EU approves end of combustion engine sales by 2035

Rfi – AFP, 29 June 2022 

EU approves plan for a complete shift to electric engines in the European
Union from 2035 RONNY HARTMANN AFP/File

 Luxembourg (AFP) – The European Union approved a plan to end the sale of vehicles with combustion engines by 2035 in Europe, the 27-member bloc announced early Wednesday, in a bid to reduce CO2 emissions to zero. 

The measure, first proposed in July 2021, will mean a de facto halt to sales of petrol and diesel cars as well as light commercial vehicles and a complete shift to electric engines in the European Union from 2035. 

The plan is intended to help achieve the continent's climate objectives, in particular, carbon neutrality by 2050. 

At the request of countries including Germany and Italy, the EU-27 also agreed to consider a future green light for the use of alternative technologies such as synthetic fuels or plug-in hybrids. 

While approval would be tied to achieving the complete elimination of greenhouse gas emissions, the technologies have been contested by environmental NGOs. 

Environment ministers meeting in Luxembourg also approved a five-year extension of the exemption from CO2 obligations granted to so-called "niche" manufacturers, or those producing fewer than 10,000 vehicles per year, until the end of 2035. 

The clause, sometimes referred to as the "Ferrari amendment", will benefit luxury brands in particular. 

These measures must now be negotiated with members of the European Parliament. 

"This is a big challenge for our automotive industry," acknowledged French Minister of Ecological Transition Agnes Pannier-Runacher, who chaired Tuesday night's meeting. 

But she said it was a "necessity" in the face of competition from China and the United States, which have bet heavily on electric vehicles seen as the future of the industry. 

These decisions will "allow a planned and accompanied transition", the minister said. 

Openness to synthetic fuels

Europe's automotive industry, which is already investing heavily in the move to electric vehicles, fears the social impact of a too-rapid transition. 

"The overwhelming majority of car manufacturers have chosen electric cars," said Frans Timmermans, the EU Commission Vice President in charge of the European Green Deal, at a press conference. 

He affirmed the EU body's willingness to be open-minded to other technologies -- like synthetic fuels, which are also referred to as e-fuels. 

"We are technology neutral. What we want are zero-emission cars," he explained. 

"At the moment, e-fuels do not seem a realistic solution, but if manufacturers can prove otherwise in the future, we will be open." 

The technology of synthetic fuels, currently under study, consists of producing fuel from CO2 from industrial activities using low-carbon electricity, in a circular economy approach. 

Like the oil industry, the automotive sector has high hopes for these new fuels, which would extend the use of internal combustion engines now threatened by the emergence of completely electric vehicles. 

But environmental organisations object to the use of this technology in cars, as it is considered both expensive and energy-consuming. 

The synthetic-fuelled engines also emit as much nitrogen oxide (NOx) as their fossil fuel equivalents, they say. 

Cars are the main mode of transport for Europeans and account for just under 15 percent of total CO2 emissions in the EU. It is also one of the main gases responsible for global warming.

In response to manufacturers' concerns about insufficient consumer demand for 100 percent electric cars, the Commission has recommended a major expansion of charging stations. 

"Along the main roads in Europe, there must be charging points every 60 kilometres (37 miles)," said European Commission President Ursula von der Leyen last year. 

Manufacturers regularly complain about the lack of such infrastructure, especially in southern and eastern European countries.

Elon Musk hands over first 'made in Germany' Teslas

Yahoo – AFP, Florian CAZERES, March 22, 2022

Elon Musk tweeted "Danke Deutschland!" (Thank you, Germany) after inaugurating
Tesla's first production site in Europe (AFP/Patrick Pleul)

Tesla CEO Elon Musk danced for joy at the inauguration of his "gigafactory" electric car plant near Berlin on Tuesday, shrugging off two years of bureaucracy and delays to watch customers drive off with the first Model Y vehicles made in Europe. 

"Danke Deutschland!" (Thank you, Germany) Musk tweeted after the red ribbon ceremony, where he joined workers in applauding the first 30 drivers to get behind the wheel of their new cars. 

The US billionaire even broke into a little dance during the handovers, reviving memories of the slightly awkward jig he did at a launch event in Shanghai in 2020 that lit up the internet. 

The factory opening caps an arduous two-year approval and construction process that saw Tesla run into a series of administrative and legal hurdles, including complaints from locals about the site's environmental impact. 

