time pocketing the money and paying themselves massive bonuses and add the remaining monies to their balance sheet..Is that not the taxpayers money? Should that not be returned, if not entirely a good portion of it to the government?

https://business.financialpost.com/...sells-toronto-assembly-site-in-major-makeover
https://www.cbc.ca/news/canada/montreal/bombardier-executives-quebec-payout-1.4047290


ahhhh....eff it!
 
Alot of people are commenting that ML doesnt have tracks ready so who cares....but a contact is a contract.
You comments are generally good - but hang on. If a judge, ruling on contract law, through on Metrolinx's attempt to cancel the contract, based on non-performance, making sarcastic comments about Metrolinx's inability to receive vehicles - then surely it's not as simple "a contract is a contact".

There''s issues with EVERY order from EVERY supplier. If Metrolinx is being obstinate to the point of obstructionist, that's a problem, and it won't win Metrolinx any settlements. It's pretty clear that they are completely out-of-their-depth on these type of legal issues, looking at that ruling, and the contracts they have revealed, which have some jaw-dropping terms in them that don't do Metrolinx any favours.

At the same time, Bombardier does seem to have production issues. While the production process in Thunder Bay seems to have been relatively good now for five quarters in a row, there are clearly some huge issues with the newer production lines in Kingston.
 
You comments are generally good - but hang on. If a judge, ruling on contract law, through on Metrolinx's attempt to cancel the contract, based on non-performance, making sarcastic comments about Metrolinx's inability to receive vehicles - then surely it's not as simple "a contract is a contact".

There''s issues with EVERY order from EVERY supplier. If Metrolinx is being obstinate to the point of obstructionist, that's a problem, and it won't win Metrolinx any settlements. It's pretty clear that they are completely out-of-their-depth on these type of legal issues, looking at that ruling, and the contracts they have revealed, which have some jaw-dropping terms in them that don't do Metrolinx any favours.

At the same time, Bombardier does seem to have production issues. While the production process in Thunder Bay seems to have been relatively good now for five quarters in a row, there are clearly some huge issues with the newer production lines in Kingston.

I agree with your above points. my intent on the "contract is a contract" statement was that bbr cant just say "ohhh they dont have track ready so we have an excuse to continually miss the deadline." It was agreed that a the first vehicle was to be ready by a certain date. IIRC, their first prototype couldnt even turn on when that date came and gone so bbr really did themselves a disservice as well. Even if they were waiting for ml to supply them with whatever signals control system, they should have been able to produce a car that can at least turn on and run by itself. Then again, wouldnt that be a design flaw if there was no manual mode? What if the system crashed or there was an emergency? Would the LRVs be completely inoperable?
 
IIRC, their first prototype couldnt even turn on when that date came and gone so bbr really did themselves a disservice as well.
I assumed that the Metrolinx equipment it was waiting for, would preclude completing this.

Even if they were waiting for ml to supply them with whatever signals control system, they should have been able to produce a car that can at least turn on and run by itself.
Should they? They should create extra work for themselves, to do something temporary because Metrolinx is behind schedule delivering the control system?

Particularly when it's clear Metrolinx is being obstinate, and threatening to cancel the order? Based on the outcome of the lawsuit, and the damages that Metrolinx is now paying Bombardier in the negotiated settlement, it seems to be Bombardier (for once) did what gave them the best outcome.

Bombardier might have issues, but I think Metrolinx is creating even bigger ones on this particular order.
 
My opinion is that the Alstom-Siemens merger is not great news for BBD, since a shrinking in market options means they keep getting added to tenders because of few alternatives. For example, with Alstom having Amtrak's high speed order and Siemens the medium speed business, there is little room for Bombardier to claim monopoly now and try and force their way back into Amtrak's considerations.
 
Glug, glug, glug

Bombardier Belfast sale comes in wake of annus horribilis for workforce

May 2 2019

Canadian aerospace giant Bombardier has announced it plans to sell its aerostructures business in Belfast.

The Montreal based group has also announced plans to sell its operation in Morocco.
Around 4,000 people are employed in the east Belfast plant.

https://www.belfasttelegraph.co.uk/...-annus-horribilis-for-workforce-38072000.html
 
Incredible how one man (Pierre Beaudoin) single-handedly crippled this company for the foreseeable future.

I'm not forgetting about the rest of the family who played their own roles in the company's current fiasco, but Beaudoin really destroyed this company.
 
^ I'm looking forward from that. My question is "When are the Europeans going to buy back BBD Transportation Division?' I suspect they can do so at a cut rate, and I also suspect it will either be Siemens (most likely) or Alstom (next on the list), and a reduced chance, due to financing issues, one of the smaller but very well run companies like Stadler.

