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Bombardier Transportation & the Adtranz Acquisition

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I. Overview
 Pierre Lortie = newly appointed President & Chief Operating Officer of Bombardier Transportation (BT), headquartered in St. Bruno, Quebec
 BT = one of 3 major operating groups of Bombardier Inc. (BBD), headquartered in Montreal, Canada.
 BBD = one of the world’s largest manufacturers of passenger rail cars
 BBD recently completed acquisition of Adtranz from DaimlerChrysler, headquartered in Berlin, Germany
 Acquisition would expand BT’s revenues & geographic scope; increase BT’s competencies in propulsion systems & train controls; complete its product portfolio
 Before deal is solidified BT requires regulatory approval of the European Commission (EC) – lengthy process
 Lortie began a thorough review of work …show more content…

Acquired Canadair from Canadian gov. Through aggressive marketing, cost-cutting measures and tight controls, BBD turned operations around. Acquired Short Brother PLC (aircraft producer in Ireland), Learjet Co, and de Havilland (civil aircraft industry penetration). BBD introduced new planes.
 Revenues were now less than 15% for snowmobiles due to diversification.
 Beaudoin’s deals & acquisitions turned poorly operating entities into profitable ones
 Profits from the BBD’s recreational products group (snowmobile/watercraft sales) represented 37% of company’s profits; MADE GROUP CENTRAL TO COMPANY SUCCESS. Aerospace group represented 66% of revenues and 85% profits (increase in jet sales, expanding economy, Bombardier created new commuter jet segment).
 BT grew as well (awarded prestigious contract to produce specialized rail cars for the Eurotunnel engineering project). BT acquired Waggonfabrik Talbot KG of Germany, DWA Deutsche Waggonbau GmbH of Berlin (doubling train/subway car manufacturing capacity in Europe). Acquired contract w/Virgin Rail Group of

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