BRP dropping ETEC engines

[bassin08]

Originally Posted by Aspencreek

That might be a stretch because there is a couple other boat mnf. included under the BRP umbrella, but stranger things have happened. Another random thought....BRP was pretty vague about what was going to happen at the Sturtevant plant....maybe Merc starts producing engines there and stops/reduces production in Asia over time. That would be nice, and a good move politically and public relations concerned.

This sounds like a possible plan. Another thought could be, Yamaha buys Alumacraft and combines it with G3?

[Eyecatcher23]

I was always under the impression that boat and outboard manufacturers bought stakes in each other’s businesses to have a platform for new sales. If there was any truth to this theory, I would have to guess the vessels will be bought up sooner rather than later.

[Juls]

market leader Mercury Marine to support boat packages.

May 27, 2020 17:00 ET | Source: BRP

VALCOURT, Quebec, May 27, 2020 (GLOBE NEWSWIRE) -- 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. We will discontinue production of Evinrude E-TEC and E-TEC G2 outboard engines. Our Sturtevant, WI, facility, will be repurposed for new projects to pursue our plan to provide consumers with an unparalleled experience on the water.

We remain committed to our 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.

Discontinuing outboard engine business and signing an agreement with Mercury Marine
Following our decision to discontinue E-TEC and E-TEC G2 outboard engines, we have signed an agreement with market leader Mercury Marine to support boat packages and continue to supply outboard engines to our boat brands.

We will continue to supply customers and our dealer network service parts and will honour our manufacturer limited warranties, plus offer select programs to manage inventory. These decisions will impact 650 employees globally.

Pursuing new opportunities within Build and Transform phases of strategy
With this announcement, BRP will be positioned to expand its presence in the pontoon and aluminum fishing markets through technologically advanced solutions. We will leverage our track record of ingenuity through our 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.

Maximizing operational and functional efficiencies
Lastly, we will consolidate Alumacraft operations from two sites to one. All Alumacraft operations will be transferred to St Peter, MN and our site in Arkadelphia, AR will be permanently closed. In addition, we want to upgrade the boat production facilities to reorganize manufacturing sites and apply the modularity model used elsewhere. This move is designed to enhance productivity and efficiency and to allow us to respond with even more agility to demand.



https://www.globenewswire.com/news-r...hnologies.html

[S.Larson]

Originally Posted by MarkG

Too bad BRP abandoned their Johnson 4 strokes a few years back. They seemed pretty good. Knew a couple people with them and they reportedly were good motors. BRP putting all their eggs in the ETEC basket was probably a mistake, trying to buck the major trend of the industry/market toward 4 strokes. Maybe BRP would have been more of a major player if still offered them.
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Those were all re-badged Suzuki's,.......

Originally Posted by Bobby Winds

HUH, for those E-TEC haters, it sounds like E-TEC is going to be around a lot longer then them.

Well?

[Boondock]

This is a good read. https://www.wavetowave.com/home/2020...gy-and-failure
Knew that was going to be Bobby response. Covid didn’t kill the rude.

[goldman]

“as the next generation of engine technology with Project Ghost “
Since they abandoned the E-tech, makes me wonder if their R&D Dept is going totally high tech and maybe working on a high powered electric outboard.

[kswalleyer]

This is sad, 3 generations back in my family we were Johnson/Evinrude people..Ficht was the beginning of a wobbly end. Just sad....bought my first Merc in 14 as there were limited service capabilities around where I went.

Originally Posted by Boondock

This is a good read. https://www.wavetowave.com/home/2020...gy-and-failure
Knew that was going to be Bobby response. Covid didn’t kill the rude.

This is an interesting read. A while ago when Polaris bought up a few boat brands there were some rumblings they would begin making outboards. This article mentions the Evinrude brand having some market value. A Polaris acquisition does make some sense and Polaris is on a roll right now.

[Aspencreek]

Originally Posted by Boondock

This is a good read. https://www.wavetowave.com/home/2020...gy-and-failure
Knew that was going to be Bobby response. Covid didn’t kill the rude.

Thanks for linking that article, it explained several things I certainly didn't know.

The last paragraph also explains why so many other formerly great companies are in trouble today.