Chapter 715: Sanctions

European countries are still very concerned about what is happening in the United States, in fact, from Grumman's acquisition of McDonnell Douglas to Boeing's intervention in the acquisition, the relevant industries and public opinion throughout Europe are actively discussing. Pen & Fun & Pavilion www.biquge.info

The reason is also very simple, at this stage, there is only one Airbus that can compete with the American aviation manufacturing industry in the world.

Boeing leads the way, followed by Airbus. In the world of commercial aircraft manufacturing, where orders are often placed in order to be ordered a few years later, airlines and shipping companies operate in a similar way, and the aircraft is an asset in itself. The faster you get the goods, the higher the price, and the slower you get the goods, the lower the price, which has to consider the market of the aviation industry in a few years. If the market is tight, airlines will be willing to spend a lot of money to buy in line with aircraft manufacturers.

In this way, McDonnell Douglas is the world's third largest production capacity, and whoever can acquire McDonnell Douglas will be able to greatly shorten their normal sequencing and cargo delivery cycle, which will greatly enhance the attractiveness of airlines. This is not counting the absolute advantage of aviation manufacturing enterprises in the industrial chain after winning McDonnell Douglas, the cost reduction caused by monopoly, and the increase in model sales to dilute R&D costs......

Once Boeing acquires McDonnell Douglas, it will gain an advantage not only in McDonnell Douglas itself, but also the last step in Boeing's complete entry into the arena of aerospace manufacturing. Since then, although Airbus is still second, it will face the possibility of almost losing the world.

This is a matter of great concern for the European aviation industry, airlines, and governments that support the development of the aviation industry.

Airbus' influence in Europe is definitely not small, in the seventies Airbus was founded, and its equity is 100% owned by the European Aerospace Defense Group. The business involved in the European Aerospace Defense Group includes a series of aerospace system products such as military aircraft, helicopters, guided weapons and electronic warfare systems, space launches, orbital satellites, etc.

Such a European behemoth, the most valuable asset of the European Aerospace Defense Group, is Airbus. So much so that after entering the 21 st century, the headquarters of the group simply grabbed the name of Airbus and called itself the "Airbus Group", abandoning the old name of the European Aerospace Defense Group. And the Airbus company under its original jurisdiction continued to bear the name of Airbus so inexplicably and bewildered, and the group headquarters had the same name.

With the European Aerospace Defense Group as its backer, Airbus has a universal influence in Europe. Ever since Boeing revealed its intention to buy McDonnell Douglas, Airbus has been alert and has kept a close eye on the developments.

But what makes Airbus different from European Aerospace Defense Group is that it has not yet made efforts on its side, and suddenly European public opinion began to pay attention to Boeing's acquisition of McDonnell Douglas.

Speaking of which, Boeing is also a bit wronged, and it is impossible for Boeing to deny its acquisition attempt at McDonnell Douglas in terms of external publicity. Although at the company's internal meeting, its acquisition plan for McDonnell Dalwellall was only to undermine Grumman's revenue from McDonnell Douglas and then take the Chinese side's $10 billion order into its arms.

Boeing also knows what the acquisition of McDonnell Dalwellall means to it, so how could it not have this idea? However, the ideal is plump, the reality is skinny, and without Mr. Hu's Boeing, it does not have the ability to come up with tens of billions of dollars at one time, and the acquisition of McDonnell Douglas is inadequate.

McDonnell Douglas in 1991 was not yet at the end of the mountain, and Boeing wanted to marry McDonnell Douglas, but he couldn't make up the bride price. Only when McDonnell Douglas failed in the bid for ATF fighters and the future business of the group could not be sustained, Boeing could take advantage of the situation.

Another factor that cannot be ignored is that in 1996 the ATF fighter project had already determined that Boeing had won the bid. At this time, Boeing's acquisition of McDonnell Douglas was strongly promoted by the Pentagon. William Perry, the Secretary of Defense at the time, believed that a monopoly Boeing was more important to military strength, so he supported Boeing's acquisition of McDonnell Douglas.

For this reason, the US officials have stepped in to suppress the voices of European countries that are worried about Boeing's monopoly, and have carried out a series of interest exchanges to quell the opposition voices in Europe. Among the quid pro quo was even a request to allow EUD to acquire some of McDonnell Douglas military technology.

Under the special background of this series, McDonnell Douglas was finally embraced by Boeing.

And in 1991, McDonnell Douglas was still one of the bidders on the ATF program, and Boeing's great benefactor, William Perry, had not yet ascended to the throne of defense secretary, and Boeing's small amount of money was even more scarce.

In the face of Grumman's sword-snatching love, Boeing could only set a minimum expectation at this time. Winning a 30% stake in McDonnell Douglas and uniting its internal shareholders who were dissatisfied with Grumman made Grumman's acquisition fail.

But Boeing can't say these things directly to the outside.

How do you say that we don't have this plan for shareholders who are counting on Boeing's acquisition of McDonnell Douglas and waiting for the value of the stock to rise?

