leelaw
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Noël Forgeard Reiterates Defence After Resignation

Mon Jul 03, 2006 11:09 pm

Former EADS co-chief executive Noël Forgeard insists he stepped down solely in the interests of the company, maintaining that he had no responsibility or forewarning about the operational difficulties at Airbus.

Speaking to French business daily Les Echos, Forgeard said personal friction that appeared at the head of the group made his situation untenable.

“I am too attached to this company to accept that I, personally, became an obstacle to its good management. I am leaving so that the company can re-establish the calm that it needs to exit this crisis...”

"...But I forcefully repeat: firstly, I am not responsible for the production delays affecting the A380. I don’t have operational control over Airbus anymore,” he tells the paper, noting for the last year he has been a non-executive president.

Secondly he says he exercised his stock options in “complete legality, in complete transparency and in all good faith...”


http://www.flightglobal.com/Articles...eard+reiterates+defence+after.html

He ain't going quietly. This article also includes a nice timeline of "Key Events In The A380 Delay."
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AerospaceFan
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RE: Noël Forgeard Reiterates Defence After Resignation

Mon Jul 03, 2006 11:18 pm

Quoting Leelaw (Thread starter):

He ain't going quietly

It does seem that he like to speak to the press a great deal, doesn't it? I really don't know if that's such a good thing.
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leelaw
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RE: Noël Forgeard Reiterates Defence After Resignation

Mon Jul 03, 2006 11:24 pm

Quoting AerospaceFan (Reply 1):
It does seem that he like to speak to the press a great deal, doesn't it? I really don't know if that's such a good thing.

One wonders whether Mr. Forgeard is prepared to tell tales out of the "Grande Ecole" so to speak?
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AerospaceFan
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RE: Noël Forgeard Reiterates Defence After Resigna

Mon Jul 03, 2006 11:35 pm

Oh, I think he's always free to do that. If he were American, he'd be negotiating a book deal as we speak.

If I recall correctly, Forgeard's erstwhile patron, President Chirac, once said in reaction to a certain amount of criticism relating to the EU that the critic in question never missed an opportunity to be quiet. That strikes me as a bit ironic.

There are just certain people who need to talk to the press and have to defend themselves even when you'd rather that they go away for a while. I think of Forgeard as the corporate equivalent of Star Jones -- neither of them seem to want to stop talking about themselves, and frankly, it's getting a bit tiresome.

I realize that Forgeard may have legitimate information. And he might have a few insights, to put it politely, that may at some point become a bit embarassing to certain people. I have no idea whether he "knows things" that other people would rather keep strictly sub rosa.

I do believe that, by his speaking out so soon and keeping himself in the news, there is a certain distraction that is created that takes away from the serious business of attempting to alleviate continuing concerns arising from both the A380 delay and matters of corporate finance.

Also in the news today, for example, and since yesterday, is the BAE's reported concern over a low determination of the value of its EADS stock. I believe I just read that BAE's stock has been affected by this development.

BAE and EADS are large enough companies that what has happened to them may actually have affected the performance of European stock markets, from what I've learned.

The corporate "soap opera", so to speak, is what it is already, and from my point of view, it's far too early for us to hear again from Forgeard, whatever it is he may know.

[Edited 2006-07-03 16:45:27]
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BoomBoom
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RE: No�l Forgeard Reiterates Defence After Resignation

Mon Jul 03, 2006 11:47 pm

Quote:
A person close to DaimlerChrysler's management said the company's officials wanted Mr. Forgeard dismissed not because of the controversial stock sales, but because he bore some responsibility for the A380 problems. "He was responsible for Airbus's strategic direction. You can't say that only the operational guy was responsible," said one person close to the matter.

The weekend moves come at a critical juncture for EADS and Airbus. The marquee A380 project is now a year behind schedule and roughly 30% over its original $12 billion budget.

Other EADS officials and outsiders have said the repeated delays mean the A380 has exposed fundamental flaws in how Airbus builds planes. Fixing that will be Mr. Streiff's main task.

http://online.wsj.com/article/SB1151...396956.html?mod=home_whats_news_us
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knoxibus
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RE: Noël Forgeard Reiterates Defence After Resignation

Mon Jul 03, 2006 11:52 pm

To his credit, the selling of stock-options/shares is only permitted twice a year over a 15 days period IIRC, and also, 4 or 5 other major managers at EADS and its subsidiaries have done exactely the same at the same moment, but they are not bothered as much as Noël.

