Bidness: This is why having a company underwritten by Europe and jobs spread out due to political not wise business sense will come back and bite you in the butt.
|LONDON (Reuters) - A new rescue plan from Airbus to cut costs already appears to be at risk as France and Germany warn that the planemaker's expected job cuts and plant closures must be spread evenly.
Spreading its operations evenly across France and Germany is exactly what the company now says it must stop doing, but the politics of undoing the process are daunting.
Airbus's U.S. rival Boeing Co. has for years been busy selling plants and slimming its workforce, but it does not have to balance the interests of France, Germany and Spain in the way that Airbus parent EADS must.
EADS also has made a commitment to safeguard its British jobs even after UK firm BAE Systems sells its stake in Airbus later this month.
German Economy Minister Michael Glos called EADS's rescue plans "unavoidable steps" but urged the company to spread the pain evenly -- meaning German jobs should not be chopped any more heavily than French ones.
"I assume that the unavoidable steps to raise efficiency and lower costs ensue equally for all production sites and any burdens are fairly distributed," Glos told reporters a day after Airbus and EADS warned on earnings and said cost cuts were urgently needed.|