BRP has stooped to an all time low
#1
Sadly, BRP has decided to produce the ATV's South of the border. Too bad.
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BRP to transfer its ATV manufacturing to Mexico
ATV vehicles to be assembled in Mexico
BRP-Rotax to manufacture ATV engines in Mexico
Ski-Doo snowmobiles and Sea-Doo watercraft to remain in Valcourt
Valcourt, Québec, Canada, November 2, 2005 - Bombardier Recreational Products Inc. (BRP) has informed its employees in Valcourt, Québec, Gunskirchen, Austria and in Juarez, Mexico, that it will transfer the vehicle assembly and the engine manufacturing operations of its all-terrain vehicles (ATV) to Mexico.
The external pressures brought on by a strong Canadian dollar and Asian competition compelled the Company to turn to a low-cost country to increase profitability. This decision calls for a $30 million investment over the next three years.
'BRP is committed to the ATV business and to maintaining a solid value proposition for our dealer network," said José Boisjoli, President and CEO, BRP. "Our goal is to continue manufacturing while increasing profitability and becoming more competitive. We looked at various scenarios and transferring our operations to Mexico just made more sense,' he concluded.
BRP-Rotax, which manufactures the engines powering BRP's recreational vehicles, will establish a facility in Mexico to build ATV engines, constituting BRP-Rotax's first investment outside Austria in 85 years.
This decision will have no impact on BRP's workforce in 2005 nor in 2006. However, BRP expects that approximately 150 jobs will be lost in Valcourt at the end of 2007 and another 150 in 2008. There will be little to no impact on Austria's headcount because of BRP-Rotax's growing external business.
Ski-Doo® snowmobiles and Sea-Doo® watercraft manufacturing operations will remain in Valcourt as BRP is completing a $10 million investment to revamp its assembly line to gain efficiency and increase flexibility.
BRP, a privately-held company, is a world leader in the design, development, manufacturing, distribution and marketing of motorized recreational vehicles. Its portfolio of brands and products includes: Ski Doo® and LynxT snowmobiles, Sea Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E TECT, Bombardier* ATV all-terrain vehicles, Rotax® engines and karts.
www.brp.com
®, TM Trademarks of Bombardier Recreational Products Inc. or its subsidiaries.
. Trademark of Bombardier Inc. used under license.
-30 -
This release contains certain forward-looking statements with respect to our financial condition, results of operations and business. All of these forward-looking statements, which can be identified by the use of terminology such as "subject to," "believe," "expects," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy, although believed to be reasonable, are inherently uncertain. Factors which may materially affect such forward-looking statements include: (i) slow or negative growth in the recreational products industry; (ii) interruption of business or negative impact on sales and earnings due to acts of war, terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii) adverse publicity regarding safety issues; (iv) increased competition; (v) increased costs; (vi) loss or retirement of key members of management; (vii) increases in the cost of borrowings and unavailability of additional debt or equity capital; (viii) changes in general worldwide economic and political conditions in the markets in which BRP may compete from time to time; (ix) the inability of BRP to gain and/or hold market share of its wholesale and/or retail customers anywhere in the world; (x) the inability of BRP's clients to obtain and/or renew insurance; (xi) exposure to, and expense of defending and resolving, product liability claims and other litigation; (xii) the ability of BRP to successfully implement its business strategy; (xiii) the inability of BRP to manage its retail, wholesale, manufacturing and other operations efficiently; (xiv) consumer acceptance of BRP's products; (xv) fluctuations in foreign currencies, including the Canadian Dollar; (xvi) import-export controls on sales to foreign countries; (xvii) introduction of new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world; (xviii) the mix of BRP's products and the profit margins thereon; and (xix) other factors beyond BRP's control.
Readers are cautioned not to place undue reliance on forward-looking statements. BRP cannot guarantee future results, trends, events, levels of activity, performance or achievements. BRP does not undertake and specifically declines any obligation to update, republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events.
