posted 11-10-2004 08:06 PM ET (US)            

The Spruce Pines facility was considered to be one of the best of its kind in the world, according to some comments from workers at the facility.

posted 11-10-2004 09:06 PM ET (US)            

Your knowledge of basic manufacturing is very good!

The Spruce Pines plant was built to make power head assemblies in the late 1980's. I know as I was recruited to work there as I could design a velocity trench to handle the chips created by the machining. I remember they were using Saber equipment made by CMM for high speed machining of aluminum. Very cutting edge at the time.

The plant also made everything from Ryan weed eaters to Lawn Boy lawn mowers. A truly multi tasking plant.

Later

posted 11-10-2004 09:34 PM ET (US)            

Foam casting is what Saturn implemented for its engine block. By having a seamless engine, you reduce the need for gaskets that eventually fail. Remarkable technology. But, Saturn is shying away from its original technology due to market pressure, and, with that loss, many cult followers are leaving. No longer are the Saturn reunions sponsored. Is Whaler following Saturn's lead?

http://www.castsolutions.com/archive/feature0100.html

Amazing how one thing can lead to another. I read "foam casting" above and remembered back in 1989 I test drove a Saturn. The saleswoman mentioned something about how the engines were made by pouring the metal into a foam model and created without seams. I assumed this was "foam casting". I posted my memory as fact before I investigated. After a quick Google search, I found this to be true -- 15 years later.

posted 11-11-2004 11:18 PM ET (US)            

Local newspaper reacts to announcement of For-Sale at North Carolina Bombardier plant:

http://www.citizen-times.com/cache/article/regional/70592.shtml

The article quotes Bombardier spokesperson Pierre Pichette, vice president of communications and public affairs, as saying the sale announced Tuesday won't lead to immediate local layoffs, because the corporation intends to keep the plant open until a new owner takes over.

Wisconsin reaction to the announcment:

posted 11-12-2004 09:42 AM ET (US)            

-----
NOVEMBER 9, 2004

Bombardier Recreational Products Inc. (BRP) Announces
a Workforce Reduction

VALCOURT, QUEBEC--Bombardier Recreational Products Inc. (BRP) announces the restructuring of the company's operations, including a reduction of its workforce. Some 800 jobs will be eliminated, of which 600 are in Canada, 100 in the United States and another 100 outside of North America. With regards to the employees in Canada, 200 will be offered pre-retirement packages, 200 more will be laid off with a possibility of recall and 200 more will be laid off permanently.

This decision is necessitated by the rise of the Canadian dollar
compared to the U.S. dollar, the continuous increase of commodity
prices, including the cost of oil.

Furthermore, BRP also announced that its plants located in Delavan,
Wisconsin and Spruce Pine, North Carolina, both manufacturers of
outboard motor components, are for sale. BRP is looking for potential
strategic buyers who will keep the plants operational and commit to
maintaining a supplier relationship with the company.

"The goal is to concentrate our activities on our core competencies,
which are design and engineering, final assembly and the relationship
with the market," said Jose Boisjoli, BRP's President and Chief
Executive Officer. "Considering the external pressures, especially with
a Canadian dollar becoming increasingly stronger, we needed to take
measures accordingly," concluded Boisjoli.

Valcourt and Sturtevant will remain the company's two main manufacturing
sites in North America. BRP's other manufacturing sites are in Ciudad
Juarez (Mexico), Rovaniemi (Finland), Gunskirchen (Austria) and Dong
Guan (China).

posted 11-12-2004 05:18 PM ET (US)         

We have to remember that the press release covers their entire business, much of which is PWC and Sea Doo boats and snowmobiles. We all know that PWC sales are in a bad decline, and Honda has now entered that market too. Reading between the lines, and with sale of manufacturing assets in the States, both of which relate to only Evinrude/Johnson, I am still concerned about the future of that portion of their operation. If Mercury had their block manufacturing facility for their premium product, Verado, up for sale, I'd also be concerned. Notably, BRP is not selling their Rotax manufacturing operation, just the E/J facilties.

As the Johnson 2-strokes are forced out of production next summer, what will Johnson become? Only a shell name for white painted, tarriffed, Suzukis? No big profits there, that's for sure. Or will they begin selling E-tecs under the Johnson brand also? (I just learned that Mercury is taking the 75 & 90 2-strokes out of production soon, and all orders for these have to placed by dealers by Nov 16th.)

The E/J products are facing a juggernaut of well financed competition. Honda and Suzuki are automotive powerhouses, with endless capital resources and great products. Relative to them, Mercury and Yamaha are less powerful, but still worthy competitors, and Mercury controls all these boat companies/transom deals, plus has the most advanced 4-stroke engine. Yamaha also controls a lot of transoms. BRP is currently dedicated only to DFI technology, which as great as it may be, is up against EFI/Supercharged 4-stroke technology of the Big Four. Four-strokes are getting to be highly popular in the overall boating market, already with 50% of the market, even while lower cost conventional 2-strokes are still being offered. Mercury, in particular, and Yamaha to a lesser degree, are now in the position of selling DFI as their "economy priced" line in 2006, which means by definition that Evinrude will be forced to sell E-Tec as an economy priced line also. There is no way an E-tec is going to be able to command the price of a Verado. And it's not that the Optimax and HPDI's are not excellent, reliable engines, and tough competition by themselves. Nobody outside of California really cares about 2 stars vs 3 stars.

posted 11-12-2004 11:13 PM ET (US)            

http://biz.yahoo.com/ibd/041111/newamer_1.html

http://finance.yahoo.com/q?s=BC&quicken=1

Brunswick was up 3-percent, hitting $49.81 on Friday's close, a new five-year high.

posted 11-14-2004 03:14 PM ET (US)            

I am thinking about an earlier post you made. Made me think that BRP might be doing what GM did in the early 90's when they spun off Inland, Delco Moraine and a host of other supplier companies and made them "Delphi". This is a move to become a horozintal company vs a verticle company. You control your costs as you make your supply companies (for components) compete for price and quality. This has its good and bad side. Old George S. took OMC to its grave by trying to build first world products with third world components. As the late Dr Demming said, (aparaphrase) "you can not inspect quality "in" on the shipping dock! Its too late by that time!"

As for "Spruce Pines" I am sure it was built with tax rebate money. Remember that was the time many companies moved or expanded south due to tax laws. Since the plant is 30 years old, and was set up originally to build products that BRP doesn't make I am guessing the tax pardons are over and ecnomic reality is kicking in.

Thing that puzzles me is why BRP went to Wiss. instead going to Ontario!. Would look on the surface that the money exchange factor would been a great benifit!

Just a thought!

posted 11-14-2004 03:18 PM ET (US)            

The closing of these plants couldn't come in the worst of times now that the US dollar is declining in value against the other currencies, makes US goods and those made under CAFTA more appealing to us the latin american consumers.

More sales down here of american made goods improves the economy up there in turn you drink more coffee, eat more desserts, buy more packaged goods, perhaps even more computers and chips that we manufacture in Costa Rica and we on the other hand buy american made goods such as E-TEC's and Boston Whalers as we have more disposable income.

Perhaps this is a simplistic way of seeing things and cost accounting always points the finger at where the money is going, however, Mexico is still very close to North America and they could still produce sub assemblies and still all the content of the goods would be of american content. More disposable income for workers there more imports from american made goods.