Continental to Consolidate Manufacturing

[DanH]

Yesterday's press release, in its entirety.
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Continental Motors Group to Consolidate Manufacturing Operations to Its Facilities in Alabama, USA and Germany

Mobile, AL, USA, August 17, 2016 – Continental Motors Group, Ltd. (CMG), an AVIC International Holding Corporation company, announced today that it will consolidate all manufacturing operations into its advanced manufacturing centers located Alabama and Germany. The manufacture of CMG’s line of OEM quality FAA approved parts for Lycoming engines, as well as the full line of Titan Experimental and Certified engines that are currently produced in CMG’s San Antonio, Texas facility will be transferred as a result of this consolidation.

Over the past few years, Continental Motors has invested significantly in advanced manufacturing equipment, processes and people while implementing manufacturing techniques and lean tools based on the Toyota Production System. As each current manufacturing site uses similar processes to make similar parts and assemblies, the relocation of the products currently produced at CMG-San Antonio will allow better utilization of the technical capabilities, lean principles and capacity invested in the Alabama and German facilities since 2011.

“Continental Motors has grown significantly in the past three years in both products and facilities as we strive to become the leader in GA propulsion for small aircraft,” said Rhett Ross, President and CEO of Continental Motors Group. “However, as we have seen our business grow in the number of products, customers and operating sites, it has become apparent that changes are needed to make us more responsive to the needs of our customers. After significant review, we felt that we needed to simplify the business, not in products or services, but in the complexity of our operations. Our commitment remains to the products first developed at CMG-San Antonio and more importantly to the people affected by this difficult decision,” he finished.

This move is being announced today, but will take time to complete. The company expects to work closely with its dedicated employees and its Master Distributor, Aviall, to complete this move without interrupting the availability of the high quality, factory produced parts and engines within the Titan Product Family. As far as the GA market and our customers are concerned, it will be business as usual because we have plans and product in place to assure a smooth transition along with continuous service and support
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Further, CMG recognizes the valuable contributions made by our team members in San Antonio and the uncertainty involved with this change. CMG has established a leadership team that will work directly with our team members and the local community, beginning today, to help them transition to new roles within the CMG family of businesses or to find new opportunities within the San Antonio business community.

[rv6ejguy]

Hope the Titan folks like Alabama. Sounds like some will be moving. Sounds like they have a clearer direction where they want to head with regards to Experimental engines.

[Kyle Boatright]

Continental pulled all of the PMA'd "Continental" parts from ECI/San Antonio right after Continental bought out ECI. Following that, the factory in San Antonio appeared to be somewhat under-utilized.

When I toured there last fall, I wondered (to myself) if their production of PMA'd Lycoming parts and experimental Lyclones would ultimately be pulled back into Continental/Mobile, like the PMA'd "Continental" parts.

[Robert Anglin]

A sad day. There was a lot of hard learned years of experience there, dating back to WW II. One can only hope that it will not be washed out by this move on Continentals part. It can only be speculated, as to what this will mean for the home built aircraft market over time. But I for one will miss the great people that where there and being able to pick up the phone and be able to tap into 60-70 years experience to get a friendly answer to a question. I can only wish all of the people there well and hope this is a good move for both Continentals bottom line and the consumers interest. It is always sad to lose skilled people.
Yours, most sincerely, Robert E. Anglin III #80888

[mahlon_r]

Another liked and respected aviation business reduced to nothing but a mere memory. Rhett Ross, CM and the Chinese seems to be really good at that.
Good Luck,
Mahlon

[rgbewley]

Originally Posted by mahlon_r

Another liked and respected aviation business reduced to nothing but a mere memory. Rhett Ross, CM and the Chinese seems to be really good at that.
Good Luck,
Mahlon

Glad to see you haven't lost the ability to tell us all how you really feel. I always liked that about you!

[sblack]

That's a story as old as aviation itself. Think of bendix, consolidated, vought, north american, mcdonnel douglas, grumman and 1000 others. The Chinese did not invent this way of doing business but they learn fast. Britain probably had 2 or 3 dozen companies building airplanes at the end of the war. Now there is one building a 30 yr old design (Hawk) so it will end soon. Now they build bits and pieces.

[acam37]

There are only a couple of the SA folks moving to Alabama. I spoke to Carrie W. yesterday and she is one that is relocating. very nice customer service. I've got until Oct 20 to pick up my engine.

[jrs14855]

My bet is that almost all of the original ECI stuff is gone within two years, probably much less. This entire thing was done to destroy the competition. All one has to do is look at the price of a Continental(Bendix) rebuilt mag.
I hope that Superior survives.
If I was king for a day I would do to the Chinese what the Saudis did to the oil companies years ago.

[jrs14855]

Read the book Term Limits by the late Vince Flynn for the solution to this and just about all our other problems.