Boeing, EADS, Now TATA?
OK, I’m really confused now. Didn’t the Secretary General of the Defense Department JUST give away to EADS a contract that should have gone to Boeing? Well, it wasn’t actually him per say, but close enough. So, how come I find this article from CNN Money.com:
Riding the Elephant
By John Elliott
Tata joins forces with Boeing, EADS and others
At India’s DefExpo defense show this week, Tata announced a string of tie-ups with foreign manufacturers from the United States, Israel and Europe that set it apart from other emerging Indian defense manufacturers like Larsen & Toubro (L&T) and Mahindra & Mahindra.
The Tata group is becoming well known around the world for its low cost car, its bids for the Jaguar and Land-Rover brands, and for taking over Europe’s Corus steel company. Now it is emerging as the Indian market leader in a new area – defense equipment.
The company is transferring India’s proven ability to produce low-cost software and international-quality auto components and cars to the defense and aviation industries, persuading companies like Boeing (BA), European Aeronautic Defense & Space Company and Israel Aerospace Industries that they can benefit by buying from India.
The pairing with IAI is probably the most important announced in the past week. A joint-venture company is planned to develop and manufacture defense and aerospace products such as missiles, unmanned aerial vehicles, radars, and electronic warfare and security systems. With EADS, Tata will be bidding for a long-delayed $1 billion Army communications system, while it is to supply Boeing with aerospace components – including orders for the United States Air Force – totaling $500 million over five to eight years. There is also a helicopter cabin order from Sikorsky Aircraft Corporation.
The main prize that everyone wants is a $10 billion Indian Air Force order for 126 multi-role combat aircraft (MRCA) that is now out to tender. Robert Gates, America’s defense secretary will push Boeing’s and Lockheed’s bids when he is in Delhi next week to try to revive slow-moving joint defense and security collaboration agreements. <snip>
In June last year, I wrote a post saying India would soon announce names of a small number of Indian private-sector companies – Raksha Udyog Ratnas or, literally translated, “defense industry jewels” - that would be allowed to compete for big research, development and production projects on equal terms with the public sector.
I should have known better, as I wrote last October when it was becoming clear that the policy would be blocked. The names have still not been announced, and it doesn’t appear that they will be, at least until after the general election next year, because of opposition from Leftist political parties, encouraged by trade unions and the defense establishment.
There is also a new offsets policy which requires foreign defense suppliers to spend 30%-50% of their orders in India. The government has forecast this could generate $12 billion in orders in the next four to five years – among the first will be business from Lockheed (LMT) for six Super Hercules C-130J military transport aircraft costing $1 billion that India ordered earlier this month.
Isn’t it just amazing what outsourcing America can do for another country? I’m all for the India People’s gaining profit, but not at the expense of the United States of America. And after giving away a contract that meant billions of dollars to Americans, NOW the defense secretary wants us to be able to compete fairly? Can you say INCONSISTENT? If these men are in charge, is it any wonder we are having problems?
I’ve read nothing more current than I’ve already posted here, but I will keep you informed as I find out news. I keep searching though. I feel it is very important NOT to let the Air Force get away with this kind of shit and had I known they were outsourcing helicopters and other defense contracts I’d have crawled up their asses long ago!
Isn’t it SMART of India to make sure the parts used are made IN India? Now why couldn’t our Air Force make those decisions? Keep the money at home where it can profit the economy! Damn, what a concept! Makes you wish a complete audit of the Military and all their Defense Contracts could be had. I find the intelligence totally lacking in Government! My disgust for those in charge knows no bounds right now.
And last, but certainly NOT least, how come they can give away a $30 Billion dollar contract but want to get one for $12 Billion? Am I the ONLY one this doesn’t make sense to?
Please note this author, John Eiliott, has many other fine articles on CNN Money.com in case you are interested and I’d encourage you to read them.