Bombardier circulated the following statement today...
"The Canadian aerospace
industry faces formidable and ferocious competitive forces
worldwide. And so, Canadians have to decide whether to make
Canada's aerospace industry central to this country's industrial
and commercial strategy," says Paul M. Tellier, Bombardier
President and Chief Executive Officer.
Speaking Monday to a Canadian Club audience in Toronto, Tellier
said "Canada is one of the most trade-oriented economies in the
world. More than 40% of our Gross Domestic Product is
trade-generated. In fact, one in three jobs in this country is
directly dependent on our ability to sell our products elsewhere in
"Canadian companies have made significant investments to develop
high technology products such as Bombardier's family of regional
jets", Tellier said. "But the Canadian economy needs the next
generation of game-changing technologies if our manufacturers are
going to continue to compete in international markets."
Tellier provided a brief
update on Bombardier's action plan which is on track with every
element falling into place as expected. "As a result of this
financial restructuring," he said, "we have strengthened our
balance sheet, improved our cash flow, got our credit ratings
confirmed and hopefully increased our credibility, since we have
not departed one iota from what we had stated we would do.
"With the sale of our recreational products business, we have
decided our core activity going forward is planes and trains. This
new orientation for Bombardier makes it a company of two
equal-sized units which is the world leader in passenger rail
transportation and the third largest aerospace company, right up
there with Airbus and Boeing.
"Of course, more needs to be done," he continued, "as we
consolidate and grow this company to the level of legitimate
expectations of its shareholders, customers and employees."
Tellier also set out to debunk the myth that Bombardier may rely
on favoritism and corporate handouts from government in pursuing
its objectives. He then described the history of the company as a
Bombardier's products are now recognized internationally -
perhaps more so than at home - as sophisticated and prestigious
bearers of Canadian know-how and state-of-the-art technologies.
Noting that Bombardier's worldwide success has not been without
difficulties, Tellier said the company is not immune from
The bidding process for several of Bombardier's acquisitions in
the past as well as for various contracts was then reviewed by
Tellier who also covered the issue of government financial support
for R&D, product development and exports.
Tellier cited examples of Bombardier's considerable contribution
to the Canadian economy. "Bombardier created 9,265 jobs in this
country since 1992, to bring its current Canadian workforce to
24,495 employees as of last July 31st. Our Canadian payroll
represents $1.6 billion in 2002, and Bombardier employees earn
salaries well above the Canadian average. The company provides
business to over 5,200 Canadian suppliers spread across the West,
Ontario, Quebec and the Atlantic, who have in turn created
thousands of jobs."
Tellier stated that Bombardier has been a cornerstone of the
Canadian aerospace industry and an heir to an industry that has
established and sustained a tradition of excellence. He concluded
by explaining that Bombardier has always strived to create the
level playing field that is essential to a prosperous industry in a
liberalized global economy. "We have the will to succeed. We have
the state-of-the-art technology. We have the dedicated and
competent manpower. We have been and are indeed a good Canadian