Alain Bellemare and the rescue of BombardierA short excerpt frpm the G & M article for those who still believe that Bombardier should have tried to make it without a strategic alliance.
But it wasn’t enough to calm the market’s restlessness over Bombardier’s future. Behind the scenes, the company continued to have trouble selling the C Series, and Mr. Bellemare needed a permanent solution to ensure the viability of the program. He’d concluded the moment he saw Bombardier’s books that the company had to have a strategic partner for the plane.
“You need to make money,” he said. That became impossible competing against Airbus and Boeing, both of which have much bigger production volumes. “They start discounting on pricing, you know. And then your cost base is not supporting the ability to preserve margin at a lower price. That’s it. I mean, you don’t make it.”
And what is written above does not address all other issues like financing, production, customer service and maintenance.
Read more at https://www.stockhouse.com/companies/bullboard?symbol=t.bbd.a&postid=28315647#3W6eFXHw3rR0zCzj.99