GE Power has the same problem with steam turbine and generator production.
The new facilities they built in India, China and farm out of all parts has devastated Schenectady shop load last three years to very low efficiency and high cost of low utilization factors and high shipping and handling costs. This resulted in layoff after lay off and closure of almost all of the service facilities to make up for costs skyrocketing.
We see bad decision after bad decision by management with little experience who are eager to get promoted by doing this under the fake cost savings of doing things in India and China. The quality there s---s, and low utilization factors and high cost just as bad even before you throw in excessive transportation costs. None of these facilities have paid off and are dragging down GE Power with high cost structure, even before the Alstom disaster. GE Power cash flow tanked because of all of the above
GE Power has really screwed up big time because of bad management that has replaced world class experts who used to run the business