The Future of Bombardier

[jje1000]

More layoffs coming to Thunder Bay's Bombardier plant
125 people expected to be laid off in October, 75 more at the beginning of 2021
Logan Turner · CBC News · Posted: Aug 26, 2020 2:16 PM ET

Workers at the Bombardier plant in Thunder Bay, Ont. received "devastating" news from management on Wednesday, with chief operating officer David Van der Wee announcing that more than 200 layoffs are expected in the coming months.

Despite recent work to bring in smaller contracts for the Thunder Bay plant, "by the end of 2021, there's just simply nothing left in the pipeline," Van der Wee said.

The company is looking to the Toronto Transit Commission (TTC) as a possible source for one of those "bridging contracts."

Bombardier is looking to secure a contract with the TTC to build 60 light rail transit cars, but it hasn't been able to finalize a deal.

https://www.cbc.ca/news/canada/thunder-bay/bombardier-tbay-layoffs-2020-1.5700773

 

[44 North]

Part of me wants this supposed "Ontario Line" to use Bombardier's Innovia vehicles. Not as 100m trains, would have to be at least 120m. But I do have a partiality to building locally and Canadian-owned.

 

[Amare]

^I used to be in support of ICTS and the Innovia line, but now i'm not too hot on this orphan/proprietary technology. As soon as you commit to that, you're pretty much hooked to Bombardier (soon to be Alstom) for the rest of eternity with no alternative.

Vancouver does well with it, but even they're waffling around with conventional technologies now through P3's.

 

[44 North]

^I used to be in support of ICTS and the Innovia line, but now i'm not too hot on this orphan/proprietary technology. As soon as you commit to that, you're pretty much hooked to Bombardier (soon to be Alstom) for the rest of eternity with no alternative.

Vancouver does well with it, but even they're waffling around with conventional technologies now through P3's.

Sry should've stated that it'd be not with LIM. In the brochure they make clear the train can use regular rotary motors/3rd rail. I'm down with LIM in theory, but wouldn't want to buy into it. Cuz then you're locked into it.

 

[drum118]

Innovia vehicle is the wrong technology for the Ontario Line as it will never handle the ridership down the road. It will replace Yonge ridership of 10 years ago when max out and that way more than the Innovia technology cab handle.

If the OL: is built to Steeles like it should, it will see close to 30% of today Yonge riders using it in the first year of operation. Over time as density growth, ridership will keep on climbing and surpass Innovia max numbers.

We already have an orphan line and don't need another. Look what happening to orphan line as well not getting to where it was supposed to go 40 years. The plan LRT conversion was to do that.

 

[TrickyRicky]

I’m not as informed about the detailed history of Bombardier; however, you could also look at this from a macro deterministic perspective. Canada had a unique window of industrial advantage after the second world war. We had an intact infrastructure, resources, cheap energy, a scaled up (bloated) industrial base from war-time efforts, and little global competition.

Since then no matter what you do Canada won’t be able to compete in the transportation sector. Everything now and in the future is a rear-guard action. At best we could provide niche research services or component manufacturing. Sweden did better than us but they will also lose everything.

Global transportation production is going to be centred in Asia with competition from Europe and the US (only because of government/military subsidy)

 

[lenaitch]

I’m not as informed about the detailed history of Bombardier; however, you could also look at this from a macro deterministic perspective. Canada had a unique window of industrial advantage after the second world war. We had an intact infrastructure, resources, cheap energy, a scaled up (bloated) industrial base from war-time efforts, and little global competition.

Since then no matter what you do Canada won’t be able to compete in the transportation sector. Everything now and in the future is a rear-guard action. At best we could provide niche research services or component manufacturing. Sweden did better than us but they will also lose everything.

Global transportation production is going to be centred in Asia with competition from Europe and the US (only because of government/military subsidy)

Those post war advantages also existed in the US, except theirs were larger and wealthier. They kept their large, deployed military infrastructure intact and used it to support their new-found global foreign policy, primarily to counter the USSR which was doing the same thing. The US's broad influence, plus their natural protectionism, meant our industrial base had no market. Domestically, we were too small to support it.

 

[TrickyRicky]

^But Canada did succeed as a niche supplier and branch plant; as well as occupying commercial niches (bombardier) not of interest to the American military industrial complex.

The world now has fundamentally changed and even the US will have a hard time competing in civilian transportation which doesn’t bode well for Canada as a junior supply chain partner.

I’m not saying there is nothing Canada can do, I’m just saying strategically the world is a fundamentally different place and hardware and physical manufacturing are only viable here under niche circumstances (say cheap Canadian resources in a tariff world order or low energy prices or proprietary tech) or as a small corner of the North American supply chain.

