For 2013, BRP, Valcourt, QC, is transferring its assembly of personal watercraft (PWC) from Valcourt to a new unspecified plant in Mexico. The company will also be transferring engine production from its JuÃ¡rez, Mexico facility to the new plant.
BRP says the transfer of the PWC assembly to Mexico will enable it to be more competitive and will free space on its main assembly line in Valcourt to increase the roadster production and meet increasing demand.
BRP also explained that the transfer of engine assembly from JuÃ¡rez to the new plant in Mexico will allow for increased production capacity in JuÃ¡rez for all-terrain and side-by-side vehicles, which it is already manufacturing.
In addition, BRP will assign the North American distribution of its parts, accessories and clothing (PAC) to a logistics provider. By using a specialized firm to handle the North American distribution, BRP says it will gain greater flexibility to meet the projected growth of its PAC business and will reduce capital investment while improving customer service.
“Building a global multi-market business is an ongoing process. To remain a market leader, BRP needs to constantly challenge itself and adapt to change,” said José Boisjoli, President and CEO. “This is not the first time that we change things at BRP; nor will it be the last. While we remain very much committed to our heritage and roots in Valcourt, we must become more flexible to leverage our growth opportunities.”
According to BRP, during the next 18 to 36 months approximately 500 of its employees will be affected by these moves. The employees will be presented with options including positions within or outside BRP or retirement packages greatly minimizing the number of layoffs.
“We successfully recovered from the recession by making critical investments and difficult decisions,' explains Boisjoli. "We collaborated with our employees to maximize efficiency. However, we still have challenges stemming from regulatory constraints in several emerging markets. As we continue to expand our global presence, we will require more manufacturing flexibility so that we can secure our presence in these countries.”