Dear Eclipse Supplier,
Over the past few months, Eclipse has demonstrated measured improvements and sustained results in regards to achieving our delivery ramp, due in large part to the implementation of the Eclipse Production System. In 2007, Eclipse certified and delivered the first Avio-NG jet. A total of 104 E500s were certified of which 98 were delivered to customers since December 31, 2006. Currently, AC-142 has started the production process.
Unfortunately, recent developments have made it obvious that risk exists to the delivery plan issued September, 2007. While internally we have made significant progress, and a vast majority of our Suppliers have delivered as agreed, one key Supplier has not performed to our expectations in terms of production rate and product quality. This has directly affected the planned airworthiness certificates in December and through the first quarter of 2008. Eclipse has no choice but to adjust the 2008 production ramp and plan to align with this Supplier's expected performance.
We are extremely disappointed that we must take this action. Rest assured that we are attempting to work directly with this Supplier to assure delivery and improve their ability to deliver. We have offered them every possible resource at our disposal and are confident that the Integrated Team approach that we successfully deployed with our partners at Fuji Heavy Industry can be deployed with equal success here. That collaboration between Eclipse and Fuji teams yielded strong improvements that are a testament to the collective dedication of Eclipse and Fuji and to the effectiveness of Integrated Team approach.
In light of the foregoing, production ramp for 2008-2009 has been revised and loaded into MRP with updated Schedule Agreements to start being issued today. This revised ramp has 2008 certifications at 455 and 2009 at 810 certifications. In 2008 we are targeting achieving a 1.0/day delivery rate in April and growing to 2.0/day by December.
As always, please review the SA's, and communicate any issues within (5) days. If any issues or concerns develop, please contact your respective Buyer so we can mutually resolve any concerns.
We are grateful for the strong support and performance that our Suppliers have demonstrated in the past and are counting on your continued support to meet and exceed these adjusted projections.
Thank you for your continued support of the Eclipse 500 program.
Vice President, Supply Chain
Dated: January 4, 2008