COVID-19 cited as contributing to company’s downfall
Bombardier Recreational Products (BRP) announced May 27, 2020 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.
Mercury Marine will supply outboards to BRP-branded boats
Following BRP’s decision to discontinue Evinrude 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 that are expected 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.
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