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Teledyne Continental Sold to China. Opinions?

Posted By:
Clarke Tate
Vintage Aircraft Association MemberHomebuilder or Craftsman
75
Posts
9
#1 Posted: 12/14/2010 12:27:16 Modified: 12/14/2010 12:34:29

How do other members feel about this. I have very mixed feelings seeing a name like this pass to a Chinese concern.

 

http://www.teledyne.com/news/tdy_12142010.asp

Teledyne Technologies Agrees to Sell Teledyne Continental Motors to AVIC International

THOUSAND OAKS, Calif. and BEIJING, China – December 14, 2010 – Teledyne Technologies Incorporated (NYSE: TDY) (“Teledyne”) and AVIC International Holding Corporation (“AVIC International”) announced today an agreement to sell Teledyne’s general aviation piston engine business to Technify Motor (USA) LTD., a subsidiary of AVIC International, for $186 million in cash. Under the transaction, AVIC International will acquire Teledyne Continental Motors, Inc. (“Continental Motors”) and Teledyne Mattituck Services, Inc.

 



C Tate
Jon Wanzer
Vintage Aircraft Association MemberWarbirds of America MemberHomebuilder or Craftsman
90
Posts
10
#2 Posted: 12/14/2010 15:53:33

Greetings Clake,

I have to admit, I am not happy about this. One more example of corporate America making a very short sighted move that will bite us all in the butt. Even if jobs stay state side, the money goes overseas. This is why our economy is still tanking.

Just my two cent.

~Jon



FlyBoyJon ✈ Aviator, builder, and tool junkie ✈ jon@FlyBoyJon.comwww.FlyBoyJon.com
John Owens
31
Posts
4
#3 Posted: 12/14/2010 18:37:44

I don't know about  their financial situation, but selling this kind of business to China is not something most people would approve of.



Robert Dingley
Homebuilder or Craftsman
161
Posts
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#4 Posted: 12/14/2010 21:17:16

It sure does not warm my heart. It seems, however that they will keep TCM in Mobile. Downtown Airpark (ex Brookley AFB) is getting to be quite an international center. Mobile Aerospace has been there for years performing contract maintenance for various air carriers and they are owned by a Singapore company.  EADS just anounced that they will be breaking ground for an assembly plant for the KC-45 tanker. They are that sure that they will beat out Boeing's 767 entry. They also plan to build AirBus commercial aircraft there. Initial employment at EADS/Brookley will be about 1,500. USCG does much of their training there.

From what I hear, the Chinese are in love with TCM because TCM bought into SMA aero diesels last year. Also TCM is supporting a long list of legacy airframes around the world. The Chinese GA involvement is growing and they apparently do not plan on using any 100LL in their country. That means Jet-A. And that means Diesels. It may be just the thing to get aero diesels jump started here.

I used to fly out of Mobile Downtown and TCM was always helpful during hurricanes by providing shelter in those big rugged B-52 hangars for all commers. Being 45 minutes from my home in FL, it was sometime faster to drive home rather than using the company apartment across town.

Bob

 



Daniel Findling
Homebuilder or Craftsman
55
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21
#5 Posted: 12/15/2010 14:50:36

It is apparent that GA is not a growth industry in the U.S and was not doing great things for Teledyne's balance sheet.  .   IMHO, I think the sale to the Chinese may improve Continental Motors position.  The size of China's general aviation fleet is small and the desire to increase its size is palatable.  Here is an interesting link regarding Chinese Civil Aviation:  http://www.chinacivilaviation.com/article.asp?id=930

If China does intend on expanding its fleet of general aviation aircraft (and use Continental Motors to do so) this sale may indeed both lower the price via increased production etc.  

While it is unfortunate to see U.S. Industrial strength move overseas (in this case management only).  For General Aviation, the sale may result in the opening of a new market (China) without barriers - increased sales - and economies of scales for all.  Only time will tell. 



Ron Dillard
32
Posts
5
#6 Posted: 12/15/2010 16:18:21

Maybe we will be able to buy Continental engine parts at Wally World.
shocked



Richard Brown
40
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3
#7 Posted: 12/15/2010 18:36:36

Hmm, bad deal.  Sounds like already poor quality cylinders will get even worse.



