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Author Topic: Bombardier Loans  (Read 344 times)

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Offline JMT

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Bombardier Loans
« on: February 07, 2017, 09:33:17 pm »
The government has given a repayable loan to Bombardier for $372M, split between the Global business jet project and the C series.  The Conservative government gave similar loans to Bombardier late in their mandate.

Bombardier has a good product, and if they need some help, I'm fine with it.  I wouldn't want to lose all of those high paying, highly educated aerospace jobs.
« Last Edit: February 07, 2017, 09:57:25 pm by jmt18325 »
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Offline wilber

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Re: Bombardier Loans
« Reply #1 on: February 07, 2017, 09:56:23 pm »
Subsidizing aerospace in some way seems to be a fact of life. Everyone does it either directly or with big government contracts for things like defence. It is an intensive user of technology and manufacturing, a lot which of which doesn't use robots, so is probably as good an investment as any. Assuming they can build something that sells. My biggest concern would be management.
« Last Edit: February 07, 2017, 10:29:22 pm by wilber »
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Offline ?Impact

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Re: Bombardier Loans
« Reply #2 on: February 07, 2017, 10:02:32 pm »
Bombardier now has over 350 orders for the C-series, so it looks like that stake the Quebec government made in the plane is going to pay off. I don't know how the current federal loan breaks down other than most of it is for the new Global 7000 series business jet which goes commercial next year. The part for the C series should be very good because it will allow them to tool up for the firm orders which should mean jobs, the other one sounds more like going to R&D.
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Offline poochy

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Re: Bombardier Loans
« Reply #3 on: February 07, 2017, 11:35:23 pm »
They have been losing billions, they have received many 'loans' in the past, the company is owned by a wealthy family that we continuously subsidize, and governments do this because if they don't they will lose support in Quebec, that's it, that's all.  I wonder how many other businesses could have been helped with all of the money that's been given to Bombardier over the years, a company that is in perpetual trouble.  It's not really ok, no matter which government is buying their votes with our money, it's been happening for decades.  This is just another type of equalization for Quebec, a province that always needs to be treated as more than equal.
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Offline ?Impact

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Re: Bombardier Loans
« Reply #4 on: February 08, 2017, 12:51:09 am »
Quote from: poochy on February 07, 2017, 11:35:23 pm
the company is owned by a wealthy family

While the Bombardier-Beaudoin family have 53% of the voting rights, they actually own only about 10% of the company. They created a special class share that gives them 10:1 voting rights. There are some advantages of this system as it allows them to keep the company from being bought out and assets sold as happens so much in the modern world of CrimeStreet "investing".

It would be interesting to have some real accounting of the government money invested in the company. Those that support the company claim most of government money has been paid back, and in addition there are the thousands of jobs and over $15 billion in corporate taxes paid. The usual detractors (e.g. Canadian Taxpayers Federation, Fraser Institute, etc.) however make different claims.
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Offline Blueblood

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Re: Bombardier Loans
« Reply #5 on: February 08, 2017, 12:52:21 am »
Quote from: jmt18325 on February 07, 2017, 09:33:17 pm
The government has given a repayable loan to Bombardier for $372M, split between the Global business jet project and the C series.  The Conservative government gave similar loans to Bombardier late in their mandate.

Bombardier has a good product, and if they need some help, I'm fine with it.  I wouldn't want to lose all of those high paying, highly educated aerospace jobs.

I don't agree with the bailout loans, pull the plug and let grandma die and let someone else take over the factories that can do it efficiently- Boeing, airbus, etc. 

The factory and robots etc. Aren't goin anywhere, maybe new tenants who can restructure how things run would be good for aerospace in the long run.
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Offline ?Impact

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Re: Bombardier Loans
« Reply #6 on: February 08, 2017, 01:12:12 am »
Quote from: Blueblood on February 08, 2017, 12:52:21 am
Boeing, airbus, etc.

Both Boeing and Airbus are heavily subsidized, far more than Bombardier.
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Offline cybercoma

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Re: Bombardier Loans
« Reply #7 on: February 08, 2017, 07:51:15 am »
Quote from: Blueblood on February 08, 2017, 12:52:21 am
I don't agree with the bailout loans, pull the plug and let grandma die and let someone else take over the factories that can do it efficiently-
I don't agree with corporate welfare either but the struggle with making these decisions comes from the uncertainty that someone may not take over. Having hundreds of people out of work is not good and people will turn to the government to intervene.
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