baumann6
Member
Anyone else seen this the article is right from the BRP website.
http://www.brp.com/en-us/company/news/brp-exit-sport-boat-market
http://www.brp.com/en-us/company/news/brp-exit-sport-boat-market
Brp to exit sport boat market
- Thread starter baumann6
- Start date
dgbehrends
New Member
Sea ray is entering and Yamaha is building a second facility. Apparently the numbers didn't add up for Seadoo. Bummer.
wrench2ride
Active Member
Seadoo jet boat sales make up for 3% of global sales for Brp, in a market that they say is shrinking, especially with the recession, they would be investing a lot of money for little in return, I for one am not happy! but that is the reality if Brp is to survive and stay competitive, may be this will give them the resources they need for other projects!!
Man that really sucks. I hope that is only for a year or two and that they can come back or sell to someone that can pick up where they left at.
I'm guessing that they will sell what is left of 2012 at cost. However it will suck to try finding what you are looking for if you are like me that don't like to settle for whatever is left.
Good thing is that they will continue building parts and honoring warranties. So we should be good.
I'm guessing that they will sell what is left of 2012 at cost. However it will suck to try finding what you are looking for if you are like me that don't like to settle for whatever is left.
Good thing is that they will continue building parts and honoring warranties. So we should be good.
cycleguy88
New Member
So they'll keep making jetskis? That'd be good to keep the mechanics up to speed. I'm glad I got my 2012 now!
wrench2ride
Active Member
going to keep building the pwc's, I don't think parts will be an issue for quite some time other than cosmetic things, which can be hard to get after 5 years anyway's but mechanical parts are for the most part very similar to the pwc's, don't know what that is going to do the price of new units left in inventory, I would imagine it is going to cause prices to drop a bit but there isn't a lot of inventory left in the dealer network, used prices would drop I would think!! Maybe they will start building boats to install their outboards onto!!!!
cycleguy88
New Member
I would think that prices of new/used would go up after this
I think my local dealer has three 2012 210 Challengers. That's $126K in boats(retail)--SITTING. I never see one going down the road by me either. If I'm spending that much coin I'm picking up a used Mastercraft, Malibu or Nautique. I just think the price of these boats are bloated, so is a new ski boat.
Parts--I wouldn't worry, my Speedster is a 99, I still get parts from dealers. When they switched to 4 strokes I never flinched that I wouldn't be able to get parts.
Parts--I wouldn't worry, my Speedster is a 99, I still get parts from dealers. When they switched to 4 strokes I never flinched that I wouldn't be able to get parts.
BMANN06
Well-Known Member
Interesting points ... although one thing to remember (former nautique owner here) ... these boats including the mastercraft ... are absolute crap when you get stuck in weather ( the fun models anyways). I realize that all the above mentioned boats are "sunny day" boats but I feel alot safer venturing out into great lakes with a speedster 200 than my old nautique thats for damn sure ... Agreed brp shop here has 2 of the 230 wakes ... had them since spring. The msrp is a bit higher up here I think your well past $70K off the lot ... by the time you get taxes paid and the trailer under the damn thing. Hell of a beauty boat ... but I'm agreeing with LouDoos statement.
With kids, I don't leave the house unless the entire day is going to be sweet. Last thing I want it hearing them squawk in my ear that the rain stings at 55mph.
Dr Honda
Well-Known Member
Hi Guys,
Yep... it sucks... but I saw it coming. They killed the islandia, and the "200" was slated to be gone in 2013 anyway.