For information:
Pierre Pichette Stéphanie Vaillancourt
Vice President Manager
Communications and Public affairs Financing and Investor relations
Tel: 450-532-5188 Tel: 514-732-7061
pierre.pichette@brp.com stephanie.vaillancourt@brp.com
************************************************** ******
BRP to transfer its ATV manufacturing to Mexico
ATV vehicles to be assembled in Mexico
BRP-Rotax to manufacture ATV engines in Mexico
Ski-Doo snowmobiles and Sea-Doo watercraft to remain in Valcourt
Valcourt, Québec, Canada, November 2, 2005 - Bombardier Recreational Products Inc. (BRP) has informed its employees in Valcourt, Québec, Gunskirchen, Austria and in Juarez, Mexico, that it will transfer the vehicle assembly and the engine manufacturing operations of its all-terrain vehicles (ATV) to Mexico.
The external pressures brought on by a strong Canadian dollar and Asian competition compelled the Company to turn to a low-cost country to increase profitability. This decision calls for a $30 million investment over the next three years.
'BRP is committed to the ATV business and to maintaining a solid value proposition for our dealer network," said José Boisjoli, President and CEO, BRP. "Our goal is to continue manufacturing while increasing profitability and becoming more competitive. We looked at various scenarios and transferring our operations to Mexico just made more sense,' he concluded.
BRP-Rotax, which manufactures the engines powering BRP's recreational vehicles, will establish a facility in Mexico to build ATV engines, constituting BRP-Rotax's first investment outside Austria in 85 years.
This decision will have no impact on BRP's workforce in 2005 nor in 2006. However, BRP expects that approximately 150 jobs will be lost in Valcourt at the end of 2007 and another 150 in 2008. There will be little to no impact on Austria's headcount because of BRP-Rotax's growing external business.
Ski-Doo® snowmobiles and Sea-Doo® watercraft manufacturing operations will remain in Valcourt as BRP is completing a $10 million investment to revamp its assembly line to gain efficiency and increase flexibility.
BRP, a privately-held company, is a world leader in the design, development, manufacturing, distribution and marketing of motorized recreational vehicles. Its portfolio of brands and products includes: Ski Doo® and LynxT snowmobiles, Sea Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E TECT, Bombardier* ATV all-terrain vehicles, Rotax® engines and karts.
www.brp.com
®, TM Trademarks of Bombardier Recreational Products Inc. or its subsidiaries.
. Trademark of Bombardier Inc. used under license.
-30 -
This release contains certain forward-looking statements with respect to our financial condition, results of operations and business. All of these forward-looking statements, which can be identified by the use of terminology such as "subject to," "believe," "expects," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy, although believed to be reasonable, are inherently uncertain. Factors which may materially affect such forward-looking statements include: (i) slow or negative growth in the recreational products industry; (ii) interruption of business or negative impact on sales and earnings due to acts of war, terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii) adverse publicity regarding safety issues; (iv) increased competition; (v) increased costs; (vi) loss or retirement of key members of management; (vii) increases in the cost of borrowings and unavailability of additional debt or equity capital; (viii) changes in general worldwide economic and political conditions in the markets in which BRP may compete from time to time; (ix) the inability of BRP to gain and/or hold market share of its wholesale and/or retail customers anywhere in the world; (x) the inability of BRP's clients to obtain and/or renew insurance; (xi) exposure to, and expense of defending and resolving, product liability claims and other litigation; (xii) the ability of BRP to successfully implement its business strategy; (xiii) the inability of BRP to manage its retail, wholesale, manufacturing and other operations efficiently; (xiv) consumer acceptance of BRP's products; (xv) fluctuations in foreign currencies, including the Canadian Dollar; (xvi) import-export controls on sales to foreign countries; (xvii) introduction of new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world; (xviii) the mix of BRP's products and the profit margins thereon; and (xix) other factors beyond BRP's control.
Readers are cautioned not to place undue reliance on forward-looking statements. BRP cannot guarantee future results, trends, events, levels of activity, performance or achievements. BRP does not undertake and specifically declines any obligation to update, republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events.
