Boeing reportedly set to cut 787 outsourcing

01/20/2009 | MSNBC

Following repeated delays on its 787 Dreamliner, sources say Boeing Co. executives are rethinking their strategy of global outsourcing and planning to bring more production back in-house. In dollar terms, outside suppliers are said to account for some 70% of the first-generation 787, and widespread cancellations of outsourcing contracts could prove politically tricky. Still, executives appear to believe that reining in suppliers is key to solving the plane's much-publicized woes. "We will probably do more of the design and even some of the major production for the next new airplanes ourselves as opposed to having it all out with the partners," says Mike Denton, engineering vice president.

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