Having started construction at its own risk, Tesla finally won the formal go-ahead from regional authorities to begin production earlier this month. 

The "gigafactory" in Gruenheide, in Germany's eastern state of Brandenburg, is Tesla's first production site in Europe and local officials are hoping it will help the region position itself as a hub for electric vehicle production. 

The Californian company aims eventually to employ some 12,000 workers at the site who will churn out around 500,000 Model Y cars annually, the firm's all-electric, compact SUVs. 

"We are extremely confident that the world can transition to a sustainable energy future with the combination of solar, wind, plus battery storage and electric vehicles," Musk said in a speech at the ceremony. 

"I really want to assure everyone that you can have hope in the future, you should have hope in the future," he added. 

'New era' 

Tesla's arrival is expected to jolt Germany's flagship car industry, setting the stage for fierce competition with rivals Volkswagen, BMW and Mercedes-Benz as they pivot from traditional engines to cleaner electric vehicles. 

"The new era in the auto industry has now arrived in Germany," said analyst Ferdinand Dudenhoeffer from the Center for Automotive Research. 

Tesla's focus on Europe comes as the continent grapples with sky-high energy costs that have sent petrol prices soaring, prompting some drivers to take a closer look at electric alternatives. 

The "Giga Berlin-Brandenburg" is "one of the biggest strategic endeavours for Tesla over the last decade and should further vault its market share within Europe over the coming years as more consumers aggressively head down the EV path," analysts at investment firm Wedbush said. 

But Tesla has not been spared the pain from shortages of key materials and supply chain disruptions, linked in part to Russia's invasion of Ukraine, that are also plaguing other carmakers. 

Musk tweeted last week that the company was seeing "significant recent inflation pressure" in raw materials and logistics. 

Away from Russian oil 

Economy Minister Robert Habeck, who attended Tuesday's inauguration along with Chancellor Olaf Scholz, said it was "a special day for Germany's mobility transformation". 

In a nod to efforts to reduce reliance on Russian energy, Habeck said electric cars took Germany "one step further away from oil imports". 

He also called for more "Tesla speed" in other infrastructure projects, including the expansion of renewable energies. 

Although Musk was frequently frustrated by the red tape that slowed down his Gruenheide plans, by German standards the factory was up and running in record time. 

The inauguration was not universally welcomed, however, with environmental campaigners protesting near the site. 

Among their demands was a call for better and free public transport instead of "yet more cars", said spokeswoman Lou Winters from the Sand in the Gears environmental group.

Boeing to cut staff, plane output after big Q1 loss

Yahoo – AFP, April 29, 2020

Boeing announced sweeping cost-cutting measures after reporting a first-quarter loss
of $641 million following the hit to the airline business from the coronavirus pandemic
(AFP Photo/SCOTT OLSON)

New York (AFP) - Boeing announced sweeping cost-cutting measures Wednesday after reporting a first-quarter loss of $641 million following the hit to the airline business from the coronavirus pandemic.

The aerospace giant plans to reduce its workforce by 10 percent through a combination of voluntary and involuntary layoffs and will slash production of its main commercial planes, including the 787 and 777, Chief Executive David Calhoun said in a message to employees that accompanied an earnings release.

"The aviation industry will take years to return to the levels of traffic we saw just a few months ago," Calhoun said. "We have to prepare for that."

Calhoun said the job cuts would be deeper -- more than 15 percent -- in commercial airplanes and services, as compared with defense and space systems, where the business has been more stable.

The quarterly loss of $641 million compared to profits of $2.1 billion in the year-ago period. Revenues fell 26.2 percent to $16.9 billion.

Total debt at the end of the quarter was $38.9 billion, up from $27.3 billion at the end of December.

Calhoun said the belt-tightening was needed to maintain adequate liquidity at a time its revenues are depressed, adding that the company is "exploring potential government funding options" in the wake of COVID-19.

Boeing has previously called for $60 billion in government support for the US aerospace industry. Federal relief legislation includes $17 billion aimed at Boeing. Calhoun has previously balked at the idea of the US taking a stake in Boeing.

The loss reflected "abnormal production costs" connected to the temporary suspension of Puget Sound manufacturing operations due to COVID-19 and due to the suspension of production of the 737 MAX, which remains grounded following two deadly crashes.