Who me? I was fishing on the day in question Mr FAA man. Nope must have been another bright yellow plane.
Neal Miller
IAC Member
23
Posts
4
#8 Posted: 12/16/2010 04:45:40

 Never been there but from what some have said, TCM's plant and tooling could use some updating.

If you want to see a power play in progress, see what the PRC is doing in Africa, and has been for bout 40 years now.
Ask some Africans, they'll tell you Americans bring Jesus, tourists who only want to see the animals, a bunch of vapid celebs, and and unending strings to any foreign aid.
Chinese bring cellphones, affordable motorcycles, infrastructure-highways, buildings, and jobs. They'll do business with whoever's got the power. They ain't doing it from human kindness. They are interested in raw materials-heavy earths, copper, etc. They are also making friends in a strategically based continent in the coming centuries. These guy's think in the looooong-term....Whatever their other issues, Chinese are certainly not a people noted for stupidity.

Over Here it is too much short term, quarter to quarter, if a guy can't turn some numbers in a year, the market kills him.



Terrifying Flying Service. If you fly with us once, you'll never fly with anyone else.
Ried Jacobsen
194
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#9 Posted: 12/16/2010 08:49:00

I do not like this, but not much we can do.  The leaders we as a nation have elected seem content to let big business sell our souls to whoever makes the most money right now.  China has always looked to long term benefits, sometimes 100 yrs in the future, while the west has the attention span of one quarter or less.



Ray Ordorica
Homebuilder or Craftsman
36
Posts
1
#10 Posted: 12/16/2010 19:30:30

While the Chinese are capable of making some really good stuff from scratch, I am extremely unhappy Continental has sold out to an overseas buyer. The whole problem with the U.S. is that it doesn't make anything. Okay, maybe chopsticks, and some pretty good guns. But until the U.S. starts to manufacture all kinds of stuff again, we're doomed as a nation to fall into third-world status. Combine that with dumbing down of our young people in school, and in short order no one will be able to afford avgas, much less an airplane.

About avgas...if the government wants clean air, it really oughta stop the ongoing spraying operations that pollute thousands of times more than all the avgas in the world combined. Leave us our 100LL!!

......Ray



RayO
Dave Raun
Homebuilder or Craftsman
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#11 Posted: 12/16/2010 19:32:42

Not a smart move.  But did you know that a lot of our highways and bridges are owned by foreign companies?  Can't be a good thing for the future of this country.



Patrick Hoyt
Homebuilder or Craftsman
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#12 Posted: 12/16/2010 21:33:41

Maybe they'll build a chinese engine for that new Cessna Sky Catcher.

 

Chinese airplane.  Chinese engine.  Al least BRS is still made in the USA....

 

- Pat



#13 Posted: 12/17/2010 08:50:27

Please forgive me for this rant and my political incorrectness but, this really upsets me! I am not at all please hearing this news.

Here is a You Tube TV advertisement showing a political ad that really comes close to the situation http://www.youtube.com/watch?v=TYKAbRK_wKA

I'm building a Lancair and "WAS" planning on installing a IO550 but, I see a Lycoming in my future even with less HP

Again, please accept my apologies for the rant!



Bob Seevers
50
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10
#14 Posted: 12/17/2010 11:01:01

Perfect fit for the new chicom Cessna Flycatcher.
angry 



Robert Dingley
Homebuilder or Craftsman
161
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#15 Posted: 12/17/2010 12:22:06

I sure would like more US owned industry. I accept the fact that there is a deep animosity  towards our domestic industries. I can't explain that rational. Must be something in the water in DC. Excuse the rant. Lets take a look at KBFM, Downtown Airport, Mobile and Downtown Industrial Park:

First there is TCM. Been there for decades. Employs a few hundred. Upgraded tooling in last few years.

MAE (Mobile Aerospace) / Shanghai Technologies. Until this year was the largest employer in Mobile. Does heavy maintenance for many US air carriers. Foreign owned for decades.

