LOS ANGELES — Boeing Co. said Friday it will begin shutting down production of its C-17 cargo plane, the last to be built in Southern California, because Congress has not funded new purchases.
The Chicago-based company said it has told its suppliers and subcontractors to stop work on planes beyond those already on order. Boeing said it has enough orders to continue production through the middle of 2009.
The company has spent millions to keep its supply line active, in hopes Congress would authorize new purchases. But Friday, Boeing said it could no longer afford to keep the program going.
"The C-17 is one of the Defense Department's most successful acquisition programs ever," said Ron Marcotte, vice president and general manager of Boeing Global Mobility Systems. "But we can't continue carrying the program without additional orders from the U.S. Government."
The decision affects long lead-time items purchased from suppliers, many of which have to be ordered as long as 34 months in advance.
The company left open the possibility that it could continue production if it receives new orders.
"This move will be the first step in an orderly shutdown of the production supply chain, should no further orders be received from the U.S. government," Boeing said in a press release.