Airbus COO Sees Strong Euro Hurting Recovery |
| News created: 21. september 2007 21:39 |
Airbus's chief operating officer said the rise in the euro to above USD$1.4 meant the European plane maker might have to find another billion euros in savings under a restructuring plan drawn up with the euro at USD$1.35.
"If the euro remained durably at USD$1.45, that would mean we had to find one billion euros in additional savings under Power 8," Fabrice Bregier told BFM radio on Friday.
Bregier joins a chorus of French industrialists, such as the chief executive of PSA Peugeot Citroen, who are concerned the euro's rise to record highs is hurting exports and could lead to job cuts in European manufacturing.
Critics say France is late in making structural adjustments to become more competitive.
Power 8 is a restructuring plan put in place by Airbus after the European group was hit by costly delays in its A380 super jumbo plane program last year. It needed to slash costs to remain competitive against rival Boeing.
When the euro was at USD$1.35, this was already a 35 percent rise since levels of USD$0.88 in the year 2000.
The Power 8 plan will see the sale or closure of several sites in the four countries where Airbus is based as well as more than 10,000 job cuts at its own operations and suppliers.
Bregier added that Airbus, which currently buys 50 percent of its supplies in the dollar zone, would have to increase that proportion for new programs such as the A350 plane.
And if the euro remained high this would "not allow us to invest in new projects," Bregier said.
On Wednesday, US manufacturer Honeywell International signed a contract worth potentially USD$16 billion for the supply of auxiliary power systems, pressurization and climate-control systems for the A350. |
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