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Airbus, VW Headed to America
Spiegel ^ | December 3, 2007

Posted on 12/03/2007 4:58:33 PM PST by DeaconBenjamin

With the dollar as weak as ever, European companies are trying to avoid disaster. Factories in North American are becoming more attractive, and over the weekend, both Airbus and VW hinted they might take the plunge.

The euro's seemingly inexorable drive toward the $1.50 mark may have slowed down for now, but companies in Europe seem to have sped up their search for strategies in dealing with the newly weak dollar. European jet-maker Airbus and auto manufacturer Volkswagen both have decided on a solution: The two companies are actively looking into building factories in the United States.

According to a report in the Monday edition of the Munich daily Süddeutsche Zeitung, Airbus is looking into building a final assembly plant in Mobile, Alabama. The prerequisite for such a move, the paper reports, is a contract for 180 refueling aircraft the United States Air Force has tendered. Airbus is competing against Boeing for the sale, and a final decision won't be made until the beginning of next year. Airbus is targeting the relatively poor state of Alabama in an effort to win political support for its bid.

Were it to win the contract, Airbus would modify the passenger jet A330 to meet the US military's requirements. The factory would also be able to produce the civilian version of the plane, resulting in massive exchange-rate savings to Airbus. Because the plane-maker sells its products in dollars, a $0.10 change in the exchange rate cuts a €1 billion (nearly $1.5 billion) hole in the Airbus bottom line (more...). Furthermore, the company's Power 8 savings program, announced earlier this year, is based on an exchange rate of $1.35 to the euro.

(Excerpt) Read more at spiegel.de ...


TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: insourcing; lowcostlabor

1 posted on 12/03/2007 4:58:35 PM PST by DeaconBenjamin
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To: DeaconBenjamin

Damn insourcing at work again.


2 posted on 12/03/2007 5:00:21 PM PST by TheThirdRuffian
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To: DeaconBenjamin

Right On, at least the Vdub Part,LOL!


3 posted on 12/03/2007 5:00:30 PM PST by cmsgop ( MURTHA: 'I think the 'surge' is working'...)
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To: DeaconBenjamin

Not outsourcing to China? I wonder why.....


4 posted on 12/03/2007 5:00:36 PM PST by metmom (Welfare was never meant to be a career choice.)
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To: metmom

No dangerous lead............in bullets.........


5 posted on 12/03/2007 5:03:07 PM PST by Red Badger ( We don't have science, but we do have consensus.......)
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To: DeaconBenjamin

It doesn’t make much sense. Airbus has always been a government subsidized dog of an airplane, whose only real purpose is to provide more jobs and more national pride for the European consortium who make it.

What purpose would it serve if they made them here? Would they still plan to subsidize them to give Americans jobs? Or do they plan to fly in thousands of African Muslims like Tyson, to work on the cheap?


6 posted on 12/03/2007 5:08:24 PM PST by Cicero (Marcus Tullius)
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To: cmsgop

We want VW diesels HERE! None of your Microsoft Sync crap either. And no power steering.


7 posted on 12/03/2007 5:16:59 PM PST by Sender (You are the weapon. What you hold in your hand is just a tool.)
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.


8 posted on 12/03/2007 5:18:19 PM PST by phrogphlyer
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To: Sender

V10 diesel Phaeton please


9 posted on 12/03/2007 5:46:12 PM PST by mylife (The Roar Of The Masses Could Be Farts)
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To: DeaconBenjamin

VW and Airbus?

Would that be “the people’s airplane”?

A flying beetle?
Would that be a cockroach?


10 posted on 12/03/2007 5:49:58 PM PST by G Larry (HILLARY CARE = DYING IN LINE!)
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To: TheThirdRuffian
Damn insourcing at work again.

If the dollar keeps dropping, we'll be cheaper than Mexicans.

11 posted on 12/03/2007 5:51:47 PM PST by Doe Eyes
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To: DeaconBenjamin

After the euroweenies stabbed us in the back at the start of the war on terror, I don’t feel any burning urge to buy a German car or fly on an Airbus.


12 posted on 12/03/2007 5:59:59 PM PST by Ben Hecks
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To: DeaconBenjamin
VW had a plant in Pennsylvania in the ‘80s - moved the work to Mexico.
13 posted on 12/03/2007 6:20:03 PM PST by Last Dakotan
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To: TheThirdRuffian
The ebb and flow of exchange rates and the adjustments that business makes because of changes in the relative purchasing power parity tends to be a very slow, long-cycle, phenomena. Quick-thinkers, not to mention easily excited doomsters, tend to look at some shifts and conclude that the economy is headed for the dumper when in reality the reaction to the shift takes a while to ramp up, even longer to get into gear and the result may take a few years to have any visibility. But the result will come in time.
14 posted on 12/03/2007 6:36:59 PM PST by theBuckwheat
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To: DeaconBenjamin
VW hinted they might take the plunge.

It didn't work out too well when VW tried it the first time. Perhaps they'll do a better job picking a location next time.

15 posted on 12/03/2007 6:54:09 PM PST by PAR35
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To: Ben Hecks
If it ain’t Boeing, I ain’t going.
16 posted on 12/03/2007 6:58:41 PM PST by mad_as_he$$ (Illegal Immigration, a Clear and Present Danger.)
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To: Cicero

The fairy tale of Airbus beeing a socialistic plane factory only exists on freep.

They get some of their doe from the states - therefore they got to be nice to those who give them doe. No difference between boeing and airbus here - only this time VW and aibus will be getting some doe from an american state while Boeing got it from the japs for getting the key parts made of CFC from them.

Dollar high = consume in US production abroad

Euro high = consume in the EU production abroad

It’s a cycle.


17 posted on 12/04/2007 4:49:50 AM PST by Rummenigge (there's people willing to blow out the light because it casts a shadow)
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To: Ben Hecks

Certainly it’s your free choice to punish yourself.


18 posted on 12/04/2007 4:51:57 AM PST by Rummenigge (there's people willing to blow out the light because it casts a shadow)
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To: G Larry

Volkswagen microairbus...nickname: locust


19 posted on 12/04/2007 5:00:30 AM PST by mamelukesabre
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To: Cicero

Here is the shareholding breakdown for Airbus:

As of 3 July 2007 41.63% of EADS stock is publicly traded on six European stock exchanges, while the remaining 58.37% is owned by a “Contractural Partnership”. The latter is owned by SOGEADE (27.38%), Daimler AG (22.41%), SEPI (5.46%) and Dubai Holding (3.12%).[19] SOGEADE is owned by the French State and Lagardère, while SEPI is a Spanish state holding company. France also owns 0.06% of publicly traded stock.


20 posted on 01/14/2008 11:29:18 AM PST by Army Air Corps (Four fried chickens and a coke)
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