REFLECTOR: China buys Teledyne Continental Motors

Fri May 6 10:41:47 CDT 2011

I'm with these guys.   I got to visit the plant a while ago and its top notch.     I also work with Cirrus (who also just got purchased) and I can tell you that the Chinese are doing nothing to harm the quality or make moves to send everything to China.   Rather than a move toward cheap, low quality, they are closer to what the Japanese did the auto industry in terms of these new acquisitions.    They view our manufacturing capability as top notch and they intend to learn from it.    They also still have $$ to invest, something the American market has failed to provide.

More important, over the next 20 years (probably less) the Chinese see the general aviation market as one that will boom, just like the auto market has in China.    They have over 600 million middle class professionals that are driving their economy.    This is five to ten times the size of ours, so they are projecting a GA market that will soon surpass US sales once they get the airspace and infrastructure issues resolved.     Most of our parents used to talk trash about the "cheap crap" from Japan and Korea, now they produce some of the best cars and products in the world.

Bill Stockman
Senior Associate
Dayton Aerospace, Inc.

937.426.4300  Office
937.369.4799  Cell
bill.stockman at daytonaero.com

From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org] On Behalf Of Bob Jackson (Jax Tech)
Sent: Friday, May 06, 2011 9:51 AM
To: 'Jim Agnew'; 'Velocity Aircraft Owners and Builders list'
Subject: Re: REFLECTOR: China buys Teledyne Continental Motors

I'm with Jim (and also an optimist!).

I got to tour the TCM plant in Mobile last Friday.  I saw nothing but commitment to quality and dedication from everyone I saw in Alabama.  Obviously, they had little to say about having a new owner but it's a very impressive operation spanning four or five hangars and buildings on the old Air Force base.

[cid:image001.jpg at 01CC0BE1.DE6A3030]

They said they are shipping 10 engines (up from 7 last year and compared to 14 several years ago), plus 100,000 parts a day (everything from nuts and bolts to cylinder heads and alternators, which they wind and build themselves in Mobile).

[cid:image002.jpg at 01CC0BE1.DE6A3030]

I was very impressed with their Mobile plant, including the fact they just came out with a new turbocharged 550K that runs LOP right from the factory (to compete with Tornado Alley's version used in the new Cirrus).

Bob Jackson
N2XF

PS  Plus like Victor Taylor said -- St Elmo is selling gas for $4.16/gal!

________________________________
From: reflector-bounces at tvbf.org [mailto:reflector-bounces at tvbf.org] On Behalf Of Jim Agnew
Sent: Friday, May 06, 2011 8:34 AM
To: Velocity Aircraft Owners and Builders list
Subject: Re: REFLECTOR: China buys Teledyne Continental Motors

Or they just might make more modern ones with better materials, and less expensive machining!

James F. Agnew

Jim_Agnew_2 at Yahoo.Com<mailto:Jim_Agnew_2 at Yahoo.Com>

Tampa, FL

Velocity 173 Elite Aircraft Completed & Flying

________________________________
From: Kevin Baker <flykb at verizon.net>
To: reflector at tvbf.org
Sent: Thu, May 5, 2011 9:41:23 PM
Subject: Re: REFLECTOR: China buys Teledyne Continental Motors

Nice... there goes the quality
Who knows how 'cheap' they will make the engines now.
Like when they said they were using "no lead paint"
Guess they'll start making tin engines calling them strong.
I will not be buying any continentals with my bottom in the seat.

On 5/5/2011 5:32 PM, Scott Derrick wrote:
Yeah, they'll rename it to TCM-Mart!

-------- Original Message --------
Subject: REFLECTOR: China buys Teledyne Continental Motors
From: Chuck Harbert <c.harbert1 at frontier.com><mailto:c.harbert1 at frontier.com>
To: Undisclosed-Recipient:;
Date: 05/05/2011 04:02 PM
China Lays Out Its GA Plan

[http://www.avweb.com/newspics/chinaflag.jpg]The recent buying spree of U.S. aviation companies by the Chinese appears to be a coordinated effort to ensure the country cashes in on the phased liberalization of airspace restrictions. People's Daily<http://english.peopledaily.com.cn/90001/90778/90860/7368503.html>, the official organ of the Central Committee of the Communist Party of China, reported on Tuesday that state-owned AVIC International Holding Corporation recently completed its acquisition of Mobile, Ala.-based Teledyne Continental Motors and the purchase "will make AVIC International better prepared for the burgeoning general aviation market in the country." It also touts the pending sale of Cirrus Aircraft to China Aviation Industry General Aircraft Company (CAIGA) "will greatly enhance CAIGA's production capacity, and help it meet the surging demand for general aviation aircraft as China looks to further open up its low-altitude airspace." It's worth noting that CAIGA was formed in May of 2010, not long before reports began circulating that Cirrus was being sold to the Chinese. The deal was formally announced Feb. 28 and must still be approved by U.S. regulators.

People's Daily unveiled the timeline for the opening up of low-level airspace in China. It quotes Li Jiaxiang, director of the Civil Aviation Administration of China, as saying the plan is to phase in the airspace liberalization and have all airspace below 3,000 meters open by 2015. The plan was laid out pretty clearly in the story. "The development of the whole industry will be accelerated through cooperating with foreign companies and introducing advanced technologies to develop China's own products and intellectual property rights," said Wang Xia, deputy president of the General Aviation College under the Civil Aviation University of China. "As foreign companies have limited knowledge of the domestic general aviation policies and operating system, domestic enterprises still have certain advantages. However, the advantages are temporary. We must advance with the times and continue to develop to maintain this advantage."

  _______________________________________________  To change your email address, visit http://www.tvbf.org/mailman/listinfo/reflector    Visit the gallery!  www.tvbf.org/gallery<http://www.tvbf.org/gallery>  user:pw = tvbf:jamaicangoose  Check new archives: www.tvbf.org/pipermail<http://www.tvbf.org/pipermail>  Check old archives: http://www.tvbf.org/archives/velocity/maillist.html

--   He who knows others is wise;  He who know himself is enlightened.  Lao-tzu

  _______________________________________________  To change your email address, visit http://www.tvbf.org/mailman/listinfo/reflector    Visit the gallery!  www.tvbf.org/gallery<http://www.tvbf.org/gallery>  user:pw = tvbf:jamaicangoose  Check new archives: www.tvbf.org/pipermail<http://www.tvbf.org/pipermail>  Check old archives: http://www.tvbf.org/archives/velocity/maillist.html

________________________________

No virus found in this message.
Checked by AVG - www.avg.com<http://www.avg.com>
Version: 10.0.1325 / Virus Database: 1500/3618 - Release Date: 05/05/11
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://www.tvbf.org/mailman/private/reflector/attachments/20110506/88ee0a66/attachment-0001.htm>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 37866 bytes
Desc: image001.jpg
URL: <http://www.tvbf.org/mailman/private/reflector/attachments/20110506/88ee0a66/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 51682 bytes
Desc: image002.jpg
URL: <http://www.tvbf.org/mailman/private/reflector/attachments/20110506/88ee0a66/attachment-0003.jpg>