Moving to the dollar zone attractive to EADS

April 15, 2008 by Dagpotter
Filed under: Acquisitions, CAE, EADS, Industry Analysis, Military Aviation 

According to this article at DefenseNews.com, EADS is looking at aggressively growing their North American division. Ideally they would like to become a company that builds complete systems in the US and then provides them to the Department of Defense. Currently their two biggest contracts, the UH-72A and KC-45, will see final assembly in the US while the majority of components are made in Europe or overseas. In a related story, here, EADS is complaining about the high exchange rate of the dollar to the Euro. EADS sells things mainly in dollars, but pays their European suppliers and employees in Euros. Any movement of production and labor to the US will allow them to utilize dollars for these costs. The easiest way for EADS to expand their American presence and content would be to acquire existing companies. There have been rumors of EADS buying CAE, here, for example. A simple way would be for EADS to begin purchasing any US suppliers they have for these programs, and any other that they may win in the next few years.

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One Response to “Moving to the dollar zone attractive to EADS”

  1. EADS acquires American company | Defense Procurement News on April 22nd, 2008 5:26 pm

    [...] has been rumors that EADS would move to acquire a North American company soon, with CAE being the most talked [...]

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