RE:A part of recent historyJust as I suspected Temp. They couldn't even decide who the right company to sell the train division was. I would have picked Hitachi in a hartbeat. If they picked Hitachi, none of this drama would have happened, and they probably would have gotten better money and a cleaner deal, without the court cases. I suspected that the reason they sold to Alstom was Caisse's fault. Because Caisse saw their chance to be the largest shareholder of Alstom, and Bombardier's train division with one move, and they saw their chance. Caisse didn't want to get out of the transportation business for sure, because they're a Pension fund and Pension funds love transportation. That's the problem with having bad partners (Caisse & Airbus).
It also explains what I kept saying to everybody here, about how stupid that Pierre and company were when they gave away 50.01% of the company for free, and then they gave Airbus the right to control the future of the CSeries. If that wasn't enough they agreed to pay 50% of the costs for the Alabama plant expansion and every other need of the Joint Venture. That move (paying half of every expansion of the CSeries) was even stupider than giving away the CSeries program for nothing. Because in the end as the Globe article says. The bomber couldn't afford to put anymore money in the CSeries program, and that's why they had to sell, either the Trains or the Business jets. Which is exactly what I said. That CSeries JV with Airbus was the stupidest JV deal I've ever seen. Who gives away a $6B program? Gives total control to their partner in the new JV company? And finally agrees pays for 50% more, for further development and promotion of the program.
ONLY IDIOTS. That's why I call PB an "Idiot Hair" for allowing people to talk him into doing that deal. He destroyed the company.
He now lucked out with the Business jets, and thank his lucky stars, he is NOT running the Pure Play.
Tempo1 wrote: I remember the fall of 2019, Bellemare tell us in a conference call in the first days of november that they are on the spot to achieve all the deliveries and meet the forecasts. & weeks later, they miss theirs target by 700 M$, a dozen deliveries less than promised. It was clear at the time that he lied, missing so largely the target in only 7 weeks !!! It only wanted to show a fine running operation before a possible closing. I lost a lot of money with that lie. He quit 2 months later.
Read this about what was happening behind the doors at that time.
From The Globe and mail, part of a long story about Bombardier. (may 22)
The board began exploring strategic options in the summer of 2019, and a few months later, Bombardier pulled out of the CSeries partnership entirely to preserve cash.
There were serious talks with U.S. aerospace giant Textron Inc. that yielded an offer for the private-jet unit and discussions with Japan’s Hitachi Ltd. on the train business. Bombardier also looked to Alstom, entering into weeks of negotiations that derailed several times. In the end, Alstom bought the business, making it the world’s No. 2 train maker, behind China’s CRRC. It’s now locked in a fight with Bombardier over contract provisions related to the sale at the International Chamber of Commerce’s International Court of Arbitration.
Beaudoin says choosing whether to unload trains or planes was debated heavily by the board, and based as much on future prospects and geography as anything else. Offers for the two businesses were in the same ballpark, but Bombardier had just spent a lot of capital to develop the Global 7500, and it was keen to reap the rewards, building on a lineup that already enjoyed decent margins and a strong competitive position (28% revenue market share over three years to 2019). But the bigger factor was Bombardier’s footprint and history. If it kept trains, it would essentially have a company with its centre of gravity in Europe. And it wasn’t prepared to make that leap.
“Our roots are here,” says Beaudoin.