posted 01-31-2001 08:12 PM ET (US)            

All kinds of rumors on the Internet. One thing is true; last week George Soros, the major OMC owner, was interveiwed by NPR on "Talk of the Nation". Responding to a listener's email about OMC, he said "the engines had problems that could not be fixed"; hence the bankruptcy filing. Lots of other reasons too, like end of a fiscal year (convenient), the local Waukegan Union rejected renegotiating the contract, and the existing contract was up Dec. 31, big slowdown in the economy, the fact that no engines were built between March and July, 2000, which is peak season, due to supply chain problems, lots of recalls on the Ficht Evinrudes, etc. Plus it turns out the Waukegan plant is an EPA Superfund site. Looks like he got tired of pumping money in.

posted 01-31-2001 11:16 PM ET (US)         

By their own admission, the name Outboard Marine Corporation will cease to exist. But some of the brand names like Four Winns, Chris Craft, Evinrude and Johnson should survive, depending on the auction results 02/08. It is highly unlikely that the main engine plant in Waukegan IL will ever again produce the outboards. The place is a pollution disaster from years of bad management, and most want it torn down and the land and harbor cleaned up. To buy it, deal with the EPA in getting it cleaned up, and get it working again is more than any buyer would want to face financially. If the engines are ever again to be made, it's going to be somewhere else.

My guess is the the E & J names could appear on someone else's engines, with maybe a few of the successful E & J models brought back to life and put in the mix. Rumors of a severe fire risk with Fichts abound, and people can't get the kits to repair them. Many won't even use their boats because of this risk. Other than that, they're supposed to be great engines. This should have the potential of being corrected, however. I heard that EVERY SINGLE 97-98 Ficht initially introduced had to be replaced with a 2nd generation RAM engine, costing the company millions.

Warranties on the pre-bankruptcy produced engines are probably gone forever. But in reality, since not many engines have been sold in the last 2 years, there aren't that many out there (relatively) to get hurt in this category anyway. It's the dealers that are going to take a hit here, trying to preserve their customer base for another day's sale of another brand.

For those with existing older engines, I'll bet someone will pick up the parts opportunities. For anyone contemplating a new engine at FIRE SALE pricing, wait until Feb 8th and see what happens. Then you'll know in advance what you're getting into. If they collapse with no buyer or warranty and parts availability, the left over engine inventory should sell for less than half of original list.

posted 02-01-2001 12:21 AM ET (US)            

The court's blessing is only need to to
take the name (becoming the "official"
seller of such parts) and the original
designs.

posted 02-01-2001 09:26 PM ET (US)            

When I was looking for a Yamaha service dealer, one that I called told me he just dropped them and changed to Mercury because they made him a terrific offer he couldn't refuse.

I think I read recently that the entire Yamaha inventory has been sold already to boat makers who want engines for their transoms.

I can't see how Yamaha will increase their dealer network if:

--they don't have any more production to sell
--Mercury is on a build-market share campaign by getting more dealers.