Connect with us

Business

Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

Published

on

boeing
Boeing | AP News Image

Arlington, Virginia  – Boeing has announced plans to acquire crucial supplier Spirit AeroSystems for $4.7 billion, claiming that the acquisition will boost jet quality and safety in the face of increased scrutiny from Congress, airlines, and the Department of Justice.

Boeing formerly controlled Spirit, and the acquisition would reverse a long-standing Boeing strategy of outsourcing critical work on its passenger jets. This technique has been criticized after problems at Spirit hampered the manufacturing and delivery of major Boeing jetliners such as the 737 and 787.

boeing

Boeing |Ap News Image

Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

“We believe this transaction is in the best interests of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders, and the country as a whole,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.

Safety concerns arose following the January 5 burst of a panel on an Alaska Airlines 737 Max 9 at 16,000 feet (4,876 meters) over Oregon. The Federal Aviation Administration soon announced greater oversight of Boeing and Spirit, which supplied the plane’s fuselage.

There were no significant injuries in the Alaska Airlines door incident, which startled passengers, but the US Justice Department is pressuring Boeing to plead guilty to criminal fraud in connection with two catastrophic airline disasters involving its 737 Max jetliners more than five years ago.

According to three people who heard federal prosecutors outline a planned offer on Sunday, Boeing has until the end of the week to accept or reject the offer. The offer includes the major aerospace corporation agreeing to an independent monitor to oversee its compliance with anti-fraud rules.

In a May court filing, the Justice Department stated that Boeing breached the conditions of a 2021 settlement that allowed the corporation to avoid prosecution for its activities leading up to the Ethiopia and Indonesia crashes, which killed 346 people.

These crashes were caused by a defective sensor in a flight-control system, and the investigation is different from the one into the more recent Alaska Airlines blowout, which involved Spirit.

In 2005, Boeing spun off Spirit, a company based in Wichita, Kansas, unrelated to Spirit Airlines. In recent years, quality issues have arisen, such as fuselage panels that needed to fit together precisely enough and holes that were incorrectly drilled.

boeing

Boeing | AP News Image

Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

Spirit fired its CEO in October and replaced him with Patrick Shanahan, a former Boeing executive who served as temporary defense secretary during the Trump administration.

Things appeared to be going more smoothly until the Alaska Airlines incident. Investigators said a panel used to replace an extra emergency door was removed at a Boeing factory to allow Spirit workers to repair broken rivets, and bolts that keep the panel in place were missing following the repair. It is unclear who removed the bolts and neglected to reinstall them.

Spirit announced in May that it was cutting off approximately 450 workers at its Wichita factory due to a production slowdown following the January event. Its overall workforce numbered just over 13,000.

“Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems,” Shanahan told the media.

According to the aerospace business, the stock value of the acquisition is $4.7 billion, or $37.25 per share, while the total value of the transaction is roughly $8.3 billion, including Spirit’s most recent declared net debt.

Boeing said its common stock will be exchanged for Spirit shares using a variable formula based on a weighted average of the share price during a 15-day trading period that concludes on the second day before the transaction closes.

The businesses also announced a deal with Airbus to pursue the purchase of Spirit assets associated with the European aerospace firm’s programs. The Airbus agreement will take effect after Boeing’s acquisition of Spirit is completed, according to the two US businesses.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

Business

Former Boeing Inspector Alleges ‘Scrap’ Parts Ended Up On Assembly Lines

Published

on

boeing
Boeing | CNN Image

A former Boeing quality-control manager claims that for years, workers at the company’s 787 Dreamliner facility in Everett, Washington, routinely retrieved parts deemed unsuitable for flight from an internal scrap yard and reassembled them on factory assembly lines.

Merle Meyers, a 30-year Boeing veteran, described to CNN an elaborate off-the-books practice used by Boeing managers at the Everett factory to meet production deadlines, including the removal of damaged and improper parts from the company’s scrapyard, storehouses, and loading docks.

boeing

Boeing | CNN Image

Former Boeing Inspector Alleges ‘Scrap’ Parts Ended Up On Assembly Lines

This year, several whistleblowers have raised concerns about Boeing factory lapses, including an official federal complaint from a current employee alleging that Boeing concealed potentially defective parts from Federal Aviation Administration inspectors and that some of those parts may have ended up in aircraft.

