It seems the Chinese are on a shopping spree. Now they have also bought the majority share in AB Volvo, who makes the Volvo trucks, which was previously “still” Swedish.
Mooney_Driver wrote:
One of the factors which has gotten GA into the mess that it is has to do with much too high manufacturing and certification cost.
You repeat that over and over again, but it isn’t what really happens. Or what you could bypass. Furthermore, money isn’t a problem of GA. Communication is. Our associations (AOPA, DAeC, LAA, EAA, OUV, DULV, etc.) do a shitty job to promote GA to the common pedestrian. It is almost a complete “pull”-Market. And yet, flight schools and clubs with a good communication are full of new students. Our small aeroclub flight school with two aircraft and four regular instructors train 7-8 students per year, basically without any advertising. Talking to the students, it always is a coincidence they have met someone who told them that GA is actually affordable and manageable. Many have a latent wish to fly, but never came across GA in the media.
GA isn’t dead by long. Certification isn’t the reason for a local low pilot population, it is mainly a reason for not decimating pilot population. And handmade stuff is always more expensive than stuff made in thousands by robots. And always will be.
mh wrote:
If you repeat GA’s death often enough, perhaps someone will believe it…Same with the alledged “overregulation”.
Maybe that is one of the reasons why the Chinese snap up more and more GA manufacturers. Confidence.
Investors in Europe and the US hear nothing but doom and gloom about GA, maybe the Chinese don’t see it like this (yet) and are the only ones still willing to invest in this area. Maybe they still do believe in the fairy tale of a big boom in China itself, but more realistically they might have seen some of the reasons why certified GA is on it’s deathbed in the US and Europe and hope to change that.
One of the factors which has gotten GA into the mess that it is has to do with much too high manufacturing and certification cost. While certification won’t change, manufacturing can be a LOT cheaper in China. So far, that has not happened but it might in the future. With their cost structure, they could actually produce airplanes cheaper, but I suppose the certification hurdles would rather increase in today’s “America first” climate which is not by any way limited to the US.
In any case, it is obvious that the Chinese have much more confidence in the future of GA than we do.
AdamFrisch wrote:
And Volvo sales and models have soared.
There is a real market for cars, they are sold in millions. The market for new certified light GA aircraft is nonexistent in comparison. As a business opportunity it is a dead end, unless:
Doesn’t have to be a bad thing. When the Chinese bought Volvo there were doomsday reports all around. Now, a few years later, they’re probably the best owners you could ask for – trusting, hands-off. Much better than the previous owner, Ford. And Volvo sales and models have soared.
Flyingfish wrote:
the Chinese are buying the crown jewels of a dying industry and will revive them and make a huge equity profit on this.
Light GA is low tech, hand made stuff, and when certified – twice as labor intensive and 10x as problematic due to legal/liability. The only problem is to build the aircraft cheap enough so they will sell more than two figure numbers on a global basis per year. I can’t see any reason why “the Chinese” would purchase Diamond, except as a pure business investment. They have the money and want to put it somewhere.
It’s a business. Owner wants to sell, China has capital and willingness to expand. Apparently no interested buyers in Europe or USA. GA manufacturers are hardly on any western investors’ bucket list, so many better alternatives around.
GA is much stronger in the USA and Europe. And it’s pretty strong in France, UK, Germany. There is very, very little light GA in China.
magyarflyer wrote:
ga in Europe is dead killed by your bureaucracy
I don’t think that bureaucracy in China is any lighter
