U.s. Continental Engine Co. Sold To Chinese Interests.
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U.s. Continental Engine Co. Sold To Chinese Interests.
From todays 'AvWeb' site....
" Teledyne Continental Motors has been sold to Technify Motors, a subsidiary of AVIC International, a Chinese government-owned holding company with diverse business interests in the aerospace sector. The sale price, according to AVIC and Teledyne Technologies, was $186 million and terms of the sale included a commitment to remain in Mobile, where Continental has been on the former Brookley Air Force base since the 1960s.
The sale will result in an infusion of new capital to rapidly develop the diesel technology Continental bought from SMA last spring, for both the Chinese and the international market, according to Teledyne's Jason VanWees, Teledyne Technologies' vice president for business development. He said that once the sale has cleared regulatory hurdles, it should become final by the end of the first quarter of 2011. Until then, Teledyne will continue to oversee TCM."
I wonder just how long it might be before these engines are being produced out of China..??
And, if so, will they be any cheaper to buy from AUS..??
Cheers
" Teledyne Continental Motors has been sold to Technify Motors, a subsidiary of AVIC International, a Chinese government-owned holding company with diverse business interests in the aerospace sector. The sale price, according to AVIC and Teledyne Technologies, was $186 million and terms of the sale included a commitment to remain in Mobile, where Continental has been on the former Brookley Air Force base since the 1960s.
The sale will result in an infusion of new capital to rapidly develop the diesel technology Continental bought from SMA last spring, for both the Chinese and the international market, according to Teledyne's Jason VanWees, Teledyne Technologies' vice president for business development. He said that once the sale has cleared regulatory hurdles, it should become final by the end of the first quarter of 2011. Until then, Teledyne will continue to oversee TCM."
I wonder just how long it might be before these engines are being produced out of China..??
And, if so, will they be any cheaper to buy from AUS..??
Cheers
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Please, please tell me... the date on this media release is April 1st... 
This just goes to show the absolute, total sellout, of Corporate America, to China. They would sell their grandmother for the value of the gold in her back teeth.
So... by the CEO's reasoning, this means that he expects every 10th Chinese person, will own a Continental piston-engined aircraft in the next 10 years.
Yep, I can really see that happening... in a country where they won't even give any Chinese national, full access to the Internet.
I think this bloke must have seen the vid of the Chinese bloke that built his own chopper, from his own plans... and must have come to the conclusion that every 2nd Chinese person has an over-riding urge to fly...
Perhaps his own 2IC produced a pie chart in a management meeting... showing that increased market penetration of the Chinese piston-engine aviation market, in the order of .02%, equals another 280,000 engines... and the figures absolutely dazzled him...
This just goes to show the absolute, total sellout, of Corporate America, to China. They would sell their grandmother for the value of the gold in her back teeth.
According to Teledyne, the sale allows it to focus on its core businesses, while helping Continental Motors to enter the global market for the sale and service of aviation piston engines, especially in China.
Compared to 230,000 general aviation aircraft in the U.S, China has around 900 small aircraft operating in the country, the company said in a statement.
Compared to 230,000 general aviation aircraft in the U.S, China has around 900 small aircraft operating in the country, the company said in a statement.
Yep, I can really see that happening... in a country where they won't even give any Chinese national, full access to the Internet.
I think this bloke must have seen the vid of the Chinese bloke that built his own chopper, from his own plans... and must have come to the conclusion that every 2nd Chinese person has an over-riding urge to fly...
Perhaps his own 2IC produced a pie chart in a management meeting... showing that increased market penetration of the Chinese piston-engine aviation market, in the order of .02%, equals another 280,000 engines... and the figures absolutely dazzled him...
Last edited by onetrack; 15th Dec 2010 at 08:43. Reason: added the important, back of the table napkin, figures...
So I guess we can expect engines made of lead soon.
So.....Continental hasn't been in the global market up until now?
How interesting.
while helping Continental Motors to enter the global market for the sale and service of aviation piston engines
How interesting.
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A 180 with a SMA/Continental Diesel on amphibious floats..now that would be nice.. for lagoons and sheltered channels....Cessna are you listening? Open up the line again..
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Griffo, if it's anything like the Caterpillar/Perkins engine manufacturing fiasco in China, look out.
