Airbus to build a factory in the US

[airazurxtror]

http://www.nytimes.com/2012/06/28/busin ... plant.html

Airbus, the European plane maker, plans to build its first assembly line in the United States in Mobile, Ala., in an aggressive foray into the world’s largest market for single-aisle airplanes, people with knowledge of the plan said on Wednesday.

The plan calls for an investment of several hundred million dollars in a plant on Boeing’s home turf that could eventually assemble dozens of Airbus’s popular 150-seat A320 jets each year. Details are expected to be announced as early as Monday, said the people, who spoke on condition of anonymity because the plan was still confidential

[BigJets]

Well, there is one "little" detail that seems to be forgotten. There is a condition attached to this deal:

Americans were always criticizing their own airlines for buying "foreign" aircraft and not supporting their own "national" aircraft industry (such as Boeing) and creating American jobs. So Airbus found a solution. They will create American jobs by opening Airbus factories in the US BUT ONLY on the condition that American airline companies will buy at least a few hundred Airbus aircraft, the same way that Airbus was trying to sell it's A330 Military Tankers.

[Charlie Roy]

I wonder could we see Air France introducing Paris CDG to Mobile Regional, or more likely Delta Airlines on Atlanta to Toulouse...

[cnc]

this has more todo with the dollar vs the euro

[Captain Remi]

Euro? dollar versus euro? All planes are sold in USD, an Airbus isn't invoiced in EUR. This also accounts for spares and engineering etc. So Airbus gets its pieces in USD and seks again in USD. This also accounts for all gold in the word, wicht balie is also matches against the USD. Furthermore the dollar is far from its historic low currently

[cnc]

Euro? dollar versus euro? All planes are sold in USD, an Airbus isn't invoiced in EUR. This also accounts for spares and engineering etc. So Airbus gets its pieces in USD and seks again in USD. This also accounts for all gold in the word, wicht balie is also matches against the USD. Furthermore the dollar is far from its historic low currently

lol who said anything about planes being sold in euro's?
airbus has to pay its employees in euro's you know? or do you think they get a piece of gold every month

[regi]

this has more todo with the dollar vs the euro

Exactly.
Not that long ago, EADS / Airbus anounced that eventually they would be forced to manufacture airplanes in a non euro influenced region, specifically to play the game in the dollar market.
And that had nothing to do with the tanker deal.
But it is a bit strange that they come back to this topic at the moment that the euro is losing ground. On the other hand, that could even be the main reason: to manufacture in a stable environment.

[Captain Remi]

Jeeeez, my iPhone really messed up my message of yesterday.
Seems like the dictionary completed and changed a lot and my message has become hard to read :s

Anyhow, I do understand your remark that Airbus employees have to be paid in EUR, not in USD of course and certainly not in gold, but on the other hand, what I wanted to explain is that for planes, USD is the currency set to sell them.
And that this also accounts for spares and engines. Ialso wanted to make the link towards other industries/ products where worldwide, there are also agreements to invoice everything in USD or another currency.
So apart from the labour work and local taxes, all is being settled in USD for Airbus.
For instance, cars being produced in the UK, they are generating production costs in GBP and being sold in the rest of the EU in EUR currency, which is basically generating huge, huge losses in terms of exchange rates. That had a major impact in the automobile crisis for instance (also EUR versus the JPY (yen),...)
So I wanted to explain the economical side of it on the exchange rates, which doesn't apply on aircraft...
Of course labourcost in less in the US, I fully agree.

[sn26567]

The official announcement has just been made by the CEO of Airbus Fabrice Brégier: Airbus will build an assembly line for the A320neo in Alabama, next to the existing Airbus engineering centre at the Brookley Aeroplex in Mobile.

Airbus will break the ground on the new US A320 line in 2013, the assembly will start in 2015, the first jet will be delivered in 2016 and the production is expected to run at the level of 40-50 aircracft per year in 2018.

When shall we see a Boeing plant in Europe?

More:
viewtopic.php?f=7&t=47691
http://www.airbus.com/company/americas/us/alabama/

[regi]

The official announcement has just been made by the CEO of Airbus Fabrice Brégier: Airbus will build an assembly line for the A320neo in Alabama, next to the existing Airbus engineering centre at the Brookley Aeroplex in Mobile.

Airbus will break the ground on the new US A320 line in 2013, the assembly will start in 2015, the first jet will be delivered in 2016 and the production is expected to run at the level of 40-50 aircracft per year in 2018.

When shall we see a Boeing plant in Europe?

More:
viewtopic.php?f=7&t=47691
http://www.airbus.com/company/americas/us/alabama/

yep, confirmation:
http://www.bbc.co.uk/news/business-18675711
Mathematics: the article mentions 38 in Europe + 4 in China to be made a month to the end of this year 2012. ( =42 a month in total )
The US plant with 1000 workers will pump out 50 a YEAR around 2015 ( within 3 years) = 4 a month.
So this US plant is no real danger for European jobs. I see here that Airbus will let the regionnal markets compete against eachother. Managers waving performances excell sheetes, labour costs calculations, subsidies, benefits etcetera.
In the long term, I think that this move gives the Chinese a cold shower. Their hopes are dashed to use their plant as a hub to conquer the US market.

[kiwiandrew]

Another factor which I don't think anyone has mentioned yet is that it is easier to hire and fire in the US. If they need to increase production for a year or two they can do it through the US plant, then trim it back down again if demand drops.