Airbus reported to be opening A320 assembly plant in USA

[WHBM]

New York Times reports Airbus about to be announcing an A320 assembly plant in Mobile, Alabama.

http://www.nytimes.com/2012/06/28/business/global/airbus-said-to-plan-first-us-plant.html?_r=1&smid=tw-share

I'm not quite clear why the French government thinks it has a monopoly on controlling Airbus locations (see article). It's a European-wide company.

Separately, I wonder if major assemblies will be shipped across the Atlantic, such as wings from the Broughton plant, or if they will be manufactured in the US.

[knot4u]

Skilled workforce, low property cost, large customer base.

[green granite]

I'm not quite clear why the French government thinks it has a monopoly on controlling Airbus locations

It's because they're French. :)

[Huck]

I've worked at that airport. It has a dock facility less than a mile from the property. Large assemblies could be brought in by ship.

[Gretchenfrage]

Sounds logical

Geographically nicely located, more and cheaper space, cheaper workforce, lower taxes ...... but wait:

Wasn't that exactly what the Europeans reproached the ME carriers and titled it 'unfair competition'?

God bless double standards and disrespect for European workers.

So Europe will have left over the production of the 380 and, hopefully, the 350.
Both types promising low profits, if any ever....
Good morning pay pressure and subsidies.

The better selling 320 will be manufactured elsewhere and its profits kept there
for the sake of management bonuses! :}

[Air France One]

This is a pretty obvious strategy to counteract the EUR / USD balance, which is currently not helping Airbus at all.

[kbrockman]

Spreading their business between a dollar and Euro overhead cost based business sounds like a good thing to do.
Besides it is still the most important market for aviation ,which is another good reason to be there.
Contrary to what people may think, skilled labor is very hard to come by in sufficient numbers both in France and Germany, there might be a growing number of unemployed but certainly not so much for technically skilled labor and as much as it might hurt, the truth is that this economy doesn't really need all those psychologists, criminologists and political science majors, they're simple not very useful when you try to built something.

Contrary to what some seem to believe here, it's not the entire production of the A320 that is moving West and East, just a small portion of it.
France may yell foul but when push comes to shove and when Airbus decides to go ahead with the move, there is nothing substantial they can and will do about it.

[Rocket2]

Whats the problem with the French Government, haven't Airbus already put an A320 final assembly line in China?

[The Ancient Geek]

The logic is simple and this has been mooted many times in the past.
Aircraft sales are always priced in USD so having a substantial portion of your cost base in USD reduces currency variation risks.

A small percentage change in the EUR/USD rate between sale and delivery can wipe out profits on a deal. To reduce this risk it is necessary to hedge currency on the futures market which again costs money.

[flying.monkeyz]

So are we gonna see Boeing being assembled in Europe?

[aterpster]

monkey:

So are we gonna see Boeing being assembled in Europe?

Parts of Boeings are already manufactured in China and Japan.

China would be far more likely than Europe. The business climate in Europe is similar to California's.

[fantom]

This is bad.
They will come out with control yokes and have the software changed so as to be speed-stable.

[wiggy]

FWIW here's a link to an article in today's local (Toulouse) paper:

Airbus pourrait ouvrir un site aux Etats-Unis - Aéronautique-Espace : LaDépêche.fr (http://www.ladepeche.fr/article/2012/06/28/1389384-airbus-pourrait-ouvrir-un-site-aux-etats-unis.html)

Long story short = Airbus confirm they are indeed looking at another overseas production site but their spokesperson is saying it's not a done deal, anywhere, yet...

[deSitter]

Well they are going to announce at CERN (Centre Europe'enne pour la Rercherhe Nucle'aire) the discovery of the Higgs particle on July 4th, at 2AM Fermilab time. Now they are going to build their yokeless pilotless (well not quite) airplanes here. What's a patriot to do? :)

[AlphaZuluRomeo]

I'm not quite clear why the French government thinks it has a monopoly on controlling Airbus locations (see article). It's a European-wide company.
I'm not quite clear where you see that in the article, either. ;)
I mean... the new french gov "has a problem" with the relocation of industries out of the country, when that means less jobs (french facility closing) and a negative impact on the trade balance.

