Boeing To Halt 737 Output In January In Move That Will Strain Its Supply Chain - Layoffs...
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December 17, 2019 - by Jeremy Bogaisky for forbes.com
Since the grounding of the 737 MAX following the second of two deadly crashes in March, Boeing has sought to keep the production line moving and to minimize disruptions to the intricate web of smaller companies it relies on to supply roughly 80% of the components that make up its best-selling plane.
However, with the Chicago-based company's hopes dashed of winning approval by year-end for the 737 MAX to return to service, it has decided to halt assembly of the plane in January.
That could have far-reaching consequences for Boeing's suppliers depending on the duration of the production freeze. The company didn't address how long it could last.
Layoffs or furloughs could be forthcoming, however, at some suppliers. Among those that could face the greatest stresses are its aerostructures suppliers, chiefly Spirit AeroSystems, which makes the fuselage for the 737 MAX, analysts say.
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