Boeing said the pandemic crisis has hit demand for new planes and services, with airlines delaying purchases of jets, slowing delivery schedules and deferring elective maintenance.

It will cut production of the 787 from 14 per month to 10 per month in 2020 and gradually to seven per month by 2022.

Boeing also will trim output on the 777 and lower its targets for the 737 MAX.

"We have done a tremendous job of increasing our production rates and services offerings in recent years," Calhoun said. "But the sharp reduction in our demand for our products and services over the next several years simply won't support the higher levels of output."

Boeing shares jumped 4.1 percent to $136.36 in pre-market trading.

US aviation chief says Boeing 737 MAX won't be recertified until 2020

Yahoo – AFP, John BIERS, December 11, 2019

People hold up pictures of the victims of Boeing 737 MAX accidents as Federal
Aviation Administration Administrator(FAA) Stephen Dickson(R) testifies before
the House Committee on Transportation and Infrastructure on Capitol Hill (AFP
Photo/JIM WATSON)

New York (AFP) - The top US air transport regulator on Wednesday doused Boeing's hopes that its 737 MAX will return to the skies this year while lawmakers probed why the agency did not ground the plane after the first of two crashes.

In an interview just ahead of a congressional hearing on the crashes, Federal Aviation Administration chief Steve Dickson told CNBC the aircraft will not be cleared to fly before 2020.

The process for approving the MAX's return to the skies still has 10 or 11 milestones left to complete, including a certification flight and a public comment period on pilot training requirements, he said.

"If you just do the math, it's going to extend into 2020," he said.

The MAX has been grounded since March following the second of two crashes that killed a total of 346 people.

Boeing has been aiming to win regulatory approval this month, with flights projected to resume in January.

But Dickson said, "I've made it very clear Boeing's plan is not the FAA's plan."

"We're going to keep our heads down and support the team in getting this report done right."

A captured agency?

Many of the questions at the subsequent hearing in the House Transportation Committee focused on why the FAA did not move more aggressively after the first crash.

FAA administrator Stephen Dickson, shown here at a swearing-in in August, is 

expected to face tough questioning at a congressional hearing Wednesday 

(AFP Photo/WIN MCNAMEE)

Boeing and the FAA have been under intense scrutiny following the crashes for their response to issues with the aircraft, including the flight-handling system involved in both accidents, the Maneuvering Characteristics Augmentation System, or MCAS.

Rather than grounding the plane after the October 2018 Lion Air crash, the FAA determined that it would require Boeing to revise the MCAS flight handling system in a process overseen by the FAA.

The agency also issued guidelines to flight crews worldwide on how the respond to a problem with MCAS, an automated system that pilots were unable to control during the Lion Air crash.

At Wednesday's hearing, Representative Peter DeFazio, an Oregon Democrat leading a congressional probe, cited an internal FAA risk analysis that, without fixes to MCAS, the MAX could suffer as many as 15 such catastrophic accidents over its decades of expected use.

That is a much higher rate than other planes and aviation experts consider it unacceptable.

Dickson, who did not join the agency until this summer following the two crashes, said he did not know who saw the internal analysis but that the agency's decisions after the Lion Air crash were "data driven."

"We really didn't know what the causes were" of the Lion Air crash, Dickson said, adding that issues with aircraft maintenance and pilot performance were also factors besides the MCAS.

"Obviously the result is not satisfactory," Dickson said when pressed if the agency had made a mistake.

After crashes that killed 346 people, Boeing has been aiming to get its 737 MAX 

certified to return to the skies this month, but the FAA says that cannot happen 

until 2020 (AFP Photo/JUSTIN SULLIVAN)

"The decision did not achieve the result it was intended to achieve."

DeFazio said the FAA's response was "way less than not satisfactory... it was catastrophic."

DeFazio said it was not clear how widely the internal FAA risk analysis had been distributed in the agency and whether officials on a key air worthiness panel saw the document.

"We may have a captive regulatory problem in the field offices," DeFazio said, referring to FAA officials in Seattle who on key decisions deferred to Boeing during the MAX certification.

A Boeing spokesman said the company agreed with the FAA's response to the Lion Air crash.

"The actions that Boeing and the FAA took, including the issuance of the Operations Manual Bulletin and Airworthiness Directive and the timeline for implementing the MCAS enhancements, were fully consistent with the FAA's analysis and established process," the Boeing spokesman said.

