US outboard engine maker Evinrude will end production of its E-TEC and E-TEC G2 powerplants after a COVID-19 sales slump proved too much for the 113-year-old company.
Evinrude’s Canadian parent company, powered leisure products specialist BRP, made the shock announcement this morning Australian time.
“BRP announced today it has re-oriented its marine business by focusing on the growth of its boat brands with new technology and innovative marine products,” it said in a statement issued to investors.
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“We will discontinue production of Evinrude E-TEC and E-TEC G2 outboard engines. Our Sturtevant, WI, facility, will be repurposed for new projects to pursue our plan to provide consumers with an unparalleled experience on the water.”
Instead, BRP – which owns Australian plate boat maker Telwater – will tap Mercury outboard engines as its preferred supplier.
“Following our decision to discontinue E-TEC and E-TEC G2 outboard engines, we have signed an agreement with market leader Mercury Marine to support boat packages and continue to supply outboard engines to our boat brands,” it said.
“We will continue to supply customers and our dealer network service parts and will honour our manufacturer limited warranties, plus offer select programs to manage inventory. These decisions will impact 650 employees globally.”
It did not disclose if the job cuts would affect its Australian operations.
BRP has struggled with the COVID-19 pandemic, which has greatly affected Evinrude’s sales base.
“Our outboard engines business has been greatly impacted by COVID-19, obliging us to discontinue production of our outboard motors immediately,” BRP president and chief executive Jose Boisjoli said.
“This business segment had already been facing some challenges and the impact from the current context has forced our hand.
“We will concentrate our efforts on new and innovative technologies and on the development of our boat companies, where we continue to see a lot of potential to transform the on-water experience for consumers,” Boisjoli said.
Mercury Marine confirmed it would be the official outboard engine supplier for "Quintrex, Stacer, Savage and Yellowfin Plate Boats" in the wake of BRP's announcement.
“This agreement brings us an incredible opportunity to further grow our brand in the marketplace and introduce our award-winning portfolio of outboard engines to new customers around the world,” Mercury marine president Chris Drees said.
“We have enjoyed longstanding relationships with Alumacraft, Manitou and [Australian plate boat maker] Telwater and we look forward to continuing to work with them while providing class-leading outboard engines and exceptional service to all of their global customers.”
Australian products will be fitted with Mercury outboard engines from June.
Telwater had used Mercury as its preferred outboard engine supplier before switching to Evinrude in 2011.