Valcourt - 1997-09-24
Bombardier Motorized Consumer Products today announced that it will reduce the production of its Sea-Doo* watercraft manufactured in Valcourt, Québec, for the 1998 season. During the months of June and July, total retail sales of watercraft decreased substantially in the United States. As a result, manufacturers will have high inventories left over for the next season.
Bombardier's decision to reduce its production is aimed at reestablishing some balance between supply and demand in the market during the 1998 season. The Motorized Consumer Products Group is determined to maintain its leadership position and, to this end, will continue to invest in the development of its products and markets.
Several actions will be taken as a result of this decision:
- the Ski-Doo* snowmobiles and the Sea-Doo watercraft will now be produced consecutively rather than concurrently, as is the case presently;
- in mid-November, when the production of snowmobiles will be completed, 850 permanent employees will be temporarily laid off. They will be progressively called back to work between March and May 1998;
- the administrative, professional and technical staff, in Valcourt as well as in other locations of the Marine Products Division, will also be affected. Staff reductions of up to 15% of the 1,735 current employees will take place in the next few weeks. Several options will then be offered to these employees: relocation to other sectors of activities of Bombardier, lay-off with recall rights or severance pay. A committee on reclassification will be set up in order to help laid-off employees in their search for new employment.
Furthermore, Bombardier Motorized Consumer Products had to revise its decision, announced last March, to turn the Saint-Antoine-de-Tilly plant into a producer of major fiberglass components. Because of the reduced requirements for these components, the Group will no longer need these capabilities. The 150 people presently waiting to be recalled will receive severance pay. Moreover, the committee on employee reclassification set up following the announcement of the change of vocation of the plant will continue to help the workers in their search for employment.
The growth in the watercraft and snowmobile markets as well as the significant market share gains of Bombardier products have resulted in rapid expansion of the Motorized Consumer Products Group and the addition of 2,350 new employees in Québec alone, between 1990 and 1997.
While continuing to count on the prospects of Ski-Doo snowmobile and Sea-Doo watercraft markets, the Group is also pursuing the development of new markets and new products, such as the NEV*, a neighborhood electric vehicle launched last year. Other development projects are under review and in some cases could lead to new initatives in the near future.
Bombardier's Motorized Consumer Products Group employs a total of 6,250 people, of which 3,550 people work at its Québec facilities in Valcourt, Sherbrooke and Saint-Antoine-de-Tilly.
The Group comprises the Snowmobile Division and the Marine Products Division, which produce Ski-Doo and Lynx* snowmobiles, Sea-Doo watercraft, Sea-Doo jet boats and Celebrity* boats; the NEV Division, which produces neighborhood electric vehicles and subsidiary Bombardier-Rotax GmbH of Gunskirchen, Austria, which produces Rotax* engines for Bombardier snowmobiles, personal watercraft and jet boats, as well as for motorcycles, small aircraft, ultra-light aircraft and various industrial applications.
Bombardier Inc. is a Canadian corporation engaged in design, development, manufacturing and marketing activities in the fields of transportation equipment, aerospace, and motorized consumer products. It also provides financial services as well as services related to its products and core competencies. The Montreal-based Corporation operates plants in Canada, the United States, Mexico, Austria, Belgium, Finland, France, Germany and the United Kingdom, employing 41,000 people. Bombardier's revenues for its last fiscal year ended January 31, 1997 totaled 8 billion Canadian dollars, and more than 85 percent of its revenues are generated in markets outside Canada.
* Trademarks of Bombardier Inc. and/or affiliates