ECI Sold to Continental!

[grayforge]

Not sure if this is old news to some, but I just received this press release from ECI:

FOR IMMEDIATE RELEASE
San Antonio, 5/4/2015 - Danbury Aerospace, Inc. is pleased to announce that it has agreed to sell its business to the leader in general aviation engines, Continental Motors Group Ltd.

This sale will bring new opportunities for our products in general aviation, and allow Danbury and its subsidiaries that include Engine Components International, Inc., to focus on our strengths and continue to provide the very best engines, parts and services to the market. The sale will be finalized in the next several months, during which Danbury will continue its normal operations. We expect this event to result in greater availability of our products and services.

We will work closely with our customers and vendors for success not only during this transition, but also for success into the future.

[RV6_flyer]

Originally Posted by grayforge

Not sure if this is old news to some, but I just received this press release from ECI:

FOR IMMEDIATE RELEASE
San Antonio, 5/4/2015 - Danbury Aerospace, Inc. is pleased to announce that it has agreed to sell its business to the leader in general aviation engines, Continental Motors Group Ltd.

This sale will bring new opportunities for our products in general aviation, and allow Danbury and its subsidiaries that include Engine Components International, Inc., to focus on our strengths and continue to provide the very best engines, parts and services to the market. The sale will be finalized in the next several months, during which Danbury will continue its normal operations. We expect this event to result in greater availability of our products and services.

We will work closely with our customers and vendors for success not only during this transition, but also for success into the future.

I went looking for the ECI news story and found this AvWEB story and AOPA Story backing up your post. Did not find anything about it on the ECI web site yet.

[glenn654]

I hate to see this.....It looks like the Chinese are going to buy the entire US GA manufacturing industry.

Glenn Wilkinson

[rv6ejguy]

Buying up the competition. Have to see how that pans out in the long run...

[rgbewley]

It will be interesting to see if the SEC allows the sale to go through, similar to when Lycoming tried to buy Superior several years ago. ECI says for the time being it is business as usual.

[vlittle]

Originally Posted by grayforge

... Danbury Aerospace, Inc. is pleased to announce that it has agreed to sell its business to the leader in general aviation engines, Continental Motors Group Ltd. ...

I've written many dozens of press releases, and the one thing I hate is the term 'leader' in a pr lead. It was always the sign of a follower.

Leadership is given by your customers, not your barely-out-of-school marketing copy writers. In this case, if you were every asked who the real leader in GA engines is, I doubt Continental would be the first choice. True leaders never have to say it.

Yet, it's nice to have another follower to make the market more competitive.

[cfiidon]

Originally Posted by rv6ejguy

Buying up the competition. Have to see how that pans out in the long run...

For whom?

I refer you to Garmin snapping up UPSAT (Apollo). Major competitor disappeared...yikes. Garmin wins, consumer suffers. Law of the jungle.

Don

[Thermos]

"Suddenly Continental Motors is a player in the active Experimental aircraft market with its purchase of Danbury AeroSpace that includes Titan aircraft engines. Up to this time Continental has had "zero" participation in that important market, said Rhett Ross, director of Continental Motors..."

They've had zero participation since Rhett announced the closing of Teledyne Mattituck Services on Long Island, which had a huge share of the "active Experimental aircraft market" -

http://www.avweb.com/avwebflash/news..._206704-1.html

Perhaps he forgot...

[rv6ejguy]

Originally Posted by cfiidon

For whom?

I refer you to Garmin snapping up UPSAT (Apollo). Major competitor disappeared...yikes. Garmin wins, consumer suffers. Law of the jungle.

Don

I was being sarcastic. While the infusion of money into Continental may help fast track some of the new heavy fuel designs, rarely are monopolies good for customer choices or pricing. Chinese ownership of any legacy/ big North American companies is rarely a good thing in the long term. Shareholders may be happy but probably few others.

China is positioning for widespread GA growth once their airspace is opened up. The new, big market will be there when that happens in the next 5-10 years, not the west any more I suspect.

[flyboy1963]

...scarier to me, the possibility that if the 'east' gets into GA and light aircraft in a big way, for training if nothing else, that will dictate engine choices, and by association, fuel.
....I see nothing but diesels in that future, and dwindling support for the avgas fleet, largely North American.

..or I could be completely wrong!
.... ..the glass MIGHT be half-full, of 100 LL.
( apologies to Dennis Miller)