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Bombardier previews new manufacturing centre project at Pearson airport


Nov 15, 2021





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I don't believe we have a thread for the above; perhaps we ought to........

In the meantime, there was an article published on this back in September, here:


From the above article, we see this render:

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And this construction shot:

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Mark V mock-up for Vancouver SkyTrain.
These are the ones that will be 5 cars long.
The open cars are for bikes and wheelchairs, etc.



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Reviving an old thread. The portions sold to Alstom and Airbus seem to have done the trick for Bombardier; their remaining Aviation business seems to be doing well.

 
Reviving an old thread. The portions sold to Alstom and Airbus seem to have done the trick for Bombardier; their remaining Aviation business seems to be doing well.

It seems picking a lane is a sound business decision.
 
It seems picking a lane is a sound business decision.

Truthfully, while I support that as a notion, and am not a huge fan of endlessly large conglomerates, there was more to the story.

In my opinion:

1) Family control of the business led to people without proper expertise managing projects/enterprises. That was changed prior to the sale, but late in the game.

2) Mountains of debt

3) Biting off more than the company could chew, venturing into large jets, a competitive space in which the company lacked expertise, under estimated the complexity and timeline and was under capitalized to see through.
 
Truthfully, while I support that as a notion, and am not a huge fan of endlessly large conglomerates, there was more to the story.

In my opinion:

1) Family control of the business led to people without proper expertise managing projects/enterprises. That was changed prior to the sale, but late in the game.

2) Mountains of debt

3) Biting off more than the company could chew, venturing into large jets, a competitive space in which the company lacked expertise, under estimated the complexity and timeline and was under capitalized to see through.
I suspect you are right and the three points you raise were likely more impactful. Running companies like a family compact isn't unique to Canada but ours tend to live happily with gobs of government support until they get so bloated and inefficient that no amount of public money can save them from themselves..

There are lots of companies worldwide that are multi-faceted corporation and seem to do just fine.
 
I suspect you are right and the three points you raise were likely more impactful. Running companies like a family compact isn't unique to Canada but ours tend to live happily with gobs of government support until they get so bloated and inefficient that no amount of public money can save them from themselves..

There are lots of companies worldwide that are multi-faceted corporation and seem to do just fine.

I'll back that statement more than 90%....

But I do want to note some high profile mergers/conglomerates not working so well........

The Merger of Kraft/Heinz,


Its hardly the only big merger to go wrong...

Boeing/McDonnell Douglas

Ahem....737 Max....


We'll omit the disasters of Sears-Kmart; and the various moves of HBC (nominally Canadian, but controlled by American Richard Baker)...
They are a discussion of a different sort...
 
Yes, it seems a lot of North American conglomerates have gone off the rails due to either over-expansion or mergers. I do believe a lot has to do with the way we (and many countries) tax stock options and other compensations that corporate officers use to enrich themselves at the risk of their companies.

Others, like the parent Hyundai and Yamaha companies seem to be doing just fine. Social and corporate culture probably has something to do with it.
 
It remains to be seen what Alstom does regarding -
  1. product consolidation - Movia versus Metropolis metro trains, Flexity versus Citadis trams, Aventra versus Xtrapolis commuter trains, Talent versus Coradia regional trains etc
    Alstom are probably working out what bits of Bombardier's IP was good, and what was bad!

  2. Factories consolidation - Alstom was apparently impressed by the Aventra products being built at the former Bombardier factory in Derby, UK - but not impressed by the quality of workmanship/productivity.
    Alstom has 5 factories in Canada (Brampton, Kingston and Thunder Bay in Ontario, and La Pocatière and St-Bruno in Quebec,) and 5 manufacturing factories in the US (Hornell and Plattsburgh, NY, Pittsburgh and West Mifflin, PA, and Pittsburg, CA). They would be clueless to not be considering closing less productive or older factories - but there might be some politics/horse trading involved.

  3. Following from the above - how hard they will push for future orders from Canadian transit agencies. (Additional Rocket fleet for Line 1, new fleet for Line 2, additional LRVs for Eglinton West extension etc etc.) There are still a fair few rolling stock manufacturers around - CRRC, Siemens, Škoda, Hitachi, CAF, Stadler, Kinyi-Sharyo, Hyundai-Rotem - so there's still plenty of competition!
 
Bombardier has a research project regarding a blended wing-body jet. The concept might be better suited to smaller business jets than larger passenger airliners, which would require solutions to problems such as a lack of emergency exits and windows, and passengers sitting farther out from the aircraft's roll axis being more easily tossed around. But the project is only at the drone stage and they acknowledge a full-sized operational plane would likely take another 20 years.
 
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I'll back that statement more than 90%....

But I do want to note some high profile mergers/conglomerates not working so well........

The Merger of Kraft/Heinz,


Its hardly the only big merger to go wrong...

Boeing/McDonnell Douglas

Ahem....737 Max....


We'll omit the disasters of Sears-Kmart; and the various moves of HBC (nominally Canadian, but controlled by American Richard Baker)...
They are a discussion of a different sort...
The drive for dividend payouts....but I think you stretch your point re the 737 Max. The 737 dates to 1967 or thereabouts, about the time that Douglas (manufacturers of the ubiquitous AIR Canada DC 9 ) was merging with McDonnell Aircraft. The merger of that merged company with Boeing did not happen until 1997. By then the 737 was into the 737 NG edition and Boeing was approaching 3,000 737's delivered. No questions the MAX was a screw up of epic and tragic proportions (and I wince every time I get in one) but I am not sure that you can draw a line between the two events.
 

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