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Thread: Evinrude shutdown at end of May 2020

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    Registered User 36654's Avatar
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    Evinrude shutdown at end of May 2020

    Did I just miss this? Bombardier Rec Products (Rotax, CanAm, SkiDoo, etc) ended Evinrude Outboard production at the end of May and signed an agreement with Mercury to supply engines for their boat lines.
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    Quote Originally Posted by 36654 View Post
    Did I just miss this? Bombardier Rec Products (Rotax, CanAm, SkiDoo, etc) ended Evinrude Outboard production at the end of May and signed an agreement with Mercury to supply engines for their boat lines.
    Yeah, they announced that about three months ago or so. The demand for 2-stroke outboards is pretty minimal. Unfortunately, they made the major blunder of going all-in on 2-strokes.

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    skibum69 skibum69's Avatar
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    But also Bombardier have been in financial trouble again so probably looking to cut costs.
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    Quote Originally Posted by skibum69 View Post
    But also Bombardier have been in financial trouble again so probably looking to cut costs.
    Don't confuse Bombardier with BRP. They are two completely separate companies and have been for about two decades. Evinrude is owned by BRP, which is doing quite well and not affected by the issues in the aviation sector that plague Bombardier.

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    skibum69 skibum69's Avatar
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    I stand corrected.
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    Registered User 36654's Avatar
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    Quote Originally Posted by vark View Post
    Don't confuse Bombardier with BRP. They are two completely separate companies and have been for about two decades. Evinrude is owned by BRP, which is doing quite well and not affected by the issues in the aviation sector that plague Bombardier.
    Your comment prompted a web search. Yep, Bombardier sold off the CRJ to Mitsubishi and the Rail division to Alstom within the month. I was surprised to find that Bain Capital was 50% of the original BRP deal.
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  7. #7
    Quote Originally Posted by 36654 View Post
    Your comment prompted a web search. Yep, Bombardier sold off the CRJ to Mitsubishi and the Rail division to Alstom within the month. I was surprised to find that Bain Capital was 50% of the original BRP deal.
    Beware the vulture capitalists. Selling off assets one at a time until just the shell is left is a frequent MO. Eddie Lambert at Sears is the poster boy for this behavior.
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    Quote Originally Posted by PGlaves View Post
    Beware the vulture capitalists. Selling off assets one at a time until just the shell is left is a frequent MO. Eddie Lambert at Sears is the poster boy for this behavior.
    I can recommend the movie “Other People’s Money”. Danny DeVito, Gregory Peck and Penelope Ann Miller star.
    Besides being a well done movie, it gives a rather interesting lesson on how “corporate raiders” factor their financial moves.
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    Quote Originally Posted by PGlaves View Post
    Beware the vulture capitalists. Selling off assets one at a time until just the shell is left is a frequent MO. Eddie Lambert at Sears is the poster boy for this behavior.
    Evinrude isn't being sold off. The Evinrude brand name is being retained by BRP (BRP also owns the Johnson brand name.) In all likelihood, the brand name will re-appear on a future product from BRP.

    Production of 2-stroke "ETEC" outboards is being discontinued due to very poor sales, year after year after year after year etc. It doesn't matter how good you make a 2-stroke, the overwhelming majority of the boating public wants 4-stroke outboards. And if you build your 2-stroke outboards heavier than the competing 4-strokes as Evinrude did with its "G2" ETECs, you are done.

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    Registered User 36654's Avatar
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    Quote Originally Posted by PGlaves View Post
    Beware the vulture capitalists. Selling off assets one at a time until just the shell is left is a frequent MO. Eddie Lambert at Sears is the poster boy for this behavior.
    Yes, that's the typical MO. What I found surprising in the BRP case was the involvement of Bain in 2003 and BRP still being here.

    BTW - Bain was Romney's company.
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