Tag: Manufacturers (Page 2 of 2)

Canada’s Largest Railroad Hit by Strike, Trudeau in Hot Seat

November 19, 2019 / WIL BALDWIN

MONTREAL/WINNIPEG, Nov 19 (Reuters) – Thousands of workers at Canada’s largest railway went on strike for the first time in a decade on Tuesday, disrupting the shipping of commodities and sparking calls for Prime Minister Justin Trudeau’s Liberal government to intervene.

About 3,000 unionized workers of Canadian National Railway, including conductors and yardmen, hit picket lines after both sides failed to resolve contract issues at a time of softening demand for freight service. They continued talks on Tuesday in Montreal amid union concerns over fatigue, safety and ensuring that workers’ breaks are not reduced.

Canada, one of the world’s biggest exporters of farm products, relies on CN and Canadian Pacific Railway to move canola, wheat and other commodities over vast distances from western farms to ports. Crude oil shippers and the mining industry also depend on the railways.

The strike comes at an awkward time for Trudeau’s government, which relies on smaller parties to pass legislation and faces criticism from western provinces about its failures to get new oil pipelines built. Trudeau has said he is not reconvening Parliament until Dec. 5, and the government cannot start the process to force workers back on the job until then.

Andrew Scheer, leader of the Conservatives, the second-largest party in Parliament, and Alberta Energy Minister Sonya Savage each separately urged Trudeau on Twitter to recall Parliament immediately.

The Canadian mining industry, which accounts for more than half of annual rail freight revenues, depends on CN to transport supplies to company sites and products from their operations.

“This strike will result in a severe reduction or elimination of railway capacity and will trigger the closure of mines with concurrent layoffs of thousands of employees beginning in a matter of days,” said Pierre Gratton, president and CEO of the Mining Association of Canada.

“SCREECHING HALT”

Industry groups ranging from the Canadian Manufacturers and Exporters to propane and fertilizer groups said Ottawa needed to step in to limit damage to the economy.

The BC Council of Forest Industries, which represents the sector in British Columbia, expressed concerns about the disruptions caused by the strike for rail transport.

“Ninety percent of the forest products we produce are sent to export markets in North America and around the world,” Susan Yurkovich, the body’s president, said.

“A disruption of this critical transportation network will adversely impact BC forest companies at a time when we are already facing significant challenges and increasing competition from around the globe”, Yurkovich added.

CN and CP also collectively handle nearly all grain movement in Western Canada, the country’s crop belt, split roughly evenly between the railways.

The stoppage “has an impact before it even begins because companies pull back sales in anticipation of a strike,” said Wade Sobkowich, executive director of the Western Grain Elevator Association, whose members include Cargill Ltd, Richardson International and Viterra Inc.

CN’s shipments of hazardous goods such as crude are likely to come to a “screeching halt” even if the railroad’s management steps in to limit freight volumes, said Kent McDougall, chief commercial officer at Torq Energy, which loads crude oil in Western Canada onto trains operated by both CN and CP.

A strike may temporarily constrain CN’s volumes, but will not likely have a meaningful long-term impact on the company’s earnings, Credit Suisse analysts said in a research note on Monday, adding that Ottawa has historically been quick to intervene.

Shares of Montreal-based CN were down 1%, while the benchmark Canadian share index was up slightly.

Canadian Labour Minister Patty Hajdu and Transport Minister Marc Garneau said they are monitoring the CN strike situation closely after meeting with the two sides on Monday.

CN said in a statement that it was “disappointed” at the strike action. CN’s service in the United States will continue operating despite the strike.

The company said on Friday it would cut management and union jobs as it grapples with an economic slowdown.

Rail workers with the Teamsters held their last strike in 2009, when locomotive engineers walked off the job for five days, the union said.

(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg Additional reporting by Kelsey Johnson, David Ljunggren and Steve Scherer in Ottawa and Kanishka Singh in Bengaluru Editing by Chizu Nomiyama, Sandra Maler and Leslie Adler)

Record U.S. Tariff Award Over Airbus Aid Could Fuel Trade Tensions

September 29, 2019 / WIL BALDWIN

BRUSSELS/PARIS (Reuters) – Transatlantic trade ties face renewed disruption this week when global arbiters are expected to grant the United States a record award allowing it to hit European imports with billions of dollars of tariffs in a long-running aircraft subsidy dispute.

