Acquisition will enable Boeing to take control of Spirit's manufacturing supporting commercial jet line-up
Approximately 310 workers have been laid off at Spirit due to Boeing production slowdowns
Boeing lost about $8 billion in cash in first two quarters of the year
Boeing to acquire Spirit AeroSystems for $4.7 billion
Deal aims to help Boeing stabilize supply chain and gain greater control of aircraft production
In a significant development, Boeing has agreed to acquire Spirit AeroSystems for $4.7 billion in an all-stock deal, according to sources with knowledge of the transaction. The deal is expected to be announced soon and aims to help Boeing stabilize its supply chain and gain greater control of its aircraft production as it grapples with financial strain from slowed output and quality issues at Spirit's Wichita campus. Boeing lost about $8 billion in cash in the first two quarters of the year and is close to losing its investment-grade credit rating. The acquisition will enable Boeing to take control of Spirit's manufacturing that supports its commercial jet line-up, including building frames for the 737 Max and parts of defense contract work. Additionally, Boeing arch-rival Airbus SE is expected to announce that it will take control over some of the Spirit factories that manufacture structures and components for its commercial aircraft. The deal comes after a series of errors caused planes, including the 737 Max, to be grounded and cost lives. Approximately 310 workers have been laid off at Spirit due to slowdowns in Boeing production caused by quality-control controversy.
Boeing intends to buy back Spirit to improve quality control after a series of errors caused planes, including the 737 Max, to be grounded and cost lives.
Approximately 310 workers have been laid off at Spirit due to slowdowns in Boeing production caused by quality-control controversy.
Accuracy
The acquisition includes the 737 fuselage assembly line at Spirit AeroSystems.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains some instances of appeals to authority and inflammatory rhetoric, but no formal or informal fallacies are explicitly stated by the author. The author reports on Reuters' reporting of Boeing's intended acquisition of Spirit AeroSystems and provides context about the history between the two companies and their relationship as suppliers.
]The FAA reported in March that the agency ‘found multiple instances where the companies (Boeing and Spirit) allegedly failed to comply with manufacturing quality control requirements’[
‘The Max was grounded for months in 2019 and 2020 after two overseas airlines suffered a control malfunction which crashed two airliners and killed 346 people.’
Boeing agreed to purchase Spirit AeroSystems for $4.7 billion in an all-stock deal.
Boeing plans to take control of Spirit’s manufacturing that supports its commercial jet line-up, including building frames for the 737 Max and parts of defense contract work.
The deal aims to help Boeing stabilize its supply chain and gain greater control of its aircraft production as it grapples with financial strain from slowed output and quality issues at Spirit’s Wichita campus.
Boeing lost about $8 billion in cash in the first two quarters of the year and is close to losing its investment-grade credit rating.
Accuracy
The transaction values Spirit at $37.25 per share and includes assumption of about $3.5 billion of its debt.
Airbus also plans to take control over some Spirit factories that manufacture structures and components for its commercial aircraft.
Boeing has agreed to buy Spirit Aero for $4.3 billion
The deal would break up Spirit and some of its assets would go to French planemaker Airbus
Accuracy
Boeing will pay $37.25 per share for Spirit Aero in an all-stock deal
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains an appeal to authority fallacy as it relies on Reuters' sources for the information about Boeing buying Spirit Aero for $4.3 billion. However, no formal logical fallacies were found in the text.
Reuters reports that Boeing has agreed to buy Spirit Aero for $4.3 billion, according to its sources.
