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European Aeronautic Defence and Space Company (EADS) is a large European industrial corporation of the aerospace business, formed by the merger on July 10, 2000 of Aérospatiale-Matra of France, Dornier and DaimlerChrysler Aerospace AG (DASA) of Germany, and Construcciones Aeronáuticas SA (CASA) of Spain.
In 2003, EADS employed more than 100,000 people at 70 production sites worldwide. Legally incorporated in Amsterdam, the corporation's headquarters are located in Ottobrunn, south of Munich, Germany.
Management
EADS operates with two co-CEO's, one French and one German, currently Philippe Camus and Rainer Hertrich. Noël Forgeard, current Airbus chief, has been nominated* by Arnaud Lagardère as the next French CEO. Lagardère has this responsibility as a result of the negotiations which created EADS. DaimlerChrysler has nominated Thomas Enders as Hertrich's successor.
Similarly the leadership of the board of directors is shared between two co-chairmen: Lagardère and Manfred Bischoff.
(* The appointment of Forgeard has met with resistance from DaimlerChrysler due to his proposal that the status quo of co-CEOs should be replaced with a single chief executive, what DaimlerChrysler sees as an attempt to impose a French-dominated management team. Forgeard's nomination is understood to have been at the urging of the French government.)
History and activities
EADS was formed by its member companies in July 2000, to become the world's second largest aerospace company (after Boeing). EADS is also the second-largest European arms manufacturer (after BAE SYSTEMS.) The company develops and markets civil and military aircraft, as well as missiles, space rockets, and related systems.
In November 2003, EADS announced that it was considering working with Japanese companies, and the Japanese METI, to develop a hypersonic airliner intended to be a larger, faster, and quieter, replacement for the Concorde, which was retired in October the same year.
EADS is a major contributor to the International Space Station, and is expected to deliver the Columbus Laboratory Module in 2004 through its subdivision EADS SPACE Transportation.
Subdivisions
- Airbus S.A.S.
EADS owns 80% of Airbus in a joint ownership with BAE Systems which owns the remaining 20% (May 2004)
- Military Transport Aircraft
- Shareholder in Airbus Military, developer and manufacturer-to-be of the A400M – competitor to Lockheed Martin's Hercules
- Airbus military applications – e.g. A310 MRTT and A330 MRTT conversions
- Aeronautics
- EADS SPACE
- Defence and Security Systems
- Defence Electronics, the sensors and avionics house of EADS
- Military Aircraft, including products such as the Mako/HEAT, and stakes in the following companies:
- Missiles
- Defence and Communications Systems, electronics/software system house
- Services
Shareholders
As of December 2004, the distribution and stock holdings of EADS' shareholders are as follows (roughly one third of the stocks publicly traded in six European stock markets, the rest divided among three major business entities):
On July 17 2004 The Economist reported that the three major shareholders, DaimlerChrysler, SOGEADE and SEPI, intend to sell their shares by 2006–2007. DaimlerChrysler would like extra capital to invest in its core activities, the Lagardère Group (controls Désirade) wants to withdraw from defence aerospace, and the French government is pursuing privatisation where appropriate.
EADS, seen very much as a European, rather than global, company by America would benefit from increased ownership by that country's major investors. This, and an increased manufacturing presence in North America would increase the prospects of orders from the DoD, a position BAE Systems already enjoys.
Criticism
Like any large industrial conglomerate which manufactures weaponry, EADS has been subjected to criticism. Alleged wrongdoings include:
- The delivery of weapons to non-NATO countries without due consideration for the political situation and the economic consequences and to countries where there exists an on-going arms race.
- Using bribes in order to further sales in South Africa.
- Engendering the threat of a trade war when specific bids are rejected (e.g. the case of the Republic of Korea's F-15K Strike Eagle competition).
See also
External links
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