In rail, almost all the *modern* expertise BBD attained was from Germanic Europe (Swedes, Germans, Swiss). They bought excellence, and ran it into the ground.
 
Glug, glug, glug

Bombardier Belfast sale comes in wake of annus horribilis for workforce

May 2 2019

Canadian aerospace giant Bombardier has announced it plans to sell its aerostructures business in Belfast.

The Montreal based group has also announced plans to sell its operation in Morocco.
Around 4,000 people are employed in the east Belfast plant.

https://www.belfasttelegraph.co.uk/...-annus-horribilis-for-workforce-38072000.html

This was pretty much guaranteed when both the C-Series and Dash-8 lines were sold wasn't it? Did Belfast make anything other than C-Series wings/fuselage?

Bombardiers needs for business jets are far smaller, and it's the only line remaining.
 
This was pretty much guaranteed when both the C-Series and Dash-8 lines were sold wasn't it? Did Belfast make anything other than C-Series wings/fuselage?

Bombardiers needs for business jets are far smaller, and it's the only line remaining.
It's a good question...and it's missing the next step: Will Airbus snap it up or not, or sectors of it? (The A220 wings are made there, but Airbus states (gist) "Cost of production of the BBD line is very inefficient".) BBD is a known poorly managed company. BBD even know it themselves.

Best I quote the Irish Times on this:
[...]
There have been serious fears about Bombardier and the future of its five production sites in the North since the Canadian group announced a global restructuring programme last November, which would result in 5,000 redundancies.

Belfast was earmarked for nearly 500 of these. While it was, as the trade union Unite described it, “a heavy blow”, it allayed fears that the outcome could have been much worse.

Bombardier, once the North’s largest private sector employer, is as integral a part of Belfast as the giant yellow cranes of Harland & Wolff that dominate the city’s landscape. The Canadian aerospace group has had a major presence in the city since it acquired what was then Short Brothers from the UK government in 1989.

Supply chain
Aside from its direct workforce, Bombardier, which accounts for at least 10 per cent of the North’s total annual manufacturing exports, also has a significant supply chain in Northern Ireland that supports thousands of additional jobs.

According to Bombardier Belfast’s statistics, it has a European chain totalling around 900 approved suppliers. Out of these, the company says 800 are based in Britain and Ireland.

In 2017, the value of contracts awarded to these firms was around £200 million. At least 50 companies supply Bombardier with components for the A220 aircraft (previously known as the C-Series) alone. [...]
https://www.irishtimes.com/business...shocked-as-worst-fears-come-to-pass-1.3878916

Full disclosure: I have a younger brother who used to work in the Airbus wing factory in Filton (just outside of Bristol). He now works in another division at Airbus. Airbus are pretty busy building wings for their other lines. Here's the probable outcome: If Airbus doesn't snap up BBD's NI production, it will most likely go to the Airbus plant in Alabama.

What I haven't read lately is what I read last week: Labour issues at BBD looked resolvable for some lines (like the biz jets you mention). The A220 line (parts are still made in Montreal) is under a different union, and the company knows that production can shift to Alabama, at the Airbus plant, which is non-union. I think you're going to be hearing a lot more on that aspect shortly.

Addendum: I posted before reading further:
[...]
Industry observers have identified Airbus as a potential buyer of the five plants in Belfast which make wings for the Airbus A220, previously known as the Bombardier C-Series. Airbus owns 50.5 per cent of the Belfast A220 programme.

An Airbus spokesman said the group “does not comment on speculation or market rumours”, but said it did not anticipate “any impact on A220 production”.
[...]
https://www.irishtimes.com/business...for-bombardier-s-belfast-operations-1.3879226

Edit to Add:
Airbus, unionized in Europe, wants no such thing in Mobile | The ...
https://www.seattletimes.com/.../airbus-unionized-in-europe-wants-no-such-thing-in-mo...

Mar 19, 2016 - The Machinists union hopes to organize Airbus workers at the European jet maker’s new final-assembly plant in Mobile
U.S. unions disappointed with Airbus Alabama location | Reuters
https://www.reuters.com/...airbus-alabama-unions/u-s-unions-disappointed-with-airbus...

Jul 2, 2012 - U.S. unions disappointed with Airbus Alabama location. Bill Rigby. 4 Min Read ... “Non-union employees aren't good for any workforce.
Union representing 2,000 Quebec workers has mixed feelings about ...
https://business.financialpost.com/.../union-representing-2000-quebec-workers-has-mixe...

Oct 17, 2017 - Bombardier says the deal with Airbus — and the new Alabama ... therefore, a domestic product would not have the import tariff apply to this,”
[...etc, etc...]

Airbus is looking for a 'back-door' to claim that some of its aircraft are US produced, and therefore not subject to Trump's tariff pump.
 
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