Bombardier Transportation - Insider Update Part 4
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12:45 (16:45 UTC) - September 5, 2018 - by Sylvain Faust for Fliegerfaust
In Part 1 I mentioned the Plan B according to sources for Bombardier and its Global aircraft production after leaving Downsview. Did you know that Bombardier is planning for production of 9 aircraft per month?
In Part 2 I covered what the plan is for the Q400 at Bombardier. With who Bombardier is currently negotiating to sell the program and where the final assembly would be made.
In Part 3 I covered the future of the CRJ and Learjet.
Bombardier Insider Part 4
At the end of part 3 I wrote "I must say, it is "Moving" at Bombardier Transportation…".
Bombardier did it faster than me, announcing the nomination of the new Chairman of Bombardier Transportation's (BT) Board of Directors.
A lawyer, not any lawyer… The senior Vice President and General Counsel of Bombardier Inc., Daniel Desjardins was nominated for the job. The Negotiator?
As Alain Bellemare (who whoever wrote the sentence for the press release) did put it: "Daniel played a critical role in executing many of the successful strategic transactions supporting the company's turnaround, including the C Series partnership with Airbus and Investissement Québec, CDPQ's investment in Bombardier Transportation and the sale of the Downsview property…"
Source : https://ir.bombardier.com/en/press-releases/press-releases/78845-bombardier-announces-retirement-of-senior-vice-president-and-general-counsel-daniel-desjardins-and-appointment-of-alain-rondeau
You might now have a hint of what is to come for Bombardier Transportation with this new nomination, where the expertise of Daniel Desjardins is, I'm going to say, take it or leave it, Bombardier is planning to enter into a transaction with Siemens-Alstom joining all three companies to face the menace emerging strongly from China.
As you know, Siemens and Alstom already merged. Keep reading.
When I wrote 3 years ago in October 2015 "Bombardier, Airbus, Alstom-Siemens, The Caisse ; Partnership, Consortium, Consolidation?" (https://www.fliegerfaust.com/bombardier-airbus-alstom-siemens-the-caisse-partnership-consortium-con-2450377674.html) I wrote "The Bombardier/Beaudoin family, the Caisse de dépôt et placement du Québec ("La Caisse") and Airbus, sitting around a table, had concocted a clever way to a productive partnership…"
Remember last year when I wrote "2 phase commit" about the deal between Siemens and Alstom, meaning the next transaction (2nd phase) would involve Bombardier Transportation added to the previous two who merged first. (https://www.fliegerfaust.com/bombardier-siemens-alstom-2489367770.html)
Is this now clear to you why Daniel Desjardins is now in charge of the board of Bombardier Transportation?
Such strategic plan does take time to execute… Like completing the sales of the CSeries to Airbus, completing the sales of the Q400 and CRJ… (Leaving the Commercial Aircraft business but to remain involved as a supplier in engineering services and components building)
As Reuters pointed out in September 2017, "China's CRRC, with annual revenue of about $35 billion, is bigger than Siemens Mobility, the rail and infrastructure division of the German conglomerate, Alstom and Bombardier Transportation combined" (https://www.reuters.com/article/us-alstom-siemens-stocks/alstom-siemens-to-merge-rail-businesses-to-counter-chinas-crrc-idUSKCN1C10PG)
"In absolute terms, CRRC spends seven times more on R&D than Alstom" said Morgan Stanley analyst.
More on CRRC: https://en.wikipedia.org/wiki/CRRC
But, did you know about CRCC too? https://en.wikipedia.org/wiki/China_Railway_Construction_Corporation_Limited
Negotiations between Bombardier Inc. and the new Siemens-Alstom are going on. What would be the end up structure? What percentage of the whole would Bombardier Inc. shareholders get? Where would Bombardier find the money to buy back the part of Bombardier Transport own by La Caisse de Dépot et Placement du Québec for the closing of such a merge?
Now you know what is Mr. Desjardins working on? I think you can read between "the rails"…
Like I wrote in 2015 "Remember, China offered $8B for Bombardier Transport "alone" just few weeks ago… «De l'audace, encore de l'audace, toujours de l'audace», Georges Danton » https://www.fliegerfaust.com/bombardier-airbus-alstom-siemens-the-caisse-partnership-consortium-con-2450377674.html
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Sylvain Faust, Fliegerfaust
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