TOHATSU GURU
Admiral
- Joined
- Jul 22, 2004
- Messages
- 6,164
Re: What's the sales #'s
Here's a couple of other factors. When OMC went belly up Mercury did not reap the huge market share increase that they expected. The big winner was Yamaha. That's what set this rolling along. Then Yamaha began buying boat companies. Vertical integration gives the manufactuer a distinct and somewhat steady supply of transoms to hang their engines on. With Suzuki and Honda now supplying engines to boat builders(something they swore they would never do a few years ago) Mercury became worried that they would begin to see a decrease in engine sales due to Japanese outboards locking up more and more new boat hulls. Boat dealers used to supply the engines for whatever boat brands they carried. Now, the dealer takes whatever engine brand that boat manufacturer hangs on the back. I know a dealer that used to buy 1300+ Mercurys a year, up until two years ago. Now they buy 500 Mercury's a year. Yet they sell the same number of boats. Do the math. Oddly enough the boats that they sell are the same, but those manufacturers package with Yamaha. Repeat that across the U.S., with dealers large and small and the Mercury paranoia isn't that too far fetched. Having said all that the charge of dumping is ludicrous. The ITC based the dumping charge on what Yamaha charges the dealer network in Japan versus what Yamaha charges boat builders in the U.S.(not dealers). Yamaha has raised the price of the engines in Japan(Tiny market for them) to equalize the price structure. All of the Japanese engine manufacturers have raised the prices in the U.S from 3% to 7% to remove any doubt about dumping. When the ruling is reviewed in (January?) they hope that the ITC will rule that Mercury has not suffered any harm from the old and new price structure. Since Mercury has had profitable quarters I don't see how the ITC will be able to continue the temporary ruling. All of these engine builders are so involved with each other for manufacturing that they don't want to run each other out of business. Its just about finding a market share balance that they can all live with. <br /><br />Here's a couple of other tidbits:<br /><br />Other than some of the larger four-strokes, Yamaha has been faded out by Mercury. Their small engines( 25hp and below for now) are now produced by Tohatsu. They might still make a couple of their own two-strokes, but not for long.<br /><br />Mercury does not own any of Tohatsu. Mercury is a partner with Tohatsu on owning some land and a manufacturing plant that leases space to Tohatsu to produce engines. When Tohatsu had to ramp up to provide additional engines to Mercury they demanded that Mercury subsidize the manufacturing costs. Tohatsu was afraid that Mercury might decide to have someone else build their engines for them and did not want to get caught with excess manufacturing capability. ( They are very old and very wise. See China.)<br /><br />Also, Japanese engine manufacturers have always stolen, borrowed and then improved upon U.S. technology. Now they provide the technology(at least what works) for everyone else. Back in the late 80's we received a prototype Nissan 140 hp that had OMC motor clamps. I mean the clamps had actual OMC part numbers stamped on them. That engine was shown at the Miami Boat Show, you should have seen the OMC people freaking out. We die grinded the numbers off on the show floor.
Here's a couple of other factors. When OMC went belly up Mercury did not reap the huge market share increase that they expected. The big winner was Yamaha. That's what set this rolling along. Then Yamaha began buying boat companies. Vertical integration gives the manufactuer a distinct and somewhat steady supply of transoms to hang their engines on. With Suzuki and Honda now supplying engines to boat builders(something they swore they would never do a few years ago) Mercury became worried that they would begin to see a decrease in engine sales due to Japanese outboards locking up more and more new boat hulls. Boat dealers used to supply the engines for whatever boat brands they carried. Now, the dealer takes whatever engine brand that boat manufacturer hangs on the back. I know a dealer that used to buy 1300+ Mercurys a year, up until two years ago. Now they buy 500 Mercury's a year. Yet they sell the same number of boats. Do the math. Oddly enough the boats that they sell are the same, but those manufacturers package with Yamaha. Repeat that across the U.S., with dealers large and small and the Mercury paranoia isn't that too far fetched. Having said all that the charge of dumping is ludicrous. The ITC based the dumping charge on what Yamaha charges the dealer network in Japan versus what Yamaha charges boat builders in the U.S.(not dealers). Yamaha has raised the price of the engines in Japan(Tiny market for them) to equalize the price structure. All of the Japanese engine manufacturers have raised the prices in the U.S from 3% to 7% to remove any doubt about dumping. When the ruling is reviewed in (January?) they hope that the ITC will rule that Mercury has not suffered any harm from the old and new price structure. Since Mercury has had profitable quarters I don't see how the ITC will be able to continue the temporary ruling. All of these engine builders are so involved with each other for manufacturing that they don't want to run each other out of business. Its just about finding a market share balance that they can all live with. <br /><br />Here's a couple of other tidbits:<br /><br />Other than some of the larger four-strokes, Yamaha has been faded out by Mercury. Their small engines( 25hp and below for now) are now produced by Tohatsu. They might still make a couple of their own two-strokes, but not for long.<br /><br />Mercury does not own any of Tohatsu. Mercury is a partner with Tohatsu on owning some land and a manufacturing plant that leases space to Tohatsu to produce engines. When Tohatsu had to ramp up to provide additional engines to Mercury they demanded that Mercury subsidize the manufacturing costs. Tohatsu was afraid that Mercury might decide to have someone else build their engines for them and did not want to get caught with excess manufacturing capability. ( They are very old and very wise. See China.)<br /><br />Also, Japanese engine manufacturers have always stolen, borrowed and then improved upon U.S. technology. Now they provide the technology(at least what works) for everyone else. Back in the late 80's we received a prototype Nissan 140 hp that had OMC motor clamps. I mean the clamps had actual OMC part numbers stamped on them. That engine was shown at the Miami Boat Show, you should have seen the OMC people freaking out. We die grinded the numbers off on the show floor.