BRP Cuts Production, Workforce
 

Manufacturing & Fabrication
BRP cuts production and workforce

Boating Industry
Friday December 12, 2008


VALCOURT, QUEBEC, Canada – In response to the hit taken by the
powersports industry due to global economic recession, BRP is taking
“conservative actions,” including reducing overall production volumes in
the coming year by 20 percent, cutting expenses; and implementing major
changes to the organization, it reported in a statement earlier this week.

As a result, some 550 white-collar jobs will be eliminated, 80 percent
of which will take place this month with another 20 percent over the
next nine months. BRP already laid-off some 370 bluecollar employees in
its third quarter ended Oct. 31, and another 430 blue-collar employees
have received temporary lay-off notices in the fourth quarter. This
workforce reduction involves all BRP divisions, the company reported.
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"These are very difficult decisions to make but we must take appropriate
preventive measures considering the seriousness of the situation," said
Jose Boisjoli, president and chief executive officer. "We believe these
measures will reduce our costs and make BRP less vulnerable to drastic
declines in revenues caused by events outside our control, such as the
current crisis," he added.

Part of the change involves the creation of two new divisions
responsible for product development and manufacturing. BRP said it will
achieve this by:

# Merging the engine divisions (BRP-Rotax and Outboard engines) into a
new one called the "Powertrain" division, which will be responsible of
the manufacturing and engineering activities of Evinrude and Rotax
engines. The Rotax engines will continue to be manufactured in
Gunskirchen, Austria and in Juarez, Mexico while the ***Evinrude
outboard engine manufacturing will remain in Sturtevant, Wisconsin and
in Dalang, China.*** The engineering departments in Waukegan and
Gunskirchen as well as the new product development process including the
procurement strategy for these brands will be integrated into this new
division;

# Creating the "Vehicle Development and Manufacturing" division, which
will encompass the Valcourt and Benton plants as well as the Juarez
plant with regards to the manufacturing of all-terrain vehicles.
Moreover, all engineering services for the Ski-Doo, Sea-Doo and Can- Am
brands will be integrated into this new division, as well as the new
product development process including the procurement strategy for these
brands;

# Creating a new "Ski-Doo, Sea-Doo and Evinrude" (SSE) division
regrouping the sales and marketing activities of the North American
Ski-Doo, Sea-Doo and Evinrude brands;

# Creating the "Can-Am and Customer Service" (CCS) division, which will
be responsible for the sales and marketing activities of our Can-Am
products in Canada and the U.S. as well as the development of a
worldwide strategy related to Parts, Accessories and Clothing (PAC) in
addition to Customer Service and Dealer Support Network;

# Focusing on innovation by maintaining its commitment to R&D, but at a
reduced pace.


"We are confident these initiatives will help us come out of the
recession a stronger company because this new structure provides us with
the tools to focus on cost reductions, market strategies, product
launches, product innovation and to maximize synergies in both the
Vehicle Development and Manufacturing division and the Powertrain
division," concluded Boisjoli.


Evinrude, the Ski-Doo of outboard motors...

BRP Cuts Production, Workforce
 

..

BRP Cuts Production, Workforce
 

"HK" wrote in message
m...

As a result, some 550 white-collar jobs will be eliminated, 80 percent of
which will take place this month with another 20 percent over the next
nine months. BRP already laid-off some 370 bluecollar employees in its
third quarter ended Oct. 31, and another 430 blue-collar employees have
received temporary lay-off notices in the fourth quarter. This workforce
reduction involves all BRP divisions, the company reported.
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Maybe some will start up a new company and compete with the parent. This
industry could use some competition in Canada. Bombardier routinely prices
Canadian products 30% more in Canada even considering exchange.

Anything going on at Bruinswick?

BRP Cuts Production, Workforce
 

Canuck57 wrote:
"HK" wrote in message
m...

