Bombardier: what remains of this Quebec flagship? 

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Bombardier has been talking about it for several months, but the last few weeks have been full of twists and turns, especially for two important players in its "catalog": Bombardier Transport and the aircraft of the A220 program (formerly C Series). Insights into the ins and outs of the restructuring of this Quebec company.

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Bombardier has been talking about it for several months for its worrying financial situation, but the last few weeks have been full of twists and turns, especially for two important players in the “catalog”: Bombardier Transport and the aircraft of the A220 program (formerly C Series).

“We have completed the turnaround of Bombardier. We turn the page and start writing the next chapter. Almost five years to the day after taking office, Bombardier President and CEO Alain Bellemare seemed relieved when he said these words, in an interview with Press. It was “not impossible” for Bombardier to hope to repay its debt while retaining its two divisions, agrees Mr. Bellemare. "

Source: La Presse, February 18, 2020 

On the one hand, Bombardier announced in early February that it was withdrawing from the A220 (formerly C Series) commercial aircraft program and was selling its shares to Airbus. 591 million US dollars then flowed from this transaction, allowing Bombardier to slightly reduce its tax burden.

"The Canadian manufacturer Bombardier sells to the European aircraft manufacturer and the Government of Quebec its residual stake in the limited partnership Airbus Canada (SCAC), of which it held 33,58%, the three entities announced Thursday in a joint press release. Bombardier will receive from Airbus 591 million US dollars in this transaction which takes “immediate effect” and should allow the flagship Canadian industrial to pay off part of its debt. "

Source: BFM Business, February 13, 2020

On the other hand, two weeks after the announcement of the end of commercial aviation for Bombardier, the company went ahead with another big news: Alstom, French rail giant, was to buy for 8.2 billion euros. dollars its transport division (trains, subways, tramways).

“The sale of its rolling stock division should enable Bombardier to obtain between US $ 4.2 billion $ and US $ 4.5 billion $. The Caisse de dépôt et placement du Québec (CDPQ), which owns 32.5 % of Bombardier Transport, will become the largest shareholder of the French giant, with a stake of 18 %. "

Source: Business, February 18, 2020

Bombardier's debt is gigantic and approaches $ 12 billion. It was only a matter of time before the company divested itself of one of its last two divisions to continue the financial turnaround. Bombardier then only retains its business aircraft division with Global, Challenger and Learjet.

Your challenge

Do you know the history of Bombardier? Surrender on this quiz about Joseph-Armand Bombardier and test your knowledge. Just before you join the quiz and answer the questions, watch the presentation that is offered to you on Mr. Bombardier.



Disciplines and levels targeted

  • History and citizenship education (secondary 4)
  • Contemporary world and financial education

Targeted dimensions of digital competence

  • Producing content with digital
  • Communicate with digital
  • Developing and mobilizing information literacy
  • Collaborate with digital
  • Harnessing the potential of digital technology for learning

Suggested digital tools

  • Mentimeter
  • LearningApps
  • Google My Maps or BatchGeo
  • Wix or Blogger

Educational intention of the guide

At the end of the readings and activities, students will be able to take stock of Bombardier's current situation and understand its progress.

Objectives of the activities

  • React to the Bombardier case and understand its current situation.
  • Situate in time and space the different key moments in Bombardier's history.
  • Write a post on the status of large companies in Quebec.

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