 

[SubHuman]

Bombardier exits commercial jet sector with closure of US$550M CRJ deal

MONTREAL — Bombardier Inc. has completed the sale of its regional jet business to Mitsubishi Heavy Industries Ltd. for US$550 million, cementing the plane maker's departure from commercial aviation following a three-decade run.The sale of its CRJ aircraft series paves the way for Bombardier to focus

ca.finance.yahoo.com

It does seem strange to see all the CRJ planes landing and taking off from Pearson now identified as "Mitsubishi".

 

[AlbertC]

Bombardier will sell rail business to Alstom, but for $350M less than planned

Sep 16, 2020

Bombardier has finalized the term of the sale of its rail business to France-based Alstom, in a deal that will see the European trainmaker pay $350 million less that initially expected.

The revised deal values the enterprise at $8.4 billion, but Bombardier will get about $4 billion for the business because Alstom is assuming a lot of the unit's debt, and Quebec's pension fund — the Caisse de dépôt et placement du Québec — will get $2.2 billion from its stake in the company.

Bombardier says it will use the cash to pay down some of its remaining $9.3 billion debt load.

"Today's announcement marks a significant milestone towards achieving our near-term priorities and repositioning Bombardier as a pure-play business jet company," Bombardier CEO Eric Martel said. "The proceeds from this transaction will allow us to begin reshaping our capital structure and start addressing our balance sheet through debt paydown, so that we can achieve the full potential of our incredibly talented employees and our industry leading business jet portfolio

https://www.cbc.ca/news/business/bombardier-alstom-rail-1.5726223

 

[AlbertC]

Bombardier to get less cash in sale of aerostructures business to Spirit AeroSystems

October 26, 2020

Bombardier Inc. will receive less cash than it originally had agreed to in the sale of its aerostructures business to Spirit AeroSystems Holding Inc.

The company said Monday it will receive US$275 million in cash in the amended deal, down from the US$500 million in cash that was first announced last year.

Spirit will also assume liabilities, including government refundable advances and pension obligations, valued at US$824 million, up from US$700 million previously announced.

“Today’s announcement marks another milestone towards achieving our strategic goal of repositioning Bombardier as a pure-play business jet company,” Bombardier CEO Eric Martel said in a statement.

He said proceeds from the sale will strengthen its cash position as it reshapes its capital structure and address financial changes.

The sale includes operations in Belfast, U.K., and Casablanca, Morocco, as well as a maintenance, repair and overhaul facility in Dallas.

Concerns about the future of the deal were raised last month after Spirit said some closing conditions were unmet, injecting a degree of uncertainty into the deal.

Bombardier said Monday the closing conditions have been met and the transaction is expected to close on Friday.

Analyst Walter Spracklin of RBC Dominion Securities Inc. said the update was largely neutral with the sale of the aerostructures business mainly bridging the company until the sale of its railway division to France's Alstom.

"Overall, while less than what investors had expected, we do see the successful sale of the aerostructures business (and the subsequent cash proceeds) as another step forward in BBD’s transition to a pure-play biz-jet company, and see the company as sufficiently funded (from a liquidity perspective) until the sale of BT to Alstom," he wrote in a report.

Bombardier to get less cash in sale of aerostructures business to Spirit AeroSystems

MONTREAL — Bombardier Inc. will receive less cash than it originally had agreed to in the sale of its aerostructures business to Spirit AeroSystems Holding Inc.The company said Monday it will receive US$275 million in cash in the amended deal, down from the US$500 million in cash that was first...

ca.finance.yahoo.com

 

[drum118]

Alstom shareholders approve US$8.4-billion acquisition of Bombardier Transportation

 

[AlbertC]

UK's Serious Fraud Office confirms investigation into Bombardier

November 5, 2020

The Serious Fraud Office (SFO) confirmed on Thursday that it is investigating Bombardier Inc. (BBD-B.TO) over suspected bribery and corruption charges. They stem from alleged possible contracts and orders from Garuda Indonesia, an Indonesian state-run air carrier.

As this is a live investigation, the SFO said it could not provide further comment.

Bombardier did not immediately respond to a request from Yahoo Finance for comment.

UK's Serious Fraud Office confirms investigation into Bombardier

SFO confirms investigation into Bombardier over suspected bribery and corruption charges.

ca.finance.yahoo.com

 

[Amare]

Doesnt surprise me in the least, its just a matter of time before this company goes bankrupt. Well, unless the Quebec government saves it which is most likely will.

 

[drum118]

Alstom-Bombardier deal to complete in January