From CNBC · Leslie Josephs · · 1m 30s
Boeing's 737 Max stabilization slower than planned
CEO Kelly Ortberg admits production ramp-up is taking longer than expected, with wing manufacturing emerging as a key bottleneck.
In brief
CEO Kelly Ortberg admits production ramp-up is taking longer than expected, with wing manufacturing emerging as a key bottleneck. Boeing's 737 Max production stabilization is progressing slower than anticipated, with wing production at its Renton facility identified as the main constraint. Originally reported by CNBC.
Boeing's 737 Max stabilization delayed
CEO Kelly Ortberg told investors Wednesday that stabilizing 737 Max production is taking longer than expected. The company still plans to increase output next year.
“a little bit longer than expected to stabilize”
Wing production is the main constraint
Ortberg identified wing production at Boeing's Renton, Washington factory as the current bottleneck. The company has plans in place to address the issue.
Current production rate at 47 planes monthly
Boeing is currently producing about 47 of the 737 Max aircraft per month as it works to ramp up output following years of safety and quality crises.
Max 10 certification expected very soon
Ortberg reiterated that certification of the Max 10, the largest model in the family, is expected very soon. The plane is years behind schedule.
Stock drops over 5% on the news
Boeing stock fell more than 5% in afternoon trading after Ortberg's comments about the slower-than-expected production stabilization.
China orders timing remains uncertain
Ortberg said he doesn't expect aircraft orders from China to be announced before President Trump hosts Chinese leader Xi Jinping at the White House on September 24. Airlines will announce orders at their own pace.
At a glance
Boeing's 737 Max production stabilization is progressing slower than anticipated, with wing production at its Renton facility identified as the main constraint.