Don't get me wrong, I don't like the guy but I still believe he did nothing wrong there with regards to his shares....

This information was available to everybody since end of March (I remember seeing on Yahoo Deutschland the listing of all major EADS shareholders that made some moves) but nobody stirred, and now it's all a big mess.

Strange....
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AerospaceFan
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RE: Noël Forgeard Reiterates Defence After Resigna

Mon Jul 03, 2006 11:55 pm

From a public relations point of view, my impression is that when one becomes too vocal about something -- even if one has a very good reason for being so -- there is an impression that an observer may have that one "doth protest too much" (to quote Shakespeare). This is why I feel that, for their own good, some people should simply quiet down until a bit of the storm has passed.

For all we really know, Forgeard could have been at the forefront of reform within the company, blazing trails every day to try to ascertain if any delays could have affected the A380 and spending every waking minute thinking up ways to make life better for EADS, Airbus, and all its customers, employees, and suppliers. We simply don't know the whole truth, or even very much of it, although we all may have our own little suspicions.

The next time we hear from Forgeard, we should ideally have paperwork -- or perhaps he should be the one clutching it, waving it in the face of a reporter -- supporting his side of this story.

We should all keep an open mind. But for now, there is more pressing business, it seems to me, for Airbus to conduct, and that relates to the rescue of its slightly dented reputation as a reliable, on-time manufacturer of its most celebrated product.

[Edited 2006-07-03 17:04:55]
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firennice
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 12:02 am

Quoting BoomBoom (Reply 4):
The weekend moves come at a critical juncture for EADS and Airbus. The marquee A380 project is now a year behind schedule and roughly 30% over its original $12 billion budget.

Other EADS officials and outsiders have said the repeated delays mean the A380 has exposed fundamental flaws in how Airbus builds planes. Fixing that will be Mr. Streiff's main task.

This sort of reminds me of a documentery I watched a few weeks ago on the Concorde. This will be a better business venture then that one. It does remind me of that though.

 old 
 
leelaw
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RE: Noël Forgeard Reiterates Defence After Resigna

Tue Jul 04, 2006 12:10 am

Quoting AerospaceFan (Reply 6):
slightly dented reputation as a reliable, on-time manufacturer of its most celebrated product.

IMO, the denting is more than slight. The worst consequence of the A380 "wiring-harness imbroglio" and the seemingly "rudderless A350 development" effort unfolding concurrently, is that it has resulted in effectively squandering 30+ years patrimony of hard work, goodwill, and mostly deft management/leadership in less than two-years time. Ironically, the ball of string really began unraveling rapidly, with what should have been the crowning achievement of Airbus and Mr. Forgeard, the roll-out/first-flight of the A380.

If Mr. Forgeard can provide meaningful insight into how all this went down, I see no harm in his speaking out.
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AerospaceFan
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RE: Noël Forgeard Reiterates Defence After Resigna

Tue Jul 04, 2006 12:12 am

Quoting Leelaw (Reply 8):

If Mr. Forgeard can provide meaningful insight into how all this went down, I see no harm in his speaking out

Agreed; I believe that such insights, if offered, would be welcomed from an analytical point of view.

Correction of typographical error:

Quoting AerospaceFan (Reply 3):

If I recall correctly, Forgeard's erstwhile patron, President Chirac, once said in reaction to a certain amount of criticism relating to the EU that the critic in question should not miss an opportunity to be quiet. That strikes me as a bit ironic.


[Edited 2006-07-03 17:14:36]
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BoomBoom
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 1:59 am

The marquee A380 project is now a year behind schedule and roughly 30% over its original $12 billion budget.


That would put it at $15.6 billion and it ain't over yet. Yikes!
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RAPCON
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 2:07 am

He's gone! Who cares what he says from the sidelines. Now the good folks at Airbus can hopefully get back to the business at hand.
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leelaw
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 11:07 am

Quoting RAPCON (Reply 11):
Who cares what he says from the sidelines.