As a result, some 550 white-collar jobs will be eliminated, 80 percent of
which will take place this month with another 20 percent over the next
nine months. BRP already laid-off some 370 bluecollar employees in its
third quarter ended Oct. 31, and another 430 blue-collar employees have
received temporary lay-off notices in the fourth quarter. This workforce
reduction involves all BRP divisions, the company reported.
Advertisement

Maybe some will start up a new company and compete with the parent. This
industry could use some competition in Canada. Bombardier routinely prices
Canadian products 30% more in Canada even considering exchange.

Anything going on at Bruinswick?



Yeah, right, someone is going to start up a new outboard motor and
jetski manufacturing company to compete at a serious level with
Bombardier at the same time motorized recreational vehicle manufacturers
around the world are going teats-up.

BRP Cuts Production, Workforce
 

"HK" wrote in message
m...
Canuck57 wrote:
"HK" wrote in message
m...

As a result, some 550 white-collar jobs will be eliminated, 80 percent
of which will take place this month with another 20 percent over the
next nine months. BRP already laid-off some 370 bluecollar employees in
its third quarter ended Oct. 31, and another 430 blue-collar employees
have received temporary lay-off notices in the fourth quarter. This
workforce reduction involves all BRP divisions, the company reported.
Advertisement

Maybe some will start up a new company and compete with the parent. This
industry could use some competition in Canada. Bombardier routinely
prices Canadian products 30% more in Canada even considering exchange.

Anything going on at Bruinswick?

Yeah, right, someone is going to start up a new outboard motor and jetski
manufacturing company to compete at a serious level with Bombardier at the
same time motorized recreational vehicle manufacturers around the world
are going teats-up.

Would not be hard to compete with Bombardier or Bruinswick. They are
typical fat, lethargic, misrun multi-national on corporates welfare. Not
really going anywhere but down. Certainly no one is buying their products
like they used to. Me, I am delaying my boat purchase indefinitely. Will
just rent them.

BRP Cuts Production, Workforce
 

On Sun, 8 Mar 2009 10:37:43 -0600, "Canuck57"
wrote:

Me, I am delaying my boat purchase indefinitely. Will
just rent them.

Power boats are hellaciouly expensive to rent whenever I've looked.
Still a good option if you boat infrequently.

--Vic

BRP Cuts Production, Workforce
 

"Vic Smith" wrote in message
...
On Sun, 8 Mar 2009 10:37:43 -0600, "Canuck57"
wrote:

Me, I am delaying my boat purchase indefinitely. Will
just rent them.

Power boats are hellaciouly expensive to rent whenever I've looked.
Still a good option if you boat infrequently.

--Vic

Not really, say I rent one for $200/day for 6 days. That is $1200. Since I
don't have to tow it, less wear and tear with less fuel consumption. But I
will for arguments sake forget these points.

Now for a bass boat and trailer new, budget is $20,000 USD, in Canada that
would be about $40,000 CAD (not a very competative market).

If I put $40,000 into an investment yeilding 5%, 40% goes to taxes, that
leaves $1000. And say depreciation and maintenance is 10% of the total for
$4000, making $5000 per year.

Seems like owning is only viable if you are a resident on a waterway with
lots of time off. If you are 2-3 weeks renting is better.

BRP Cuts Production, Workforce
 

Canuck57 wrote:
"Vic Smith" wrote in message
...
On Sun, 8 Mar 2009 10:37:43 -0600, "Canuck57"
wrote:

Me, I am delaying my boat purchase indefinitely. Will
just rent them.
Power boats are hellaciouly expensive to rent whenever I've looked.
Still a good option if you boat infrequently.

--Vic

Not really, say I rent one for $200/day for 6 days. That is $1200. Since I
don't have to tow it, less wear and tear with less fuel consumption. But I
will for arguments sake forget these points.

Now for a bass boat and trailer new, budget is $20,000 USD, in Canada that
would be about $40,000 CAD (not a very competative market).

If I put $40,000 into an investment yeilding 5%, 40% goes to taxes, that
leaves $1000. And say depreciation and maintenance is 10% of the total for
$4000, making $5000 per year.

