Boeing to temporarily suspend production of 737 MAX jet

Boeing will temporarily suspend production of its 737 MAX in January as it continues to grapple with the ongoing issues that caused two fatal crashes and prompted the company to ground the jet for nine months, according to the New York Times.

Why it matters: The suspension will likely hurt manufacturers and part suppliers who rely on Boeing's business. The company is the largest component of the Dow Jones Industrial Average and the nation's biggest manufacturing exporter, according to the Times.

The big picture: It’s the latest setback for Boeing as lawmakers and regulators question what the company knew about faulty technology that played a role in two crashes that killed a total of 346 people. The announcement also comes days after the Federal Aviation Administration threw cold water on Boeing’s rosy expectations of getting the 737 MAX back in service.

• In April, the company slowed production of the jets from 52 per month to 42.
• Boeing says it plans to reallocate employees who worked on the MAX to different projects and will look to avoid layoffs or furloughs.
• The company is also looking for a way to avoid completely disrupting supplier relationships, and it may continue to accept parts while waiting to restart production.

Go deeper:

• Whistleblower: I warned Boeing about 737 issues before crashes
• Boeing exec exits as 737 MAX crisis continues
• Boeing settles four lawsuits in the wake of 737 MAX crashes