Bombardier employees work on a CRJ200 jet at the company's plant in Montreal.Bombardier employees work on a CRJ200 jet at the company's plant in Montreal. (Ryan Remiorz/Canadian Press)

Joseph-Armand Bombardier's gift to the world was a clunky-looking machine that could carry people through the heavy snowfalls of rural Quebec.

Back in the 1930s, he dreamed of a vehicle that could "float on snow." His invention of the snowmobile lay the foundation of a Canadian corporate empire that eventually grew to encompass the manufacture of Sea-Doos, ATVs, sport boats, subway cars, high-speed commuter trains, turbo-props, business and commuter jets, and amphibious aircraft.

The first Ski-Doos, like these ones shown at the Bombardier museum in Valcourt, Que., were unveiled in 1959 by Joseph-Armand Bombardier.The first Ski-Doos, like these ones shown at the Bombardier museum in Valcourt, Que., were unveiled in 1959 by Joseph-Armand Bombardier. (Handout/Canadian Press)

Along the way, it's provided work for tens of thousands of highly skilled employees — the kind of jobs governments are eager to entice with multimillion-dollar aid packages. The aid has been a lightning rod for critics, who say it amounts to corporate welfare. Brazil says the subsidies are illegal under international trade rules; Canada has made the same claim about Brazilian aid to the aircraft company Embraer.

Bombardier's business — especially its aerospace division — has been notoriously cyclical, with grave consequences for workers. Thousands of Bombardier's employees have been laid off in recent years as the company struggled against tough competitors, fallout from the Sept. 11, 2001, hijackings in the United States, and now the global economic crisis.

When passenger travel fell drastically after the Sept. 11 attacks, the airline industry contracted and demand for Bombardier's planes shrank. It shelved a long-awaited program to build C-Series regional passenger jets (seating 110-130) until market conditions improved and buyers could be secured.

Through this period, Bombardier shares plummeted — from $25 in early 2001 to a low of $1.87 in December 2004, rebounding somewhat to between $5 and $6 in 2007. As the global economic slowdown spread, demand for Bombardier's larger and smaller planes continued to erode.

The company finally forged ahead with the C-Series in mid-2008, announcing it had sufficient buyer interest in the new generation of greener, fuel-efficient aircraft to launch the program. The much-vaunted series is Bombardier's largest program ever and could eventually generate as many as 3,800 new specialized jobs.

But as Bombardier shifts its focus from larger aircraft to the future C-Series, it has shed jobs on older production lines. In February 2009, as many as 1,360 workers in the Learjet and Challenger aircraft division were laid off because of dwindling orders. On April 2 of the same year, Bombardier announced 3,000 more layoffs — more than a third in Quebec — as the company projected further reductions in aircraft deliveries.

Bombardier says the fundamentals of its aerospace industry remain solid, despite turbulence and volatility in recent years. It has said it expects "normal" market conditions to return in the medium and long-term and has set lofty goals to increase its profit margin.

The economic crisis also dented Bombardier's recreational products division, as sales of leisure vehicles such as Sea-Doos and Ski-Doos shrank amid lower consumer spending. The division announced a 20 per cent cut in production in late 2008, with as many as 1,360 jobs cut, mostly in Quebec.

Bombardier's rail and transportation division has been somewhat sheltered from the economic storm, given that large-scale transit infrastructure projects are mostly funded by the public sector.

Despite its difficulties, Bombardier remains one of Canada's biggest industrial employers. It's the world's biggest maker of passenger trains and the third-biggest maker of civilian aircraft. Even with several waves of layoffs, Bombardier anticipates a future labour shortage in its aeronautical division, as not enough workers have the highly specialized skills to fill new jobs created by the C-Series.

Quebec's homegrown global giant has come a long way from vehicles that could "float on snow."

Bombardier facts:

  • Number of employees: 59,500.
  • Headquarters: Montreal
  • Revenues: $17.5 billion US (2008)

(Source: Bombardier.com)

Bombardier's corporate milestones: