Re: What's the sales #'s
Nick, if you're Mercury Marine and you've got plans to introduce your own 4-stroke engine line, rather than continue to buy them from Yamaha, doesn't this whole thing make sense? Since you'd be building your own engines, the increased duty incurred from buying Yamaha's engines won't effect you. And last time I checked the increased duty only applies to Japanese manufacturers, and China (Merc) isn't in Japan. <br /><br />I'm sure Mercury has some type of legal contract which binds Yamaha to supply them with engines. Merc will use this leverage until they can begin to supply their own. They know Yamaha can't legally leave them out to dry over this, although it would be interesting to see what would happen if Yamaha suddenly quit selling Merc their 4-stroke engines. Either way, you could say Merc stabbed Yamaha in the back, so to speak. I think it will cost Merc in the long run as Yamaha has very deep pockets, big R&D, and smart marketing.<br /><br />Nick, ask yourself why this came about now. Did the Japanese outboard makers just suddenly start doing this supposed "dumping"? No. Mercury's timing on this has a purpose. The recent change at OMC/Bombardier makes Merc the only U.S. manufacturer. So obviously they are the only one's who will benefit. Yamaha (Japan) has been the target because they are taking over Merc's market here in the U.S.<br /><br />Do you honestly think the big corporate Merc guys care about Billy Bob's job? Merc's not doing this because of "American jobs". They are doing it for profit gain. And why did Merc chose China...the cheapest labor of all countries? Bombardier, Yamaha, Suzuki, Honda, etc., all seem to be able to get sufficiently priced labor without manufacturing in China.<br /><br />If Merc wanted to make me a "proud American", they would quit whining and pulling punches, and instead start making a competitive, quality product.<br /><br />I have a feeling that Merc's going to learn the hard way. Because increasing the other brand's cost isn't going to move anymore outboards for them. Only a better product will move more outboards (and the Verado ain't it). Consumers have already showed that they are willing to pay more for the Japanese outboards, and they are still closing in on Merc. So I just don't see Merc winning on this one. Consumers will certainly lose out, as only our government will benefit from the increased tax.<br /><br />Bill in IN, I don't really see how increasing the import tax will make prices drop and quality go up? I see either prices increasing to make up for the tax, or more corners being cut to maintain the current level of pricing. If Merc can sell their outboards cheaper than the Japanese manufacturers, then they will raise their prices competitively and make more profit.