posted 06-28-2009 11:12 AM ET (US)        

Mercury Marine employes about 1,900 workers in their Fond du Lac operations, which amounts to about ten percent of the workforce in the local region. It has been reported that local government bodies have been conducting closed-door meetings with Mercury Marine, presumably to discuss options or incentives which might encourage Mercury Marine to maintain its presence in Fond du Lac.

Mike Mentzer reports that officials of Stillwater and the State of Oklahoma "are negotiating to lure Mercury Marine away from Fond du Lac and Wisconsin."

Cf.: http://www.fdlreporter.com/article/20090628/FON06/906280592

Lindsay Veremis of broadcast station WLUK-TV says the Fond du Lac county board "held a closed meeting June 2 to discuss possible funding for an economic opportunity," apparently to entice Mercury to stay.

http://www.fox11online.com/dpp/news/ local_wluk_could_FDL_lose_mercury_marine_20096252230_rev1

Bill Glauber of the Milwaukee JOURNAL SENTINEL writes:

"With its major plants running under capacity and the boat industry sinking during the recession, Fond du Lac-based Mercury Marine has become the subject of intense speculation that it may seek to consolidate operations either in Wisconsin or Stillwater, Okla."

http://www.jsonline.com/business/49048011.html

Laurie Ritger of THE REPORTER, notes that "the Stillwater plant is a nonunion operation, paying lower wages than the Fond du Lac plant, which has a union."

posted 06-28-2009 08:59 PM ET (US)            

I bet they will soon be moving all their production overseas. Now I know why they did not participate in the Wisconsin commercial being broadcast in other states.
BRP jumped in and shared it.

posted 06-29-2009 09:59 AM ET (US)            

In all of the articles Jimh references, cost reasons are associated with Merc's closing--from high union wages to the recession to emissions. With that in mind, I don't think it takes a rocket scientist to figure out why they would want to consolidate businesses to areas that have lower wages when none of them are running at capacity.

Are GM fans "proud" that their organization had to shut down plants and sell of businesses? Are Chryslers fans and employees "proud" that Chrysler had to shut down almost 900 dealers because they couldn not support them? Certainly it's not a good thing that Merc has to consolidate and cut jobs.

posted 06-29-2009 10:31 AM ET (US)         

Don't do it man. Don't take the bait.

Some guys just like to troll for trouble and your swimming in for a look.

posted 06-29-2009 09:55 PM ET (US)            

quote:

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SC Joe,

Don't do it man. Don't take the bait.

Some guys just like to troll for trouble and your swimming in for a look.

---

posted 06-29-2009 11:33 PM ET (US)            

http://findarticles.com/p/articles/mi_m0FZX/is_5_70/ai_n6050169/

I am never in town long enough to know what is going on there, though.

posted 06-30-2009 08:21 PM ET (US)            

It cost California approximately $50,000/year to house an inmate/prisoner here. The other states can house their inmates for about $25,000/year. I say have the other states bid for our prisoners. We provide jobs to other states in the US and California saves money. :-)

California starts issuing IOU's on Thursday.....we're broke.

posted 07-01-2009 11:26 AM ET (US)            

In the news media there is lots of blame being thrown around from complaining about forklift operator pay to union corruption, but there seems to be a lack of focus on a "way forward" to revitalize the manufacturing sector. Creating a product with true demand would be an excellent start.

I happen to believe that an extreme 180 degree shift into sustainable and energy efficient products is a giant step toward that goal.

I also understand at the same time that boating will be the first sport to take an extreme hit in tough times regardless of company strategies.

I have always noticed on this website and others that there is a desire for maximum horsepower and performance, which is fine and good, however Boston Whaler boats occupy a unique niche in boating as boats that reqire MINIMUM horsepower to operate. In my opinion, this is the way forward for boating manufacturers.

Where is the Boston Whaler "Prius"?

posted 07-01-2009 12:01 PM ET (US)         

http://smg.photobucket.com/albums/v429/lgoltz/ Harbor%20Springs%20MI%202008/?action=view& current=BostonWhalerRendezvousAug2008007.jpg .

