Reuters: Boeing to seek supplier cost reductions after Embraer deal

|About: The Boeing Company (BA)|By:, SA News Editor

Boeing (BA +0.3%) will press for deeper price cuts from suppliers with overlapping operations once it completes its planned acquisition of Embraer's regional jet business, CEO Dennis Muilenburg tells Reuters.

“The key thing you are going to see is that through the combination between Boeing and Embraer, we will be able to increase volume for our supply chain, which is generally going to be beneficial," the CEO says. "And that beneficial volume should also turn into more affordability and competitiveness.”

Muilenburg indicated Boeing would continue to push into areas traditionally dominated by its suppliers, by bringing some parts of the supply chain in-house, a move that has rattled some aerospace suppliers.

Boeing has 30-40 categories across its platforms and when deciding which ones to invest in, the CEO says the company will be driven first by what adds value and then by whether there is a good services business attached.

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