Aero-News Network is reporting a deal is in the due-diligence stage for an aquisition by China. "Surprising / Worrisome Details Swirl Around Future Of Company."

There is also speculation the company will possibly move to China. Apparently there is more up than just raising investors for the Jet project and they need cash for survival. Cirrus has denied the rumors, but there are many reported sources.

Cirrus has been a modern American success story. Sad if true.

http://aero-news.net/news/genav.cfm?Con ... &Dynamic=1

I would say Cirrus was a success story. The company is now failing for several reasons. I see the serious reduction in number of unit sales as the obvious number one reason. I think there is a three-fold reason for them to be in serious trouble: First the overall economic downturn, and second, the demand for $500k + piston singles was never going to continue at 600~700 units annually. Third, significant capital was directed toward development of their jet.

There just aren't enough pilots who have the capital to buy new airplanes (Lots of well-heeled people in this country, just not well-heeled folks who want to fly themselves in single engine planes.) After the outlay of capital for the purchase comes the ongoing costs associated with ownership, i.e. insurance, maintenance, hangar, etc.

I predict it will be at least twenty years before we see any company again producing a significant number of single engine planes.

Fourth, CEO, Brent Wouters, has a background as an investment banker.

From: http://www.cirrusaircraft.com/about/executiveteam.aspx


BRENT WOUTERS ...

...Prior to Cirrus, Brent was the Chief Financial Officer of International Payment Services, where he was instrumental in completing 11 acquisitions. ...

Cirrus Sales 2011: Halo welcum Cirrus. You want veeery goo plane veeeeeery cheap?

Customer: Well I'm looking at several aircraft and I'm still undecided.

Cirrus Sales 2011: Yeeery goo... you want number 1? You here, we number 1, veery goo.

Customer: What engine does that have in it for 2011?

Cirrus Sales 2011: Nooo Continental veeeery much money. Shun Chin Aircraft makee number 1 engine for number 1 Cirrus now.

Customer: You still have the parachute right? My wife really likes that.

Cirrus Sales 2011: Parachute veeery expensive. Now use same factory make Jacklyn Smith collection for parachute. Veeery Goo, number 1 quality, you see.

Customer: How much is the loaded SR-22 Turbo?

Cirrus Sales 2011: Last year $560k...... veeery much money. Now pay $56K veeery much better for number 1 airplane.

Customer: Well I don't know, I'll look around some more and think about it.

Cirrus Sales 2011: Otay you do veeery goo business. Now pay $45K.

Customer: That's really is cheap for a new SR-22. How many will you make this year?

Cirrus Sales 2011: 2010 only makee 245 SR-22. Now number 1 aircraft makee 276,000 SR-22 in 2011.

Customer: WOW! That's a lot. I'll still think about it for awhile.

Cirrus Sales 2011: Wha you want? You here 2 hours. You pay now.

Customer: OK, OK, I'll take one. The Garmin equipment is worth more than $45K anyway.

Cirrus Sales 2011: Veeeeery Goo You number 1 customer. Garmin veeery much so number 1 customer get number 1 avionics Wynn Tsing Dragon Flight Information System veeery goo.

Customer: Well I hope number 1 customer flying number 1 airplane doesn't get the number 2 scared out of them.

Cirrus Sales 2011: You no worry. Have problem. Come Beijing, we fix. Veeery goo.

That's funny Alex, sure hope it's not going play out that way,

Here's a story from 2009. Cirrus said then that it planned to move manufacturing to China.

http://www.chinadaily.com.cn/bizchina/2 ... 577797.htm

For those out of the big corporation loop, the hot trend is to expand business in so-called "BRIC" countries. BRIC = Brazil, Russia, India, China. It seems that every PowerPoint presentation has BRIC in it somewhere.

Growth in China and India is practically a given. Russia is more iffy due to pervasive corruption. Interest in Brazil seems tepid compared to China and India. That's the perspective from auto manufacturing. I suspect the perspective will be different for energy and mining corps.

Here is an update (I believe) that has Cirrus denying they have a deal to move to China, but in the same article they are taking to investors from China?

http://aero-news.net/index.cfm?ContentB ... bcea11bad&

Sadly, sounds like BS. I suspect they would jump on a cash infusion from China along with an agreement to begin moving pieces of production to China (a la Cessna Skycatcher).

Poor Cirrus owners can't catch a break.

Isn't Cirrus already owned by some middle-eastern types? If so, Chinese can't be much worse.

Well, heck, after the Chinese get done reverse engineering all that Garmin equipment in the Cirrus panel, maybe the big G will finally have some competition.

I wish they'd start competing with Stec.

.....and funny!!!