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Author Topic:   BRP sells EMM division to Orbital
seahorse posted 11-11-2005 06:43 PM ET (US)   Profile for seahorse   Send Email to seahorse  
[PRESS RELEASE]

PERTH, Australia, Nov. 10 /PRNewswire-FirstCall/ --

Orbital Corporation Limited today announced that Synerject, its 50:50 joint venture with Siemens VDO Automotive Corporation, has signed a letter of intent with BRP US Inc. for the purchase of BRP's engine management modules facility in Delavan, Wisconsin, USA. It is expected that the transaction, which comprises the investment in working capital assets, should be finalised by 31st January 2006.

BRP US Inc. is a wholly-owned subsidiary of Bombardier Recreational Products Inc. (BRP), a privately-held company and a world leader in the design, development, manufacturing, distribution and marketing of motorised recreational vehicles. Its portfolio of brands and products includes: Ski-Doo® and Lynx™ snowmobiles, Sea-Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E-TEC™, Bombardier* ATV all-terrain vehicles, Rotax® engines and karts.

The facility to be acquired manufactures fuel injectors and engine management modules for Evinrude® and Johnson® outboard engines. As part of the transaction, Synerject will continue to supply BRP's Johnson and Evinrude division through long-term supply contracts.

The acquisition will generate a minimum annualised increase in Synerject's turnover of US$15m with significant, identified growth prospects for the future. The facility will be profitable from the date of acquisition and over the medium term is expected to achieve profit margins consistent with those of Synerject's current business. The transaction is a milestone in the implementation of Synerject's strategic growth plan and presents Synerject with a significant diversification opportunity, allowing it to increase both its product offerings and skill base.

Orbital's Chief Executive Officer, Rod Houston said "Clearly this transaction is significant for Synerject and will complement its existing business. From Orbital's perspective, it is a major step in consolidating the turnaround of our business and shareholders will benefit from increased value created in a growing Synerject."

Synerject, headquartered in Newport News, Virginia with additional offices in France was formed in 1997 as a joint venture between Orbital Corporation Limited and Siemens VDO Automotive Corporation. Synerject supplies engine management systems, modules and components for the marine, recreational, motorcycle and industrial markets.

More information on Synerject can be found at http://www.synerject.com

Orbital is an international developer of engine and related technologies, providing research, design and development services for the world's producers of powertrains and engine management systems for application in motorcycles, marine and recreational vehicles, automobiles and trucks. Orbital's principal operations in Perth, Western Australia, provide a world class facility with capabilities in design, manufacturing, development and testing of engines and powertrains unparalleled in the Asia Pacific region. Orbital provides its customers with leading edge, world class, engineering expertise. Headquartered in Perth, Western Australia, Orbital stock is traded on the Australian Stock Exchange (OEC) and, in the United States, on the OTC Bulletin Board (OBTLY).

kingbuster posted 11-11-2005 06:55 PM ET (US)     Profile for kingbuster  Send Email to kingbuster     
I wonder why BRP would sell its EMM manufacting business?
LHG posted 11-11-2005 07:20 PM ET (US)     Profile for LHG    
Were these fuel injectors and EMM's previously part of the old OMC manufacturing operation? Or was this simply an old OMC sub-contractor, brought in by BRP, and now being sold off again?

Am I mistaken, or have most of the E-TEC problems being reported here been related to EMM's. It seems we have heard about a bunch of those replacements as the source of the problems. Maybe Orbital will be able to improve quality or design?

Is this a good omen, a bad omen, or no omen for BRP?

onlyawhaler posted 11-11-2005 07:59 PM ET (US)     Profile for onlyawhaler  Send Email to onlyawhaler     
They also announced that they are moving their ATV manfacturing into Mexico. Probable loss of jobs in Quebec

Onlyawhaler

Roarque posted 11-11-2005 08:10 PM ET (US)     Profile for Roarque  Send Email to Roarque     
BRP may have discovered that the expertise needed to be an industry leader in engine management systems lies not within their own company's subsidiary in Delavan. When someone else wanted to buy the subsidiary, they decided to sell while it still had value.

They may want the freedom to subcontract those components to other vendors, vendors who have the right expertise.

GM, Ford and Toyota don't make their engine management systems, people like Motorola and Intel do.

Heck even in the computer biz IBM, HP and Dell don't make the brains inside their PCs, Intel does. There was a time when IBM and HP both tried to make their own microprocessors but they couldn't beat the Intel chips.

jimh posted 11-11-2005 09:02 PM ET (US)     Profile for jimh  Send Email to jimh     
I do not recall any instance in which an E-TEC owner reported he had to have the EMM replaced in his engine.

Has there been a single instance of this?

Much more interesting than that conjecture is the purchase of the Bombardier fuel injector manufacturing facility by ORBITAL. Orbital is also the patent holder of the direct-injection system used in the Mercury OptiMax and Tohatsu TDLI engines. This purchase brings to Orbital another significant direct-injection technology. There has to be another shoe that will drop on this note.

jimh posted 11-11-2005 09:33 PM ET (US)     Profile for jimh  Send Email to jimh     
I believe the facility in Delevan, Wisconsin, was part of OMC manufacturing.

It sounds like Bombardier is intent on reducing their U.S.A. manufacturing operation to a single facility in Sturtevant, Wisconsin. Recall that earlier they sold off their advanced lost-foam casting plant in Spruce Pines, North Carolina.

jimh posted 11-11-2005 09:39 PM ET (US)     Profile for jimh  Send Email to jimh     
It is not clear to me if the facility which has been sold is the facility which manufactures the E-TEC injector. The Delevan plant may be manufacturing the injector used in the older Ficht or RAM Direct Injection Evinrude engines.
jimh posted 11-11-2005 09:53 PM ET (US)     Profile for jimh  Send Email to jimh     
For a brief history of Synerject, see:

http://www.synerject.com/history.html

Notable is this benchmark:

"2000--Launched two new customers in the marine and recreation market, Bombardier Recreational Products and Tohatsu."

Apparently Synerject and Bombardier have had a supplier/customer relationship in the past five years.

fourdfish posted 11-12-2005 11:22 AM ET (US)     Profile for fourdfish  Send Email to fourdfish     
I believe that one of BRP's weaknesses is in the computer hardware and software area. I think this is one way for BRP to get a major player in this area to work on both the E-TEC and their other engine computers to improve engine performance. A good move! As was said before the major auto companies do the same.
jimh posted 11-12-2005 11:15 PM ET (US)     Profile for jimh  Send Email to jimh     
In the case of Mercury, their computer engine control development seems headed in the other direction. Their computerized engine controllers were developed by a small specialty company. Brunswick ended up buying the company and making it part of Brunswick New Technology.
jimh posted 11-13-2005 09:29 AM ET (US)     Profile for jimh  Send Email to jimh     
The relationship between Bombardier and Orbital/Synerject goes back a few years. Below are some comments about the application of the Orbital Combustion Process (OCP™) technology in Bombardier products:


Cf.: http://www.orbeng.com.au/orbital/directinjection/csbpr.htm

---------
"Bombardier, the world's leading personal watercraft (PWC) manufacturer, launched its Sea-Doo™ GTX™ DI and Sea-Doo™ RX DI models in 2000. These were the first personal watercrafts to employ Orbital OCP™ technology, leading the way to cleaner waterways and better fuel efficiency. This was followed by further Orbital DI models including a range of sports boats some of which employed OptiMax™ engines from Mercury Marine.