The current A320 family has IIRC 3 FALs (Toulouse, Hamburg, Tianjin). A fourth one doesn't mean a closure of any of the above: the A320neo is, so far, a commercial success, and the production rate should rise, above the current facilities capabilities.

Oh, and this is not -exactly- a news:
Industry analyst consensus, as well as prevailing wisdom inside Boeing, concludes the European airframer cannot achieve 60 A320s a month without major expansion of its Toulouse, Hamburg or Tianjin, China lines.

This would open the door to a US-based final assembly line in Mobile, Alabama, current site of an Airbus engineering centre, late in the decade to meet the replacement demand in North America.

(source (http://www.flightglobal.com/news/articles/airbus-narrowbody-production-could-rise-to-as-many-as-60-per-359772/), back in 2011)

[Check Airman]

I thought I read a few years ago that the 320 was going to be assembled in China. Has that idea been tossed?

[DaveReidUK]

I thought I read a few years ago that the 320 was going to be assembled in China. Has that idea been tossed?

See previous post (FAL = Final Assembly Line)

[Joe86]

My question is ‘If Airbus builds a final assembly line in the states, where will the components be built? If the production rate for long range is also being increased will Broughton have the capacity to build yet more wing sets for the US A320 FAL?’.

[rowly6339]

Cue mass strikes across france:{

[Turbine D]

Originally Posted by WHBM
I'm not quite clear why the French government thinks it has a monopoly on controlling Airbus locations (see article). It's a European-wide company.

Well I think the French government would have some real experience in this if they have looked at some past history, not so much for other participating countries. Recall that GE and Snecma (mainly French government owned at the time) joined forces to develop, assemble, test, market and sell CFM56 engines. The original slogan was "Share to Gain". Fan and LPT modules are manufactured in France and shipped to the US, Compressor and HPT modules are manufactured in the US and shipped to France. 50% of the engines are assembled in France, the other 50% are assembled in the US. "Gain" it turned out to be, 26,000 engines later and still going strong. In the beginning, it was a pretty rocky start at in the US regarding union objections (lost jobs), technology transfers (US government) and political pressures (Washington). Nobody is complaining now.

The Airbus A-320 can work in very much the same manner. As has been pointed out, there is a great port facility to accept fuselage sections, wings, tail and vertical stabilizers, the workforce will be non-union and the talent is available. Also, the US market is a big market for Airbus/Boeing single aisle jets with airline consolidation and the need for new equipment. Boeing has their eyes set on China. They enjoy having a large market share there and it has more potential as time goes on.

The Airbus timing is good if they move quickly with the A-320 Neo going into production in a few years. Aircraft assembly always turns out to be the bottleneck when times are good. The ability to have two assembly plants overcomes many of the problems verses having only one plant. IMHO, this would be a good business move for Airbus to go forward with. Timing is everything...

[racedo]

Guess this is the same site that Airbus wanted to use on the USAF Tanker deal before Boeing had the deal er "renegotiated".

[FlightPathOBN]

Before everyone starts bashing the quality of Airbus for building a plant in the US, remember that Boeing aircraft are made in the US and China....

(the only ac engines that routinely explode are made in the UK)

Why in Alabama?

Two things,
Right to work state, and
both start with 'A'

[Turbine D]

racedo

I believe that is correct, Airbus had intended to build A330 there if they would have won the USAF contract.

FlightPath OBN

You are correct about Alabama, except I am not sure about the "A". :D
Even Boeing has placed a second plant in South Carolina (non-union/right to work state) to assemble the Boeing 787s. The first assembled aircraft from this plant will fly at the international airshow in the UK. This was done over the objections of the union folks in Seattle, WA, but that is life today in the US to remain competitive in the international market.

