TEXTRON Inc's Cessna unit, the world's biggest maker of business jets, will make its latest aircraft model only in China in its efforts to reduce costs.
Cessna's new 162 SkyCatcher light sport aircraft will be assembled by China's Shenyang Aircraft Corp, Textron said in a statement yesterday distributed by Business Wire.
The plane, which already has 900 orders based on an introductory price of US$109,500, will be made in the northeastern city of Shenyang, said Chen Yongman, senior vice president of the Chinese firm.
Bombardier Inc and Cessna have boosted sales in China as the country's growth rate of at least 11 percent makes private jets, yachts and other luxury goods affordable to more people. Aircraft makers are also moving some of their production to Asia's second-largest economy in their efforts to cut costs, Bloomberg News said.
"The key to achieving 900 orders within four months of announcing the model is the aircraft's affordability," said Jack Pelton, chairman and chief executive officer of Cessna, in a video speech yesterday in Beijing. "The key to achieving that price point is our partnership with Shenyang Aircraft."
The model was unveiled in July 2006. Cessna expects to make as many as 700 of the planes a year, with the first one expected to be delivered in the second half of 2009, it said.