In 1997, Caterpillar, as owner of Perkins Engines, saw great potential in manufacturing Perkins diesel engines in China. Perkins engines have previously been manufactured in 27 countries (including Australia) with no problems.
Some of those countries manufactured large amounts of the Perkins engine parts, and used some British Perkins engine factory parts.
Some countries only manufactured small amounts of the Perkins engine parts, and assembled engines with a majority of British Perkins factory parts.
When Caterpillar moved into Perkins Engine production in China, they went into Joint Venture (JV) with a Chinese company known as known as Tianjin Engine Works.
This JV produced Perkins 1000 series and Phaser 4 & 6 cylinder diesel engines, and was named Perkins Engines (Tianjin) Limited (PETL).
However, by 2001, problems were becoming apparent in the Chinese Perkins JV - both in the manufacturing side, and in the paperwork. An investigation by Caterpillar executives found some disturbing company irregularities.
The Chinese directors of the JV had transferred substantial amounts of shares in the JV to third parties, without the knowledge or authorisation, of all PETL executives (particularly Caterpillar/Perkins executives), as required.
Further investigation by Caterpillar/Perkins executives showed that this substantial shares transfer had been carried out by forging signatures.
In addition, it was found that Tianjin EW had been sourcing components from local suppliers that were not approved by Caterpillar/Perkins, and who had not met Caterpillar/Perkins QC standards.
In addition to sub-standard components from unauthorised suppliers, Tianjin EW had been re-rating engine outputs upwards without reference to Caterpillar/Perkins engineers.
Accordingly, in late 2002, after lengthy investigations, Caterpillar/Perkins cancelled their JV arrangement with Tianjin EW.
This did not prevent Tianjin from continuing to produce "Perkins" engines. They went on merrily selling their Tianjin EW Perkins, as genuine Perkins engines.
However, Caterpillar does not recognise any "Perkins" branded engine, produced from the Tianjin factory, post January 2003, as a genuine Perkins, and accordingly refuses to associate themselves with these engines produced after that date.
Sizeable numbers of "Perkins" branded engines and parts have been produced from that Tianjin factory, from January 2003.
These have been sold to unsuspecting buyers as genuine Perkins engines, but they are not.
Caterpillar have taken action to prevent the Perkins name being used in an unauthorised manner, but have had minimal success.
Accordingly, there are sizeable numbers of Tianjin Perkins engine owners out there, who think they have a genuine Perkins engine, but these engines have been produced without authorisation from Caterpillar/Perkins, using suppliers and subcontractors that are not approved by Caterpillar/Perkins.
Many of the components used in Tianjin EW Perkins engines, do not meet Caterpillar/Perkins required QC production standards, nor do the materials met the Caterpillar/Perkins specifications.
The Chinese suppliers of parts and components to Tianjin EW Perkins have been supplying substandard components, built to meet a price, not a specification.
Look forward to the same type of thing happening to Continental. The Chinese do not understand "standards"... they specialise in what is known around the traps, as "quality fade".
This is best explained by a Chinese manufacturer who supplies your company with a prototype of your requested item, that meets all specifications of material requirements, metal treatment, and other engineering requirements.
Immediately your companys order is placed with the Chinese company for the item, the Chinese manufacturer promptly commences to source cheaper materials, metal treatments, etc., that no longer meet the required specifications.
As a result, the item fails regularly under normal useage, and your company is left with angry end-users... and often a pile of unsaleable products, due to purchasers shying away, from what is now, a recognisedly inferior product.
The ramifications of Chinese "quality fade" in aircraft engine manufacturing, don't bear thinking about. The problems will commence the minute any component manufacturing is transferred to China.
Chinese Perkins problems... http://www.nzgenerator.com/admin/doc...ginesChina.pdf
In 1997, Caterpillar, as owner of Perkins Engines, saw great potential in manufacturing Perkins diesel engines in China. Perkins engines have previously been manufactured in 27 countries (including Australia) with no problems.
Some of those countries manufactured large amounts of the Perkins engine parts, and used some British Perkins engine factory parts.
Some countries only manufactured small amounts of the Perkins engine parts, and assembled engines with a majority of British Perkins factory parts.
When Caterpillar moved into Perkins Engine production in China, they went into Joint Venture (JV) with a Chinese company known as known as Tianjin Engine Works.
