The decision seems to have been based on three drivers: i) Bell hit a regulatory hurdle with the original plan to certify the aircraft in Canada but manufacture it in the USA; ii) Bell was under pressure from the Canadian government to demonstrate its commitment to Mirabel (and thus justify its continued receipt of Industry Canada financial assistance) after reducing the workforce there by 50% over five years; iii) Weak market conditions. Per
AIN:
“Our Lafayette facility was a new operation and therefore required a more extensive review by the FAA to receive its production certification,” the [Bell] spokeswoman said. “We anticipate that adding the 505 to our existing production certification in Mirabel will be less complex. Once we have completed the certification process, we can begin production and deliveries from Mirabel. The decision to move the 505 assembly and delivery center from Lafayette was driven by market conditions and the imperative to maintain our expertise and skills in Mirabel.”
Re: the weak market conditions, sales of the R66 have tailed off noticeably:
(Data from GAMA and Ascend)
I/C