This comes on the heels of a string of public safety issues that have shaken the firm.

Meyers argues that the errors he witnessed were intentional, organized attempts to defy quality control mechanisms and meet rigorous production timetables.

Meyers claims that for more than a decade, starting in the early 2000s, about 50,000 parts “escaped” quality control and were utilized to manufacture airplanes. These parts range from minor components like screws to more complicated assemblies like wing flaps. For example, a single Boeing 787 Dreamliner contains almost 2.3 million pieces.

According to Meyers, most rejected parts were often painted red to indicate they were unfit for assembly lines. However, in certain circumstances, this did not prevent them from being loaded onto planes being constructed, he claimed.

“It’s a huge problem,” Meyers told CNN. “A core requirement of a quality system is to keep bad parts and good parts apart.”

Airplanes are highly engineered equipment with far greater safety standards than trains or automobiles. Their components, materials, and production procedures are heavily regulated.

Meyers, whose job was to uncover quality problems at Boeing, claims he was forced out last year and was given a severance settlement he cannot discuss due to a confidentiality agreement he signed with Boeing.

Since leaving the business, Meyers has interacted with current Boeing employees. He believes that while employees no longer remove parts from the scrapyard, the practice of putting other unauthorized parts in assembly lines remains.

“Now they’re back to taking parts of body sections – everything – right when it arrives at the Everett site, bypassing quality, going right to the airplane,” Meyers told me.

According to company correspondence dating back years, Meyers frequently raised the matter to Boeing’s corporate investigations team, citing what he calls flagrant violations of Boeing’s safety guidelines. However, Meyers claims that investigators consistently failed to enforce those restrictions, including dismissing “eye witness observations and the hard work done to ensure the safety of future passengers and crew,” he said in an internal 2022 email shared with CNN.

Meyers has also expressed concerns about Boeing’s quality difficulties to federal investigators, a Senate committee, and the New York Times.

Boeing did not deny Meyers’ claims in a CNN response. The corporation stated that it investigates “all allegations of improper behavior, such as the unauthorized movement of parts or the mishandling of documents,” and makes corrections as needed.

A swirl of controversy.
Meyers’ charges come as Boeing is embroiled in a scandal over its safety culture, including a criminal inquiry into whether it misled the FAA during the 737 Max’s 2017 approval. Two 737 Max crashes killed 346 people in 2018 and 2019. As CNN reported over the weekend, the Justice Department is negotiating an agreement with Boeing to address potential criminal culpability.

In January, a 737 Max’s door stopper blew off in mid-flight, provoking a wave of intensive scrutiny of the aircraft manufacturer, including federal and congressional inquiries. Boeing CEO Dave Calhoun has stated that he will step down before the end of the year. To address its safety concerns, Boeing has agreed to buy supplier Spirit AeroSystems.

Since January, other whistleblowers have come forward with new charges against Boeing.

Sam Mohawk, a current Boeing quality investigator, filed an official complaint last month, citing “a number of non-compliant parts making their way back to the airplanes for installation.” A Senate subcommittee probing Boeing made his complaint to the Occupational Safety and Health Administration publicly available.

According to Mohawk’s complaint, the disappearance of nonconforming parts continues. “Boeing is still losing parts to this day,” his legal complaint states.

This week, a different whistleblower, Richard Cuevas, expressed concerns that Boeing and its key supplier, Spirit Aerosystems, utilized compromised parts and made alterations to “reduce bottlenecks in production and speed up production and delivery.”

Pulled from the scrapyard.
Boeing management’s pressure to keep production lines flowing is no secret. The 245-page House investigation report into the 737 Max deadly crashes includes a full chapter titled “Production Pressure.” Following the January 5 door plug blowout on a 737 Max, the FAA limited Boeing’s production line speeds.

Meyers recalls a high-pressure situation at the Everett factory, where assembly teams competed to find the necessary parts.

