JOHNSON / RUDE /BOMBARDIER=$$ WOES

[FELLOW-SHIP]

I THOUGHT SOME OF YOU GUYS MIGHT BE INTERESTED IN READING THIS ONE.http://www.boatbiz.com/news.asp?mode=4&N_ID=39492

FELLOW-SHIP [img]images/icons/confused.gif[/img]

[ocuyler]

Ouch!

[barnacle]

It was a shock to us to hear about this. However we were not to surprised about it. Bombardier paid pennys on the dollar for OMC. Look at all the OMC boat lines. One company purchased all the lines then sold just on of the companys for more then he purchased the hole lot for. Do I think they will sell? No. Bombardier spent millions on building a new manfacturing plant. Spent millions on solving the problems that OMC had with some of there engines. Plus the millions being spent on public relations to get the Johnson and Evinrude name back out there. Roch Lambert who is the Vice President takes great pride in what they have done with OMC. Im sure the person in charge of the fincial outlook out there is seeing the money spent comparied to the money comming in. He has to make his yearly comment to justfy his job. THe outboard industry goes thru downturns about evey 12 years. Look at Mercury, they are laying of 200 people at the outboard manfacturing plant. Yamaha has slowed production to now if you need a outboard it could be weeks before it comes in. Even if they do sell you can be sure the company that buys it will continue to do the same quality job that Bombardier has started. Bombardier is not going to just give up on this project that they have started. THey will only sell if they can get there money back that they have invested. A company that can spend this kind of money is one that will be commited to the line up. Time will see and this is just another set back in this industry. You know that other dealers that are not Bombardier will be bad mouthing Johnson and Evinrudes about this. ITs bad enough getting peoples trust in the new Ficht Ram Engines now we have this out there also.

[Billybob]

Joe's right.Do you know how many companies are out there now, losing money, but with little options.For anyone not in manufacturing, believe me this is the worst, most protracted downturn in recent memory.
Companies that have made acquisitions which are not profitable now need to be in it for the long haul becuase they could never hope to sell without taking a huge loss.These companies typically show expenses on their balance sheets like depreciation which further increases their losses on paper.
That's why it's the big boys that play these games, and Bomb is big.I bet they'll ride it out.

[John R]

Hey BB - Faria Instruments is looking for a buyer (purchaser position - not new owner). They're in CT [img]images/icons/grin.gif[/img]

[JohnS]

Joe, I agree with you and disagree with you to some extent as well. While Bomb has invested a ton of money into the product line, they have done so with making most of the investment with paper and other's money. I have seen this time and time again. It will be a wait and see game until the speculation and rumors are done and the real word comes out. At times, companies also do this to see what reactions surface and to get the people holding the money to release it a bit. But, if Bomb finds that they will not get the payback fast enough, and I so think that their original projection has been shot down because of the economy, then they will sell it off. Remember, everything is for sale for a price. This is their way of putting it up for sale to see if they have any takers......

John