• Wednesday, July 8, 2020

Airbus to Expand in UK After Brexit

Discussion in 'Europe & Russia' started by Piotr, Jan 14, 2020.

  1. Piotr

    Piotr FULL MEMBER

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    Airbus to Expand in UK After Brexit
    byMish

    Airbus CEO Guillaume Faury announced expansion of Airbus production in the UK. Trump won't be pleased.

    The Brexit doom and gloomers have been proven wrong already as Airbus Pledges Expansion in the U.K. After Brexit.

    Chief Executive Officer Guillaume Faury said Prime Minister Boris Johnson’s Brexit deal, which will see Britain leave the European Union on Jan. 31, means the split from the bloc “is at least now for certain,” though the nature of future ties still needs to be worked out.

    The European aerospace giant, which employs more than 13,500 people at 25 U.K. sites and supports 100,000 supplier jobs, warned under previous CEO Tom Enders that future production might be in doubt as the prospect of a no-deal Brexit threatened to create border delays and inflate costs.

    “Airbus is committed to the U.K. and to working with the new government on an ambitious industrial strategy,” Faury said late Wednesday at a company event in London. “We see great potential to improve and expand our operations in the U.K. this year.”

    Wings for all Airbus models are made in Britain, chiefly at sites near Chester and Bristol, as well as in Belfast at a plant previously owned by Bombardier Inc. and now operated by Spirit AeroSystems Holdings Inc. The U.K. will also play a vital role in helping Airbus transition to low- and zero-carbon technology, Faury said, while also praising its increased funding for the European Space Agency.

    Trump Will Suck Airbus Into the Crisis at Boeing

    A few days ago I wrote Trump Will Suck Airbus Into the Crisis at Boeing

    This is an election year and Donald Trump is running for reelection. Upping the ante in the European trade wars will make him look tough to his base. Never mind that the Federal Reserve concluded the trade wars are hurting the US economy, businesses and workers.

    Airbus is almost certain to become a target for higher tariffs. I won’t rule out adding the Mobile (AL) final assembly line to sanctions despite Alabama being the No. 1 supporter of Trump. There is no way Alabama will vote for a Democratic challenger to Trump; it’s a completely safe state.

    Those two paragraphs are according to widely respected Leeham News and Analysis. They predate this UK Airbus expansion announcement.

    Three Leeham Points

    • The Trump Administration is thinking about increasing the tariffs on Airbus aircraft from 10% to 25%. It has WTO authority to boost tariffs to 100% of the value of the airplanes.
    • The Administration is said to be unhappy with EASA, the European certification regulator, taking the stance it has, insisting it wants to independently review and recertify the MAX.
    • And, unrelated to the MAX, the Administration is said to be unhappy that the EU is dragging its feet in approving the Boeing-Embraer joint venture.
    Trump Caught

    If Trump does what he says, even more Airbus production will move elsewhere. If he doesn't, he gets to simmer.

    Regarding Brexit, please consider Brexit Collusion Between France and UK? What Really Happened?

    Mike "Mish" Shedlock

    https://moneymaven.io/mishtalk/economics/airbus-to-expand-in-uk-after-brexit-9wGHGSQA7k2EREXZKbTwsA

    Yet another reason to rethink credibility of some mainstream media. No mainstream media in US predicted 2008 financial crisis (AFAIK), and dire predictions about Brexit failed to materialize.
     
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  2. UKBengali

    UKBengali ELITE MEMBER

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    Truth be told, UK has the best aerospace tech in the world along with USA.
    Airbus cannot do without UK tech if it is to stay competitive with Boeing.

    @waz
     
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  3. 313ghazi

    313ghazi SENIOR MEMBER

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    This doesn't suprise me one bit. Brexit will bite, but the aviation industry won't be impacted that much. Britain is a market leader in that regard, nobody is going to stop buying rolls royce engines for their planes.
     
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  4. UKBengali

    UKBengali ELITE MEMBER

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    Airbus wings are made in UK and that is the most complex part of the airframe - if this was moved to EU then Airbus planes would not be competitive with Boeing anymore.
     
  5. 313ghazi

    313ghazi SENIOR MEMBER

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    That's up near Warrington isn't it?
     
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  6. UKBengali

    UKBengali ELITE MEMBER

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    Yep.
     
  7. Ali_Baba

    Ali_Baba FULL MEMBER

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    thank god the "fog of brexit doom mongers is coming to an end and common sense is working again.

    It will cost Airbus a fortune to move these plants into mainlan EU, only to be staffed by workshy french etc...

    I hope we keep Tempest on track with NO French or German or Spanish Involvment !!!!!
     
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  8. StormBreaker

    StormBreaker SENIOR MEMBER

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    Are you pakistani or British ?
     
  9. UKBengali

    UKBengali ELITE MEMBER

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    Tempest is fine now as both the Italians and Swedish have opted into the programme.
     
  10. waz

    waz SENIOR MODERATOR

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    Cough, cough engines anyone? Aside the US no one makes engines as well as us period. We do both civil and military.
     
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  11. UKBengali

    UKBengali ELITE MEMBER

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    Dont miss out that the wings(most complex part of airframe) are designed and built in the UK.
    Airbus cannot just transfer this to the EU as they do not have the design talent there.

    Really Airbus is built on UK tech with the others just there for the ride.
     
    Last edited: Jan 15, 2020
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