The World Trade Organization (WTO) has found that both European planemaker Airbus <EADSY> and its U.S. rival Boeing <BA> received billions of dollars of illegal subsidies in a pair of cases that have run for 15 years.

Both sides have threatened tariffs after the Geneva body found neither adhered fully to its findings. However, the United States has a head start, with the European Union having to wait until early in 2020 to hear what level of retaliation it can exact over Boeing.

The WTO is expected this week to reveal the amount of EU goods the United States can target. People familiar with the case say the three-person tribunal is expected to award it around $7.5 billion, a record for the 24-year-old watchdog.

Such retaliation rights are rarely granted by the WTO – most parties reach settlements – and in many cases complainants do not exercise their rights. The United States though has indicated it will target EU goods to the fullest extent.

It has already published a $25 billion list from which it will pick items to target from aircraft and aerospace parts to wine, cheese and luxury goods.

The WTO award in the world’s largest corporate trade dispute could fuel already strained trade tensions, diplomats say.

EU manufacturers are already facing U.S. tariffs on steel and aluminum and a threat from U.S. President Donald Trump to penalize EU cars and car parts. The EU has in turn retaliated.

Trade talks between the two, designed to ease tensions and ward off the threat of a tit-for-tat tariff war, have not gone well. The two sides have made some progress on regulatory cooperation, but a proposed deal to reduce duties is stuck, with Washington saying agriculture should be included and Brussels insisting it cannot.

The Trump administration has concluded that tariffs were effective in bringing China to the negotiating table over trade, and in convincing Japan to open its agricultural market to U.S. products. Washington is unlikely to skip the opportunity to implement tariffs in the case over aircraft subsidies, according to current and former U.S. officials.

Airbus has said this would lead to a ‘lose-lose’ trade war.

Some U.S. airlines have urged the administration not to go ahead with the tariffs, saying they could lead to layoffs.

NO SETTLEMENT IN SIGHT

The parties could still theoretically resolve the issue and stave off sanctions, but both sides accuse the other of failing to respond to invitations to reach a negotiated settlement.

U.S. officials say the decision about next steps will be up to U.S. President Trump.

The EU cannot retaliate immediately to any tariffs as it did following the U.S. imposition of metal tariffs in 2018.

It can either wait until a pronouncement in the parallel Boeing case or possibly revive an existing right to hit $4 billion of U.S. imports in a WTO dispute over U.S. tax breaks for exports, even though the two sides settled in 2006. Such a move would likely be strongly contested by Washington.

EU trade chief Cecilia Malmstrom has urged Washington to hold off sanctions and seek an overall deal on aircraft support, but Washington has shown no sign it wants to talk.

A U.S. government official said Washington has been willing since the very beginning to negotiate a solution, but that the EU gave more support to Airbus rather than fixing the problem.

EU-U.S. trade relations are likely to be a major focus in Brussels during a parliamentary hearing of the next trade commissioner, Irishman Phil Hogan, on Monday, and of national trade ministers meeting on Tuesday.

(Additional reporting by Andrea Shalal in Washington, reporting by Philip Blenkinsop; Editing by Elaine Hardcastle)

Record U.S. tariff award over Airbus aid could fuel trade tensions
FILE PHOTO: Boeing Co’s logo is seen above the front doors of its largest jetliner factory in Everett

‘System is not Broken’ After 737 MAX Crashes

September 28, 2019 / WIL BALDWIN

FILE PHOTO: A Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle

NEW YORK (Reuters) – The U.S. Federal Aviation Administration process for certifying new airplanes is not broken but needs to be improved, the chair of an international panel of air-safety regulators, tasked to review Boeing Co’s <BA> 737 Max, said on Friday.

Speaking on the sidelines of an event at a New York City college, Christopher Hart, chair of the multi-agency panel, said there was no need to question the agency’s overall way of certifying airplanes.

“The U.S. aviation system each day transports millions of people safely, so it’s not like we have to completely overhaul the entire system, it’s not broken. But these incidents have shown us that there are ways to improve the existing system,” Hart said, referring to fatal crashes of a Lion Air 737 MAX in Indonesia and an Ethiopian Airlines 737 MAX five months apart that killed a total of 346 people.