Only now are these supposedly old fashioned, out of date Boston Whalers of the 70's being re-recognized for the genius they were, with low HP requirements and high fuel economy.

posted 07-01-2009 01:03 PM ET (US)         

quote:

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but I made that plunge years ago with a VERY efficient and reliable Japanese engine.

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Not sure if you intended this qoute to be just bubbling over with irony but it's spectacular in it's awesomeness just the same.

posted 07-01-2009 09:10 PM ET (US)            

Ahnold should jump on that deal! It's a win-win solution for both states. (It might be a bad deal for our $100,000 per year-benefits included prison guards.)

Ahnold wants to sell San Quentin Prison and it might fetch $1 billion on the open market due to its fabulous location on San Francisco Bay.

posted 07-17-2009 02:20 PM ET (US)         

From Soundings Trade Only:

Mercury to decide on consolidation by summer’s end
July, 17 2009, 11:00 AM

Mercury Marine officials are weighing their options for potential consolidation of the engine manufacturer's plants in Fond du Lac, Wis., and Stillwater, Okla., with a decision expected by the end of the summer.
See Related Articles

* Mercury Marine downplays talk of move
* Mercury to be recertified for ISO 9001 standard

"All of our facilities are underutilized," Kevin Grodzki, Mercury president of marketing, sales and commercial operations, told Soundings Trade Only.

Mercury's production level has dropped about 55 percent in the last two years. In that time, the company reduced the work force at its two major plants - from 3,600 to 1,900 in Fond du Lac and from 1,300 to less than 400 in Stillwater.

The Brunswick Corp. engine subsidiary has manufacturing facilities in Mexico, Japan and China, in addition to the two main plants in the United States. Grodzki said company officials are looking at all of these facilities for ways to cut expenses.

However, he said more emphasis is being placed on the U.S. plants because they share similar functions. Although the Fond du Lac plant manufactures outboards and the Stillwater facility makes MerCruiser engines, both facilities perform casting, machining and assembly operations.

"Our options are going to include all of our manufacturing facilities, but we are focusing a lot on the complementary capabilities we have at Fond du Lac and Stillwater," Grodzki said, adding that "consolidation of operations is a potential outcome."

During the last several months, Mercury executives have been meeting with local and state officials from Wisconsin and Oklahoma to discuss incentives designed to keep the plants in their respective locales.

"We have had progressive dialogue with both the State of Wisconsin and the State of Oklahoma," said Grodzki. "Both states recognize the importance of Mercury Marine to the local economies."

Mercury did not provide details of the incentives offered, but Grodzki indicated incentives are not the only factor to weigh before making a decision.

Starting next week, Mercury executives plan to meet with union officials in Fond du Lac to renegotiate existing contracts with an eye toward trimming costs through wages and other savings.

"We still have more work to do and more facts to put together, and then we'll put that into a detailed evaluation model," said Grodzki. "There are a lot of different things to consider - the customers; the communities, which have decades-long dependence on Mercury as a core part of their economies; employees; and the fact that we want to emerge from this downturn a stronger, healthier company."

posted 07-17-2009 02:58 PM ET (US)         

Quoting, they say "The Brunswick Corp. engine subsidiary has manufacturing facilities in Mexico, *JAPAN* and China, in addition to the two main plants in the United States. Grodzki said company officials are looking at all of these facilities for ways to cut expenses."

posted 07-18-2009 11:39 AM ET (US)            

Add the Kenyan's economic policies and this is what you get.

posted 07-19-2009 08:41 PM ET (US)            

It seems clear that some consolidation of the two facilities, Stillwater, Oklahoma and Fond du Lac, Wisconsin, is going to happen. The question seems to be which city will remain a Mercury manufacturing center.

See:

posted 07-19-2009 10:10 PM ET (US)         

rich/Binkie

posted 07-20-2009 06:19 PM ET (US)         

Unions are a blessing and a curse. They were ushered in during a period when the US worked needed rights. Now, they often have the leverage to hold companies hostage. While US automakers have suffered from leadership or lack of, their degrees of freedom to restructure were very limited by Union contracts... which became an entitlement, rather than the countermeasure they were originally put in place to be. Merc needs the freedom to adjust to a changing economy and if a union cannot contribute, then there is always the dreaded alternative of unemployment or relocation to OK.

