Airbus has presented to its unions a plan for new cost-cutting measures. These measures are designed to add €650 million ($928 million) in savings to the €2.1 billion ($3 billion) target prescribed by the Power8 restructuring program.
The plan was presented by the aircraft manufacturer to its European Work Council (ECA).
The Power8 Plus initiative extends the existing Power8 program from 2010 to 2012. It accounts for around €350 million ($500 million) in savings, with another €300 million ($428 million) coming from ''internationalization'' of engineering and manufacturing work.
Reports suggest that plans call for a new parts factory in Tunisia, along with further investment in composite parts processes in France.
Its predecessor, the Power8 restructuring program, was rolled out in February 2007 following the unanimous approval by the EADS Board of Directors. The Power8 program set rolling Airbus' endeavour to face the very substantial challenge of the US dollar weakness, increased competitive pressure, the financial burden related to the A380 delays as well as meet its other future investment needs.
For its Power8 Plus program, Airbus has said that it does not anticipate any further reductions in headcount from further developments outside the Eurozone. In a statement, the company said that ''''Power8+ does not envisage social plans for further headcount reductions. Power8+ is Airbus' contribution to EADS' €1 billion cost cutting initiative.''
Airbus president and CEO Tom Enders said that markets and competition remain challenging, demanding further measures to improve the company's cost base and overall efficiency in order to secure long-term competitiveness. Enders said that by pushing forward with internationalization, the company would secure growth, take advantage of lower cost structures, access talent on a worldwide basis and simultaneously support employment and core competences in Europe.
"Power8 is the centre piece in Airbus' restructuring and integration efforts and we have been very successful in achieving our targets so far," he said.
"However, markets and competition remain challenging. Further measures to improve our cost base and overall efficiency are necessary to secure the long-term competitiveness of our company. By pushing forward with internationalisation we secure growth, we take advantage of lower cost structures, we access talent on a world-wide basis and, simultaneously, support employment and core competences in Europe."