Brunswick Buying Up Marine Companies

[AKBASSKING]

Brunswick seems to be straightening their marine holding.

http://ir.brunswick.com/phoenix.zhtml?c=97828&p=irol-newsArticle&ID=2356616

 

[Gofirstclass]

Makes sense I guess. Now they have an in-house source for their power cables and likely other wiring for their many brands of boats they make.

 

[JVM225]

Buying their supplier is probably a good move.

 

[ttmott]

Power Products holds some well know brands such as Blue Seas, Promarine, Marinco, Anchor, and Mastervolt.
Product quality tends to suffer in these acquisitions over time; it would be a shame to see these staples of the marine industry suffer quality for the bottom dollar. For example, I understand that Sea Ray Product Development and Engineering was implemented by Brunswick corporate and Sea Ray essentially was directed to execute the engineering and design provided by corporate; consequently, the principal contributor in product quality issues and lackluster marketability. Again, for the bottom dollar rather than passion for the product and industry.

 

[JVM225]

Power Products holds some well know brands such as Blue Seas, Promarine, Marinco, Anchor, and Mastervolt.
Product quality tends to suffer in these acquisitions over time; it would be a shame to see these staples of the marine industry suffer quality for the bottom dollar. For example, I understand that Sea Ray Product Development and Engineering was implemented by Brunswick corporate and Sea Ray essentially was directed to execute the engineering and design provided by corporate; consequently, the principal contributor in product quality issues and lackluster marketability. Again, for the bottom dollar rather than passion for the product and industry.

Great point!
You would think they would want to keep high quality standards for these products since they use them in the boats they produce and wouldn’t want to have any problems.
But considering this is the same company that nearly destroyed the Harley Davidson brand image years ago, and made some bad business decisions with Sea Ray in recent years, anything is possible.

 

[Bt Doctur]

just gives them something else to screw up

 

[mobocracy]

Power Products holds some well know brands such as Blue Seas, Promarine, Marinco, Anchor, and Mastervolt.
Product quality tends to suffer in these acquisitions over time; it would be a shame to see these staples of the marine industry suffer quality for the bottom dollar. For example, I understand that Sea Ray Product Development and Engineering was implemented by Brunswick corporate and Sea Ray essentially was directed to execute the engineering and design provided by corporate; consequently, the principal contributor in product quality issues and lackluster marketability. Again, for the bottom dollar rather than passion for the product and industry.

I agree that this will hurt product quality and generally raise prices.

I think you outsource to third parties to gain market competition advantages for things you don't do well. If these companies are now captive to Brunswick they will have little incentive to keep up quality or innovate, as Brunswick brands will be forced to buy from them. It's everything bad about outsourcing without any of the advantages.

I wonder how much of this strategy is merely tied to the strategy aspect, as these brands also supply other boat makers. Ramp up prices to competitors and choke off supplies. The marine industry isn't really big enough to gain a major new supplier of these components.

 

[b_arrington]

But considering this is the same company that nearly destroyed the Harley Davidson brand image years ago, and made some bad business decisions with Sea Ray in recent years, anything is possible.

I'm pretty sure it was AMF that owned Harley from '69 to '81, and nearly killed it during that time.