European aircraft maker Airbus has ended talks on the sale of three of its German sites to a consortium, it said on Thursday, blaming the strong euro for complicating the process.
The EADS-controlled group said it was still committed to selling the sites, and talks were continuing on other sales at Filton, in the UK, and Laupheim, in Germany, and on finding a partner at Meaulte/St Nazaire-Ville in France.
The divestment process is a key plank of Airbus's "Power 8" restructuring plan aimed at cutting costs in the wake of damaging delays to its aircraft production timetable.
In February last year, Airbus announced plans to cut 10,000 jobs and sell all or part of the six factories, sparking protests from Airbus workers across Europe. Airbus said it had terminated negotiations with German aerospace group OHB and its MT Aerospace unit about the sale of its sites in Nordenham and Varel and the EADS site in Augsburg "since a viable industrial and financial solution was not achievable".
It added that with the euro close to $1.60, it would have to "consider different approaches or interim steps" but did not give details and was not changing its ultimate goals.
Airbus's warning about the impact on it from the strong euro echoed earlier comments from EADS Chief Executive Louis Gallois, who hinted in a French newspaper interview that current monetary conditions could cause an exodus of jobs from Europe.
Asked about inflation worries expressed by the head of the European Central Bank, Gallois told Le Figaro: "Jean-Claude Trichet's line has not changed. But I (would) also say to him that at its current level the euro is asphyxiating a good part of European industry by eroding its export margins." "If that continues, export industries will flee Europe. It is the only response available for survival".
Comments
Comments are closed.