Valcourt, Quebec, May 27, 2020 – BRP (TSX: DOO; NASDAQ: DOOO) announced today it has re-oriented its marine business by focusing on the growth of its boat brands with new technology and marine products. They will discontinue production of Evinrude E-TEC and E-TEC G2 outboard engines. The Sturtevant, WI, facility, will be repurposed for new projects to pursue our plan to provide consumers with an unparalleled experience on the water.
“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.
Discontinuing Evinrude outboard engine business and signing an agreement with Mercury Marine
"Following our decision to discontinue E-TEC and E-TEC G2 outboard engines, we have signed an agreement with Mercury Marine to support boat packages and continue to supply outboard engines to our boat brands. We will continue to supply customers and our dealer network service parts and will honour our manufacturer limited warranties, plus offer select programs to manage inventory. These decisions will impact 650 employees globally."
Pursuing new opportunities within Build and Transform phases of strategy
With this announcement, BRP will be positioned to expand its presence in the pontoon and aluminum fishing markets through technologically advanced solutions.
Maximizing operational and functional efficiencies
Lastly, BRP will consolidate Alumacraft operations from two sites to one. All Alumacraft operations will be transferred to St Peter, MN, and the Arkadelphia, AR will be permanently closed. In addition, they plan to upgrade the boat production facilities to reorganize manufacturing sites and apply the modularity model used elsewhere.