Boeing's Max debacle could be the most expensive corporate blunder ever.
https://www.cnn.com/2020/11/17/business/boeing-737-max-grounding-cost/index.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fcnn_latest+%28RSS%3A+CNN+-+Most+Recent%29
The 20-month grounding of the 737 Max fraud could end as soon as this week,
But Boeing's mounting costs have soared to tens of billions of dollars.
That means the plane maker's repeated safety oversights and mismanagement
were tragic, but also rank among the expensive corporate fraud in history.
Direct Costs
Boeing has detailed about $20 billion in direct costs from the grounding:
$8.6 billion in compensation to customers for having their planes grounded,
$5 billion for unusual costs of production, and $6.3 billion for increased costs
of the fraudulent 737 program known as Max.
The company also spent nearly $600 million for jet storage, pilot training and
software updates that are not included in the company's overall cost estimate.
It also established a $100 million victim compensation fund, which is also not
included in Boeing's $20 billion in estimated costs.
So the costs of the grounding “Released By Boeing” total $20.7 billion.
Of course this figure is based on Boeing’s notorious felonious accounting.
If financial damage from the 737 Max remains in the $20 billion range,
that would not put it in the running for the most expensive fraud by a company.
Volkswagen has spent €32 billion, or $38 billion, on its emissions cheating scandal.
Of course the Volkswagen BoD went to prison for their crime. Where as in the U.S.
Murder for profit is acceptable corporate behavior.
The most expensive mistake to date is the $68 billion cost to BP of the Deepwater
Horizon explosion and oil spill of 2010.
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