The comment from Lou is spot-on. They priced themselves out of the market. My dad was looking at at new boat... and the base 180 was $23k. (I'd say the average price of a seadoo boat right now is $35k) Sure... you wait until winter, and buy the left-overs. But, how long can a company keep doing that. I know my local dealer would sit on a bunch of boats every year. Heck... they had a 2008 Islandia that finally sold last winter. And... at their "spring sale" they had three or four, 2010's still sitting around that went for at least 20% from the sticker. And trust me... there isn't that much margin in those boats. TO be very honest... when a dealer sells a boat... they really don't make any money. By the time they give you a normal discount, a couple life jackets, and your 10 hr service... it's a wash. They are hopping to make $$$ from you on service, and accessories. (they make 35% to 50% on that)
I fear that they are going to do the same dam thing with their PWC. I know people like all the bells and whistles... but the base price for a ski is $9k... that's NUTZ !!!! Though the 90's... we had a bunch of company's making skis... but Polaris, Honda, TigerShark, WetJet all went a way.
Yes... the economy has tanked... but there is more to it than that. My personal life is the perfect example. I spend a BUTT LOAD of cash on toys every year. But, my last new PWC was a 2000 Yamaha. SO... even though I buy new motorcycles, ATV's, cars, and trucks all the time... I won't buy a new PWC because to get one with any measure of performance... I have to buy it with all the electronic crap, and spend $14k.
Seadoo needs to learn from this, and they need to make a 150 hp, carburated 4-stroke, with an open loop cooling system, and with only basic engine gauges. (tach, temp, fuel, oil pressure) Then... price it around $6k.
Looking back at the boat market.......
Seadoo started making boats a few years after they got serious about PWC. But... they had the Explorer (a semi-inflatable) and the 14.5' hull. So... they were just big jetskis. Then they came out with the 16.5' hull... and the 18' hull. So... they were making smaller, reasonable priced boats. In 2000... when they took on the Merc engines... the boats got big, and expensive. Then in 2005... when they got away from Merc... they got even more expensive. But, by that time... the economy was heading the wrong direction.
Anyway... as above... it sucks... but we will survive.
For the guys who are scared to buy a seadoo boat... or ar worried about the one they have... just remember... most of the parts aren't "Seadoo" anyway. Yes... the engine, drive, computer, and other electronics are BRP... but they are leftovers from the skis. So... just like the older boats... parts are out there. Anything else, is generic boat stuff.
Yep... it sucks... but I saw it coming. They killed the islandia, and the "200" was slated to be gone in 2013 anyway.
The comment from Lou is spot-on. They priced themselves out of the market. My dad was looking at at new boat... and the base 180 was $23k. (I'd say the average price of a seadoo boat right now is $35k) Sure... you wait until winter, and buy the left-overs. But, how long can a company keep doing that. I know my local dealer would sit on a bunch of boats every year. Heck... they had a 2008 Islandia that finally sold last winter. And... at their "spring sale" they had three or four, 2010's still sitting around that went for at least 20% from the sticker. And trust me... there isn't that much margin in those boats. TO be very honest... when a dealer sells a boat... they really don't make any money. By the time they give you a normal discount, a couple life jackets, and your 10 hr service... it's a wash. They are hopping to make $$$ from you on service, and accessories. (they make 35% to 50% on that)
I fear that they are going to do the same dam thing with their PWC. I know people like all the bells and whistles... but the base price for a ski is $9k... that's NUTZ !!!! Though the 90's... we had a bunch of company's making skis... but Polaris, Honda, TigerShark, WetJet all went a way.
Yes... the economy has tanked... but there is more to it than that. My personal life is the perfect example. I spend a BUTT LOAD of cash on toys every year. But, my last new PWC was a 2000 Yamaha. SO... even though I buy new motorcycles, ATV's, cars, and trucks all the time... I won't buy a new PWC because to get one with any measure of performance... I have to buy it with all the electronic crap, and spend $14k.
Seadoo needs to learn from this, and they need to make a 150 hp, carburated 4-stroke, with an open loop cooling system, and with only basic engine gauges. (tach, temp, fuel, oil pressure) Then... price it around $6k.
Looking back at the boat market.......