Sea-Doo™ engines, when equipped with OCP technology, operate up to 70% cleaner and provide at least 30% improvement in fuel efficiency over traditional carburetted 2-strokes. Sea-Doo™ watercrafts include a number of value-added features made possible by Orbital's smart usage of electronics and software. One example is the exclusive "Learning Key", a specially encoded lanyard key which restricts vehicle speed for beginners and other less experienced riders. Another innovation on the Sea-Doo™ is the detonation sensor, where Orbital software protects the engine from damage if, for example, incorrect fuel is used.

The Sea-Doo™ DI range has won several industry awards including Watercraft World's "Watercraft of the Year" for 2000.

SEA-DOO™ and RX™ are trademarks of Bombardier Inc. and/or affiliates
GTX™ is a registered trademark of Castrol Ltd. Used under license to Bombardier Inc
----------

jimh posted 11-14-2005 08:50 PM ET (US)     Profile for jimh  Send Email to jimh     
MORE NEWS ON BRP SALE OF DELAVAN
by Jim Hebert
CONTINUOUSWAVE.COM

It seemed to come as a surprise, but the announcement of the sale of Bombardier's facility in Delavan, Wisconsin, to Synerject was foreshadowed one year in advance. On November 10, 2004 the intention to sell the Delavan plant was announced by Bombardier in Quebec. To the very same day a year later, word came that the plant in east-central Wisconsin which manufactures the fuel injectors and electronic engine controllers for Evinrude and Johnson outboard motors was sold. The announcement came in the form of a press release from Australia's ORBITAL. The actual buyer will be Synerject, a U.S.-based 50:50 joint venture between Orbital and Siemens VDO Automotive.

Synerject is the non-vehicle marketing and manufacturing arm for Siemens VDO fuel injectors and the Orbtial Combustion Process (OCP) controls. The firm is the supplier of the air-assisted direct injection hardware used in the Mercury OptiMax two-stroke outboards. It will now take over the manufacture of Bombardier's E-TEC fuel injectors. However, BRP will retain the intellectual property rights to their patented designs.

Rod Houston, CEO of Synerject, explained the rationale behind the purchase. The Delavan plant, he said, "is complementary to Synerject's core business of manufacturing and supplying engine management modules for the non-automotive market." He expects the acquisition to "bring a significant increase in revenue and make a material contribution to Synerject's growth."

When asked about the E-TEC fuel injector, he made clear that "the transaction involves only assets relating to the manufacture of the fuel injectors and engine management modules. There'll be no transfer of intellectual property rights for E-TEC to Synerject. Synerject continues to have the exclusive rights to the OCP system and this continues to be a key focus of Synerject."

It is expected that long-term contracts will assure BRP of a steady supply of the E-TEC injectors, a prime component of their new line of outboard motors. Sales of E-TEC engines are showing strong growth. Roche Lambert recently sent very enthusiastic notices to the Bombardier outboard dealer network highlighting impressive sales figures and growth figures over 200-percent from a year ago.

Synerject foresees strong growth in their non-vehicular markets, particular in components and controllers for motorcycles, which are expected to show very strong sales growth in developing Asia markets like China and India.

The sale makes strange bedfellows of Mercury and Evinrude. The prime components of their two-stroke engine fuel injection systems will now be manufactured by a common supplier, although using completely different technologies.

For the approximately 60 employees at the Delavan plant, the notice of a buyer is probably very welcome after a year of suspense.

jimh posted 11-14-2005 08:58 PM ET (US)     Profile for jimh  Send Email to jimh     
The November 2004 announcement also put Bombardier's Spruce Pines, North Carolina, lost foam casting plant up for sale. I do not believe a buyer has been announced for that facility to date.
LHG posted 11-14-2005 09:04 PM ET (US)     Profile for LHG    
Here are a couple of other wild guesses on the subject:

1. BRP needed to raise some capital, while at the same time avoiding having to pump more money into this venture to remain high tech. Siemens would have the resources to do so.

2. Synerject needed a new customer, as the rumors continue that Mercury is great cutting back on Optimax production as their 4 stroke lines take over sales.

Somewhere I read that Mercury's EMM's are made by Motorola, but not sure my memory is serving correctly?

jimh posted 11-14-2005 10:34 PM ET (US)     Profile for jimh  Send Email to jimh     
Brunswick New Technologies (BNT) unit MOTOTRON manufactures the Mercury engine control units themselves using the Motorola MPC555 micro-controller as a base. BNT was formed out of a number of Brunswick divisions and acquisitions. They apparently are also trying to offer their services to other customers besides Mercury.

Interesting browsing at:

http://www.mototron.com/

For details of the hardware controllers, see:

http://www.mototron.com/products/hardware.asp?sub=4

---

I don't think the sale has anything to do with raising capital. It is clear that Bombardier wants to trim their manufacturing operation to a core nucleus of assembly operations. This is exactly the same lean manufacturing model that the automotive companies would like to implement (if they could). The design, assembly, and marketing of the outboard motor (auto) is done by Bombardier (the auto companies), and they employ sub-manufacturers to produce certain components.

When you buy a new car these days the door was probably made as an entire assembly by a sub-manufacturer who installed the power windows, the door locks, the remote controls. The sub-manufacturer even paints the door and installs the upholstery. The finished assembly gets loaded on a special trailer in the precise order it will be needed on the assembly line, and it is trucked to the auto assembly plant just in time for delivery. The doors come off the truck in order and onto the assembly line. The entire door is purchased as a "assembly" and bolted onto the car.

Having the engine controller made for your outboard motor is just the same sort of thing, particularly if your main business is engine manufacturing and not micro-electronic controls.

I do agree there is probably some other shoe about to drop in this deal involving the licensing and sale of Orbital Combustion Process devices to Mercury for OptiMax motors. However, for Synerject to buy another manufacturing facility does not seem consistent with a reduction in demand for OCP. It might just be that the price was right for both parties. Bombardier wanted to sell to someone who would take over the operation and sell back to them plenty of injectors and controllers.

Bombardier can get a bit leaner and shed a separate facility with about 60 employees. Synerject can get a plant with a product that has a long term customer deal as part of the purchase.

The days of manufacturing like Henry Ford's Rouge Plant are waning. Back then, freighters hauled in iron ore and sand at one end, which were processed into steel and glass, and cars rolled out the far end of the plant, a mile or two away. Auto plants these days are fed with hundreds of trucks each day delivering just-in-time finished assemblies.