EADS. Announced Dec 10 that they will break ground at KBFM for a facilty to build the KC 45 USAF tanker. Winner of the competition still has not been publicly announced. 1500 to be employed at EADS KBFM. 48,000 nationaly. They say they will also build AirBus commercial A/C there.

For the last couple of years ThysssenKrupp AG has been building a 3.7 billion dollar steel plant in Calvert, AL about 10 miles from KBFM. 2700 jobs.

25 miles south of KBFM Royal Dutch Shell has a large natural gas processing plant at Mary Ann. Processes their gas production from the Gulf of Mexico. Their world HQ is in the Hague. Something to remember when you pull up to the pump with the golden clam on it.

Hundai and KIA run big factories in Montgomery. Mercedes Benz makes SUVs in Birminham.

China now owns a large piece of GM.

Franklin aircraft engines went to Poland decades ago. Be nice to whats left of our domestic industry. I wish things could be different.

Bob    

 

 



Robert Dingley
Homebuilder or Craftsman
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Posts
38
#16 Posted: 12/17/2010 12:48:22
Richard Brown wrote:

 

Hmm, bad deal.  Sounds like already poor quality cylinders will get even worse.

 

Richard, I have always leaned to Lycs. TCM did have issues with cylinders, but computerized their foundry a few years back. I hope the new jugs are better.

Bob



Bob Federhofer
Homebuilder or Craftsman
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#17 Posted: 12/18/2010 08:42:27

I cannot help but wonder if these manuevers put the assets of the manufacuter out of reach of the tort bar (trial lawyers).  I wonder if beyond mergers and acquisitions, finacial finagaling and lawyering in general what else this country has to ofer Joe Lunchbucket.  Not a good policy for social and finacial stability.  Manufacturing is the strength and security of a country.  I hope we don't need another world war to prove it.



George Waddington
9
Posts
2
#18 Posted: 12/18/2010 09:30:02

If I recall, some of the legendary cattle ranches were owned by foreign interests. Do you have any idea how much of the coal in this country is controlled by foreign interest? Not much has changed. The North American continent is one of the most desirable pieces of real estate on the face of the Earth. If you want to have fun ask your Congressmen to require complete disclosure of all foreign enties in ownership of anything in the US.
happy



George
David Deweese
Young Eagles Pilot or VolunteerHomebuilder or Craftsman
61
Posts
21
#19 Posted: 12/18/2010 09:45:19

Anyone know if general aviation exists in China, and if so, does experimental aviation exist? Between Yuneec, the Skycatcher, and now TCM, it seems like they're interested in manufacturing private planes. Seems to me that a big population will be getting more in more interested in the stuff we're doing.

Here in St. Louis, where Anheuser-Busch recently sold out to Inbev (Belgium), we know it's disconcerting to see a well-recognized local brand change hands. I can see where it's a big profit to a few guys way farther up the food chain. If it's not an economic benefit to me I'll try to find a silver lining anyhow. Any Chinese airplane builders out there? What are you working on?



Robert Dingley
Homebuilder or Craftsman
161
Posts
38
#20 Posted: 12/18/2010 12:31:03
Bob Federhofer wrote:

 

I cannot help but wonder if these manuevers put the assets of the manufacuter out of reach of the tort bar (trial lawyers).  I wonder if beyond mergers and acquisitions, finacial finagaling and lawyering in general what else this country has to ofer Joe Lunchbucket.  Not a good policy for social and finacial stability.  Manufacturing is the strength and security of a country.  I hope we don't need another world war to prove it.

 

Bob, I cannot predict how courts think. My guess is its because you cannot just drive up to an engine factory and buy one. TCM and all the others keep you at arms length and deal through distributers. TCM sells through AVIALL as do other engine mfgs. I have met Aviall engine tech reps that serve the USN.  I recall the checkered past that variants of the Allison 250 turbo shaft went through. Aviall was the go between.& got sued too.  A big part 91 operator tried to sue them because they were getting less than 300 hrsTBO. The exploding engines of the 70.s - 80's. I was there It  was all handled by Aviall. BTW, the Allison div of GM developed the 250 early 60's, but  they have been owned by Rolls Royce for 7 years. Another "sell out"  to foreigners. The yet to be certified Robbinson 66 uses a variant.

Bob

 

 



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