FOND DU LAC, WIS. (April 4, 2011) – Mercury Marine today announced it is well positioned to continue to meet market demand for most of its outboard and sterndrive engines, despite potential supply shortages resulting from the devastating earthquake and tsunami in Japan.
A global manufacturer, 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 manufacturing of Mercury’s industry-leading MerCruiser sterndrive packages, which are built in the U.S., has been virtually unaffected by supplier issues.
Mercury will increase production rates of selected product families from April through July to ensure continuity of supply.
Attwood, Land ‘N’ Sea and MotorGuide have not received any indication from suppliers that near-term shortages are anticipated.
“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,” said Mark Schwabero, president of Mercury Marine. “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.”
Mercury’s small outboards (2.5 - 30 hp) are produced in Japan through a joint venture with Tohatsu Corporation. The joint venture facilities in Japan were not damaged by the March 11 earthquake, and are not located in the region directly affected by the resulting tsunami. These facilities in Japan 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.
Like other manufacturers, Mercury anticipates some supplier-related delays will develop at the joint venture’s manufacturing operations in Japan. While Mercury continues to take and fulfill orders as normal, it anticipates production disruption of undetermined frequency in Japan in April for engines 30 hp and below, including a shutdown that began April 4. Production of these engines by the joint venture will resume April 11.
Many companies that provide parts to marine engine producers are located in Japan. The earthquake and tsunami damaged facilities of several of those companies and their suppliers, and some have reported problems manufacturing and shipping products. Some have announced temporary shutdowns of manufacturing facilities.
“We continue to monitor the situation closely,” said Stephan Cloutier, vice president of Mercury Marine procurement, “because many of our direct suppliers are dependent on materials and goods from other companies, several of which have been affected to varying degrees.”
Although manufacturing disruptions are not currently anticipated for most Mercury engines, the company will allocate outboard engines of all sizes in order to consistently meet future demand and to protect its customers by fairly and equitably supplying boat builders and dealerships across all global sales regions.
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, and Diversified Marine parts and accessories distributors; Arvor, Bayliner, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris FloteBote, Hatteras, Lowe, Lund, Meridian, Princecraft, Quicksilver, Rayglass, Sea Ray, Sealine, Suncruiser, Triton Aluminum, Trophy, Uttern and Valiant boats; Life Fitness and Hammer Strength fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables and foosball tables. For more information, visit http://www.brunswick.com.