[Alloa Akbar]

China would be far more likely than Europe. The business climate in Europe is similar to California's. Really?? Do you have any idea the cost to Boeing of managing the Chinese manufacturing due to quality concerns??? That said...

Boeing has been in China market for more than 90 years and has been procuring aerospace parts for 737, 747, 767, 777, and the dreamliner 787. These include horizontal stabaliser, vertical rear spoiler, rear fusalage section, boarding door, wing panel, and other parts for 737; trailing edge fixings for 747, and aileron, spoiler board, and inside flap for the 747-8, etc. For the 787 dreamliner, Boeing is procuring from China its rudder, wing and fusalage fairing surfaces, rear spoiler, and composite parts.

Although Boeing does provide the figure for the procured value on a yearly basis, following facts and figures are an indicator of its commitment and size of operation:

Total procured value for the past three decades has been in excess of 1.5 billion US Dollars; The total value of new subcontracts signed for 737, 747-8 and 787 in 2007 was approximately five hundred million dollars; The total value of supply contracts and subcontractys with AVIC group companies has far exceeded 2.5 billion dollars; Boeing is by far the biggest buyer of aerospace parts in China. It also comprises approximately 53% of China's current fleet, in comparison to Airbus' 36%, and has become the main forces in China's passenger and cargo fleet. Forecast that in total 4330 new aircrafts, among which 3090 single aisle, 890 double aisle aircrafts, 70 super-jets, and 330 cargo jets will be delivered in China during the next 20 years;

Its tier one suppliers include: CAC, Chengdu Rudder for 787 (exclusive, first delivery in 2007) Front boarding door for the new 737 (signed with Sprint in 2008) Emergency Exit for the new 737 (signed in 2008) Aileron and spoiler for 747-8 (exclusive, first delivery in 2009) Horizontal stabaliser and subcomponents (signed with Vought in 2007)
HAIC, Harbin Wing and fusalage fairings for 787 (exclusive, first delivery in 2007) Vertical rear spoiler for 787 (signed in 2007)
AVIC Shanghai factory Horizontal stabalizer for the new 737 (signed in 1995 and has delivered 1400 aircrafts)
AVIC Shenyang Vertical rear spoiler front for 787 (exclusive, first delivery in 2007) Rear fusalage section for the new 737 (signed in 1996 and has delivered 400 aircrafts)
AVIC Xian Vertical rear spoiler for the new 737 (signed in 1995 and has delivered over 1200 aircrafts) Fixed trailing edge for the 747 (exclusive, delivered over 550 aircrafts) Inside flap for 747-8 (signed in 2007, first delivery in 2009) Flooring support and subcomponents for 747 converted cargo aircrafts.

As for Bama, as part of the US Tanker offer, Airbus were looking to build a few different aircraft there, A330 and A320 being but two. Given the Airbus Military sales strategy, they are looking to sell A330 MRTT for the KC-Y Tanker recapitalisation program, which requires something bigger than the Frankentanker Boeing build. I wouldn't be surprised if this is part of that strategy. Skilled workforce, cheap real estate and non unionised.. Not to mention the state assistance and initiatives offered by the good folks down south. All things considered, (Global demand, economic conditions, future sales strategies, cost of manufacture etc) Alabama makes pretty good sense as far as I can see.

[Typhoon650]

One wonders if this is such a great decision, considering Mobile's history of hurricanes, and the fact that both the airports seem to be situated on land that could suffer from storm surge.
I guess it would make moving large fuselage and wing sections from the docks easier though.

[Um... lifting...]

Mobile Downtown Airport - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Mobile_Downtown_Airport)

Brookley Air Force Base - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Brookley_Air_Force_Base)

There has been major aerospace work done at the field for many years. It has a deepwater port and a major railhead.

