Friday, September 29, 2006

EADS and EU Socialism

The EU's answer to Boeing, a government-subsidized EADS is having more problems with the A380.   Stocks in EADS dropped 26% in June when production delays forced a major shakeup.   I wrote about it in July.

No mention by AFP that DaimlerChrysler and French Lagardere both bailed in April just weeks before the delays were acknowledged in June.   Nor do they mention (into the convenient black hole of media memory) that BAE, the British partner is trying to unload their stake in the venture.   They also don't recycle the fact that the head of EADS who oversaw the massive failure was a former aide to Jacques Chirac.   (What a surprise.   Billions of dollars invested in a government-subsidized company, overseen by a former aide to a soon-to-be-indicted-when-he-leaves-office Jacques Chirac and financial irregularities.   How unexpected.)

The latest news is telling. They are talking about layoffs which assuredly tells you that EADS isn't going to produce anything anytime soon.   So much for the joys of EU Socialism.

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