The MAX remains grounded and Boeing has not set when it will conduct a key certification test flight. Some in Congress and in aviation have criticized the FAA’s longstanding practice of delegating certification tasks to manufacturers.

Michael Perrone, who heads the Professional Aviation Safety Specialists union, said at a House hearing in July that external entities designated by the FAA “are now performing more than 90 percent of FAA’s certification activities despite serious concerns that oversight is lacking.”

Hart, former chairman of the National Transportation Safety Board (NTSB) and a licensed pilot, heads the Joint Authorities Technical Review, a panel including air-safety regulators from the United States, Canada, China, Indonesia, European Union and Brazil.

Reuters reported on Sept. 17 the review’s recommendations will include citing regulations that need to be harmonized internationally and where communications can be improved at the FAA and among international regulators, citing a person briefed on the matter.

Hart on Friday said the panel would release its recommendations to the FAA “shortly,” but declined to provide more details on the timeline. He said the panel’s goal was not for all of its members to agree, but to provide a wide range of opinions and recommendations to the FAA.

Hart spoke to students the Vaughn College of Aeronautics and Technology in Queens. Asked by a student whether passengers can be expected to fly again on a 737 MAX, Hart said he predicted people would “sooner or later forget” about the crashes and investigations.

“This will be the safest airplane out there by the time it has to go through all the hoops and hurdles,” he said.

He also was optimistic when asked whether the deadly crashes would spell the end for Boeing’s 737 MAX programme.

“It will be a cold day in hell before Southwest starts moving away from 737s because that’s all they got,” Hart said, referring to Southwest Airlines Co <LUV.N>, which has cancelled flights into January because of the MAX grounding.

A Southwest Airlines spokesman declined to comment directly on Hart’s comments but said the airline has “no plans to veer away from our all-737 fleet.”

(Reporting by Tina Bellon in New York; Additional reporting by David Shepardson; Editing by Daniel Wallis)

China Out in Force at Frankfurt Car Show

September 11, 2019 / WIL BALDWIN

FILE PHOTO: Supercar Hongqi S9 is unveiled next to FAW Group Chairman Xu Liuping at the 2019 Frankfurt Motor Show (IAA) in Frankfurt, Germany. September 10, 2019. REUTERS/Wolfgang Rattay/File Photo

FRANKFURT (Reuters) – Chinese suppliers and manufacturers have stepped up their presence at the Frankfurt auto show, capitalizing on a strong position in electric technologies forced on European carmakers by regulators seeking to curb pollution.

Though the number of exhibitors has fallen to 800 in 2019 from 994 in 2017, Chinese automakers and suppliers now make up the biggest foreign contingent, with 79 companies, up from 73.

Several European and Japanese carmakers including Fiat , Alfa Romeo, Nissan and Toyota have skipped the show as the industry cuts costs.

Europe’s automakers face multibillion-euro investments to develop electric and autonomous cars, forcing them to rely on Chinese companies for key technologies such as lithium ion battery cell production, an area where Asian suppliers dominate.

German firms are striking major deals with Chinese suppliers to help them meet stringent EU anti-pollution rules, which were introduced in the wake of Volkswagen’s 2015 emissions cheating scandal.

“All carmakers face the challenge that they will have to fulfill fleet consumption targets,” Matthias Zentgraf, regional president for Europe at China’s Contemporary Amperex Technology, told Reuters.

Zentgraf said he expected further supply deals to be struck in Europe this year following agreements with BMW and Volkswagen.

Daimler on Wednesday said it had chosen China-backed Farasis Energy to supply battery cells for its Mercedes-Benz electrification push.

Farasis is building a 600 million euro ($663 million) factory in east Germany, close to where Chinese rival CATL is erecting a 1.8 billion euro battery plant.

SVOLT Energy Technology, which was carved out of China’s Great Wall Motor Co, told Reuters it would start building battery cells in Europe at a new 2 billion euro plant in 2023.

TIPPING POINT

Chinese companies are also giving Europe more attention since the United States and China embarked on a global trade war, which has resulted in tariffs.

