Boeing is cutting the production of 787 aircraft to 12 per month, down from 14, as the company experiences weaker demand as a result of the ongoing trade war between the U.S. and China, Boeing CEO Dennis Muilenburg said Wednesday on the company’s third-quarter earnings call.
This lower production level will begin in 2020 and continue for about two years as low order numbers from China have “put pressure on the production rate,” Muilenburg said.
“We’re going to continue to monitor the U.S.-China trade policy discussions and then we’ll continue to make our plans going forward,” he said. “We have a very disciplined process for looking at the market, our supply chain health, all of the other parameters that might affect our customers’ decision making process.”