Mooney ... Sold to the Chinese?

[47U]

Chinese company to buy US aircraft maker Chinese real estate developer Meijing group is expected to complete its purchase of US-based utility aircraft manufacturer Mooney Aviation Company Inc. in November

The takeover should be completed next month after the US Committee on Foreign Investment approved the deal Oct 2, reported Xinhua quoting an official of the Meijing group.

The approval came about a month after US regulators approved Hong Kong-based Shuanghui International's acquisition of Smithfield Foods at $7.1 billion, marking the biggest Chinese acquisition of a US company.

Meijing group is based in China's Henan province.

Besides producing aircraft, the new Mooney will run businesses of components supply, second-hand aircraft trading and renovation, mainly focusing on the Chinese and Asian markets.

Neither Meijing group nor Mooney has made public the cost of the deal.

 

http://www.mid-day.com/news/2013/oct/081013-chinese-company-to-buy-us-aircraft-maker.htm

 

 

 

 

[rbridges]

So, is this a good thing?

[Marauder]

So, is this a good thing?

It may be for part supplies but obviously introducing new Mooneys, the value of are older Mooneys probably will drop. I also noticed they spoke about refurbishment. This may be a good thing for someone who owns an older airframe and wants it to be modernized. If the cost is reasonable, I would certainly be interested in it.

[PMcClure]

I'll never fly a Chinese aircraft. Better put my 2002 Ovation up for sale before it is official!! 

[John Pleisse]

I don't see them realistically having a US operation. I'd be surprised. The best possible result is if they kept the factory in Kerrville, rehired everybody and produced a/c's and parts under American standards, at least partially. I have a sinking feeling they won't.

[Bob]

 the value of are older Mooneys probably will drop.

 

Or will the "real" Mooney's increase because know one wants "cheap Chinese Junk" ??

 

We all saw the Chinese purchase coming!

[rbridges]

It may be for part supplies but obviously introducing new Mooneys, the value of are older Mooneys probably will drop. I also noticed they spoke about refurbishment. This may be a good thing for someone who owns an older airframe and wants it to be modernized. If the cost is reasonable, I would certainly be interested in it.

If parts become more available, it could help. I've read comments where people didn't want to buy a mooney because of parts and support issues.

[mike_elliott]

It can only be a good thing for us. Lets face it, the existing state of MAC was to keep enough breath in it to attract a buyer for the Type certificates and existing customer base, the real assets. Outdated tooling, and sparse inventory wouldn't have been that attractive for the buyers. The real question is which direction they go. Will it be to manufacture planes for the fatherland, or to flood the market with cheap parts for the existing fleet. In either case, I cannot see where the existing fleet will be hurt any. Chances of them keeping the manufacturing in Kerrville would be slim. That's not how they typically roll.

It does explain why Trey Hughes put his house up for sale in San Antonio and is moving the MAPA organization to Kerrville...just sayin'

[kmyfm20s]

I'll never fly a Chinese aircraft. Better put my 2002 Ovation up for sale before it is official!! 

If your ready to fire sale your "Chinese piece of junk" I'll buy it:)

[kmyfm20s]

Just have to see how things play out! It could be the answer to keeping our beloved original American made beauties alive. Creating a sub market for the best Moonies!

[Marauder]

Just have to see how things play out! It could be the answer to keeping our beloved original American made beauties alive. Creating a sub market for the best Moonies!

Ah so, this is where Reverend Moon(ey) came from!

[Marauder]

the value of are older Mooneys probably will drop. Or will the "real" Mooney's increase because know one wants "cheap Chinese Junk" ?? We all saw the Chinese purchase coming!

Working for a multi-national company with significant manufacturing in China, if they pass on the lower manufactured parts costs to us, this could be a good thing for us.

[Bennett]

At Oshkosh I met Jerry Chen, PhD, an aerodynamicist by education, whose (Mooney) business card read: Head of Business Development.  We spoke for quite a while, and he asked me what I thought of a "wider: Mooney.  I came away with the impression he was part of a Chinese purchasing group.  Also, before the Mooney tent was open to the public, I saw quite a few Chinese men and women having their picture taken (individually) with the Mooney CFO.  It was apparent to me that a sale was being discussed.  Chen, a very dynamic young man seemed genuinely interested in gathering information about what a "new" Mooney should be like. He even mentioned two doors as a possibility.  I am optimistic that good things will come out of the purchase.  When I spoke to the Mooney CFO away from the forums, he was emphatic that Mooney could not exist solely as a "parts house".  The next year should be interesting.  (There is an old Chinese toast: "May you live in interesting times"). 

[Marauder]

When I spoke to the Mooney CFO away from the forums, he was emphatic that Mooney could not exist solely as a "parts house". The next year should be interesting. (There is an old Chinese toast: "May you live in interesting times").