This JV produced Perkins 1000 series and Phaser 4 & 6 cylinder diesel engines, and was named Perkins Engines (Tianjin) Limited (PETL).
However, by 2001, problems were becoming apparent in the Chinese Perkins JV - both in the manufacturing side, and in the paperwork. An investigation by Caterpillar executives found some disturbing company irregularities.
The Chinese directors of the JV had transferred substantial amounts of shares in the JV to third parties, without the knowledge or authorisation, of all PETL executives (particularly Caterpillar/Perkins executives), as required.
Further investigation by Caterpillar/Perkins executives showed that this substantial shares transfer had been carried out by forging signatures.
In addition, it was found that Tianjin EW had been sourcing components from local suppliers that were not approved by Caterpillar/Perkins, and who had not met Caterpillar/Perkins QC standards.
In addition to sub-standard components from unauthorised suppliers, Tianjin EW had been re-rating engine outputs upwards without reference to Caterpillar/Perkins engineers.
Accordingly, in late 2002, after lengthy investigations, Caterpillar/Perkins cancelled their JV arrangement with Tianjin EW.
This did not prevent Tianjin from continuing to produce "Perkins" engines. They went on merrily selling their Tianjin EW Perkins, as genuine Perkins engines.
However, Caterpillar does not recognise any "Perkins" branded engine, produced from the Tianjin factory, post January 2003, as a genuine Perkins, and accordingly refuses to associate themselves with these engines produced after that date.
Sizeable numbers of "Perkins" branded engines and parts have been produced from that Tianjin factory, from January 2003.
These have been sold to unsuspecting buyers as genuine Perkins engines, but they are not.
Caterpillar have taken action to prevent the Perkins name being used in an unauthorised manner, but have had minimal success.
Accordingly, there are sizeable numbers of Tianjin Perkins engine owners out there, who think they have a genuine Perkins engine, but these engines have been produced without authorisation from Caterpillar/Perkins, using suppliers and subcontractors that are not approved by Caterpillar/Perkins.
Many of the components used in Tianjin EW Perkins engines, do not meet Caterpillar/Perkins required QC production standards, nor do the materials met the Caterpillar/Perkins specifications.
The Chinese suppliers of parts and components to Tianjin EW Perkins have been supplying substandard components, built to meet a price, not a specification.
Look forward to the same type of thing happening to Continental. The Chinese do not understand "standards"... they specialise in what is known around the traps, as "quality fade".
This is best explained by a Chinese manufacturer who supplies your company with a prototype of your requested item, that meets all specifications of material requirements, metal treatment, and other engineering requirements.
Immediately your companys order is placed with the Chinese company for the item, the Chinese manufacturer promptly commences to source cheaper materials, metal treatments, etc., that no longer meet the required specifications.
As a result, the item fails regularly under normal useage, and your company is left with angry end-users... and often a pile of unsaleable products, due to purchasers shying away, from what is now, a recognisedly inferior product.
The ramifications of Chinese "quality fade" in aircraft engine manufacturing, don't bear thinking about. The problems will commence the minute any component manufacturing is transferred to China.
Chinese Perkins problems... http://www.nzgenerator.com/admin/doc...ginesChina.pdf
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A 180 with a SMA/Continental Diesel on amphibious floats..now that would be nice.. for lagoons and sheltered channels....Cessna are you listening? Open up the line again..
Diesels have been a big success in Aircraft so far, how many are flying here again?
Any aircraft fitted with a Continental manufactured engine is now automatically off my list. If i was the owner of a Cirrus, I'd be shaking my head.
I know all about "Quality Fade". Give it a year or Two when they start sourcing parts from China. Watch them immediately lose parts traceability, if they ever even implement it. Wait till they start forging the boxes and paperwork.
I know all about "Quality Fade". Give it a year or Two when they start sourcing parts from China. Watch them immediately lose parts traceability, if they ever even implement it. Wait till they start forging the boxes and paperwork.
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onetrack and Sunfish.........POTY quality posts there....not because they are funny or anything other 100% accurate.
The minute anything more than finance of TCM is concerned there will be trouble for sure.
The minute anything more than finance of TCM is concerned there will be trouble for sure.
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So my first thought was correct, this is no good news.
I'm so
sick of those CEO guys and the decisions they make.
