By Joshua Goodman
Sept. 10 (Bloomberg) -- Boeing Co., sweetening its bid to beat out Dassault Aviation SA and win an order for 36 jet fighters from Brazil?s air force, offered to assemble most of the proposed contract?s F/A-18 Super Hornets in the country.
The planemaker wants to manufacture the first 12 planes in the U.S. and transfer equipment and tools to assembly lines to Brazil so Sao Jose dos Campos-based Empresa Brasileira Aeronautica SA could assemble the remainder, said Mike Coggins, who is overseeing the sale for Boeing.
?If Brazil chooses to exercise this option, we?re on board, and the U.S. government has been on board since February, when they granted us full authority and approval,? Coggins said in a phone interview from Brasilia. ?We do recognize it is important to Brazil that these jets are final-assembled here.?
Boeing wants to prevent France?s Dassault from winning work that analysts estimate could be valued at as much as 5 billion euros ($7.29 billion). The Chicago-based company made its offer last week, before French President Nicolas Sarkozy traveled to Brazil, pitching Dassault?s Rafale jet with a promise to build some locally as well as buy 10 Embraer military transport aircraft.
Boeing, Dassault and a third finalist, Sweden?s Saab AB, are being allowed to amend their bids delivered in June, Coggins said. Brazil?s air force will make its recommendation this month, Coggins said. (Politics Politics Politics... what kind of a leader picks his favorite plane before the airforce has even issued its recommendation?...)
France?s government promised to grant Brazil exclusive rights to sell the Rafale in Latin America. Coggins called the offer a ?marketing ploy? since few other regional buyers can afford the plane or have committed to other suppliers.
?We feel that Brazil?s goals of national autonomy and industrial development are best served by a 30-year partnership with the largest aerospace company in world,? he said.
Under Boeing?s offer, Embraer would perform both the final assembly on the remaining 24 jets and ?do the same work should the number of jets grow,? Coggins said.
StrategyWorld.com© 1998 - 2010StrategyWorld.com. All rights Reserved. StrategyWorld.com, StrategyPage.com, FYEO, For Your Eyes Only and Al Nofi's CIC are all trademarks of StrategyWorld.com Privacy Policy