Backfire posted 11-14-2005 11:16 PM ET (US)     Profile for Backfire  Send Email to Backfire     
In keeping with BRP's stated objectives of engineering, product development, and assembly, they would rather sell the manufacturing facilities and purchase the products on long term contracts. They want to take the sub-assemblies and do final assembly.This would include lower units, engine blocks, electrical engine management modules and now injectors. They designed, tooled and manufactured the voice coil type injectors for over two years. Now that volume will be 8 times last years volume it is being spun off. They know what it takes to make a well made part and will expect no less from the the contractor.
Wild quesses such as needing to raise funds is just that. The only thing that needs to be raised is production to keep pace with E-TEC worldwide demand. Merc has a costly 4 stroke venture going, but disapointed at the rate of sales. It seems the Merc China plant will make everything above 25 and below Verado and Tanaka will make 25hp and down. Fond Du Lac, the question is how long will mfg stay there?
Backfire
seahorse posted 11-15-2005 12:14 AM ET (US)     Profile for seahorse  Send Email to seahorse     
For all the industry news "junkies" out there, here is an interview with the CEO and CFO of Synerjet by the Austrailian news service concerning the upcoming purchase of BRP's EMM facility.
jimh posted 11-15-2005 12:25 AM ET (US)     Profile for jimh  Send Email to jimh     
It will be interesting to hear from Bombardier on this. No press release so far.
LHG posted 11-15-2005 03:14 PM ET (US)     Profile for LHG    
Backfire - Since you seem to have some inside information, who is manufacturing Evinrude's gear cases and engine blocks? Having seen photos of their building in Sturtevant, I did wonder if there were block casting operations there.

Are they planning on becoming a "box" manufacturer of outboards. Sometimes quality control over outsourced components can become a problem.

whalersailer posted 11-15-2005 03:28 PM ET (US)     Profile for whalersailer  Send Email to whalersailer     
Jim H,

To answer your question: "Has there been a single instance of this?" [EMM failure/replacement in an E-Tec outboard]

Yes, the EMM in my 2005 E-Tec 90 had to be replaced within the first 10 hours of use.

-WS

Steve Leone posted 11-15-2005 08:44 PM ET (US)     Profile for Steve Leone  Send Email to Steve Leone     
What were the symtoms of the EMM failure and please explain what happened (or did`nt). Thanks, Steve
Dick posted 11-15-2005 09:37 PM ET (US)     Profile for Dick  Send Email to Dick     
From what I see I give Evinrude & Johnson a year at the most befor they go [vulgar expression for death in abbreviation form]. If they don't I will not only be surprised but will apologize for my comment.
jimh posted 11-15-2005 10:27 PM ET (US)     Profile for jimh  Send Email to jimh     
Dick--you might want to mention any professional relationship you have with direct competitors of Bombardier. A business relationship with other outboard manufacturers would be something one ought to disclose before predicting the failure of a particular firm. I am sure readers will be able to weigh your judgements when they are fully informed.
jimh posted 11-15-2005 10:59 PM ET (US)     Profile for jimh  Send Email to jimh     
whalersailor--Thanks for you input. We now know of one case of a failure of a EMM in an E-TEC. If you had mentioned this before, I did not recall it.

My recollection is that most of the problems being reported here with E-TEC engines did not particularly correlate to any one component or device. On the basis of what I recall having been mentioned, I do not perceive any particular trend occurring. My recollection is that most complaints have been related to problems in the engine's performance in transition between stratified charge mode at low RPM and full combustion mode at higher RPM. Often a change in firmware in the EMM has been applied to correct these complaints. Outright component failure of the EMM has been, again to the best of my recollection, virtually unmentioned.

Is you assessment in agreement with LHG's that "have most of the E-TEC problems being reported here been related to EMM's"

I do differentiate between hardware problems with the EMM such as you report and complaints about the general engine performance related to software or fuel maps programmed into the engine controller's memory. In the sense that the entire engine is run by the EMM, if you allow the EMM to be blamed for the software it contains, then you can blame ALL problems on the EMM, because it runs the entire engine. The problems which could then be considered to not be "related EMM's" would be mechanical break downs like the drive shaft breaking in two. By the way, I do not recall any mentions of those type problems either. I think of the EMM and the software it contains as two different components.

The E-TEC has been on the market since Spring of 2003, a period of over two years. If the EMM had been experiencing continual component failure, I think it would be more apparent by now. Therefore, I do not agree with the notion that "most of the E-TEC problems being reported here [have] been related to EMM's."

One correspondent has told me that the warranty repair rate on the E-TEC engine has been less than 5-percent. This is about the same level of manufacturing quality as high-end automobile makers like BMW and Mercedes achieve. I think Bombardier is happy with the engine quality. Their current problems seem more related to fulfilling back orders due to high demand.

whalersailer posted 11-16-2005 02:27 PM ET (US)     Profile for whalersailer  Send Email to whalersailer     
Steve,

All the sordid details are in this thread:

http://continuouswave.com/ubb/Forum4/HTML/003615.html

The engine has another 50 flawless hours on it since the last update in that thread.

Now that it is operating as designed, I am very happy with the engine and wouldn't hesitate to buy another one.


-WS

LHG posted 11-16-2005 03:15 PM ET (US)     Profile for LHG    
JimH - I was considering the EMM and the software it contains all as an EMM problem. Makes sense to me, but maybe not to people in the business. A wrongly programmed chip is still a bad chip to me.

It seems that "ratherwhalering", "Stevedallas" and "Timo" all had EMM sofware programming problems also. And two of these guys had defective fuel injector problems/replacements, the other product made by this operation. Then there was "crabbys" two complete powerhead replacements. Could that be an EMM or fuel injector related problem?

Maybe BRP needed some fresh blood in this operation from Siemens

Steve Leone posted 11-16-2005 06:24 PM ET (US)     Profile for Steve Leone  Send Email to Steve Leone     
Walersailor, thank you very much for the usable information. I have installed a number of Etec packages, singles and twins. As stated, there is a long wait (up to two months) for these outboards. They are quite popular and I do not se them fading anytime soon. Especially considering the weight factor compared to an equivalent 4 stroke technology. I am not a dealer nor do I hold any stock in the company. Just a curious mechanic with a need to feed. I dissed them at first, calling them "Plast-Etec" because of the plastic shrouding. It`s still pretty close to call, but my customers have been satisfied to date with only a few minor glitches. Steve
jimh posted 11-16-2005 06:38 PM ET (US)     Profile for jimh  Send Email to jimh     
Re the processor as hardware versus the software it executes:

These are totally different areas. The assemby of the EMM component and its reliability is totally distinct from the software that runs it.

Boaters are going to have to come around to the notion that a modern engine is controlled by software, and that if an update is issued to that software you cannot try to associate that process with a component faillure.

If an motor sticks a piston rod through the side of a cylinder wall, that is a component failure.

If a dealer plugs your engine into a cable and uploads some revised software, that is not a component failure, its an update!

Actually, I take it as a good sign that Bombardier is supplying updated software to customers in the field. As problems are discovered they seem to be diligent in fixing them and providing updates. The beautiful part of the E-TEC is that so much of the engine is contained in its software. This makes it much easier to implement fixes and improvements than it does to tear off a power head and put a new one on. Replacing power heads under warranty is a very expensive way to do field upgrades. Uploading software into the EMM is a less expensive way. I think the customer likes it that way, too.

Dick posted 11-16-2005 08:17 PM ET (US)     Profile for Dick  Send Email to Dick     
jimh

That was a stupid post. I don't think that it was called for.

I have NO relationship with any outboard motor manufacturer. Where I work we don't sell them only fix them.
I happen to be a Mercury fan but have been a dealer for Mercury, Evinrude, Johnson and Force.

I don't hate J & E they built many great engines, and I have owned some. The new models may be great as well but with the hill they have to climb to get a profitable market share I think that it is a very slippery slope.

