French, Germans Feud Over EADS
Managers at EADS had their wings clipped Monday by the French government as a succession war threatened to engulf Europe’s largest aerospace firm, distracting it from new plans to challenge rival Boeing Co.
Criticism by French Finance Minister Herve Gaymard added to an increasingly public crisis at the Airbus parent, whose problems include tensions between French and German shareholders, management infighting and external trade spats.
“There is a management problem involving people, and I hope that as soon as possible we will solve this situation, which is not good for the company,” Gaymard said in a television interview.
EADS, or European Aeronautic Defense & Space Co., is the Netherlands-based consortium that owns 80% of aircraft maker Airbus.
Philippe Camus, the French co-head of EADS, and Airbus chief Noel Forgeard have been locked for many months in a barely concealed struggle for power.
Their rivalry was largely contained behind the scenes as Airbus cruised past Boeing to become the world’s largest aircraft maker last year, but the dispute has begun to strain relations between French and German shareholders.
It also threatens to divert attention from the multibillion-dollar A350 aircraft project that Airbus hopes the EADS board will approve Friday to help it meet competition in the mid-sized market from Boeing’s 7E7.
Industry sources said last week that German shareholder DaimlerChrysler had vetoed a bid by French President Jacques Chirac to put Forgeard in sole charge of EADS, replacing a system that divides power between French and German co-CEOs.
Gaymard, a Chirac protege only recently named finance minister, said that the Franco-German balance at EADS was an issue but that both governments were trying to cool things down.
“I met [German Economy Minister] Wolfgang Clement last week in Berlin, and we agreed to inject some calm into this dossier so that all the partners recognize themselves in this superb industrial project,” Gaymard said.
Far from leaving things on hold, however, Camus’ German counterpart, Rainer Hertrich, made a surprise early announcement Saturday that he would retire as co-CEO in June -- a move seen as forcing the pace on the succession debate at EADS.
Speaking in Beijing as Airbus signed a $1.3-billion Air China order Monday, Hertrich confirmed the head of EADS’ defense business, Thomas Enders, would succeed him.
Enders, 45, is the most powerful of a trio of younger executives at EADS and could be a strong counterweight to Forgeard if he steps into Camus’ shoes on the French side.
As head of defense, he controls a business set to grow rapidly as deliveries of Eurofighter jets and MBDA missiles are ramped up.
“I think Daimler wanted to make clear what they want,” one industry source said.
Having failed to secure German support as the sole chief of EADS, Chirac loyalist Forgeard is nonetheless seen by many as a strong contender to replace Camus in the shared chief executive seat.
He will find out as early as Wednesday whether he has the backing of Arnaud Lagardere, head of the French media and aerospace firm that owns 15% of EADS.