Dickson said he was determined to improve the agency's operations to prevent future crashes.

He said the accidents showed problems with "fragmented and inadequate" communications at the agency that inhibited the agency's ability to comprehensively assess safety during certification.

The House Transportation Committee also will hear from Edward Pierson, a former senior manager at Boeing who told company brass he feared production problems put plane safety at risk.

Michael Collins, a former FAA safety engineer who has criticized the agency's move to delegate some decisions to Boeing, will also testify.

Shares of Boeing were down 0.6 percent in early afternoon trading at $345.75.

Audi to slash 9,500 jobs in Germany by 2025

Yahoo – AFP, Yann SCHREIBER, November 26, 2019

Audi is to shed jobs as it shifts to electric models (AFP Photo/CHRISTOF STACHE)

Frankfurt am Main (AFP) - German luxury carmaker Audi said Tuesday it planned to slash 9,500 jobs in Germany by 2025 as part of a massive overhaul to help finance a costly switch to electric vehicles.

The job cuts will be achieved through an early retirement programme and natural turnover at its two German plants, the company said in a statement.

At the same time, the Volkswagen subsidiary said it would create 2,000 new jobs in the areas of electromobility and digitisation as it pivots to the smarter, cleaner cars of tomorrow.

The shake-up comes as Audi, like other carmakers, grapples with slowing demand in a weaker global economy, tougher pollution rules and the huge investments needed for the battery-powered era.

"In times of upheaval, we are making Audi more agile and more efficient," said CEO Bram Schot.

"This will increase productivity and sustainably strengthen the competitiveness of our German plants."

The remaining roughly 50,000 workers at Audi's Ingolstadt and Neckarsulm factories will have job security until the end of 2029 under the hard-fought deal struck with labour representatives.

"We have reached an important milestone," said Peter Mosch, head of Audi's works council.

"The extension of the employment guarantee is a great success in difficult times."

Audi said the reorganisation would help boost earnings by six billion euros ($6.6 billion) by 2029, keeping the premium brand on track to reach a profit margin of nine to 11 percent.

New CEO

The jobs cull comes after Audi was hit by falling sales, revenues and operating profits over the first nine months of 2019.

But the company is far from alone in feeling the pain from an industry in the throes of transformation and buffeted by the knock-on effects from US-China trade tensions and Brexit uncertainty.

German car parts suppliers Bosch and Continental have themselves announced thousands of job cuts to slash costs, while Mercedes-Benz maker Daimler is reportedly planning to axe 1,100 managerial roles.

Hoping to turn the tide at Audi, the Volkswagen group earlier this month said it had picked former BMW purchasing chief Markus Duesmann to replace Schot as the brand's chief executive from April.

Under Schot, Audi suffered more than other German manufacturers from the introduction last year of strict new emissions testing standards in the European Union, which led to expensive production bottlenecks.

And like its rivals, Audi is spending billions on new technologies, including battery-electric and hybrid vehicles, connectivity and autonomous driving.

But the firm last year also had to pay an 800-million-euro fine over its role in the "dieselgate" scandal.

The saga erupted in 2015 when the Volkswagen group admitted to installing cheating devices in 11 million diesel cars worldwide to dupe regulatory emissions tests.

Audi's engineers are suspected of having helped developed the software used to make cars emit less pollutants under lab testing conditions than on the road.

Promise and peril for German carmakers in Tesla's Berlin touchdown

Yahoo – AFP, Florian CAZERES with Yann SCHREIBER in Frankfurt, November 13, 2019

Tesla would be the first foreign car company to set up shop in Germany
"in decades" sector analyst Stefan Bratzel says (AFP Photo/John THYS)

Hopes are high that US electric pioneer Tesla's first European factory just outside Berlin will boost German carmakers, but it also ups the pressure on homegrown manufacturers to raise their battery-powered game.

Elon Musk's Tuesday announcement that his Californian firm is coming marks the first foreign car company setting up shop in Germany "in decades," said analyst Stefan Bratzel of the Center of Automotive Management -- "symbolic for the new world and the reordering of the industry."

Economy minister Peter Altmaier trumpeted "a great success," saying Germany had prevailed in "intense competition" with other European countries.

Musk unveiled Tesla's European touchdown at an industry event in Berlin, saying he had picked a site in Brandenburg for the factory, which is expected to bring roughly 7,000 jobs.