Meyers claims that after hours, employees would ask security guards to unlock doors and slip parts out of supply rooms or take newly delivered components that awaited quality tests by Meyers’ team. Similar parts meant for a different airplane model were available for the taking.

According to paperwork Meyers shared with CNN, in the early 2000s, Boeing personnel began collecting parts from the company’s scrapyard in Auburn, Washington, roughly an hour south of the nearly 100-acre industrial complex where Dreamliners were manufactured. According to Meyers, nonconforming items are only sent to the reclamation yard once rejected.

Meyers states that by 2002, staff at the reclamation yard were anxious that they would be held liable if scrap pieces were later discovered on an aircraft. So they requested staff to sign off on the removals, but their form was not an official Boeing document, so the removal was never recorded in the company’s quality management database.

boeing

Boeing | CNN Image

Former Boeing Inspector Alleges ‘Scrap’ Parts Ended Up On Assembly Lines

“These are bootleg forms that are not Boeing authorized,” Meyers confirmed. “The procurement organization would go down to our scrap reclamation yard and intimidate the employees there and say we need these parts bad.”

Lack of enforcement
Meyers claims he routinely flagged infractions for investigation but deemed the company’s attempts to investigate them inadequate.

“Their investigations are about analyzing excuses by process violators, and not taking action against those committing compliance violations,” Meyers stated in a 2002 email to Boeing’s corporate HR.

According to Boeing, Meyers worked on a quality team that “plays an important role in identifying issues, improving processes, and strengthening compliance in our factories.”

“We appreciate employees who raise their voice and we have systems in place to encourage them to speak up confidentially or anonymously,” according to a statement.

Meyers claims his Boeing superiors did not know how to deal with employees who had problems and that after decades with the company, he was eventually given a list of management complaints about his performance and offered a vague option to improve – or take a monetary compensation and quit.

“I was given a list of things to correct – my behaviors and my practices as a manager,” he told me. “It seemed like a personal development program…” But there was a financial incentive – or you could take the money and quit.”

Meyers stated that he never planned to become a whistleblower, but is now working with anyone who ask, including a Senate subcommittee investigating Boeing, to build momentum for reform.

SOURCE – CNN

Continue Reading

Business

Google’s Greenhouse Gas Emissions Are Soaring Thanks To AI

Published

on

Google's Latest Spam Update Met with Widespread Criticism Amidst a Year of Turbulent Changes

As Google has pushed to incorporate artificial intelligence into its main businesses, with sometimes disappointing results, a problem has emerged behind the scenes: the systems required to run its AI tools have significantly increased the company’s greenhouse gas emissions.

Artificial intelligence systems require a large number of computers to function properly. Data centers, essentially warehouses full of powerful computing equipment, need massive amounts of energy to process data and handle the heat generated by all of those machines.

google

Google | CNN Image

Google’s Greenhouse Gas Emissions Are Soaring Thanks To AI

According to Google’s annual environmental report, its greenhouse gas emissions have increased by 48% since 2019. The IT giant attributed the spike primarily to “increased data center energy consumption and supply chain emissions.”

Google now describes its aim of reaching net-zero emissions by 2030 as “extremely ambitious,” and says the vow will likely be influenced by “the uncertainty around the future environmental impact of AI, which is complex and difficult to predict.” In other words, the company’s sustainability push, which formerly contained the tagline “don’t be evil” in its code of conduct, has become more challenging due to artificial intelligence.

Like other internet companies, Google has invested heavily in artificial intelligence (AI), which is widely regarded as the next major technological revolution ready to revolutionize how we live, work, and consume information. The business has integrated its Gemini generative AI technology into some of its core products, including Search and Google Assistant, and CEO Sundar Pichai has described Google as an “AI-first company.”

However, AI has a significant drawback: the power-hungry data centers that Google and other Big Tech companies are investing tens of billions of dollars each quarter to develop to feed their AI goals.