I was expressing my opinion as others on the forum do and you sure don't have a problem doing it. Problem is there is no one out there to slap your fingers.

jimh posted 11-16-2005 08:39 PM ET (US)     Profile for jimh  Send Email to jimh     
Not stupid at all, Dick, just keeping the appearances proper. You've made your relationship clear regaring Bombardier; you don't work for a marine business that sells them. I am more concerned about relationships with other engine companies. Does the marine business where you work sell other brands of engines? Being clear about this lets people understand your comments. Your are welcome to make all the comments you like.

I'd like you to elaborate on exactly what it is you "see" that makes you believe that Bombardier will be out of the outboard business in a year or less. You must be seeing something that many others are missing. Please let us know what it is.

Dick posted 11-16-2005 08:38 PM ET (US)     Profile for Dick  Send Email to Dick     
I still don't believe that your response to my earlier post was justified.
jimh posted 11-16-2005 08:48 PM ET (US)     Profile for jimh  Send Email to jimh     
Dick--I will communicate via email with you to explain more fully my concerns regarding the necessity to disclose business relationships with companies when making comments about them. See you in email.
Dick posted 11-16-2005 08:51 PM ET (US)     Profile for Dick  Send Email to Dick     
jimh

I have been in the marine business since 1965. I am going on a gut feeleing.

If you had read my earlier posts you would see that we sell no outboards. Since you are asking questions answered earlier I see no need to elaborate.

LHG posted 11-16-2005 09:12 PM ET (US)     Profile for LHG    
I think we need to be applying some of these same standards to Peter here (and probably some others too), who many have noticed and complained about, continually trashing the new ownership at Boston Whaler and their integrity and products, Mercury outboards, particularly Verado, and hawks Evinrude continuously. There are a variety of boating business interests lurking around here, not disclosed.

No one knows this person, there is no location, no photos, and no profile, and a freebee, non traceable e-mail address is used. That's really called not knowing where someone, and their motives and comments, are coming from.

Me, well everybody can see what an old fashioned loyal Merc fan I am, scattered around the picture pages of CW. So when I say it seems like the Evinrude EMM/software has had some problems, you readers know where I'm coming from and can dismiss it as worthless trash if you care to. And when I say Verado engines could work on Classic Whalers, that too can be dismissed as worthless, biased, prejudice.

Chuck Tribolet posted 11-16-2005 10:04 PM ET (US)     Profile for Chuck Tribolet  Send Email to Chuck Tribolet     
Firmware updates may fix serious problems. They may fix
really minor problems (like spelling errors in messages). Or
anywhere in between. And they may add new function.

I've done at least a couple of dozen firmware upgrades to my
various Garmin GPSs. ONE fixed a bug I'd seen (declination
was being applied twice in some cases). It was a fix to the
original firmware for the GPS, and came out in short order.

Fixes to EMM firmware my just be minor tweaks (more dyno
testing says they were too conservative under some transient,
circunstances, and they can get a couple more horsepower there.
It may be collecing more data about some occasional problem.
Or detecting the early signs of failure of some HW component.

Do separate the HW and SW reliability of the EMM. They are
entirely separate issues.


Chuck

jimh posted 11-16-2005 10:06 PM ET (US)     Profile for jimh  Send Email to jimh     
The need for disclosure ought to be clear to all when someone makes a statement that could be very detrimental to another person or business. It just happened that I knew Dick was in the marine business, and I thought he sold engines, too.

I think there is a big difference between citing published specifications and issuing predictions about certain vendors going out of business. I do not recall anyone else who has issued such a negative prediction about a marine business.

As far as I am concerned, it's a long leap from pointing out that a Verado weighs more than another engine to suggesting that Bombardier will go under. I do not find the two to be equivalent at all.

If someone posts inflammatory predictions about the future of Mercury's outboard business, they will be held to the same standard.

As Dick has provided no basis for his remarks other than his gut feeling, and has publicly disclaimed any affiliation or business relationship with any outboard motor company other than he works at a repair facility that services many brands, I think people will be able to make a clear evaluation of his opinion. And he is welcome to express it, as he often does.

Tom W Clark posted 11-16-2005 10:19 PM ET (US)     Profile for Tom W Clark  Send Email to Tom W Clark     
Larry,

Do you own stock in any company that manufacturers outboard motors?

jimh posted 11-16-2005 11:07 PM ET (US)     Profile for jimh  Send Email to jimh     
Just to go on a bit about the concept of updating an engine's control module with new software, I find that the E-TEC appears to be very well designed for this. Dealers can connect to the E-TEC engine management module (EMM) using a generic laptop computer and a serial data cable. The engine provides a diagnostic port for making the connection. The dealers can upload software to the engine, as well as download data from the engine. They can then email this data to engineers at Bombardier.

This facility just requires the dealer to have a basic laptop computer and a cable. The cost for this hardware is about $1,000 typically, and the computer can be used as a general purpose computer when not connected to the engine.

The simple tools required and the low cost of their acquisition may be part of the reason that the E-TEC engine is so often reported as being updated in the field by dealers. Rather than being alarmed by this, again I find this to be quite a positive thing. If I have an E-TEC I can be reasonably assured that just about any dealer I walk into will have the diagnostic equipment available to connect to my engine. And if there is newer software available the dealer can upload it for me.

You can accuse me of trying to put a spin on this, but to my way of thinking I find that it is not troubling to hear that an owner of an E-TEC took the engine to his dealer and he updated the EMM software. I don't consider this a black mark against the E-TEC. I look at it as an example of how a modern engine works and how Bombardier has pulled their dealers forward into the twenty-first century of sophisticated electronic controls and management.

jimh posted 11-16-2005 11:09 PM ET (US)     Profile for jimh  Send Email to jimh     
Dick--Does your repair shop have the Mercury Digital Diagnostic Tool for working on VERADO engines?
Peter posted 11-16-2005 11:13 PM ET (US)     Profile for Peter  Send Email to Peter     
Sorry to disappoint you Larry but I have no direct affiliations with any boat or motor manufacturers. Just 35+ years as an enthusiast running and owning boats (sail and motor, the majority being classic Whalers) with all kinds of motors including outboards (Chrysler, Mercury, Evinrude, Johnson, British Seagull), I/Os (Mercs and OMCs) and inboards. Interestingly, I just discovered that I actually do have a financial interest in Brunswick stock indirectly through a mutual fund or two so I perhaps I should come over to the Dark Side. ;-)

Many folks have contacted me through my apparently unqualified freebee e-mail account over the years seeking advice or sharing information, including you a couple of years ago believe it or not. Not one person who has contacted me through my freebee e-mail account has ever expressed any concern whatsoever with respect to my freebee e-mail account. At least I do provide a freebee e-mail address in case someone wants to contact me for whatever reason through less public channels.

By the way, what is wrong with keeping a corporate entity honest, such as by publicly pointing out apparently biased test parameters in performance reports, in its dealings with consumers? Some boating consumers with less experience might not necessarily pick up on the apparent testing bias.

Complaining about hawking? That is funny.