Slated for an area southeast of the German capital, the plant "will build batteries, powertrains and vehicles, starting with Model Y" SUVs, Musk later tweeted.

Production is to start in 2021 at the earliest.

"I think it's a good thing, it will create jobs and electric cars are good for the environment," said Mathias Wirth, who lives in Gruenheide, set to host the Tesla plant.

"It's a big opportunity for people living here," agreed fellow resident Iris Siebman.

Musk said the German state of Brandenburg offers "a lower than average paid workforce

 in the former East Germany" and space to expand (AFP Photo/Tobias SCHWARZ)

'Pressure on the Germans'

Tesla accounts for almost one in three electric vehicles sold in western Europe, and worldwide sales of its Model 3 have already overtaken those of BMW's 3 Series sedans, although "German sales remain disappointing", according to analyst Matthias Schmidt.

Electric vehicles more broadly have fallen short of ambitions, with Chancellor Angela Merkel this year targeting one million on the road by 2022 -- two years later than she had previously aimed for.

"Elon Musk's decision in favour of Germany... adds more momentum to electric mobility than 100 summits called by the chancellor," said Ferdinand Dudenhoeffer, head of the University of Duisburg-Essen's Center for Automotive Research.

"Competition has always made people better and faster, so it's good news for Volkswagen, BMW and Daimler too," he added.

But there is also no doubt Musk's move "puts pressure on the Europeans and the Germans," said Christoph Schalast, professor at the Frankfurt School of Finance and Management.

German giants are behind in adapting fleets to meet new European emissions limits, and have left it until late to commit to electric drive in a big way.

In the near term, bosses "won't be losing too much sleep, but the danger is if they wait too long with their own credible electric vehicle offerings, they may begin to lose some of their credibility," analyst Schmidt said.

A German car industry source told AFP they were relaxed about Tesla's announcement, hoping the competitor's arrival would accelerate the country's electric transition.

Elon Musk hailed hailed "outstanding" German engineering as a factor in his 

choice of a site near Berlin (AFP Photo/Jörg Carstensen)

'Made in Germany'

On stage Tuesday, Musk hailed "outstanding" German engineering as one factor playing into the choice for Berlin.

The capital can lend "creativity" and English-speakers, "the engineering and programming hipsters," while Brandenburg offers "a lower than average paid workforce in the former East Germany" and space to expand.

But Schmidt warned the Californian risks running into "bureaucratic hell" in Germany, with Musk's new site just a few kilometres (miles) from the Berlin-Brandenburg airport.

The planned hub is almost a decade behind schedule, largely down to problems with its fire suppression system.

Even without such dramatic delays, Tesla is unlikely to throw together a factory in the one year its new Chinese site required.

Work is to start in early 2020 with a budget of several billion euros (dollars), Brandenburg's economy minister was quoted by the news agency DPA as sayin

Crisis-hit Nissan CEO resigns amid pay probe

Yahoo – AFP, Etienne BALMER, 9 September 2019

Reports in Japan say Nissan CEO Hiroto Saikawa will step down over
issues with his pay

Nissan's CEO said Monday he will step down next week, deepening the crisis at the Japanese car giant still reeling from the arrest and ouster of former chief Carlos Ghosn's over alleged financial misconduct.

It is yet another blow for the firm that has seen sales plunge and been forced to slash jobs since Ghosn's stunning arrest for allegedly hiding part of his salary from official documents to shareholders.

Hiroto Saikawa said he would leave the company on September 16, following the results of an investigation into excess pay he received after altering the terms of a bonus.

Saikawa is suspected of improperly adding 47 million yen ($440,000) to his compensation under a scheme in which directors can earn a bonus if their company's share price rises above a certain level in a set period.

Nissan officials were keen to stress that there was no illegality but that he should not have delegated the task to a junior executive.

"At the end of the day, the operation which should have been carried out by the president himself was... delegated to others, which is a violation of the rules," said Motoo Nagai, a board member.

Saikawa admitted handing the task to a company secretariat and said he was "not proud" of this but insisted it was not the same as the misconduct of which Ghosn is accused.

He was it was "totally different from the intentional wrongdoing that was uncovered" during the internal Nissan probe into Ghosn and his right-hand man, US executive Greg Kelly.

The controversial "share appreciation" scheme has now been scrapped, the Nissan board announced.

