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  • 19

Cessna plans to build business jets in China through joint venture

Soumis
 
Business jet maker Cessna Aircraft Co. signed agreements Friday with Chinese partners to build business jets in China and explore other aviation opportunities. The Kansas-based company is joining with state-owned Aviation Industry Corp. of China and the municipal government of Chengdu in western China, where the three plan a joint venture to produce midsize Cessna business jets and possibly new models in the future. (www.washingtonpost.com) Plus d'info...

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Josephgirone
Joseph Girone 4
Just one more company outsourcing jobs to China.
Ironhorse7
Ironhorse7 2
I am employed by Cessna; got to say not one of the better pieces of news to come out of Wichita.
mduell
Mark Duell 2
How many jobs are being relocated?
ad8916
Aaron Donnelly 2
Well, I guess if I were in the market for a business jet, I wouldn't buy a Cessna!
Bogush
Bogush 2
anyone for toys from China, or milk or dog food, or batteries or medical equipment, or fish, or garlic, or drills or tools or fine china - we mocked the Japanese in the early 50s for making reproductions of our products but they at least improved or made products same as or similar - quality was almost always there - China on the other hand makes products using short cuts, using inferior raw materials, cheap labor and flooding all markets with CRAP - I don't buy anything made in China - goes against my religion
guerra
guerra 1
I strongly agree
rick737
richard weiss 1
whether you know it or not, you are buying things from China. Otherwise, you would be naked, phoneless,living in the dark, car-less, and hungry.
Bogush
Bogush 1
I do not have anything in my household except for a cell phone that is made in China - nothing, I lived without them for 50 years and I can for another
Wingscrubber
Wingscrubber 1
Turn over the keyboard you're typing on, and the mouse for that matter, what does it say? Mine says 'made in china'. Their products have already permeated our lives.
Bogush
Bogush 2
and we wonder why our North American economies are failing - good show Cessna - why not move your headquarters to CHINA AT THIS POINT NO ONE SHOULD BUY ANY AIRCRAFT FROM CESSNA
Wingscrubber
Wingscrubber 2
They're all still assembled in Kansas for now, but before long it'll be larger and more complex sub-assemblies, and then entire airframes being built in Mexico, China... Corvalis fuselage is already built in Mexico, and suffering for it due to innappropriate curing environment controls, and Skycatcher is built in China by SAC and assembled in Kansas. US general aviation industry is swirling around the drain...
grinch59
Gene Nowak 2
More $2/hr labor building business jets. Wait for all the recalls, lead based paint and other manufacturing short cuts that jeopardize flight safety.
ibpilot72
ibpilot72 2
Lets hope we don't see more of something like this happening from the parts and planes being manufactured in China like happened here in this article. As composites become more of the norm, proper oversight is required to ensure quality.

http://www.compositesworld.com/news/faa-fines-cessna-24-million-for-composite-part-failure
grinch59
Gene Nowak 2
You can't have proper oversight when it is manufactured in China. Cessna can expect what we will be seeing shortly from all the Chinese built Cirrus aircraft.
tartarus12
Robert Curley 3
Think of this. One day you decide you're tired of working for someone else so you start your own business. You bust your hump for years. 18 hour days. Marital stress. Your wife wants a divorce because you just aren't there anymore. Finally, after years of hard work your company is turning a profit. Everything is great. Then one day a man enters your shop, a union representative. Soon your once loyal employees are wanting to unionize. You now have someone telling you how to run your business. They demand higher wages, shorter work days, more healthcare & more vacation. Now running your business is more like torture instead of the American dream.

Can you really blame them for moving their business to a location more business friendly?
johndanzy
John Danzy 2
Think of this. The American Dream: "One day you decide you're tired of working for someone else so you start your own business. You bust your hump for years. 18 hour days. Marital stress. Your wife wants a divorce because you just aren't there anymore." Sounds more like the American Reality.

Anyway, easy with the scare tactics, Bob. Why don't you replace union representative with Boogeyman. Yes, loyal workers want higher wages because they need to support their families, shorter work days because nobody should work 18 hour days, more healthcare because the cost of health care is ridiculous, and who doesn't want more vacation time to spend with family.

Bash the unions all you want. But please don't do it as you begin your weekend (thanks to the early unions) and while you spend time with your kids the next couple of days since they are not allowed to be forced into a sweatshop (also thanks to the unions).
rick737
richard weiss 1
So, if we follow John Danzy's logic we have to say that since government employees are unionized we have a highly efficient system, where every tax dollar is used wisely and we never run a deficit. If airlines were even more in control of the unions, they would actually make money. If car manufacturors had just given their employers more money and more control of the company, they would not be bankrupt.