Going back on topic here, I think this asset sale is typical for modern manufacturing companies. They make make/buy decisions all the time with respect to components. Components that they can make cheaper than anyone else they make and components they can buy from another cheaper than they can make they buy. It's usually that simple. This one happened to be a buy decision that involved an asset transfer. They are getting out of doing something that they think will be done more efficiently by someone else. I think it could be a win-win for BRP and Orbital if they struck a deal to enable Orbital to apply the E-TEC technology and sell injectors into the non-marine, non-recreational applications like those smokey 2-stroke scooters and small motorcycles used as primary personal transportation in Asian countries.


LHG posted 11-17-2005 12:29 AM ET (US)     Profile for LHG    
Tom - I don't have any interest in Brunswick at all, nor do I have any Mercury outboards for sale at the time. And recently, I've spent way too much money (more than it is worth) on an old 1988, but low hours, 150 (which also seems to be over-rated HP wise) trying to get it to run properly, which finally, it does! That's what you call misguided brand loyalty. It's the first used engine I've ever owned. I really do believe that carburetors (which I do not know how to work on) are a less than perfect way to get fuel into an outboard. I'm glad they are now a thing of the past on all new engines.

The reality of it is I need a good, more powerful, 4-stroke Verado on the boat, but that will have to wait now.

Tom W Clark posted 11-17-2005 12:43 AM ET (US)     Profile for Tom W Clark  Send Email to Tom W Clark     
Larry, that's interesting. So it seems it *is* entirely possible for someone to have strong feelings about one particular brand of outboard motor and to express their strong opinions without any ulterior motive.

It would then seem to make little sense, indeed might even be rude, to attack someone for doing so and trying to attribute to them some underlying profit driven motivation.

LHG posted 11-17-2005 01:09 AM ET (US)     Profile for LHG    
But in spite of the denials, does anybody want to tell me who he really is, what occupation, what business, etc? Nobody knows from what I can tell, including JimH. What does the word "direct" mean, or not mean? What are we hiding from?

You and I Tom, are certainly out in the open, as are almost all others here. But from some old boating literature that I have, I do have a guess.

Dick posted 11-17-2005 11:09 AM ET (US)     Profile for Dick  Send Email to Dick     
jimh

It looks like you are on a Dick bashing agenda.
What difference does it make if we have the diagnostic tools for the Verado? You don't have one and are to far away to have us service it anyway.

jbtaz posted 11-17-2005 11:48 AM ET (US)     Profile for jbtaz  Send Email to jbtaz     
I actually think that J & E are having problems due to having no new transoms to hang their engines on. Merc and Yammie have it all locked up. Also it's a 4 stroke world right now. It's what most of the public looks for these days. I also think it's actually ashame BRP has all but neglected their Johnson line. All energy is being poured in the Evinrude line. (I'm a Merc guy as alot of people know, but I have owned Johnsons in the past)
Dick posted 11-17-2005 12:23 PM ET (US)     Profile for Dick  Send Email to Dick     
I would like to see Johnson and Evinrude survive but they have a long slippery slope to climb to become profitable.
I don't understand why the E-Teck is not produced as a Johnson as well. In the past the only difference between a Johnson and an Evinrude was the color. A lot of people would rather have the Johnson name on their motor. Even that they were the same motors owning an Evinrude vs a Johnson was like owning a Mariner vs a Mercury.
jbtaz posted 11-17-2005 12:28 PM ET (US)     Profile for jbtaz  Send Email to jbtaz     
I agree. I would want a Johnson.
jimh posted 11-17-2005 12:57 PM ET (US)     Profile for jimh  Send Email to jimh     
Does anyone reading this work for a shop that has the Verado diagnostic tools?
JMARTIN posted 11-17-2005 01:43 PM ET (US)     Profile for JMARTIN  Send Email to JMARTIN     
Dick, I look at it differntly. Owning an Evinrude vs owning a Johnson is like owning a Mercury vs owning a Ford.
John
Dick posted 11-17-2005 02:19 PM ET (US)     Profile for Dick  Send Email to Dick     
John

That's why there are different brands even if some are identical under the hood.

LHG posted 11-17-2005 03:12 PM ET (US)     Profile for LHG    
This thread would not do well in the O'Reilly No-spin zone.
bsmotril posted 11-17-2005 04:25 PM ET (US)     Profile for bsmotril  Send Email to bsmotril     
Larry,
What I really want to know is; If you are such a Merc fan, why is there a picture on your photo sharing website of a Johnson logo'd beer coozie sitting on the dash of your Outrage? You're busted buddy...

BillS

JMARTIN posted 11-17-2005 05:14 PM ET (US)     Profile for JMARTIN  Send Email to JMARTIN     
So, if we have Evinrude vs Johnson being Mercury vs Ford, what is Mariner vs Mercury?

Nash vs Rambler

Hornet vs Gremlin

or maybe

Concord vs Matador

jimh posted 11-17-2005 08:04 PM ET (US)     Profile for jimh  Send Email to jimh     
Getting back to the sale of the Delavan plant, the topic of this discussion, I think this was a perfect outcome for Bombardier.

Bombardier had already indicated (a year ago) they wanted to sell the Delavan plant, and apparently it took a while for a suitable buyer to be found, for a bargain to be struck. This arrangement with Synerject looks very favorable for Bombardier. (Of course we don't know the financials of the deal, but we'll assume they are acceptable to all involved.)

The buyer they have found for the manufacturing facility has all of the proper credentials. Synerject is already in the precise business of manufacturing fuel injection components for engines. Partner Orbital is in the business of producing engine combustion process controls. Partner Siemons is a global tier-one supplier to the automotive industry. Is there a better company to take over this operation? These people are not liquidation specialists or bottom feeders looking for a quick buck.

Further adding to the arrangement, Bombardier and Synerject have already done business in a manufacturer-supplier relationship. (Bombardier has been using Orbital fuel injection in some of their personal water craft products.) This means that Bombardier has already been happy with the products delivered from Synerject, and they are probably confident in relying on them to supply an important component in their manufacturing operations.

If the management of Bombardier wanted to sell Delevan, I don't know if there is a better buyer for it.

sosmerc posted 11-17-2005 11:17 PM ET (US)     Profile for sosmerc  Send Email to sosmerc     
As an Orbital Engine Co. shareholder I find all this most interesting. Synerject will now be producing components for one of Orbitals chief competitors (Johnson/Evinrude).
More power to them as Orbital should see some dollars pass to their bottom line as Synerject builds and sells more components.
I bought my first OE shares years ago when they first came on the scene. It's been a very long, hard road to acceptance and there certainly has not been any pay dirt yet, but it does look like DFI technology is finally beginning to creep into other products besides a few outboards. Breaking into the automotive segment has proven to be an almost impossible nut to crack. I think we will see DFI as common as EFI on 4 strokes in the not too distant future.
DaveH posted 11-19-2005 12:36 PM ET (US)     Profile for DaveH  Send Email to DaveH     
Maybe you are all looking at this situtation the wrong way-maybe Siemens VDO came looking to Orbital ( or visa-versa) for a direct injection technology.

The automotive industry is just getting into direct injection for use on their automobiles (VW being the first to the plate). Yes, the boating industry was indeed ahead of the autos this time.