Current chief operating officer, Yasuhiro Yamauchi, will take over as acting CEO on September 16, when Saikawa officially leaves, and Nissan hopes to find a permanent replacement by the end of October.

Alleged overpayments

The carmaker is currently undergoing an overhaul intended to strengthen governance after the Ghosn scandal.

In June, Nissan shareholders voted in favour of various measures including the establishment of three new oversight committees responsible for the appointment of senior officials, pay issues and auditing.

They also approved the election of 11 directors as the firm restructures, among them two Renault executives as well as Saikawa.

The reforms were designed to put Nissan on a more stable footing after the arrest of Ghosn, who has been sacked from his leadership roles at the Japanese firm and others.

He is awaiting trial on charges of under-reporting millions of dollars in salary and of using company funds for personal expenses.

Ghosn has denied any wrongdoing and accuses Nissan executives opposed to his plans to further integrate the firm with France's Renault of plotting against him.

'Dark side'

Saikawa, a one-time Ghosn protege, turned sharply against his former mentor after his arrest, referring to the "dark side" of the tycoon's tenure and accusing him of accruing unchecked power that allowed his alleged wrongdoing to go undetected.

But the CEO himself came under pressure in the scandal's wake, facing calls to resign from shareholders who view him as too heavily associated with the Ghosn era.

And while he resisted calls to step down immediately, he has always said he planned to hand over the reins after Nissan is back on track.

The Ghosn scandal has proved disastrous for Nissan, which in July announced that net profit plunged nearly 95 percent in the April-June quarter, and confirmed it would cut 12,500 jobs worldwide.

The Japanese firm has also struggled to steady its relationship with Renault as part of a tripartite alliance with Mitsubishi Motors that Ghosn founded and once led.

Asked how he felt towards his once-mentor Ghosn and Kelly, Saikawa said he believed their actions had put the company in the difficult position in which it now finds itself -- with hardship for customers, staff and dealers.

"This is the biggest responsibility... and I think they should think about this, they should feel bad about this. But they haven't expressed any apology for creating this situation," said Saikawa.

"I want Mr Kelly and Mr Ghosn to feel bad about the situation they have created."

Is Boeing too big to fail?

France24 –AFP, 4 August 2019

Boeing CEO Dennis Muilenberg was strategic in his picks for the company's board
of directors, such as by naming former UN ambassador Nikki Haley (pictured
November 2018) - AFP/File

New York (AFP) - The grounding of the 737 MAX for more than four months after two deadly accidents has tarnished Boeing's reputation, but it still has the confidence of US policymakers.

This is despite the fact that one of the MAX flight systems, the MCAS, has been cited in both accidents.

Is this an indication that the American aerospace giant is too big to fail?

President Donald Trump, whose mantra is "America first," certainly criticized Boeing early in his administration over the presidential plane, Air Force One, but he has been largely silent about the recent woes.

The wave of negative press about the flaws that caused the deaths of 346 people did not prompt legislators to summon Boeing CEO Dennis Muilenburg before Congress to inflict on him the kind of humiliation Wall Street bankers were subject to following the global financial crisis.

"Boeing is one of the engines of the US economy, it's way too big and too important for the United States," said Michel Merluzeau, an expert at Air Insight Research.

Political ties

If American politicians were to attack the manufacturer, they would be shooting themselves in the foot, Merluzeau said, because "there are many jobs involved, a very, very numerous supply chain and it cannot be replaced with Facebook or Google that don't produce anything tangible."

Founded 103 years ago, Boeing employs more than 150,000 people around the world, the vast majority in the United States.

In addition to direct jobs, its subcontractors -- like General Electric (GE), United Technologies and Spirit Aerosystems -- are large US industrial employers.

The location of Boeing plants resembles a political campaign map, with facilities in Republican strongholds like Alabama, South Carolina and Texas, and Democratic areas like California and Washington, as well as states that helped Trump win the election: Pennsylvania and Arizona.

And Muilenburg has shown political savvy in his picks for the company's board of directors, naming Nikki Haley, former governor of South Carolina and Trump's former ambassador to the United Nations, and Caroline Kennedy, ally of former president Barack Obama and daughter of former president John F. Kennedy.

Air Force One

Boeing is a dominant player not just in civilian aircraft but in the defense and space industries, and is a major supplier to the Pentagon.

