BRP has announced that in 2013 a new plant in Mexico will take over personal watercraft assembly operations from its Valcourt facility in Canada, affecting about 500 jobs.
The new plant also will take over engine manufacturing operations from a current facility in Juarez, Mexico. BRP also said it will assign North American distribution of its parts, accessories and clothing (PAC) to a logistics provider.
Moving the PWC operations to Mexico gives the Valcourt plant more room for Can-Am Spyder production, according to the OEM.
"The transfer of the PWC assembly to Mexico will enable BRP to be more competitive, and it will free space on the main assembly line in Valcourt to increase the roadster production and meet the increasing demand," BRP stated. "The transfer of engine assembly to the new plant in Mexico will allow for increased production capacity in Juarez, which will help meet the fast growing demand for all-terrain and side-by-side vehicles already manufactured in that plant."
"Building a global multimarket business is an ongoing process. To remain a market leader, BRP needs to constantly challenge itself and adapt to change," said Jose 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."
The decision affects roughly 500 employees from the Valcourt plant. "These employees will be presented with options including positions within or outside BRP or retirement packages, greatly minimizing the number of layoffs," the OEM stated.
"We successfully recovered from the recession by making critical investments and difficult decisions. 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," Boisjoli said.
Posted by Mary Slepicka
Like Dealernews’ Facebook page: