racercoup wrote:golfradio wrote:racercoup wrote:
I don't think the Canadian government invested billions to bail out Bombardier to see the jets manufactured in the US
See, that's the thing; Investissement Québec gets 50 million class B shares exercisable at C$ 2.21 (Closing price of BBD on TSX on Jun 30 C$2.36). If C-Series is successful, they get back handsome returns for their investment by way of capital gains and dividends. This is unlike a tax subsidy which BA gets where the state and federal tax payers don't see a nickel returned.
There will be no problem from Investissement Québec other than some disgruntled union workers at BBD.
Not even close. Boeing received a break on state's business and occupation taxes for locating plants in their jurisdiction for an agreed on length of time. So the state (s) in question are not giving up anything, but are getting jobs. The wages tied to those jobs are then taxed so the state has income it otherwise would not have had in addition to happy citizens. The WTO ruled this year that this was NOT anti-trade.
Boeing is not questioning the Canadian government's investment in Bombardier but rather the fact that it sold the airframes well below the cost of manufacturing. This dumping is not good for Boeing or it's other clients such as Southwest. I'm sure Airbus is happy they took up the cause also.
I don't think Boeing is stupid at all for their actions, I do think Bombardier made a stupid move selling so low. Time will tell.
The only problem is Boeing has done the same thing with United and their 737-700. Last time I checked a 737-700 is listed well above 22mil. At what point of discount is it considered price dumping? Is Boeing able to get away with offering higher discounts because the development cost has already been sunk? Are we just going to ignore the money that Boeing has received from the US government. This could be a dangerous precedent. I love how us Americans love to think that our manufactures received no help from the US, any entry level accountant can prove that notion wrong.