Seadoo started making boats a few years after they got serious about PWC. But... they had the Explorer (a semi-inflatable) and the 14.5' hull. So... they were just big jetskis. Then they came out with the 16.5' hull... and the 18' hull. So... they were making smaller, reasonable priced boats. In 2000... when they took on the Merc engines... the boats got big, and expensive. Then in 2005... when they got away from Merc... they got even more expensive. But, by that time... the economy was heading the wrong direction.
Anyway... as above... it sucks... but we will survive.
For the guys who are scared to buy a seadoo boat... or ar worried about the one they have... just remember... most of the parts aren't "Seadoo" anyway. Yes... the engine, drive, computer, and other electronics are BRP... but they are leftovers from the skis. So... just like the older boats... parts are out there. Anything else, is generic boat stuff.
sportster717
New Member
What a crock.....
The announcement is being made just a week before the company’s annual dealer meeting, where dealers would be placing orders for next year’s Sea-Doo product.
BRP has been “shopping” its sport boat assets, which include a manufacturing facility in Benton, Ill., for some time, according to sources in the marine industry. Apparently those assets will still be offered for sale.
“We looked for a buyer for our sport boat business, but that effort proved unsuccessful,” said José Boisjoli, BRP president and CEO. “Consequently, we decided not to resume production of the upcoming model year due to seasonal production planning requirements.”
According to a source I spoke to today, the sport boat business has remained profitable for BRP through the economic downturn, which has severely impacted the marine industry, in particular the market for fiberglass sport boats. In fact, the source told me, Sea-Doo boat inventories are very low right now after a very successful selling season. However, the feeling at BRP is that other recreational markets, including the Can-Am ATV division and the growing popularity of the Can-Am Spyder three-wheel motorcycle, represent a better long-term investment of BRP capital. In other words, it could be a long time before sport boat sales rebound to the point of giving BRP a desired return on investment.
BRP entered the boat manufacturing business in 1994 and purchased the assets of Celebrity Boats in 1995, at which time it moved its boat manufacturing operation to Benton, Illinois. Sea-Doo watercraft are manufactured in Canada.
“This is a difficult but necessary decision for BRP,” said Boisjoli. “We worked hard to grow our sport boat business through a serious sales decline that began in 2007. But now, we must focus our research and development resources and capital investments in areas of our business that offer greater growth potential.”
BRP says it will continue to provide parts and honor warranties for its customers.
- Charles Plueddeman
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The announcement is being made just a week before the company’s annual dealer meeting, where dealers would be placing orders for next year’s Sea-Doo product.
BRP has been “shopping” its sport boat assets, which include a manufacturing facility in Benton, Ill., for some time, according to sources in the marine industry. Apparently those assets will still be offered for sale.
“We looked for a buyer for our sport boat business, but that effort proved unsuccessful,” said José Boisjoli, BRP president and CEO. “Consequently, we decided not to resume production of the upcoming model year due to seasonal production planning requirements.”
According to a source I spoke to today, the sport boat business has remained profitable for BRP through the economic downturn, which has severely impacted the marine industry, in particular the market for fiberglass sport boats. In fact, the source told me, Sea-Doo boat inventories are very low right now after a very successful selling season. However, the feeling at BRP is that other recreational markets, including the Can-Am ATV division and the growing popularity of the Can-Am Spyder three-wheel motorcycle, represent a better long-term investment of BRP capital. In other words, it could be a long time before sport boat sales rebound to the point of giving BRP a desired return on investment.
BRP entered the boat manufacturing business in 1994 and purchased the assets of Celebrity Boats in 1995, at which time it moved its boat manufacturing operation to Benton, Illinois. Sea-Doo watercraft are manufactured in Canada.
“This is a difficult but necessary decision for BRP,” said Boisjoli. “We worked hard to grow our sport boat business through a serious sales decline that began in 2007. But now, we must focus our research and development resources and capital investments in areas of our business that offer greater growth potential.”
BRP says it will continue to provide parts and honor warranties for its customers.