One thing I have learned over the years speaking with CEOs, CFOs, CIOs and various board members; they are the King and queens of double talk. I remember a President of a Division once standing in front of a group of U.S. employees answering questions after a downsizing of the Division. She was asked if other downsizing was planned. Her answer "I don't want to be standing here again answering this question".

[kmyfm20s]

Ah so, this is where Reverend Moon(ey) came from!

I should have said the best Mooney's and also the worst Moonese. My bad.

[Rwsavory]

If your ready to fire sale your "Chinese piece of junk" I'll buy it:)

 

I'll take any "Cheap Chinese" Ipads and Iphones you have as well.  Since they are obviously junk, I'll give you $10 for your trouble. 

[KSMooniac]

Chances of them keeping the manufacturing in Kerrville would be slim. That's not how they typically roll.

 

 

Except for the fact that they purchased Cirrus Design and Continental Motors and kept all production open in ND, MN, and AL, and in fact are investing in those lines from what I've read.  That's not to say they won't open parallel lines in China, but I bet that is years down the road after they learn everything they can.  If/when that happens, then perhaps our native lines might disappear, but I bet not.  (Or I hope not!)

 

We fat Americans are prone to complaining about Mooney's cabin size... I bet it isn't an issue for the average Chinese citizen.  

[rbridges]

 

We fat Americans are prone to complaining about Mooney's cabin size... I bet it isn't an issue for the average Chinese citizen.  

I see the market being flooded with rudder pedal extensions. Lol

[John Pleisse]

I see the market being flooded with rudder pedal extensions. Lol

 

That's funny!!!

[Skybrd]

I wonder if this has something to do with transferring cash to assets. They have lots of investments here and if they are wanting to get property before the dollar collapse this might be in their interest. I hope I'm wrong. Any of you getting jittery about our dollar too?

[carusoam]

Anyone want to train Pilots in China? There will be plenty of opportunity in the coming future. They are training in the US and going home to work.

The Chinese people are as wonderful as their American counterparts. Their American trained engineers are just as smart. Their pilots can be equally trained...

Their capitalism is growing and their communism is slowly changing. Their people are growing their base line of education.

We are Truly living in unusual and interesting times. The systems that have been proven winners are readily accepted in far away places. Capitalism, Christianity, democracy and IFR flight are the ones that I am personally familiar with.

I bought a factory reman IO550 from a Chinese company. It is identical quality as the ones that were built the weeks before it by an American owned company. Where the profit goes is the only difference. Since the profits didn't come to me before, I expect little to change.

Yes it's dissapointing that American companies cannot stay American. The world is globalizing.

Embrace the change. You may have more in common with the Chinese people than you probably imagine...

Modern business are directed by their customer base. I hope we buy from the factory in place of buying the cheaper, lower quality parts...

It's our choice.

Send personal message directly to me. I'll be watching my PMs...

Best regards,

-a-

[fantom]

We fat Americans are prone to complaining about Mooney's cabin size... I bet it isn't an issue for the average Chinese citizen.  

 

May need to add a second step so they can get up on the wing.

 

Long term, this will be good in any event, since the old Mooney factory was not sustainable.

 

Wonder if Mitch and Jolie are studying Chinese.

[Fly By Night]

I always thought "may you live in interesting times" was an ancient Chinese CURSE........

Mark

[KSMooniac]

I wonder if this has something to do with transferring cash to assets. They have lots of investments here and if they are wanting to get property before the dollar collapse this might be in their interest. I hope I'm wrong. Any of you getting jittery about our dollar too?

 

This is a major concern of mine too.  It is hidden inflation for us when the cost of food and energy keeps increasing because our dollar is getting devalued, but yet our salaries are not increasing...  It makes me want to convert retirement funds into real estate, but thus far I haven't.  I should also quit spending money in aviation, but there is no ****in way I'll do that!

[Bennett]

Not a curse. Just irony. I used to teach graduate courses in ancient Chinese civilization and technologies at San Francisco State University. Remember when we all thought Japan could only produce cheap shoddy goods? And now we regard Japanese cameras, printers, TVs as pretty decent gear. (Not to mention automobiles). I expect that the Chinese crap products we all hate and mAke fun of will soon give way to far better quality as Chinese manufacturing ramps up to compete in areas beyond clothing, baskets, and junk electronics. Over the twenty or more years I have been traveling to China I have watched the progression from bicycles to motorbikes to motorcycles to cars. Their rate of progress is amazing, and as their middle class grows, I expect to see a very different China from today. In my opinion China needs aviation as their infrastructure in roads is poor, and while China was internally insular for most of their history, the emerging China needs mobility in transportation.