Mobile Alabama Hurricanes (http://www.hurricanecity.com/city/mobile.htm)

[WHBM]

...the state assistance and initiatives offered by the good folks down south.
My personal very first (and last) experience of the "good folks" of Mobile, Alabama, was driving west on the main freeway from Florida, soon after the border Mobile comes up and the old battleship USS Alabama is in a museum close to the road, you see it, and its visitor signage, well in advance. I got there it seemed just after they closed. Ticket office deserted although people still coming out. I go a few steps beyond the office looking for someone, suddenly out comes one of the staff in quasi-naval uniform and bawls rudenesses at me like he was a sergeant (which he possibly once was) and I was a first-week recruit. I was just gob-smacked to be treated at a visitor attraction like this.

It's funny how first impressions stick, but that was mine. By the way, I got back in the car and was over the state line into Mississippi before I stopped again. And despite using that road once or twice since, I've never set foot in Alabama since, and I always recall the unpleasantness when passing the ship.

[Huck]

Well, as a lifelong Alabamian and a former Mobilian, I apologize.

Come on back. Shrimp n grits on me.

By the way Katrina tilted the battleship 6 degrees - she's actually sitting on a sandbar. They had to build a cofferdam and re-float her to straighten things out.

Excellent aviation museum next to the ship - SR-71, B-52, many fighters, and a WWII submarine.....

[TURIN]

(the only ac engines that routinely explode are made in the UK)


Has GE got an an assembly line in Blighty then?
You learn something new everyday.....:suspect:

CF6 FAILURES (http://forum.flightradar24.com/threads/278-Ge-cf6-engine-failures)

[Alloa Akbar]

WHBM - I lived there developed a market and set up a manufacturing facility for a well known UK Aerospace company. The support I personally and we as a company recieved from the county, the state and the US Senate was nothing short of excellent. Shame the UK doesn't have the same proactive approach.

Huck - The shrimp was great but I could never get on board with Grits.. no matter how much Laura - The owner and most excellent chef at Sweet Gum Bottom bed and breakfast in Andalusia tried.. butter, salt, cheese, fruit, you name it.. :yuk: ;)

[Rocket2]

Agree Turin plus the fact that Mr. Boeing fits RR engines by choice on many of his aircraft at an early stage of development (757, 787 to name but a few)

[ironbutt57]

guess they know where their bread is buttered....

[WhatsaLizad?]

Plenty of challenges with this decison. Nearly all can be solved with a little hard work and dedication except one.

Good luck in translating the manuals, charts, process instructions from German, French and actual English into the dialect of southern Alabama, west Florida and southeast Mississippi :}

Oh, I forgot, "LA" is an exotic local known as "Lower Alabama"

Sarcasm aside, I love visiting the area and the people there.

[kwateow]

BBC News - Airbus confirms its first US factory to build A320 jet (http://www.bbc.co.uk/news/business-18675711)

[MarkerInbound]

Quote:
So are we gonna see Boeing being assembled in Europe?
Parts of Boeings are already manufactured in China and Japan.

787 aft fuselage and horizontal stab are made in Italy and flown in the LCF to the USA for final assemble.

[Piltdown Man]

Shrewd move. I like it. As a certain US politician once said "Once you have them by the balls, their hearts and minds will follow". So stick a plant in the US and threaten to lay off their workers if local orders don't follow. I remember a certain blue computer manufacturer doing the same to the UK government regarding an assembly plant in Greenock.

PM

[Basil]

Well, at £1 = €1.25 or $1.57 we could have done them a good deal on labour costs.

[FlightPathOBN]

The inevitable collapse of the Euro, and the EU, will certainly change things...

[Skipness One Echo]

Do the US or Chinese assembled aircraft have British wings etc or are they all manufactured in the US?

[FlightPathOBN]

With Boeing, there are no British wings that I am aware of...