“We put Europe up in priority,” said Daniel Kirchert, chief executive of Chinese electric car maker Byton.

“We are at a tipping point” for acceptance of electric vehicles in Europe, Kirchert, a former BMW executive, added.

Byton has taken its prototype vehicles on road shows in Europe, and received expressions of interest from 20,000 customers, he said. In electric vehicle hot spots, such as Norway and the Netherlands, “we see a very positive response.”

Byton plans to export vehicles from its factory in Nanjing, to Europe in 2021, Kirchert said, adding that exporting to the United States would be a challenge if Washington and Beijing did not resolve their trade war.

He said Byton still hoped to launch in the United States in 2021, but tariffs would threaten the company’s goal of selling vehicles at a starting price of about $45,000.

“We decided no matter what” Byton will launch in the United States, even at a higher price, he said.

China’s Great Wall Motor may consider building car manufacturing facilities in the European Union once its sales there hit 50,000 units a year, its chairman told Reuters at the show.

German carmakers have been forced to accelerate electrification plans after the EU imposed a 37.5% cut in carbon dioxide emissions between 2021 and 2030 in addition to a 40% cut in emissions between 2007 and 2021.

PSA Group Chief Executive Carlos Tavares used the show to step up criticism of Europe’s aggressive approach toward emissions limits.

“The word dialogue has become meaningless in Europe,” he said, referring to the requirements placed on the auto industry.

“Politicians can decide rules without any discussion with industry,” he told journalists on the sidelines of the show.

Electric cars made up only 1.5% of global sales last year, or 1.26 million of the 86 million passenger vehicles sold, JATO Dynamics said.

If carmakers fail to meet the 2021 targets they could face a combined 33 billion euros in fines, analysts at Evercore ISI have estimated.

They also estimate it will cost the auto industry an aggregate 15.3 billion euros to comply, assuming a 60 euro cost per gram to reduce CO2 emissions for premium carmakers and 40 euros per gram of CO2 reduction for volume manufacturers.

(Writing by Edward Taylor; Editing by Mark Potter)

A woman cleans the prototype of a Chinese car at the IAA Auto Show in Frankfurt, Germany, Monday, Sept. 9, 2019. The IAA officially starts with media days on Tuesday and Wednesday. (AP Photo/Michael Probst)

Boeing Invests in Services Provider Robotic Skies

June 4, 2019 / WIL BALDWIN

Startup manages maintenance, inspection and alteration services for global manufacturers and operators of commercial unmanned aircraft systems

Access to safe, reliable maintenance will support commercial operations and urban mobility efforts

CHICAGO, June 4, 2019 /PRNewswire/ — Boeing [NYSE: BA] today announced its investment in Robotic Skies, a services provider that connects manufacturers and operators of commercial unmanned aircraft systems (UAS) with a global network of more than 170 civil aviation authority-certified repair stations.

“With safety as a cornerstone, we are shaping a robust operational ecosystem for on-demand mobility that supports the future of aircraft, air vehicles and autonomous systems,” said Brian Schettler, managing director for Boeing HorizonX Ventures.

The investment is part of Boeing’s disciplined, long-term strategy of entering into value-added partnerships that enhance and accelerate growth and deliver key differentiators for customers.

“Unmanned and autonomous commercial aircraft operations are increasingly mirroring those in manned aviation, including the need for quality maintenance provided by certified technicians,” said Brad Hayden, founder and CEO of Robotic Skies. “This latest investment will allow us to continue to grow our global footprint and expand operational capabilities to support customers.”

Boeing HorizonX Ventures led this funding round with participation from Thayer Ventures, Sun Mountain Capital and KickStart Seed Fund. The investment builds on a previously-announced collaboration with Robotic Skies, Boeing Global Services and its subsidiaries Aviall and Jeppesen to provide enhanced commercial UAS services.

