Posted on 12/22/2007 10:48:10 PM PST by nwrep
New York, NY (AHN) - The Boeing Company announced on Thursday that it has signed a $1 billion agreement with Hindustan Aeronautics Limited (HAL) of India as a part of manufacturing outsourcing contract.
According to the 10-year pact, HAL will manufacture sub-systems of Boeing's fighter planes including F-18 Super Hornets and Apache Helicopters.
Initially, Boeing will invest around $20 million annually to increase its manufacturing unit size and complexity along with business opportunities in the sub-continent.
The Memorandum of Understanding (MOU) was signed between Jim Albaugh, President of Boeing Integrated Defense System and Chairman Ashok K Baweja, the Indian defense Public Sector Undertaking of HAL.
The Chicago-based Boeing said in a statement on Thursday that it will provide Bangalore-based HAL with its technology to develop manufacturing processes for the production of the sub-systems or hardware for Boeing.
"The agreement represents an important step in our efforts to build solid long-term partnerships in India to make Boeing products more globally competitive, while allowing HAL to grow and expand its potential market around the world," Jim Albaugh said in a statement.
HAL has 18 production units and nine research and design centers in India with 32,000 staff members.
This is an ‘all things are equal’ argument. However all things are NOT equal. If India wants a Boeing it has to pay Boeing. Boeing is a product of the most efficient, productive, creative and economically aggressive Nation on the planet. Nobody overlooks us with respect to those traits—NOBODY. Americans have uplifted themselves and their society with blood, sweat, tears and a HELL of a lot of self deprivation over the years with the result that we occupy a high place that we have EARNED and have every right to maintain.
Indeed Boeing itself is an excellent example of traditional American capital ingenuity. Boeing is a private Co. going against statist entities, it takes a hell of a lot of prowess in the areas of ‘productivity, creativity, and efficiency’ to do that.
Boeing is not equal with Airbus. American society is not equal with Indian society. The Indians don’t have anything over us except their dirt-cheap on account of living-in-some-hell-hole lifestyles. If Americans have to tighten their belts and work harder, fine. But equating them with and putting them head to head with every peon class on the globe is going to lead to grief.
No, YOUR comments are obscene and disgusting. Your ignorance of America is tremendous. You really ought drop in sometime and get educated.
Most of us would prefer that American corporations invest in America. Otherwise they should just incorporate somewhere else, so there is no mistaking where their loyalites lie.
The new way to say CHEAP
Personally, I would prefer that the components of advanced weapons of the United States military be made...........in the United States.
Just a thought.
I could be wrong.
Loyalties are to the investors.
"So would you prefer Airbus to outsource to India and later sell Airbusses to airlines in India?"
I can ping it for you, PC.
You are correct about that. A lot of outsourced work is coming back to the U.S. for those and other reasons.
Right, so when Saudi Arabia invests in Citibank, people with Mastercards are now funding terrorism and Islamic monarchies.
A big BUMP for this much-needed dose of common sense!
As an IT project person for a Fortune 500 company that does a lot of business with IBM, and who has first hand knowledge of IBM’s offshoring and deals with them on a daily basis, let me just tell you this; you get what you pay for.
The work we get from offshore development is about 1/10 of the quality that we used to get from in-house developers. This may save money on the actual man hour to produce a segment of code, but in the long run, it costs more to go through 5x as many testing, shakedown, and patching cycles than it does when you get it right the first time.
randog is 100% spot on - it is a myth. You may show a return on a bottom line in one focused area, but the shoddy quality of work spills over into costing more in others, which by the way, aren’t offshored.
I hope Boeing has some good QC procedures in place, for their own sake.
If you think so...
That's a very prejudicial statement against Americans.
All that adamantly staying onshore does is put US companies out of business when they can't compete with those who do go to the best value in labor.
It's a better value mainly because of the difference in the standard of living.
Sure it makes sense to make advanced stuff back home.But if you insist on such things while wanting to export weaponry,it’s not going to be easy.Every major arms buyer-be it the UAE,Japan,South Korea,India,Turkey etc all want offsets from arms contracts to go back to their economies.This maybe in various forms like forming new companies,outsourcing contracts for spares,transfer of technologies.No major ‘wannabe’ will buy from you,if you don’t give them back something in return-that’s the name of the game.
Just because Boeing is sourcing components from an Indian company doesn’t mean that classified technology is passed on to the new manufacturers.If anything this contract gives Boeing an advantage given that it is seeking to sell the Super Hornet & Apache to India.
I forgot the sarcasm tag in my "execution" comment. Of course I know that nobody is executed in America for an accident. Anyway I am convinced that acting that negligent the managers of Union Carbide did in Bophal would cause a severe prison term. A part of my work is being a security engineer for industrial facilities in Germany. If anyone would do the things in Europe they did in Bophal we Germans would throw him into a prison for a comparatively long time. Not to speak about claims for indemnification. Union Carbide would pay until the last of the victims died.
Uh, no. Managers were worried about profit. They didn't want to move the plant from a populated area. They cut training, pay and maintenance and ordered employees to ignore safety procedures. They also decided to use a cheaper but far more dangerous chemical, the one that escaped. Due to the management-ordered maintenance laxity, the cyanide tank built up dangerous levels of pressure. Due to management cuts in personnel, nobody was around who might have known of the danger and stopped it.
It was flat-out criminal. The responsible management should never see the light of day again.
Could be.
lol........whatever.
Sometimes reality can be very funny.
Not at all! I'm the one arguing for changing how things are--to return to the point where "American" means quality, innovation, or something else that allows us to charge 10x what others are willing to work for.
As it is, we keep pumping out "Millenials" who have a low education with a rotten attitude and wonder why they can't compete with hungry Indians who are eager to become educated and work hard.
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