Just cut their head off 
When will it stop damn it?
I'm so
sick of those CEO guys and the decisions they make.Just cut their
head off When will it stop
damn it?
The USofA is broke. They are selling off the farm
If Australia was in a better position than the USofA we would be buying up these assets too, but we're not. We're selling our assets to China as well. What does that tell you...?
If Australia was in a better position than the USofA we would be buying up these assets too, but we're not. We're selling our assets to China as well. What does that tell you...?
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I'm not an economist, but to my eyes it looks like a dangerous cycle. Running your country on Chinese debt, then selling them the companies that produce the income that can service said debt. Surely there comes a point where the house of cards has to fall.
From an engine point of view I've read that TCM had ongoing valve problems 15 years or so ago that meant engines were requiring early top overhauls. I imagine it only takes a small reduction in manufacturing quality to create a huge reduction in reliability.
From an engine point of view I've read that TCM had ongoing valve problems 15 years or so ago that meant engines were requiring early top overhauls. I imagine it only takes a small reduction in manufacturing quality to create a huge reduction in reliability.
Thread Starter
YES 'Andy',
I thoroughly agree with you - hence my post in the first place.
In the generations to come, this 'short-sightedness' of having no apprentices in our maintenance industry, and certainly NIL manufacturing capability for our industry - as well as for all of the other industries - will leave us at the 'mercy' of.....
They are 'winning the war' by 'economic strangulation'.....and its global!
Dairy farms in Enzed as well....so nobody is immune.
Cheers
I thoroughly agree with you - hence my post in the first place.
In the generations to come, this 'short-sightedness' of having no apprentices in our maintenance industry, and certainly NIL manufacturing capability for our industry - as well as for all of the other industries - will leave us at the 'mercy' of.....
They are 'winning the war' by 'economic strangulation'.....and its global!
Dairy farms in Enzed as well....so nobody is immune.
Cheers
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What is unrecognised, or barely recognised, by virtually any Western Corporation executive, dealing with Chinese companies... is that the Chinese Communist Party (CCP), the ruling party in Govt... in this one-party country... is the holder of the majority of the shares, in every sizeable Chinese business.
This means that all these deals where Chinese companies are entering into Western Country JV's... purchasing sizeable %'s of Western Corporations... or investing in a dozen other ways, in Western Countrys technology, assets, manufacturing, mines, farms, etc., etc.,... the Chinese Communist Party is gaining some form of control, access to vital information, and in many cases, controlling access to raw materials.
The Chinese already effectively own every single zinc mine in the world, and they now effectively control the worlds zinc supply.
Who needs spies, when Western businesses and Western Corporate Executives open the doors to the safe willingly, and give the CCP the keys??
Remember, despite China's huge upsurge in world standing and production, this is still a country where the PLA are the ruling force, and democracy is a word used to describe foreign countries.
This is a nation where, in my short lifetime, I can remember a "Cultural Revolution", instigated by aforesaid Party, that took only 2 years to take the country back 5 centuries.
There is nothing to say the same wouldn't happen again in the blink of an eyelid... particularly when domineering power is entrenched in an ideology-run ruling entity.
We hand over control of our manufacturing, Western assets, and technology to China, at our long-term peril.
This means that all these deals where Chinese companies are entering into Western Country JV's... purchasing sizeable %'s of Western Corporations... or investing in a dozen other ways, in Western Countrys technology, assets, manufacturing, mines, farms, etc., etc.,... the Chinese Communist Party is gaining some form of control, access to vital information, and in many cases, controlling access to raw materials.
The Chinese already effectively own every single zinc mine in the world, and they now effectively control the worlds zinc supply.
Who needs spies, when Western businesses and Western Corporate Executives open the doors to the safe willingly, and give the CCP the keys??
Remember, despite China's huge upsurge in world standing and production, this is still a country where the PLA are the ruling force, and democracy is a word used to describe foreign countries.
This is a nation where, in my short lifetime, I can remember a "Cultural Revolution", instigated by aforesaid Party, that took only 2 years to take the country back 5 centuries.
There is nothing to say the same wouldn't happen again in the blink of an eyelid... particularly when domineering power is entrenched in an ideology-run ruling entity.
We hand over control of our manufacturing, Western assets, and technology to China, at our long-term peril.