Posted on 05/27/2020 7:10:17 PM PDT by Augie
Valcourt, Quebec, BRP (TSX: DOO; NASDAQ: DOOO) announced today it has re-oriented its marine business by focusing on the growth of its boat brands with new technology and innovative marine products. The company will discontinue production of Evinrude E-TEC and E-TEC G2 outboard engines. Its Sturtevant, Wisconsin facility will be repurposed for new projects to pursue BRP’s plan to provide consumers with an unparalleled experience on the water.
BRP says it remains committed to their Buy, Build, Transform Marine strategy which has been underway since 2018 with the acquisition of Alumacraft and Manitou boat companies in the U.S., followed by the acquisition of Australian boat manufacturer Telwater in 2019.
“Our outboard engines business has been greatly impacted by COVID-19, obliging us to discontinue production of our outboard motors immediately. This business segment had already been facing some challenges and the impact from the current context has forced our hand,” said José Boisjoli, President and CEO of BRP. “We will concentrate our efforts on new and innovative technologies and on the development of our boat companies, where we continue to see a lot of potential to transform the on-water experience for consumers,” he added. Following BRP’s decision to discontinue E-TEC and E-TEC G2 outboard engines, the company has signed an agreement with market leader Mercury Marine to support boat packages and continue to supply outboard engines to their boat brands. BRP says they will continue to supply customers and dealer network service parts and will honor manufacturer limited warranties, plus offer select programs to manage inventory. These decisions will impact 650 employees globally.
With this announcement, BRP plans to position itself to expand its presence in the pontoon and aluminum fishing markets through technologically advanced solutions. They will leverage their R&D resources to enhance the boating experience with unique new marine products, such as the next generation of engine technology with Project Ghost and the next generation of pontoons with Project M, code names for new products we expect to transform the industry.
BRP will also consolidate Alumacraft operations from two sites to one. All Alumacraft operations will be transferred to St Peter, Minnesota and the Arkadelphia, Arkansas will be permanently closed. In addition, they will upgrade the boat production facilities to reorganize manufacturing sites and apply the modularity model used elsewhere in BRP’s ecosystem.
FTR reached out to BRP regarding the future of Evinrude and received the following replies regarding the iconic brand’s future.
Q: Will you keep the doors open to produce Evinrude engines again someday?
BRP: “We are re-orienting our marine strategy and concentrating our efforts on next generation engine technology, publicly known as Project Ghost, our boat business and other marine projects where we see a lot of potential to transform the on-water experience for consumers. We have no plan to bring back the production of outboard engines E-TEC and E-TEC G2.”
Q: Will you sell the brand or the technology of your Evinrude engines?
BRP: “Evinrude has a long history and we will maintain the trademark. At this point, we have no intention of selling the brand or the technology of Evinrude.”
Buy up a company, loot it, destroy it and move on to the next one.
I once had an orphan duckling friend, named Evinrude.
*sniff*
BRP is evil. I was heavily involved in the use and repair of Bombardier products for 30 years before the big breakup. The company was a mess.
Isn’t BRP headquartered In Quebec? Nuff said.
Man, ever since the 2007 crash, the boating industry has just been gettin hammered. Very sad, lots of old names gone by the wayside.
Bombardier screwed themselves when they bought Adtranz.
Granby
The power boating industry is being decimated.
Look under agenda 21 you little peons won’t be allowed to be on waterways anyways.
Standard marketing and PR meaningless gibberish. I’m surprised they didn’t toss in “We are synergistically thinking outside the box as we develop scalable and sustainable solutions that leverage our core competencies to build a workforce that gives 110% to transforming the on-water experience. It is what it is.”
They bought out OMC, then discontinued Johnson outboard motors. Now discontinuing Evinrude. These motors were American names for decades.
I own an Evinrude that’s about 3 years old and it’s extremely hi tech. I doubt if there will be service parts in 10 years. I own an 18 HP Johnson from about 1959. It’s so simple it never breaks down.
Everything BRB touches becomes history.
Yep. It is disgusting. I’ve run Evinrude outboards for 30 years and this makes me want to puke.
I’m really glad the engine on my current boat doesn’t have a lot of hours on it. I take good care of it, and will take extra good care of it from here on out. The way I baby that thing it ought to last as long as I do.
If it ever does blow up one thing is certain - I won’t be replacing it with one of those pos black anchor Mercury engines. I’d buy a stinking Tohatsu before I’d buy a Mercury.
[[[They bought out OMC, then discontinued Johnson outboard motors. Now discontinuing Evinrude. These motors were American names for decades.]]]
The late 90’s “Ficht” fuel injection debacle started the ball rolling. Evinrude has been around for over 100 years. What a shame.
Mercs have a reputation for being “welfare motors”. Something about their paint job and the fact that they seldom work.
Ole Evinrude was for decades a world leader in production of outboards. By the nineteen thirties he had salesmen working the Amazon and his engines could be found from the border of Peru to the Upper Rio Negro. Later on, Americans who sought to begin ranching in Paraguay found Evinrude sales and service in some pretty wild places. I suppose all things must end, but the world will miss Evinrude.
After plunging earlier this year BRP’s stock has been on a tear for the past two months.
Thanks for that update on Johnson “Sea Horse” outboards...still remember going out on the water with my Dad and his green 10hp Johnson.
They killed Johnson and now Evinrude. Oh well, my boat got 3 Suzuki’s 250 on it and our smaller boat (Deplorable kids’ boat) has a Nissan 90 on it. Ole Evinrude is rolling over in his grave...
Well that’s not very nice.
In fact, it’s even rude!
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