Tariffs: aircraft maker Pilatus to pause exports to the US
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Tariffs: aircraft maker Pilatus to pause exports to the US
The Swiss aircraft manufacturer is to temporarily stop supplying the US market – the 39% levies are too much of a competitive disadvantage, it says.
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High costs caused by the tariffs and the resulting competitive disadvantages compared to US and European competitors have sparked uncertainty among customers, according to a press release by Pilatus on Friday. The company plans to use the delivery stop to work out solutions with customers and partners.
The US is a key market for the firm based in Stans, in the central Swiss canton of Nidwalden. Four from ten of all PC-12s and PC-24s it builds each year go to the US.
Pilatus says it is considering allocating the aircraft to markets other than the US. However, such a shift involves considerable logistical and market-specific challenges, it added.
The manufacturer also emphasised the key importance of the US as a market for business aircraft; some two-thirds of the global business jet fleet is based there.
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Expanded American presence
Due to the big importance of the US, Pilatus has recently expanded its presence in North America. Final assembly work for the Swiss-made PC-12 and PC-24s is already done in Colorado. A year ago, the company announced the establishment of a new site in Florida.
Following the tariffs, the process of building up local production capacities in the US is now being accelerated, Pilatus said. In the medium term, it aims to manufacture all PC-12s and PC-24s destined for the US in Florida.
Service activities in the US are meanwhile not affected by the delivery stop, and will continue in full, Pilatus said.
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‘Robust foundation’
Pilatus also emphasised its “solid financial basis”, saying that global demand is strong, and that even without the US, its backlog of orders amounts to around CHF2 billion ($2.48 billion). This is a “robust foundation in challenging times”, it reckons.
Pilatus also produces training aircraft for air forces, which is also a business segment with potential, it said.
Pilatus meanwhile wants to do everything in its power to safeguard the 3,000 jobs and the valuable expertise in Stans. If the situation requires, options like short-time working or personnel adjustments via natural fluctuation would be considered, it said. The aircraft manufacturer also held out the prospect of opening up new markets.
Translated from German by DeepL/dos
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