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

Robotic Skies is the only global network of certified UAS maintenance centers. It offers comprehensive turnkey field service programs designed to keep UAS flying safely, efficiently and affordably around the world. Founded in 2014, Robotic Skies has more than 170 certified repair stations across more than 40 countries, providing MRO and support services for commercial UAS. Each service center in the network possesses the aviation expertise and factory training to ensure the mission readiness of these aircraft. For more information about Robotic Skies, visit: http://www.roboticskies.com

Phenom 300 is World’s Most Delivered Light Business Jet

February 22, 2019 / WIL BALDWIN

Melbourne, Florida, February 21, 2019 – Embraer Executive Jets delivered 53 Phenom 300 and Phenom 300E light jets in 2018, according to a report issued by the General Aviation Manufacturers Association (GAMA). This is the seventh consecutive year that the Phenom 300 achieves this mark, having accrued more than 490 deliveries since entering the market in December 2009.

“The Phenom 300’s continued success in the market is a reflection of our commitment to fascinate customers and deliver the ultimate customer experience in business aviation,” said Michael Amalfitano, President & CEO, Embraer Executive Jets. “The revolutionary interior design of the Phenom 300E adds even more value to this already popular model, reaffirming our commitment to continue to invest in true innovation.”

Originally launched in 2005, the Phenom 300 has sustained more than half of the light jet market share since 2012. The aircraft is in operation in more than 30 countries and has accumulated more than 780,000 flight hours. Embraer is continuously investing in the competitiveness of the Phenom 300 with enhancements to its comfort, technology and operational efficiency.

This image has an empty alt attribute; its file name is Phenom_300E_SN414_Interior-1.jpg

In October 2017, the new Phenom 300E was announced and entered service just five months later, in March 2018, and it is the only Phenom 300 model available to be acquired. The new aircraft is designated “E” for “Enhanced” in reference to its entirely redesigned cabin and the addition of the industry-leading nice® HD CMS/IFE (Cabin Management System/InFlight Entertainment) by Lufthansa Technik.

The Phenom 300E inherits the Embraer DNA Design, first introduced in its larger siblings, the Legacy 450 and Legacy 500 midsize jets. The application of this design in the Phenom 300E rendered an even more spacious cabin with more personalization options and greater ease of maintainability.

The revolutionary new interior design of the Phenom 300E starts with the all-new Embraer DNA seats, both designed and manufactured by Embraer. The new seats in the Phenom 300E feature an extendable headrest with bolsters, retractable armrest, broader backs for greater support, and extendable leg rests for improved ergonomics. The new table, side ledge, side wall, and valance design optimizes passenger mobility in the cabin with expanded aisle clearance and increased cabin space, rendering unmatched comfort and personalization in the light jet class.

The Phenom 300E features an industry-exclusive upper technology panel (upper tech panel) along the centerline of the aircraft’s ceiling, significantly improving passenger ergonomics. The innovative upper tech panel presents passengers with pertinent inflight information, while allowing for convenient interaction with cabin management controls, as well as the option of inflight entertainment with audio and video on demand via two slender swing-down seven-inch displays. The unit also offers an enhanced cabin lighting scheme, with a broad range of ambient mood selections, as well as integrates sleek, silent gaspers enhancing acoustic comfort. Bluetooth connectivity also allows passengers to view inflight information on their personal devices.

The Phenom 300E is also the fastest light jet, having established several speed records with the National Aeronautic Association and the Federation Aeronautique Internationale

About the Phenom 300E

The Phenom 300E performs among the top light jets, with a high speed cruise of 453 knots and a six-occupant range of 1,971 nautical miles (3,650 km) with NBAA IFR reserves. With the best climb and field performance in its class, the Phenom 300E costs less to operate and maintain than its peers. The aircraft is capable of flying at 45,000 feet (13,716 meters), powered by two Pratt & Whitney Canada PW535E engines with 3,360 pounds of thrust each.

The Phenom 300E offers a spacious cabin with the Embraer DNA Design and its baggage compartment is among the largest in its category. The largest windows in the class deliver abundant natural lighting in the cabin as well as in the private lavatory. The comfort of the seats, with recline and full movement capability, is enhanced by the best pressurization among light jets (6,600 ft. maximum cabin altitude). The Phenom 300E features distinct temperature zones for pilots and passengers, a wardrobe and refreshment center, voice and data communications options, and an entertainment system.

The pilot-friendly cockpit enables single-pilot operation and offers the advanced Prodigy Touch Flight Deck, based on the acclaimed Garmin 3000 avionics suite. The features it carries from a class above include single-point refueling, externally serviced lavatory, and an air stair.