To demonstrate how much more demanding AI models are than traditional computing systems, the International Energy Agency estimates that a Google search query requires 0.3 watt-hours of electricity on average, whereas a ChatGPT request typically consumes approximately 2.9 watt-hours. According to a study published in October by Dutch researcher Alex de Vries, the “worst-case scenario” implies that Google’s AI systems might someday consume as much electricity as Ireland per year, assuming full-scale AI adoption in their existing hardware and software.

“As we further integrate AI into our products, reducing emissions may be challenging due to increasing energy demands from the greater intensity of AI compute, and the emissions associated with the expected increases in our technical infrastructure investment,” said Google in its report, released Monday. It also stated that data center electricity use is currently outpacing the ability to bring carbon-free electricity sources online.

Google’s Greenhouse Gas Emissions Are Soaring Thanks To AI

Google expects greenhouse gas emissions to climb before declining as it invests in clean energy sources like wind and geothermal to power its data centers.

The vast amounts of water required to cool data centers to prevent overheating also pose a sustainability concern. Google plans to refill 120% of the freshwater consumed in its offices and data centers by 2030; last year, it recovered only 18% of that water, a significant increase from 6% the previous year.

Google is among the companies using AI to combat climate change. A 2019 Google DeepMind research study, for example, trained an AI model on weather forecasts and historical wind turbine data to estimate wind power availability, thereby increasing the value of renewable energy to wind farmers. The corporation has also utilized AI to recommend more fuel-efficient routes to vehicles using Google Maps.

“We know that scaling AI and using it to accelerate climate action is just as crucial as addressing the environmental impact associated with it,” according to Google’s report.

SOURCE – CNN

Continue Reading

Business

Tesla Is Now An Official Chinese Government Car

Published

on

tesla

According to the state-owned media site Paper.cn, Tesla automobiles have been added to the Chinese government’s procurement list for the first time.

Tesla is the only foreign-owned electric vehicle brand listed in the Jiangsu provincial government’s buying catalog in eastern China. Other brands suggested include Volvo, which China’s Geely controls, and the state-owned SAIC.

tesla

Tesla | PixaBay Image

Tesla Is Now An Official Chinese Government Car

This means that the province’s government agencies and public organizations can purchase them as service vehicles, demonstrating China’s close partnership with Elon Musk’s company.

The development has gone viral on Chinese social media, with some questioning whether the government should consider using foreign cars.

According to an article by the state-owned National Business Daily on Thursday, the Jiangsu government attempted to alleviate such concerns by stating that the Tesla model is “a domestic car, not imported.”

Tesla, which has a large gigafactory in Shanghai, produced over 947,000 cars in China in 2023, most of which were used domestically.

The Jiangsu administration still needs to return CNN’s phone calls. Tesla’s Shanghai-made Model Y was featured in the government’s purchase catalog for 249,900 yuan ($34,377).

China has become an increasingly crucial market for Tesla, accounting for more than half of global EV sales and approximately one-quarter of its overall revenue last year.

However, the US automaker is now experiencing increased competition from Chinese rivals. In the fourth quarter of 2023, BYD overtook Tesla as the world’s largest EV seller. Tesla reclaimed its position in the first half of the year, although it is still neck and neck.

Due to surveillance and data security concerns, Tesla cars had previously been forbidden from accessing some Chinese government and military installations.

Those limitations were eased in April when a major auto organization announced that Tesla’s vehicles met China’s data security standards. Musk made the news the same day he visited Beijing and met with Premier Li Qiang, who praised Tesla as a “successful model” for the US-China partnership.

The European Commission stated on Thursday that it would impose additional duties of up to 37.6% on imports of Chinese-made electric vehicles starting Friday.

tesla

Tesla | PixaBay Image

Tesla Is Now An Official Chinese Government Car

The tariffs first announced in early June, are considered a necessary step by the EU to stop a flood of low-cost Chinese vehicles constructed with “unfair” government subsidies.

According to the Commission, Tesla, a significant exporter of Chinese-made electric vehicles to Europe, has requested a separate tariff rate calculation. The company is currently subject to an average 20.8% extra tariff as part of a group of enterprises participating in the EU’s probe.

SOURCE – (CNN)

Continue Reading

Trending