Boeing Co plans to cut its monthly 737 production by nearly 20 percent as it wor...
CHICAGO/SEATTLE - Boeing Co plans to cut its monthly 737 production by nearly 20 percent as it works to manage the grounding of its MAX aircraft in the wake of two deadly crashes, Chief Executive Officer Dennis Muilenburg said on Friday.
Starting mid-April, production will be cut to 42 airplanes per month from 52, the company said in a statement. Boeing said it would not reduce jobs at the new production rate and will work to minimize the financial impact. Manufacturers avoid halting and then resuming production as this disrupts supply chains and can cause industrial snags.Having to hold planes in storage without delivering them does, however, consume extra cash through increased inventory.
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