Since it definitely was a long arduous path before the technology became viable and trusted by the public. The automotive arena cannot afford to have the same problems as the outboards did; especially with the volume of units involved, a recall would be very expensive. So, maybe Orlbital, trying to a get a nut in the squirrel's automobile world, approached Siemens VDO by telling them they can provide a technology already proven in by x-amount of units installed and operating successfully. Maybe Siemens needed something to compete with Bosch Motoronic, the leader in the field.

Maybe this was technology outsourcing that BRP made a decent buck on for all the missionary work they did. A good thing? Maybe, just maybe....Seahorse, any comment?

seahorse posted 11-20-2005 06:01 PM ET (US)     Profile for seahorse  Send Email to seahorse     
Audi already has a direct injected motor in production.
DaveH posted 11-21-2005 08:55 AM ET (US)     Profile for DaveH  Send Email to DaveH     
Audi is part of Volkswagon's automotive group. They are the first to the production plate but everyone else is looking at the same technology. Is Siemens VDO buying the technology?
Peter posted 11-21-2005 09:55 AM ET (US)     Profile for Peter  Send Email to Peter     
I predict that 10 years from now DFI will be standard on most auto engines. Could be a huge opportunity for the JV, particularly if the E-TEC injector technology can be and is allowed to be applied to the automotive environment (see no reason why not).
jimh posted 03-07-2006 12:03 AM ET (US)     Profile for jimh  Send Email to jimh     
Update:

(PRESS RELEASE)

BRP Sells its Delavan Business

VALCOURT, QUEBEC--March 1, 2006 - BRP US Inc., a wholly-owned subsidiary of Bombardier Recreational Products Inc. (BRP), announced today the sale of its electronic components business in Delavan, WI. to Synerject LLC, a joint venture between Siemens VDO Automotive Corporation and Orbital Corporation Limited. The sale is part of BRP's three-year cost reduction plan.

"Synerject LLC's track record as a long-time BRP supplier, its expertise in electronic components and modules and its commitment to maintain current operations in Delavan were part of the strategic considerations which led to the conclusion of this transaction," said BRP President and CEO, Jose Boisjoli.

This facility, which manufactures electronic components for Evinrude® and Johnson® outboard engines, was established in 1996 and acquired by BRP in 2001 as part of the purchase of certain assets of Outboard Marine Corporation (OMC).

BRP is a world leader in design, development, manufacturing, distributing and marketing of Sea-Doo® watercraft and sport boats, Ski-Doo® and LynxTM snowmobiles, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E-TEC®, Bombardier(i) ATV all-terrain vehicles, Rotax® engines and karts.

hauptjm posted 03-07-2006 05:19 PM ET (US)     Profile for hauptjm    
Not that it really matters, but isn't this an interesting combination of companies/talents? Orbital is of Austrailian descent. Siemens is German. I think VDO is/was British. And the end user of their technology is a Canadian concern that sells most of its product in the U.S.
jimh posted 03-07-2006 06:20 PM ET (US)     Profile for jimh  Send Email to jimh     
I guess this business deal is a good example of the GLOBAL economy in action.

Apparently it took a bit longer to finalize the arrangements than forecasted.

rtk posted 03-07-2006 08:29 PM ET (US)     Profile for rtk  Send Email to rtk     
Sure is. Whatever BRP is doing, the end result looks to be an excellent product, with regard to the ETEC. If the deal puts BRP in a better financial condition, that will help with the continued success of a good engine.

Funny, Brunswick aquires an Australian electronics company and BRP sells to a company that has Australian roots.

There is alot of other countries buying American companies and setting up shop here, and American companies moving operations to other countries or aquiring foriegn companies.

The reasons for this is beyond my grasp, but I find it interesting. The GLOBAL economy, in my opinion, is helping to raise the quality of all marine engines. The product available just over the past couple of years, from all manufacturers, is great.

And the American companies are competing very well. They are producing excellent products at competitive prices.

Rich


mkjmarine posted 03-07-2006 08:57 PM ET (US)     Profile for mkjmarine  Send Email to mkjmarine     
Im a little confused...well, make that a lot confused.

Is this "joint venture" outsourcing or is it USA Corporates using etec technology in an effort to reclaim the markets Honda & Yamaha have taken?


Michael K

jimh posted 03-08-2006 09:18 AM ET (US)     Profile for jimh  Send Email to jimh     
Bombardier sold a factory. Someone bought it. The new buyer is going to continue to make the same products, and sell them back to Bombardier.
LHG posted 03-08-2006 12:46 PM ET (US)     Profile for LHG    
From the perspective of my limited business knowledge, but from what I often hear in the business news these days, BRP sold off this division for two reasons. The first, and most important, would be infuse new high-tech knowledge and resources into the design, development of their EMM product.
These firms have those resources and abilities, and the expense of keeping up with rapidly changing technology in this specialized field was probably beyond their resourses to operate profitably. Second, was to raise some capital, or to put same capital to better use in their other operations.

With engine blocks, gearcases, and electronics being divested and furnished by others, it puts BRP just a little closer to being a "boxmaker". If it works for computers, why not engines? Do they manufacture their own props in Sturtevant?

jimh posted 03-09-2006 01:58 PM ET (US)     Profile for jimh  Send Email to jimh     
I don't really see Bombardier as a "boxmaker"--although I am not at all sure what that term means. It sounds like a disparaging term, like a sort of a false front company that just buys a product from someone else and drops it into a fancy box. I really don't think of Bombardier at all in that way.

Bombardier comes from a background of designing and manufacturing commercial jet passenger aircraft. Products of this sort are the most complex devices ever built by man. If you can turn a old-time manufacturing company with a heritage of designing, manufacturing, and selling some of the most complex products ever built by man into a "box maker" just because they sold a small operation that made electronic modules for their products, where does that leave any manufacturing company these days? Far larger sub-assemblies are contracted out by automobile manufacturers. Is GM a boxmaker, too?

Throwing out a term like "boxmaker" makes me think of some sort of con artist that takes someone else's products and puts them in a fancy box, which is then sold for far more profit. Sorry, but I don't see that at Bombardier at all.

Bombardier already owns the technology for the E-TEC injector that is going to be made for them by the new owners, so if anyone is about to profit from a infusion of new technology, it will be the new owners. Bombardier purchased the intellectual property embodied in the the fuel-injection devices. Contrast this with Mercury:

Mercury buys their fuel injectors from this same company, and Mercury does not own any of the intellectual property. They have to pay licensing fees. If the term "boxmaker" is going to be applied, it seems more appropriate to Mercury than Bombardier.

hauptjm posted 03-09-2006 10:50 PM ET (US)     Profile for hauptjm    
Good old All-American made autos are only 30% made by the "manufacturer." The remaining 70% are farmed out to suppliers, both foreign and domestic.

Kind of like Rolls Royce using Borg-Warner transmissions and Frigidaire air-conditioning.

cbgann posted 03-10-2006 08:04 PM ET (US)     Profile for cbgann  Send Email to cbgann     
Just a thought: Perhaps BRP realizes that racing sells engines and is going to attempt to challenge Mercury "Offshore". A merger with Orbital could potentially infuse added technology and durability into the product line.
Even though occasional Yamaha and Evinrude engines have been there for the green flag, it is usually only Black power at the checkered.
Also, in the latest infomercial you can order your Evinrude in white to better contrast with the Mercs.
jimh posted 11-19-2006 12:54 PM ET (US)     Profile for jimh  Send Email to jimh     
I have always been very confused by the discussions which followed the initial announcement that Bombardier was selling a Wisconsin manufacturing plant which they had inherited from OMC five years earlier.

