Thanks for adding this -- I can see the total economic impact of this could be huge.
Until April, they were producing 52 planes per month. Then they reduced to 42/mo. Now maybe zero for some while.
At $100 million per plane, that's $5.2bil/mo!
And over $400 billion in 7 years. Can their defense business cover that? Can the employee 401k's survive?
Blown away they wouldn’t pause production until they knew the design issues were fixed... rather than build new planes that beat case had to be immediately retrofitted. “Let’s just do the wrong thing again, it’ll work this time.” Seems very risky.
Halting production wouldn't necessarily be a prudent financial thing to do. The reported problems were with small physical sensors and software. It would be much easier and cheaper to retrofit finished planes with fixes after the fact, rather then halting all production then rush to fill orders when the plane design is given the all clear
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I can’t be the only one who’s more surprised that they’ve been making new ones this whole time.
They have a lot of orders to fulfill.
Over 4400 units, 80% of their total backlog, representing 7 years of production value at the present production capacity.
Thanks for adding this -- I can see the total economic impact of this could be huge.
Until April, they were producing 52 planes per month. Then they reduced to 42/mo. Now maybe zero for some while. At $100 million per plane, that's $5.2bil/mo!
And over $400 billion in 7 years. Can their defense business cover that? Can the employee 401k's survive?
Blown away they wouldn’t pause production until they knew the design issues were fixed... rather than build new planes that beat case had to be immediately retrofitted. “Let’s just do the wrong thing again, it’ll work this time.” Seems very risky.
Halting production wouldn't necessarily be a prudent financial thing to do. The reported problems were with small physical sensors and software. It would be much easier and cheaper to retrofit finished planes with fixes after the fact, rather then halting all production then rush to fill orders when the plane design is given the all clear