BTW don't get me started on entitlements, because we are about to see the biggest entitlement enacted since Johnson was president... called government healthcare. This will be his second trillion dollar mistake in a year.

posted 07-21-2009 12:41 PM ET (US)            

The accountants just finagle (sp?) the financial data which allows executive salaries that are not long term justified. Sure enough, in a year or two the company is not making any money because they have dropped customer service, engineering, etc.

Or, they move production offshore and the real costs; vacations, benefits (breakfast, lunch and housing), attendance, maintenance, travel expenses, shipping overnight due to production deficits start to pile up. Then management start cutting salaries and jobs at home to show more profits. It can't be done at the overseas locations due to contracts they made with the local governments.

Another great one I have seen recently is to buy another company worth as much as the one you are the CEO types of, the money comes from an adjustable rate loan. Two years later after the brainiacs consolidate the operations which puts all of the companies in a non-growth state, the balloon payment is due. Then, the banks come in and demand more consolidation before they will extend the credit line which is necessary since you have lost so much business and can't make the payment. Where did the money go? Oh yes, it went to the idiots at the top in bonuses for doubling the size of the corporation.

And these director/CEO types are sucking funds from multiples of companies at the same time. Have you ever checked the financial data from companies and read the biographies for the leaders? A lot of them are directors at many corporations at the same time.

The old saying still stands, it's not what you know...it's who you blow. And, the rich get richer etc...

I am all for government regulation as soon as our government is truly run BY THE PEOPLE. Take a look at our socialist friends across the Atlantic, we have a lot to learn.

posted 07-22-2009 09:54 AM ET (US)         

It seems popular in today's climate to reduce everything down to the lowest common denomintor, but that is a slippery slope to mediocrity. What Brunswick has to do as a profit generating concern, is to do whatever necessary to stay afloat. If it means moving to OK, then so be it. That sure beats sinking!

posted 07-22-2009 12:51 PM ET (US)            

Mercury should leave for Oklahoma, I would already have done it. When all the folks up there in the rust belt figure out what is going on, union unemployeed, maybe they will finally return to capitolism.

Change, you wanted change, you gonna get it. When they start taxing health benifits from corporations then they will stop offereing them, we will all be beholding to the gubernment fromcradle to grave. Maybe they will decide who get's born and when you gwet to die and wher you will be buried, how much you make, if you ar smart enougnt to go to school, a sad new world of dumbed down, burger fed, human cattle.

posted 07-22-2009 11:34 PM ET (US)            

Tony

posted 08-06-2009 02:24 AM ET (US)            

Obviously this has been said before but their current facility utilization would have be higher now if the 60hp and under motors were domestically produced. It would be interesting to see the real cost/benefit to the corporate bottom line when the costs of opening foreign and closing domestic facilities, agreements with other manufactures and loss of brand loyalty are taken into consideration.

posted 08-06-2009 05:08 PM ET (US)         

Why? I see no changes, and nobody is REALLY getting the message. 55% of the US taxpayer's "Clunker" stimulus money is going out of the country to "stimulate" foreign companies and jobs in Germany, Japan and Korea. Just crazy. What fools we are. Look at the big three jobs being lost to these foreign workers on just this situation, right now. Those lost jobs will cost all of us money.

At corporate levels it's no better. Mercury says they have too much manufacturing space, but have plants in China and Japan, where people work for less, and work better. Why aren't the 40, 50, and 60 4-strokes still made here? The truth. Our workers are too expensive, because those engines have to compete with Honda, Suzuki and Yamaha which are also made over there. Price is everything these days, or nobody will buy your engine. So why not make Mercs over there? BRP has done the same thing. Laid off workers in WI, and opened a plant in China to build 25 & 30 HP engines. Same situation. And it's repeated 1000's of times in other industries.