For Airbus,

Broughton is home to the headquarters of the Wing Centre of Excellence. Located in North Wales, the plant is responsible for sub-assembly and manufacturing of large components and wing final assembly for the entire Airbus family. In addition, it carries out large component machining and treatment of components greater than 18 metres in size, including wing skins and stringer sections. More than 5,000 people are employed at the site. Activities include wing skin milling, stringer manufacture, full wing equipping and wing box assembly.
Airbus Centres of Excellence*| Airbus, a leading aircraft manufacturer (http://www.airbus.com/company/aircraft-manufacture/how-is-an-aircraft-built/airbus-centres-of-excellence/)

Anyone can build a tube, the wings and the wingbox are the secret sauce....

I would note that quite a bit of A350 wing design is done in the US, which given the 787, wonder if the 350 will be worked in AL...

You are correct about Alabama, except I am not sure about the "A".

hahaha Both Airbus and AL begin with "A"

[The Ancient Geek]

A320s are currently assembled at 2 locations in Europe and 1 in China.
It has now been formally announced that a 4th assembly line is to be opened in the USA.

The clue is in the work "assembled", the aircraft is assembled from modules, each module is built by a single (often outsourced) factory and shipped to the assembly line. For example all A320 wings are built at Broughton in the UK and the tail assemblies by CASA in Spain. Every airframe has the same modules sourced from the same factory.

There are a limited number of customer options such as engines, seats, galley modules, etc which may be supplied by more than one manufacturer but which must fit into the standard airframe build, usually toward the end of the production line.

In other words, none of the production lines "make" anything, they just assemble the finished aircraft from a kit of modules which arrive on a "just in time" basis from individual manufacturers.

[TURIN]

787 aft fuselage and horizontal stab are made in Italy and flown in the LCF to the USA for final assemble.

Mmmm, they built them, and then Boeing had to rework them all to make them fit. :suspect:

Are they still built in Italy? I was told Boeing had given the Italians enough chances to get it right and were bringing it in-house. :ouch:

[EEngr]

Build up a US constituency to lobby for Airbus' cause the next time something like another tanker deal comes up for negotiations.
:suspect:

[Rengineer]

One wonders if they'll ship A320 parts to Mobile by sea, as they do for Tianjin, or if this may make a business case for the "Super Beluga" that was occasionally rumored about in the past... :oh:

[WHBM]

One wonders if they'll ship A320 parts to Mobile by sea....
Needs to be a bit more secure than Boeing shipping 737 fuselages by rail from Wichita to Seattle across the US west, which apparently regularly arrive with bullet holes in them from those lineside doing target practice !

[grounded27]

STA Mobile or better known as Mobile Aerospace has been well known for very low wages for their direct hire staff. Contractors are treated like crap and I have seen 1000usd travel pay bonus offered (normally unheard of) just to get contractors in the door when they are short staffed.

I wonder if Airbus did not pick this location knowing that there are plenty of experienced but unliscenced people there that would jump ship from STA for a dollar raise. EADS Lake Charles, Lousiana a decade ago failed.

[Gemini Twin]

Makes good business sense too, when the boom is over it's much easier to shut down a non union plant in a right to work state than it is in Europe where it seems impossible to lay anyone off!

[MarkerInbound]

Are they still built in Italy? I was told Boeing had given the Italians enough chances to get it right and were bringing it in-house.

LCFs are still going to Taranto.

[captjns]

Makes good business sense too, when the boom is over it's much easier to shut down a non union plant in a right to work state than it is in Europe where it seems impossible to lay anyone off!

Bingo! Give the man a cigar! Not to mention that the US is becoming the next Mexico, or China when it comes to cost of labor compared to that in the EU. One hour of work equals one hour of pay.... No benefits:{.

You know the US is slowing sinking to third world status when the rest of the world uses the US as a source of cheap outsourced labor.

Also the effects of the EU to USD fluctuations will be less dramatic as adjustments to control of unit cost of production can be better controlled.