On November 15, 2006, a little over a year ago, Dick wrote:

quote:
From what I see I give Evinrude & Johnson a year at the most before they go [vulgar expression for death in abbreviation form]. If they don't I will not only be surprised but will apologize for my comment.

A year has passed and to the general good fortune of the many hundreds of their employees, their several thousand dealers, the many thousands and thousands of new E-TEC outboard owners, and the many hundreds of thousands of older OMC outboard owners, Bombardier is still in the recreational marine business, making new motors, supporting old motors, and operating from a manufacturing plant in Wisconsin.

XStech posted 11-19-2006 06:41 PM ET (US)     Profile for XStech  Send Email to XStech     
I hate to break this to you guys, but Bombardier dumped the E-tec/Evinrude line two years ago.

BRP is now owned by one of the original Skidoo families and an investment group.

""""BRP US Inc. is a wholly-owned subsidiary of Bombardier Recreational Products Inc. (BRP), a privately-held company and a world leader in the design, development, manufacturing, distribution and marketing of motorised recreational vehicles. Its portfolio of brands and products includes: Ski-Doo® and Lynx™ snowmobiles, Sea-Doo® watercraft and sport boats, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E-TEC™, Bombardier* ATV all-terrain vehicles, Rotax® engines and karts.""""

jimh posted 11-19-2006 08:16 PM ET (US)     Profile for jimh  Send Email to jimh     
I guess all I can do here is repeat myself:

I have always been very confused by the discussions which followed the initial announcement...

Tom W Clark posted 11-19-2006 08:22 PM ET (US)     Profile for Tom W Clark  Send Email to Tom W Clark     
XStech,

I hate to break it to you but Bombardier Recreational Products (BRP) was separated from Bombardier to raise cash. It was the crown jewel of Bombardier in terms of market value and Bombardier family members did not want it get absorbed by some conglomerate like Brunswick, so they bought it themselves.

This is not exactly news.

seahorse posted 11-19-2006 11:34 PM ET (US)     Profile for seahorse  Send Email to seahorse     
Here is a portion of Orbital's news release about their fiscal 2006 profits concerning their joint venture with Siemans that pruchased BRP's Delavan Wisconsin facility.


Orbital's share of profits with its joint venture with Siemens, Synerject LLC increased by 41 per cent to AUS$4.1 million. Synerject's revenue increased by 37 per cent to US$57.5 million mainly as a result of its acquisition of the former BRP facility in Delavan, Wisconsin, in March 2006. Synerject generated net cash during the year of US$1.6 million notwithstanding the Delavan investment and product development costs totalling approximately US$6 million.

fourdfish posted 11-20-2006 12:05 AM ET (US)     Profile for fourdfish  Send Email to fourdfish     
XStech-Just who were you trying to enlighten here. I guess you have not been reading the posts here as we have talked about that over and over again.
Are you a company rep on this forum??
jimh posted 11-20-2006 09:36 AM ET (US)     Profile for jimh  Send Email to jimh     
Let me see if I have this right: Orbital--who supplies Mercury with all of their OptiMax engine fuel system--was kept in business by the new revenue stream created by selling Evinrude the products made at Delevan? It sounds like Bombardier is a white knight. They came along just in time to save Mercury's most important supplier!
XStech posted 11-20-2006 12:54 PM ET (US)     Profile for XStech  Send Email to XStech     
"""Just who were you trying to enlighten here."""

All the people that still think Bombardier builds outboards.


"""Crown jewel of Bombardier""" I always thought that was Lear jets? Oh well, I've been wrong before. ;-)

alfa posted 11-20-2006 12:58 PM ET (US)     Profile for alfa  Send Email to alfa     
XStech,

Bombardier builds Lear Jets and railroad stuff.
They just won a great market in suburban Paris (France)

BRP has seedoo and e-tecs and is owned by family.

Yes not a simple history

fourdfish posted 11-20-2006 01:31 PM ET (US)     Profile for fourdfish  Send Email to fourdfish     
However, family still owns a big chunk of the big Bombardier
Corp as well as a big chunk of BRP.
Not sure what point XStech is trying to make here. Everyone here already knew about this subject since it has been discussed on several threads since it happened. He needs to read thru the threads. This is real old news!
Since he does not deny being company rep, we have to assume
that he is in fact trying to do some kind of spin here.
Mambo Minnow posted 11-20-2006 02:25 PM ET (US)     Profile for Mambo Minnow  Send Email to Mambo Minnow     
Stikes me as wholly consistent move with today's business strategy of outsourcing what your firm does not consider "core", particularly if someone can do it cheaper and better.

In the world of EMM and Info Tech (IT), you have to be extremely agile. Look at the rapid obsolescence (some say planned!) in GPS electronic products.

Also, with the rapid demand for four stroke tech, this niche DFI technology could rapidly become considered "market demand obsolete" and as someone posted earlier, BRP is "cashing out" while product still has value.

I really hope Brunswick and BRP do not abandon DFI two stroke technology in the coming years! You don't have to have a technologically superior product to win market share! Remember VHS vs. Betamax? Sony had a better VCR product technically. Some would also argue same on Apple Mac over IBM PC...


Peter posted 11-20-2006 02:50 PM ET (US)     Profile for Peter  Send Email to Peter     
What I think we will all see in the future is a mass adoption of DFI in the 2 and 4-stroke world including but not limited to outboard motors, lawn equipment, scooters, generators, etc. Already happening in the automotive market. The demand for DFI is only going to grow and Synerject is getting itself positioned to be in the right place at the right time.

Do not make the mistake of comparing 2-stroke v. 4-stroke to Betamax vs. VHS or Mac vs. IBM PC. Betamax failed because of network effects (certain movie makers decided it was better to release their movies on the lower quality but longer running VHS format rather than the higher quality but shorter running Betamax format). Same network effects apply to the PC market. There are no network effects in the 2-stroke v. 4-stroke battle -- they both use the same gasoline from the same pumps!

fourdfish posted 11-20-2006 03:40 PM ET (US)     Profile for fourdfish  Send Email to fourdfish     
Mambo-This is an old thread which was started over a year ago!
That division was sold over a year ago. In that time, BRP is turning a great profit and engines have been backordered.
In that time absolutely no evidence has come up that BRP
is cashing out--In fact just the opposite!
What evidence exists that these engines are becoming obsolete?? BRP is also still manufactureing and selling the Rotax engine.
Many NaySayers have also predicted the death of Apple Computer yet here I sit typing this on a MAC!
BetaMax might be gone but Apple is still here!
I have to agree with Peter, this technology is growing and at least one auto maufactureer uses it in thier cars.
Just because GM is getting rid of Delphi doesn't mean they are cashing out and going under!
XStech posted 11-20-2006 04:10 PM ET (US)     Profile for XStech  Send Email to XStech     
"""Not sure what point XStech is trying to make here. Everyone here already knew about this subject since it has been discussed on several threads since it happened. He needs to read thru the threads. This is real old news!
Since he does not deny being company rep, we have to assume
that he is in fact trying to do some kind of spin here."""