What is forgotten in John's thesis is balance. When the tide turns and employees make unreasonable demands, the employer has no chioce but to look elsewhere for their labor needs. The unions started out with a pure motive. Somehow, along the way, they became currupt. They killed the golden goose.

Now, the premier light aircraft builder in the world is saying loud and clear that they can't afford American labor. It would be whistling past the graveyard to blame management for moving to China.
johndanzy
John Danzy 2
So, if we follow Richard Weiss's "logic" we have to say that if you leave a corporation alone it will thrive, where the CEO and others up on the ladder will not run with millions and never lay off their workers so that they can just move the work overseas for pennies on the dollar.

That wasn't my thesis. I was simply replying to Robert's post in the fashion which he did to this thread.

Of course balance is the key. Enough power on either side is ideally how a company should be run. It's tiring to constantly hear how terrible unions are when its so easy to forget the benefits (few which I mentioned earlier). Say what you want about unions but the reality is is that the company will take advantage of the worker just as history has shown us.
rick737
richard weiss 2
and the union will take advantage of the company when they can. Union bosses make more money when union members make more money. CEO's make more money when the company makes more. I get it.

I was a 20 year union member. Fortunately, we actually worked with company to the advantage of all. Most union member just don't seem to know how to de-esculate. It's always a game of one-upsmanship.
ibpilot72
ibpilot72 2
Yes, because unions have NEVER tried to take advantage of companies, or its members? If you're going to give props to "balance" then be sure to lay blame to both sides.
Bogush
Bogush 1
IT'S LIKE A MARRIAGE IN TIMES OF GOOD AND BAD - WE OUGHT TO STICK TOGETHER - ONLY RESULT IS A DIVORCE
aaronavtr
good insight
rick737
richard weiss 2
I find it ironic that a communist dictatorship is more business friendly than the USA.
WALLACE24
WALLACE24 3
And sad Richard. If we don't get people in government that know their ass from a hole in the ground to negotiate trade agreements worth a dam we won't ever cure the unemployment picture.
THRUSTT
THRUSTT 1
How about that term "fine china"
Wingscrubber
Wingscrubber 1
(Duplicate Squawk Submitted)

Scott Earnest wants to Export Cessna jobs to China

'(Reuters) - Cessna Aircraft Co, the world's biggest business jet maker, signed two agreements on Friday with Aviation Industry of China Corp (AVIC), formalising talks for a joint venture that would manufacture Cessna business jets in China.'

Looks like Wichita isn't going to be the 'Air Capital of the World' for much longer. Cessna is one of Wichita's biggest employers, but since the ousting of Pelton, it's becoming apparent that Cessna's new CEO is more interested in the bottom line than its employees.

http://www.reuters.com/article/2012/03/23/cessna-china-avic-idUSL3E8EN2GS20120323
PLANESOLUTIONS
PLANESOLUTIONS 1
#1 - If this country was not anti-business and especially "anti-business jet" they might not be outsourcing. #2 What impact will this move have on the secondary market a few years down the road? Will SN 680-184#@$% be maligned on the used market because it was manufactured in China? Will we have 2 V Ref books?
PLANESOLUTIONS
PLANESOLUTIONS 1
On the other hand we could buy a Lear made in Mexico, a Challenger made in Canada, a Falcon made in France, a Embraer made in Brazil. Only Hawker Beech remains...
Bogush
Bogush 1
Counterfeit parts from China are being found in various US military aircraft
MADE IT'S MADE FROM LEAD
WALLACE24
WALLACE24 1
The trade deficit continues to grow(running about 25B a month) and we continue to lose jobs. When can we expect the government to do their job? Never? They are too busy craming junk down the citizens throats to actually do what the feds are supposed to do. What is wrong with tariff on Chinese goods that equals the trade deficit? It's supposed to be a two way street.
speedbird196
garbage in - garbage out: i'm talking about our elected officials and who they appoint as representatives. Sold my cessna yesterday - will never buy another from a company whose loyalty amounts to that of a pimple on an ant's ass. You have a president who claims to have created 4 million jobs - only later to find those jobs numbers come from a "computer
model (not real numbers) - thought the 'virtual world' was for computer games. Seems to me this president has found a way to suck us all into makebelieve. Good bye Cessna - never again - never, never.
Bogush
Bogush 0
Obama's goal is to bring the USA to it's knees in front of Allah

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