So how are we really going to get all these people back to work. We're not, unless consumers and corporations get smart, and so far it's not happening. In outboards, autos and thousands of other items, many Americans think we are not competing with foreign companies, and therefore buy foreign. They think they are getting the BEST for their money. Maybe, but it's a recipe for disaster, now starting to show.

Who, here, driving a foriegn car, feels sorry for the people in Michigan?

Who, here, owning a foreign outboard, feels sorry for the people in Wisconsin?

posted 08-06-2009 05:38 PM ET (US)         

LHG is right, nobody has learned yet, nor will they. I do feel for the people in Michigan, my wife grew up in Detroit, went to school in Ann Arbor, and has strong roots there; no one knows the devastation Detroit and its neighboring communities have faced until they see it first hand. The Southfield, MI condo my father-in-law paid $300,000 for in 1986 is on the market for $59,000 with no lookers. This is being repeated more or less across our country.

No one in MI or WI deserved it, but those who shipped the jobs overseas in response to their own greed deserve a lot less than they have--the problem is, they're insulated from the economy because of the millions or billions they've already plundered--they're fine.

We're thinking of a new Malibu or Impala, we're even thinking of flying to Detroit to make the purchase, but who knows where the components in those cars came from? And will I have my job tomorrow when the bill comes?

About the only difference I see now is that everyone is scared to death and has pulled back from some of the discretionary spending like restaurants (which hurts the restaurants.

posted 08-07-2009 09:00 AM ET (US)            

cf: http://continuouswave.com/ubb/Forum4/HTML/002378.html

posted 08-10-2009 01:18 PM ET (US)            

http://sev.prnewswire.com/retail/20090810/CG5909310082009-1.html

posted 08-10-2009 08:05 PM ET (US)            

Good luck to Brunswick on their refinance.

posted 08-10-2009 09:23 PM ET (US)            

Not Genmar, Sun-Times, Star Tribune, General Motors, Chrysler, Circuit City, Lehman Brothers, Bear Sterns, Wachovia, Trump Entertainment, Ritz Cameras, Washington Mutual, etc.

Let's hope Brunswick survives because they have 19,720 employees as of their last report.

Good luck to all,

posted 08-11-2009 02:44 PM ET (US)         

"We believe investors should view this announcement positively as it removes 2010 refinancing risk and further enhances [Brunswick's] near/intermediate-term liquidity position," said Tim Conder, senior analyst with Wells Fargo Securities.

posted 08-11-2009 02:53 PM ET (US)            

New :

Boston Whaler 110 Tender
Boston Whaler 130 Sport
Boston Whaler 205 Conquest
Boston Whaler 190 Nantucket

Parker 2005 2520 SL

2001 Ford F150
2003 Ford F150
2007 Chevrolet Silverado
2008 Saturn Outlook
2009 Chevrolet Silverado

The last three GM vehicles I have are the best I have ever owned.

posted 08-24-2009 05:07 PM ET (US)            

http://www.jsonline.com/news/wisconsin/54321942.html

Very sad indeed, but it's following a trend of locating large plants in states where unions are weak.

posted 08-24-2009 10:33 PM ET (US)         

Your right about that. I would hate to read about Americans illegaly crossing into Mexico to work in the mercury plant.

posted 08-25-2009 08:24 AM ET (US)            

quote:

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Mercury is not moving to Oklahoma becuase they for some reason don`t like the residents of Wisconsin. It`s all about unions. Apparently OK. is a Right To Work state, as is Florida and the South. The unions have driven manufacturing out of this country. There was a time for unions, but that time is long past, and they are not needed in present society. Not only that they are pure Socialism. (Join the union and they will take care of all your working problems) Union workers are for the most part layabouts. I`m speaking from experience as a former union Carpenter, and permit holder in the Ceramic Tile Layers union, which would not take me in as a member as I did not have a direct relative in that union. Work quotas are set so low that a worker can cruise through the day working at a sloooow snails pace, for a high wage. Great when your the worker but for the contractor its another story as his bids must reflect the high cost of union sub contractors. Thankfully in Right To Work States General contractors can hire non union subs.

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