Seems like owning is only viable if you are a resident on a waterway with
lots of time off. If you are 2-3 weeks renting is better.




Being one of the "Democratic socialists" you admire so much, I bought my
last half-dozen new boats for cash. I don't worry much about
depreciation on toys. I did manage to sell my 25' Parker for just a
little less than I paid for it, and after five years. Didn't take long,
either.

But...I do agree with your philosophy of boat rental. Makes sense if you
can rent what you want when you want to rent. Around here, it is fairly
easily to rent sailboats and trawler-type power boats.

BRP Cuts Production, Workforce
 

On Sun, 8 Mar 2009 12:07:27 -0600, "Canuck57"
wrote:


"Vic Smith" wrote in message
.. .
On Sun, 8 Mar 2009 10:37:43 -0600, "Canuck57"
wrote:

Me, I am delaying my boat purchase indefinitely. Will
just rent them.

Power boats are hellaciouly expensive to rent whenever I've looked.
Still a good option if you boat infrequently.

--Vic

Not really, say I rent one for $200/day for 6 days. That is $1200. Since I
don't have to tow it, less wear and tear with less fuel consumption. But I
will for arguments sake forget these points.

I'd call 6 days infrequent. Renting is best.

Now for a bass boat and trailer new, budget is $20,000 USD, in Canada that
would be about $40,000 CAD (not a very competative market).

Apples and oranges. The $20,000 bass probably boat won't rent for
$200 a day.
Here's some rentals close to where I would go.
Looks like rental prices are down quite a bit from last I looked.
I assume boat prices are too, especially used.
http://www.thefishtalemarina.com/boat-rentals.html
http://holidazeboatrental.com/Rates.htm

If I put $40,000 into an investment yeilding 5%, 40% goes to taxes, that
leaves $1000. And say depreciation and maintenance is 10% of the total for
$4000, making $5000 per year.

Some things don't translate well to dollars and cents without thorough
exploration.
For instance, buying used, having the boat you want, availability,
length of ownership, etc.

Seems like owning is only viable if you are a resident on a waterway with
lots of time off. If you are 2-3 weeks renting is better.

Fair enough. Personally, taking it at the outside of 3 weeks rental =
21 days = a minimum of $4200 a year, I wouldn't see renting as very
attractive. But different strokes.

--Vic

BRP Cuts Production, Workforce
 

On Mar 8, 1:15*pm, HK wrote:
Canuck57 wrote:
"Vic Smith" wrote in message
.. .
On Sun, 8 Mar 2009 10:37:43 -0600, "Canuck57"
wrote:

*Me, I am delaying my boat purchase indefinitely. *Will
just rent them.
Power boats are hellaciouly expensive to rent whenever I've looked.
Still a good option if you boat infrequently.

--Vic

Not really, say I rent one for $200/day for 6 days. *That is $1200. *Since I
don't have to tow it, less wear and tear with less fuel consumption. *But I
will for arguments sake forget these points.

Now for a bass boat and trailer new, budget is $20,000 USD, in Canada that
would be about $40,000 CAD (not a very competative market).

If I put $40,000 into an investment yeilding 5%, 40% goes to taxes, that
leaves $1000. *And say depreciation and maintenance is 10% of the total for
$4000, making $5000 per year.

Seems like owning is only viable if you are a resident on a waterway with
lots of time off. *If you are 2-3 weeks renting is better.

Being one of the "Democratic socialists" you admire so much, I bought my
last half-dozen new boats for cash. I don't worry much about
depreciation on toys. I did manage to sell my 25' Parker for just a
little less than I paid for it, and after five years. Didn't take long,
either.

But...I do agree with your philosophy of boat rental. Makes sense if you
can rent what you want when you want to rent. Around here, it is fairly
easily to rent sailboats and trawler-type power boats.- Hide quoted text -

- Show quoted text -

Krausie, Old Fella, I know you've owned so many boats that it must be
hard for you to remember all. But why don't you try for us and list
the ones you can remember.