- Charles Plueddeman
Be Sociable, Share!
I keep reading this article and keep pondering the phrase "Sport Boats". If you go to the Seadoo website, the boats are broken down into three segments: Challenger, Speedster, Sport.
To be honest, I've NEVER seen a SP or a Wake edition on the water near me, EVER. I have seen Challengers and Speedsters. Now for BRP to bail on the SP and Wakes I could see that, a hardcore wakeboarder/surfer is not going to choose a jet boat, sorry, but true. I think BRP was always relying on brand loyalty for some one upgrading from a PWC to a boat to be captivated by the "look". The do look bad ass no doubt bout it, but looks do not equate to the perfect wake like a pro ski boat will provide. So it will be very interesting to see how it plays out. I could also just be reading into the wording too much, which that is probably true.
To be honest, I've NEVER seen a SP or a Wake edition on the water near me, EVER. I have seen Challengers and Speedsters. Now for BRP to bail on the SP and Wakes I could see that, a hardcore wakeboarder/surfer is not going to choose a jet boat, sorry, but true. I think BRP was always relying on brand loyalty for some one upgrading from a PWC to a boat to be captivated by the "look". The do look bad ass no doubt bout it, but looks do not equate to the perfect wake like a pro ski boat will provide. So it will be very interesting to see how it plays out. I could also just be reading into the wording too much, which that is probably true.
sportster717
New Member
Looking at the article I posted earlier, it looks as though the boat business was profitable but BRP wants to pursue other endeavors. I really don't think putting their eggs in the Can-AM 3 wheelers in the best route. When I was at the dealership, a recent CAM-AM rider said the dempgraphic of the rider in the segment was 50 to 60+. While that's all well and good, cadillac and lexus realized the same thing and had to reinvent themselves with a broader product line, hence the CTS's, the V line and for Toyota, the Scion brand.
Racerxxx, I totally agree with you, I've never seen a SP or wake edition out there but the lakes and rivers are dominated by challengers, speedsters and sportsters.
There has to be a reason while Yamaha and Sea Ray are expanding and growing the sport boat segment. I'm sure BRP is looking at the same market research so I'm surprised they are getting out of a product segment they mostly dominated and invented. It would be a smart business decision to reduce and consolidate their line up until current market conditions change but to get out all together doesn't make sense. Why don't they just focus on their best sellers, carry-over parts and development as not to duplicate efforts and carry on?
Sorry about the rant, I guess I'm just being sour grapes, but I finally get back into the sport and consider getting a new boat and now this........
Bummed out....
Racerxxx, I totally agree with you, I've never seen a SP or wake edition out there but the lakes and rivers are dominated by challengers, speedsters and sportsters.
There has to be a reason while Yamaha and Sea Ray are expanding and growing the sport boat segment. I'm sure BRP is looking at the same market research so I'm surprised they are getting out of a product segment they mostly dominated and invented. It would be a smart business decision to reduce and consolidate their line up until current market conditions change but to get out all together doesn't make sense. Why don't they just focus on their best sellers, carry-over parts and development as not to duplicate efforts and carry on?
Sorry about the rant, I guess I'm just being sour grapes, but I finally get back into the sport and consider getting a new boat and now this........
Bummed out....
seadoo johnny
New Member
I have a 1999 speedster sk and like it so much I decided to buy a new 2012 challenger 180se....I found one at over 5k discount and will be picking it up this Saturday...The dealer told me the news in good faith and I had an opportunity to back out of the deal, but decided that's the boat I want, so I'm going ahead with it.
Plus BRP included a 5 year warranty !!!!!
Can't wait for next spring!!!!!
Plus BRP included a 5 year warranty !!!!!
Can't wait for next spring!!!!!
Armst103
Member
They didn’t . Seadoo does not support
Yes, they do. Parts are available for 10 years after. Do you know this is an old thread?
Chester
