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.
Advertisement

"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...