The company produced the famous B-17 and B-29 bombers of World War II and the B-52 used the Vietnam War. Today it produces a variety of aircraft including the F/A-18 Super Hornet fighter jet, Apache attack helicopters, the B-1 bomber and combat drones.

It also is part of SpaceX, which will manage travel to the International Space Station.

And Boeing manufactures the presidential plane, the iconic Air Force One.

But Boeing also "can be used as a strategic tool," said Arthur Wheaton, a professor at Cornell University in New York.

Chinese purchases of Boeing aircraft are part of trade negotiations with Beijing, according to a source, since that can be a fast way to reduce the US trade deficit.

US civilian aircraft exports fell 12 percent to $20.4 billion in May, due to the MAX crisis, which affected the GDP, according to government data.

Bombardier sells regional jet division to Mitsubishi for $550 mn

Yahoo - AFP, June 25, 2019

Canadian aircraft maker Bombardier is selling its CRJ Series regional jet program
to Japan's Mitsubishi (AFP Photo/Eva HAMBACH)

Canadian manufacturer Bombardier announced Tuesday the sale of its CRJ Series regional jet program to Japan's Mitsubishi Heavy Industries (MHI) for US$550 million, effectively exiting the commercial passenger aircraft sector.

The deal with Mitsubishi, which has been seeking to break into aviation, comes after Bombardier recently sold a majority stake in its new medium-range C Series jetliners to Airbus, which has been renamed A220, and its Q Series turboprop line to a Canadian investment fund.

The sale of the 75- to 100-seat CRJ line -- along with its service and support networks in Montreal, Quebec City and Toronto; Bridgeport, West Virginia; and Tucson, Arizona -- is expected to close by the end of 2020.

In a statement, Bombardier said Mitsubishi will also assume liabilities totalling $200 million, and take over all maintenance, support, refurbishment, marketing and sales activities for the aircrafts.

Mitsubishi president Seiji Izumisawa said the CRJ will compliment the development and production of its SpaceJet family of commercial jets as it pursues future growth in this sector.

"This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability," he said.

Bombardier chief executive Alain Bellemare, meanwhile, said the transaction represents "the completion of Bombardier's aerospace transformation."

The Canadian company, he said, would now focus on its global rail business and its last remaining aircraft -- business jets.

Its CRJ production facility in Mirabel, Quebec will remain with Bombardier, and the Canadian company will continue to supply components and spare parts for the CRJ as well as assemble the current CRJ backlog on behalf of Mitsubishi until the sale is concluded in the second half of 2020, subject to regulatory approvals.

Canada's Bombardier says selling aerospace plant in Belfast

Yahoo – AFP, May 2, 2019

Bombardier is one of Northern Ireland's biggest employers with around 3,600
staff (AFP Photo/PIERRE VERDY)

London (AFP) - Canadian aerospace firm Bombardier said Thursday it was selling its plant in Northern Ireland, which produces wings for Airbus aircraft, as part of a reorganisation of the business.

"As the company moves to optimise its global manufacturing footprint, Bombardier haha aerostructures businesses," the company said in a statement.

"These are great businesses with tremendous capabilities," the Montreal-based firm said.

The company, which axed 490 people in Belfast last year as part of a global cost-cutting drive, is one of Northern Ireland's biggest employers with around 3,600 staff.

"We understand that this announcement may cause concern among our employees, but we will be working closely with them and our unions as matters progress, and through any future transition period to a new owner," it said.

Michael Mulholland, an organiser for the GMB trade union, demanded "reassurances" for workers.

"Our members -- and their families -- have already suffered a terrible year," he said.

"Bombardier jobs are absolutely vital to Northern Ireland's economy and it's time workers were treated with the respect they deserve."

The sale of the Belfast facilities was also deeply concerning to Michelle O'Neill, new head of the Sinn Fein party, who noted that the news added to economic uncertainty caused by Brexit.

Previously the company decided to give up control of its new C Series aircraft, now known as the A220, to Airbus in exchange for using Airbus's sales and marketing heft to lift sales.

Since then Bombardier -- which has 68,000 employees worldwide -- has refocused on business aviation and in particular on its new Global 7500.

David Coleal, the head of this division, will lead the new Bombardier Aviation division, which will have its business concentrated in Montreal, Mexico, as well as in Texas for the wings of the Global 7500, the company said.

Bombardier almost quintupled its net profit to 239 million US dollars in the first quarter, after revising down its profit targets for 2019 last week.