Non-Subscriber Extract
Weak dollar causing 'desperate situation' for European companies
By Guy Anderson
22 April 2008
The weakness of the US dollar will "inevitably lead to a massive relocation of aerospace production capabilities [and] technology centres to US dollar-priced locations", the chief executive officers of Europe's leading defence and aerospace groups have warned.
The executives - represented by the Aerospace and Defence (ASD) Council - said on 21 April that the "necessary step" of relocation to dollar zones (where labour costs are "30 to 40 per cent lower than in the euro zone") threatens the future of the "more than 640,000 highly skilled workers and engineers currently employed by European aerospace and defence companies".
The ASD Council - made up of the chief executives of Airbus, Alenia Aeronautica, BAE Systems, Dassault Aviation, Fincantieri, Diehl, EADS, Finmeccanica, Rheinmetall, Rolls-Royce, Safran, Cobham, Thales and Thales Alenia Space - added that it was "seeking dialogue" with unspecified authorities to "find remedies to solve this desperate situation".
The decline of the US dollar against Sterling, the euro and other currencies had a significant impact on the European defence and aerospace sector during 2007.