Despite the shakeup, the Franco-German struggle for control of Airbus and EADS continues, Forgeard may remain an effective mouthpiece for the French camp.
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skgsjulax
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 11:14 am

Quoting AerospaceFan (Reply 3):
I think of Forgeard as the corporate equivalent of Star Jones

 rotfl   rotfl   rotfl   rotfl   rotfl 

Priceless!
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AerospaceFan
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RE: Noël Forgeard Reiterates Defence After Resigna

Tue Jul 04, 2006 11:20 am

Quoting Leelaw (Reply 12):
Despite the shakeup, the Franco-German struggle for control of Airbus and EADS continues, Forgeard may remain an effective mouthpiece for the French camp.

I would also note that international conglomerates rarely have the kind of nationalistic issues that EADS and Airbus seem to engender of late. For example, General Motors has many international operations, none of which seem to become anywhere near the points of contention that EADS and Airbus appear to have created.

I note, as I recall, that Thales and BAE -- both British companies -- will collaborate on the design and manufacture of Britain's future aircraft carriers with a French shipmaker that had previously lost a competion with Thales on that very project. I know of very little nationalism in the fact that the French company will serve as a subcontractor for Thales.

I believe that much of this nationalism nonsense comes from the very top -- from the strong interest of the respective governments of France and now, with the apparent insertion of Chancellor Merkel into the picture (according to the Times of London article I cited elsewhere in this Forum), of Germany. Political interference has made a difficult problem an order of magnitude more so, it seems to me.

It is time to divorce EADS and Airbus from the tinge of jingoism that seems to haunt their every recent move. The most important consideration, in my opinion, are the merits of the products they manufacture. All else should be seen as just so much hot air by comparison.

One man's humble opinion.

[Edited 2006-07-04 04:22:46]
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Halibut
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 11:33 am

Quoting AerospaceFan (Reply 3):
I think of Forgeard as the corporate equivalent of Star Jones

Classic !  rotfl 

Quoting Leelaw (Thread starter):
But I forcefully repeat: firstly, I am not responsible for the production delays affecting the A380. I don’t have operational control over Airbus anymore,?he tells the paper, noting for the last year he has been a non-executive president

Pretty slick Forgeard . He tried to get out of the so called "operational control " position so as to avoid being responsible for the delays !

Nice try Noel ! But you don't fool me !  no 

Halibut
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skgsjulax
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 11:51 am

Quoting Halibut (Reply 15):
Pretty slick Forgeard . He tried to get out of the so called "operational control " position so as to avoid being responsible for the delays !

Actually Mr. Forgeard demanded that the operational structure of EADS and Airbus be changed specifically so that he can continue to oversee Airbus. Hence Forgeard's title of President of Airbus, which his predecessor Philippe Camus (whom Forgeard undermined until the guy got :restructured: ) did not have AND the fact that Airbus reported to EADS through Forgeard and not through both Enders and Forgeard.

What a terrible mess!
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Ruscoe
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RE: Noël Forgeard Reiterates Defence After Resignation

Tue Jul 04, 2006 4:45 pm

Quoting Knoxibus (Reply 5):
To his credit, the selling of stock-options/shares is only permitted twice a year over a 15 days period IIRC, and also, 4 or 5 other major managers at EADS and its subsidiaries have done exactely the same at the same moment, but they are not bothered as much as Noël.

I think you could be right Knoxibus this is quite a good defense; Following is an extract from EADS own internal policy. If Noel has complied with this, I think he is on fairly solid ground.

Categories Specific Procedure
Assigned Persons Category 1:
• Members of the EADS Board and the Executive Committee and any person closely associated with these members (relatives who have shared the same household on the date of the transaction and legal persons, companies and institutions controlled by such a member).
• May purchase or sell EADS shares only during the 21 days following official publication of the accounts and the company’s annual general meeting of shareholders.
• May not conduct any transactions in securities relating to major suppliers or customers of the EADS group.
• Specific notification duties toward the stock market authorities.
• Should liaise with the EADS ITR compliance officer prior to any transaction.

Ruscoe

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