Heres what I read in the most recent posts.....

"""Bombardier comes from a background of designing and manufacturing commercial jet passenger aircraft. Products of this sort are the most complex devices ever built by man.""""

"""Bombardier is still in the recreational marine business"""

Just seemed to me some people were still confused. Sorry.

Company rep???? Do I represent a company on these boards? No, my opinions are my own. Do I work for a company. Yes.


jimh posted 11-20-2006 08:14 PM ET (US)     Profile for jimh  Send Email to jimh     
It is a simple thing to grasp:

Before Bombardier owned Evinrude they made jet aircraft, high speed trains, as well as other recreational products.

Before Brunswick owned Mercury they made bowling pins, bowling balls, and automatic pin spotters.

Now the current Bombardier Recreational Products company is separate from the Bombardier company that builds airplanes and trains, but the senior people--the sort of people who infuse a particular personality into a company--are the same. In fact they're from the founding family, the people that started Bombardier and grew it into a prime aircraft manufacturing company.

The senior people at Brunswick come and go. A few years ago Brunswick was led by an engineer, a guy with a Ph. D. in Engineering. He's gone. Now a lawyer from Kentucky runs Brunswick.

Bombardier Recreational Products is a closely held private company with strong family leadership.

There has been a really absurd effort by some people to characterize Bombardier in all sorts of derogatory ways. Let me give you a little summary just from this thread:

--Bombardier was supposed to be out of business by now, according to one wit.

--Bombardier was described as turning into a "box manufacturer" --a company that just buys engines from someone else and puts them in a box, I guess.

--Bombardier has chronic problems with their EMM units.

All of this sort of talk is absurd.

Bombardier is still in business. Not really a surprise to anyone. Prognosticators that saw it folding were really just mud slingers.

Bombardier a "box manufacturer''--where does this come from? Rotax, a Bombardier division just made their 6,000,000-th engine. A "box manufacturer" does not have global engine manufacturing that produces 6,000,0000 engines. As far as who buys engines from other people and puts them into a box, I can think of another Wisconsin company that does an awful lot of that.

Bombardier offers its customers easily access to software updates. This is supposed to be an example of chronic problems with engine computer control modules? Every Tuesday Microsoft releases about twenty new patches for their software. Bombardier releases one or two a year. Who's got problem with their software?

In other discussions I've seen people try to introduce fear, uncertainty, and doubt (FUD) about Bombardier and their products. Sorry, it has not worked. All you have to do is read the PERFORMANCE discussion to see how many people have bought E-TEC motors versus other options for re-powering a Boston Whaler.

Here's another funny one: Bombardier does not have financial backing. HELLO? Bombardier's backing partner, Bain Capital Management has gobs of money. They're just about to buy another company for $6-billion cash. That does not sound like there is any lack of capital behind Bombardier.

The great thing about CONTINUOUSWAVE is its audience. They're not a bunch of fools. And they're not easily fooled.

fourdfish posted 11-20-2006 08:55 PM ET (US)     Profile for fourdfish  Send Email to fourdfish     
WOW!!! A prepared mind for sure!!

Sorry Jim, but I don't think Dick will be back to apologize
for his comment like he said he would last year.

I think others here could learn from that lesson.

jimh posted 12-02-2007 10:02 AM ET (US)     Profile for jimh  Send Email to jimh     
On November 15, 2005, a little over a two years ago, Dick wrote:

quote:

From what I see I give Evinrude & Johnson a year at the most before they go [vulgar expression for death]. If they don't I will not only be surprised but will apologize for my comment.

We are now over one year beyond the predicted "death" of Evinrude and Johnson, and it seems as though Bombardier Recreational Products is still in business producing outboard motors.

I believe this has created a group of readers who are both surprised and apologetic, and have been in that state for at least one year.

L H G posted 12-02-2007 01:00 PM ET (US)     Profile for L H G    
Jim - Perhaps Dick is half correct. From what I can tell, BRP has effectively put Johnson out of business. They are now a non-event in the new outboard business, and in this extremly tough marine boat/engine selling environment.

Evinrude appears to have good product and doing OK, but not great. I do not see them doing particularly well against Mercury, Yamaha, Honda and Suzuki. Perhpas the new 250HO will help them in the bass/performance category, where Merc and Yamaha have been tough DFI competition.

Having just returned from two separate trips to South FL, both the east and west coasts, an area generally regarded as the outboard capital of the world, I saw precious few Evinrudes, except for a few on the Broward County Sheriff boats, a deal worked out by Intrepid boat company.

Black engines, including Suzuki, are everywhere in large numbers, including LOTS of brand new 300 Verados on high end boats in trips and quads. Over the last two years, Merc, Yamaha and Suzuki have done well in the high 275/300 HP ranges, where Honda and Evinrude, have had no offering. This could be a factor. The Verado appears to be a huge seller in Florida, including law enforcement boats and USCG. Looking out my windows on the ICW, I see a constant parade of Verados going by, and on the boat lifts between Miami and Palm Beach.

JayR posted 12-02-2007 02:50 PM ET (US)     Profile for JayR  Send Email to JayR     
Oddly enough, their site is still operational.
http://www.johnson.com/en-US/Index.htm

I guess they must still be in business after all. :rolleyes:

Some things never change. Still putting the "FUD" factor to use in almost every post huh?

fourdfish posted 12-02-2007 04:57 PM ET (US)     Profile for fourdfish  Send Email to fourdfish     
You have to wonder about LHG's concern about the phased out Johnson Brand. Does he really care or is it another attempt to bash BRP. However, It really makes sense since they are only concerned about produceing a DFI 2 stroke engine.
What does he have to say about GM phasing out the Oldsmobile division??
Again, LHG states his OPINION(no facts) that Evinrudes are not doing particulary well against the competition. Can he show any real accepted numbers to back up that opinion! NO!
His perception that he didn't seen ETEC's in Fl fly in the face of increased new owner ETEC activity on this and other web sites, that I have seen!
The rest of his post is an obvious PR for Mercury. It also contains only his opinions and no facts.
I will be spending several months down in FL this winter and will have a chance to observe the changes in the market
from last year. I will share this with anyone interested this spring when I get back.
Larry also said 3 years ago that BRP would be out of business by this time! Guess he was off on that one!
dfmcintyre posted 12-02-2007 08:09 PM ET (US)     Profile for dfmcintyre  Send Email to dfmcintyre     
Re: Oldsmobile

Simply, the division was killed (mostly) by Ron Zarella of GM as a way to reduce the number of dealers that GM had to support. Nothing to do with quality or engineering. The handwriting was on the wall a few years prior to the announcement. There were more single point Olds dealers then there were of Buick. It wasn't a strict "sales were not there" situation.

Don (long time Olds family)

fourdfish posted 12-02-2007 09:36 PM ET (US)     Profile for fourdfish  Send Email to fourdfish     
Don-I would think you would agree that sales had nothing to do with the BRP move either! I only used the Olds as an example of a division phase out. I'm sure that I could research and come up with more if I had the time.
jimh posted 12-02-2007 10:14 PM ET (US)     Profile for jimh  Send Email to jimh     
I guess I was only half right, as well. Two years later and we just have some folks who are surprised, but not apologetic.

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