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Sat, Jan 20, 2007

Paper: Bell Memo Suggests Company Struggling To Fill Orders

Redenbaugh Resignation Signals Textron Unhappy With Production Woes

Michael Redenbaugh led something of a revitalization during his time at Bell Helicopters -- overseeing the company during almost four years of strong sales and new product development. So why did he suddenly leave the rotorcraft manufacturer this week?

The Fort Worth (TX) Star-Telegram suggests Redenbaugh (above) was shown the door due to parent company Textron's growing dissatisfaction over Bell's ability -- or lack thereof -- to maintain production levels in the face of those orders. An internal memo obtained by the paper says Bell continues to struggle in delivering aircraft on-time and on-budget... especially to the US military.

"We have generated a lot of customer enthusiasm for our products, which has resulted in increased sales and contracts that bode well for our future," Textron Chairman Lewis Campbell said in an email to Bell employees. "What this means, however, is that we absolutely must step up our capabilities to meet our commitments to our customers in critical areas such as quality, delivery and cost."

As Aero-News reported, Richard Millman -- former president of the Textron Systems division -- was named to succeed Redenbaugh as president and chief executive of Bell.

Bell has been under fire since 2005, when the US Navy and the Pentagon threatened to pull the company's contract to rebuild H-1 helicopters for the Marines over cost overruns, and failing to meet scheduling targets. Bell eventually persuaded the Navy the program was on track.

Several Textron officials are also reportedly concerned over the production of the troubled V-22 Osprey tiltrotor, produced by a partnership between Bell and Boeing. The company did meet the military's goal of 16 Osprey deliveries in 2006.

Millman (right) will be the fourth CEO at Bell in less than six years. Redenbaugh took the job in May 2003, replacing longtime Bell manager John Murphey... who succeeded Terry Stinson after he was fired in September 2001.

Under Redenbaugh -- "Red" to many employees and workers at Bell -- the helo manufacturer won an Army contract to produce 368 Armed Reconnaissance Helicopters (ARH) to replace the Army's OH-58D Kiowa Warriors. On the civil side, after years of little in the way of new products or upgrades, Bell announced plans for the all-new Bell 429 in 2005, and an upgraded 412 model last year.

FMI: www.bellhelicopter.com

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