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Jim Kramer on Boeing and 737 Max Problems: "I'm Worried"



CNBC's Jim Cramer said on Friday that he was worried Boeing's prolonged struggles could spill over and hurt the entire US economy.

"I think Boeing is extremely important to the economy," Kramer told Squawk Box. "The companies that supply Boeing are kind of moving away."

"I think if we see problems in the economy, people will realize that Boeing is probably the biggest job generator in this country right now and a lot I'm worried about Boeing. "

Cramer's remarks follow Capitol Hill's two-day testimony this week from Boeing CEO Dennis Mullenburg, who was critically questioned by lawmakers regarding the company's operation with its 737 Max. [1

9659002] March, after two of them crashed – one in October 2018 and the other in March – killing a total of 346. The malfunctioning of Max's flight management system has been implicated in disasters.

"Crazy Money" also appears after a pub quoting job data in October on Friday, which shows the addition of better than expected 128,000 job losses despite the General Motors strike.

However, Kramer said, "I think this number of jobs will worsen , if Boeing is not resolved.

While Boeing is still making the best-selling 737 Max, as you hope to regain regulatory approval by the end of the year, you will "see very different" jobs if production is stopped, said Kramer.

Production costs for the 737 Max increased by $ 900 million in the third quarter, in addition to the additional $ 2.7 billion in costs it announced earlier this year, the company said in its earnings report released last week .

Concern for Boeing is not isolated from the 737 Max.

Last week, the company said it would reduce monthly production levels from its 787 D Reamliner from 14 to 12 by the end of next year, "given the current global trading environment."

Rep. John Garamendi, D-Calif., Meanwhile, is critical of how a Chicago-based aircraft manufacturer is struggling to deliver a new line of air-to-air tankers.

"We have a serious problem with Boeing in," the California Democrat told CNBC earlier this week, citing cost overruns and years of delays.

Problems with the 737 Max and fuel tankers raise questions about Boeing's suitability for future government contracts, Garamendi said.

On Friday, the Australian company Qantas Airways said it was grounding three of its Boeing 737 NG aircraft – which is different from the 737 Max – after it found cracks in the wings of three aircraft. They are expected to fly out again this year.

Dozens of other older 737s were also grounded, Boeing said.

"Boeing has to take that behind, and it's been a very difficult week for what I consider to be America's Largest Company," Kramer said.


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