Yamaha anticipates that demand for its new 425-hp XTO Offshore outboard will help ease the supply shortages it has faced with its 2.8-liter, 4.2-liter V6 and 5.3-liter V8 outboards.
The company expects it will be able to meet demand of the new engine; it had faced widespread supply shortages on other engines due to unprecedented demand while its manufacturing operations were “in transition.”
“As we change some mix in the product family, we think there will be some shift between triple engines to twin engines. We have to figure all that out between next 60 to100 days,” Yamaha Marine president Ben Speciale told Trade Only Today.
“Because of the introduction of this new engine, we had to plan for that transition,” which contributed to supply pressures, Speciale said. “We just have a lot of demand on product, more so than we anticipated.”
Speciale sent a letter to dealers and boatbuilding partners in December explaining that it would be unable to meet shipping obligations due to shortages due to unprecedented demand.
“This increase in demand has occurred while our manufacturing operations are in transition,” Speciale said in the letter. “The transition was designed to accommodate new products and increased longer-term demand.”
“Some of this is about this new engine we’re getting ready to show you,” Speciale said Tuesday just prior to the XTO’s official debut.
When launching a new platform, there is always some shifting in manufacturing operations as builders anticipate demand for new products and shifting demand, Speciale said.
“We do expect to close some of that gap by year-end assuming our projections are right for industry growth,” said Speciale.