Mercury Marine not affected by supply shortages from Japan - Trade Only Today

Mercury Marine not affected by supply shortages from Japan

Author:
Publish date:

Mercury Marine said it is positioned to continue to meet market demand for most of its outboard and sterndrive engines despite potential supply shortages resulting from the earthquake and tsunami in Japan.

Mercury's small outboards (2.5- to 30-hp) are produced in Japan through a joint venture with Tohatsu Corp. The joint venture facilities in Japan were not damaged by the March 11 earthquake and are not in the region directly affected by the resulting tsunami.

The facilities have continued to operate, using parts on hand to build outboard engines. The joint venture has worked closely with its suppliers to monitor and balance the availability of parts and to minimize disruptions.

Mercury produces engines and parts primarily in North America and Asia. Mercury facilities in North America and China are operating with no current disruptions, the company said. The manufacturing of Mercury's MerCruiser sterndrive packages, which are built in the United States, has been virtually unaffected by supplier problems.

Mercury will increase the production rates of selected product families from April through July to ensure continuity of supply.

Attwood, Land 'N' Sea and MotorGuide have received no indication from suppliers that near-term shortages are anticipated, the company said.

"We join the rest of the world in sending our thoughts and prayers to the people of Japan as they continue the recovery process from these devastating events," Mercury Marine president Mark Schwabero said in a statement. "We were obviously very happy that none of our people were injured, but this is a terrible human tragedy and a huge economic event that impacts the entire world."

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.