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1 More Reason to Build Your Own
Posted: Wed Nov 28, 2007 10:45 am
by briand
http://online.wsj.com/article/SB1196211 ... s&ru=yahoo
Sorry I don't have script to the WSJ so I don't know how to get to the full article.
These people can't even make toothpaste or sticky dots and they want us to trust them with making airplanes.
Not for me.
Posted: Wed Nov 28, 2007 10:50 am
by Womack2005
With all the lead they will probably use, that airplane will never get off the ground!
Posted: Wed Nov 28, 2007 4:22 pm
by captain_john
HA!
I can't WAIT to see the list of AD's when it finally takes to the skies!
CJ
Posted: Wed Nov 28, 2007 5:22 pm
by Spike
What I really want to know is how many sales they will lose because of this. Knowing this, I would cancel my position if I had one.
Posted: Wed Nov 28, 2007 5:33 pm
by Womack2005
This is a sorry state of affairs. I sure hope this isn't a sign of things to come
I imagine they are gonna build sub-assemblies over there and do final assembly here. Can you image ferrying an LSA all that way!
Posted: Wed Nov 28, 2007 6:04 pm
by cjensen
Womack2005 wrote:I sure hope this isn't a sign of things to come
Unfortunately, this is a DEFINITE sign of things to come.
Things are cyclical, but look how far off the US dollar is to the rest of the world! Our buddies in Europe can buy a brand new Lycoming for about 55% of what we pay because of the exchange!! The US economy is so weak right now, that I think Cessna feels this is the only way to make money on a new design.
Sad. I'd be on the same list as Spike...if I had a deposit, consider it cancelled.
Posted: Wed Nov 28, 2007 7:02 pm
by bullojm1
cjensen wrote:
Unfortunately, this is a DEFINITE sign of things to come.
Things are cyclical, but look how far off the US dollar is to the rest of the world! Our buddies in Europe can buy a brand new Lycoming for about 55% of what we pay because of the exchange!! The US economy is so weak right now, that I think Cessna feels this is the only way to make money on a new design.
Chad-
I gotta disagree with your logic. The weaker the US dollar gets, the more expensive it is for Cessna to offshore work to China. The US dollar being weak is a great benefit to certain domestic manufacturers (i.e. engine manufacturers, Van's) because more and more foreign consumers are buying stuff from us. The issue the US has is everything we import becomes more expensive.
I think that even with the weaking of the US dollar, the labor costs of workers in China is WAY lower than in the US. Why do you think Van's offshores the QB kits? Same reason that Cessna is doing the same.
Just my 2 cents! I am an engineer, not a financial analyst
Posted: Wed Nov 28, 2007 7:48 pm
by briand
gotta disagree with your logic. The weaker the US dollar gets, the more expensive it is for Cessna to offshore work to China. The US dollar being weak is a great benefit to certain domestic manufacturers (i.e. engine manufacturers, Van's) because more and more foreign consumers are buying stuff from us. The issue the US has is everything we import becomes more expensive.
I think that even with the weaking of the US dollar, the labor costs of workers in China is WAY lower than in the US. Why do you think Van's offshores the QB kits? Same reason that Cessna is doing the same.
Just my 2 cents! I am an engineer, not a financial analyst
[/quote]
Generally you would be right but.... China and I think even the Phillipines ties their currency (mostly) to the dollar. Exchange rates basicallydo not apply. Why do you think CNBC never quotes the Yuan? They don't have to. China will not let their currency "float". If they did Cessna would not be building the Skycatcher there.
Posted: Wed Nov 28, 2007 9:12 pm
by briand