For information:
Pierre Pichette Stéphanie Vaillancourt
Vice President Manager
Communications and Public affairs Financing and Investor relations
Tel: 450-532-5188 Tel: 514-732-7061
pierre.pichette@brp.com stephanie.vaillancourt@brp.com
#2
I forgot, the Mexicans do the work Americans don't want to do. Thats why all the factories and manufacturing plants in USA closed and moved down there. All those people outed from their jobs because?? They wanted to be on welfare?
I guess they do the work Canadians will soon miss, too.
Way to go BRP! Nice of you to put greed for the Almighty $ before your own countrymen and women.
Let's see... the Mexicans can come here illegally and work. Our own president encourages it.
On top of that the jobs that are here wind up going to Mexico. Now it's like a virus spreading to the North.
Maybe I am missing something?
I guess they do the work Canadians will soon miss, too.
Way to go BRP! Nice of you to put greed for the Almighty $ before your own countrymen and women.
Let's see... the Mexicans can come here illegally and work. Our own president encourages it.
On top of that the jobs that are here wind up going to Mexico. Now it's like a virus spreading to the North.
Maybe I am missing something?
#3
Let's see... the Mexicans can come here illegally and work. Our own president encourages it.
On top of that the jobs that are here wind up going to Mexico. Now it's like a virus spreading to the North.
Maybe I am missing something?
>>>>>>>>>>>>&g t;
It's called a global economy and get used to it. The shoes you wear were probably made in China(most of your clothing probably wasn't even made here), the car you drive was probably assembled in Mexico, most of the appliances you are using were assemebled somewhere other then the USA. There is not a single american manufacturer of televisions despite TV being invented here.
How much of your PC was actually made in the USA?
The Mexican worker will work harder for less money and probably do a better job.
On top of that the jobs that are here wind up going to Mexico. Now it's like a virus spreading to the North.
Maybe I am missing something?
>>>>>>>>>>>>&g t;
It's called a global economy and get used to it. The shoes you wear were probably made in China(most of your clothing probably wasn't even made here), the car you drive was probably assembled in Mexico, most of the appliances you are using were assemebled somewhere other then the USA. There is not a single american manufacturer of televisions despite TV being invented here.
How much of your PC was actually made in the USA?
The Mexican worker will work harder for less money and probably do a better job.
#6
Is this a Bombardier forum or a political one? Something tells me the Mexicans will do just as well at meeting QC Standards as the French have.
>>>>>>>>>>>> ;
Oh, thats right the French......Don't figure they put up much of a fight huh? LOL
>>>>>>>>>>>> ;
Oh, thats right the French......Don't figure they put up much of a fight huh? LOL
#7
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#8
caRider76, you're hilarious, man!
It is about time GM made a move to get control of the union. The economy is driven by profitability NOT over-inflated wages that cost far more than they produce. The first thing the union leaders said after the layoff was, "Oops!"
Back to the point: I will continue to follow BRP regardless of where they setup their factories and regardless of who they hire as long as they keep making the best quads for the money!
Later
It is about time GM made a move to get control of the union. The economy is driven by profitability NOT over-inflated wages that cost far more than they produce. The first thing the union leaders said after the layoff was, "Oops!"
Back to the point: I will continue to follow BRP regardless of where they setup their factories and regardless of who they hire as long as they keep making the best quads for the money!
Later
#9
I have a Supercharged 2006 300C SRT-8 that puts out 520 RWHP. The engine was built in Mexico and quality control was excellent. Just because BRP motors are going to be built in Mexico does not mean quality will go down.
#10
That sounds like an enviable ride! Which blower? I had a Paxton on a '01 Dakota 4x4 V8. It was alot of fun until an injector got plugged and the OEM computer shut down that one cylinder leaving the blower's auxilery injectors as the only fuel to that hole. At full boost there was enough heat generated by the cylinder pressure to ignite the ultra lean mix destroying the piston. [img]i/expressions/face-icon-small-frown.gif[/img]