Say to McDonnell Douglas shareholders who agreed to the share swap, we are actually shaking yours?

Say to Grumman that Boeing is afraid of you and doesn't dare to compete head-on, as long as your business is ruined, it will be considered a victory?

Say to the Chinese, I'm not buying McDonnell Douglas, just to pit your money?

Does Boeing want to die?

Now that it has made the appearance of buying McDonnell Douglas, it is impossible for Boeing to expose its shortcomings. Even if it's a façade, you have to act as if you are determined to win.

In the face of the "Boeing threat theory" that has suddenly become loud in Europe, Boeing has bitter words. We can't always say that "we actually faked it, so we didn't really want to buy McDonnell Douglas", we can only knock out our teeth and swallow blood.

After Boeing's silent response and continued to push forward with the acquisition, the wind of European public opinion soon blew into the political circles.

The European Aerospace Defense Group has been seeking a policy response from the government, but Boeing has only just begun to buy McDonnell Douglas, and there is no decisive move between the two sides. At such a time, the government has stepped in, and it is inevitable that there will be some fuss.

However, there are two official words, and there is reason at the top and at the bottom, it all depends on how to say it. The power of one European aerospace defense group is not enough to command the bureaucrats in Europe, but when the forces of the European financial bloc are also involved, the situation is different.

Newspapers, television, radio, magazines, and even lectures at many European universities during this period frequently began to talk about the impact that Boeing would have on the European economy if it acquired McDonnell Donnell Douglas. If Boeing gains a monopoly in the aerospace manufacturing market and the European aerospace industry shrinks, how many people will lose their jobs, and how many technical fields will be affected?

This is an aspect that the average person cares about.

Financial circles have also frequently asked whether Boeing's acquisition of McDonnell Douglas constitutes a breach of the tariff agreement? If this precedent is set, will other industries in Europe be affected? Does Boeing's acquisition of McDonnell Douglas mean that the United States' attitude toward monopoly law has changed?

Public opinion in modern society is in the hands of media groups, and the masterminds behind media groups belong to the financial world.

Media groups are far more dependent on capital than manufacturing. Therefore, when the European Aerospace Defense Group came forward to say something, they just made a few news articles unhurriedly and created a little noise.

However, after being whipped by capital, the media groups suddenly stepped up and created a tide of public opinion.

Public attention is only the first step, and the pressure of reality from all sides has pushed European bureaucrats quickly into the fast lane of sanctions against Boeing.

On the German side, MBB's influence on its domestic political scene cannot be ignored. Behind the most powerful insurance companies in Britain, France, the Netherlands and other countries, there must be an intricate network of political relations, not to mention that the stability of the insurance industry is more directly related to the overall situation of social stability and economic development of various countries, and there is no room for error. As for the rest of Europe, Zurich Financial Services Group and Swiss Re, with their extensive international reach, are also strong enough to form a universal alliance.

As a result, in a state of confusion on the part of Airbus, European politics quickly reacted violently to Boeing's acquisition of McDonnell Douglas. Fifteen European foreign ministers held urgent consultations in Zurich to discuss how Europe should respond to Boeing's acquisition of McDonnell Douglas.

Given Boeing's monopoly position in the aerospace manufacturing industry created by the acquisition of McDonnell Douglas, Airbus will face the possibility of unequal competition. As a result, European countries announced that they would impose sanctions on Boeing for a period of one year.

Within this year, Boeing's exclusive supply agreements signed in European countries will face a 100% increase in import taxes.

That is to say, some Boeing airlines in Europe signed such agreements to buy only Boeing aircraft for a certain period of time will face a penalty of doubling the import tax rate in the implementation process.

This kind of agreement itself is suspected of monopoly, although there are very few airlines willing to sign such an agreement, but it can be seen that these are Boeing's "iron fans". The loss of profits of these iron fans will deal a heavy blow to Boeing's market share in the European market.

The introduction of this sanctions resolution, if it is usual, will not have much impact on Boeing.

The one-year sanctions, which are only for exclusive agreements, are completely acceptable to Boeing. Whether it's subsidies or price cuts, or simply delaying deliveries, there are many ways to circumvent sanctions.

But the problem is that these are no ordinary times, and Boeing itself is not calm.

When a large number of Boeing shares were suddenly sold in the stock market, it suddenly broke out that Boeing was under European sanctions. Even if the sanctions resolution is small, it is undoubtedly an expression of Europe's attitude.

At this time, Boeing only bought a 10% stake in McDonnell Douglas, and Europe has already begun to impose sanctions. And if Boeing's acquisition of McDonnell Douglas continues to grow, who can guarantee that Europe will not simply shut Boeing out of the European aviation market?

The most important asset in the stock market is investor confidence. Once ordinary investors lose confidence in corporate stocks, no amount of good fundamental data can stop the stock price from falling.

At the same time as Boeing's stock price bought McDonnell Douglas, it took a hard beating.