Good bye Evinrude

Double wow. I have a E-Tec and just love it
Niles
 
Maybe they will sell the division to someone and it will continue.
 
Last year, BRP borrowed $335 million to buy back $450 million of stock. Covid-19 will kill off a number of companies with no liquidity or cash reserves.

Shareholder primacy strikes again.
 
Sad news. I thought the E-tecs were great outboards. The 40 hp on our dink was rock solid.
 
What is killing Bombardier is the development costs of the C-Series jet, which they had to sell at a loss to Airbus or risk loosing the market for it entirely. It was a huge gamble, that cost too much, required government money that created a great airplane that no one would buy. They needed a big customer and they got it in Delta Air Lines. When Boeing saw that they went whining to the US government who slapped a 300% tariff on the jet mostly due to government subsidies. Delta blanched, and the only way to hold the deal together without tariffs was to sell to Airbus. Airbus did not go easy on Bombardier. Created a huge hole in Bombardier's balance sheet. Boeing doubled down on its failure, to attempt a purchase of Brazilian Embraer which failed and is costing them billions. If Boeing had not whined, Bombardier would be delivering the C series, to customers all over the world, Canadians would be getting repaid and Boeing would not have entered the failed deal with Embraer. It is a fiasco, no a Charlie Foxtrot, as big as the 737 Max and now count Evinrude among Boeing's victims. I know, I am all about airplanes, but in this case you can trace Bombardier's financial troubles right back to the C-Series. Evinrude is the collateral damage.
 
If evinrude was profitable they would have survived no matter what happened with Bombardier. It s even more puzzling considering the boom in outboard powered boats over the last few years which pretty much killed the stern drive.
 
BRP is not part of Bombardier, Inc. it was spun off nearly two decades ago.
 
Who owns 35% of BRP? That would be the Bombardier family. Who owns 15% of BRP, Caisse de dépôt et placement du Québec. That is 50% combined. Guess who took a big bath on the C Series development? CDPQ was exposed through. Invetissment Quebec who demanded Bombardier take a 6% total haircut on the C-series. BRP may be spun off, but the players are still heavily invested. The Bombardier family cannot afford a stumble of their cash cow, because that 35% represents ALL they got. They ran LearJet into the ground. They fumbled the C series and now they are talking about selling their remaining biz jets to Textron. Add to that they sold the rail component to Alstrom. What is going on is a liquidation of Bombardier and a pumping of BRP by the family to make up the loss. It is easy to see.
Anyway you look at it, money is fungible and the Bombardier/Beaudoin family has their hand in the pie.
 
You must log in or register to reply here.
Back
Top