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View Full Version : Status of O.M.C. corporation?



Donzigo
12-26-2000, 07:43 PM
My buddy calls me today and says that OMC won't accept parts orders, & OMC's Chris Craft factory in Bradenton let people go, & a number of OMC factory reps were let go. I can't quite believe it. Anybody heard anything?

[This message has been edited by Donzigo (edited 12-26-2000).]

GEOO
12-26-2000, 08:17 PM
OMC is filing for chapter 11 for protection from creditors. I'm not sure why? Maybe they paid too much when they went private, too much money in R&D, Poor sale orders for the year 2001? Johnson & Evenrude may be sold to a boat manufacturer. Thety hold a third of the market share!!! GEOO

BERTRAM BOY
12-26-2000, 08:33 PM
If anyone knows all the details, it's Stromer. Lindstrom, Where are you?
BERTRAM BOY

Looped
12-26-2000, 09:26 PM
There has been talk on the Offshoreonly (http://www.offshoreonly.com/ubb/Forum1/HTML/000472.html) site with the same question. I have not heard anything about Toyota working on a deal yet. Working at a remote Lexus/Toyota branch I don’t hear much from Corporate anyway.

Craig

Donzigo
12-26-2000, 09:53 PM
Sadly, it is true. Checked around the web tonight. It doesn't look good at all for OMC. Sales last year were reported at 1.2 billion. The company could be sold for 10% of that amount, so the experts say.

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http://www.Donzi.net/richardsig.jpg

Tom on Lanier
12-26-2000, 09:59 PM
OMC did, indeed, file Chapter 11 on Friday 12/22/00. The company had been consistently losing money for a long time and the investors had enough. Negotiations to sell it fell through when the last interested party, Bombardier, walked away due to the high debt factor.
They had spent a lot of money buying boat companies in an attempt to keep Yamaha, in particular, from gaining market share. Mercury did the same thing starting about 1989. OMC was not very successful with most of their boat lines, losing money with most.
Then there is the Ficht fiasco. An attempt to meet EPA exhaust emission standards by trying to clean up their 2-stroke outboards. They had a ton of problems with that technology and, even though it is pretty good today, people are afraid to buy it. Their market share is down to about 21 to 22% with Yamaha at the same level or more.
Bottom line is they are closed with no plans to reopen. A lot of people, dealers, vendors, creditors, employees and customers have been left hanging. They are out of business. Genmar is reportedly interested in acquiring Chris Craft and Four Winns.
I can't tell you how many phone calls, resumes' and letters I have received from their former employees. That is where this information is coming from. Along with the Chicago Tribune and BoatingIndustry.com.
Makes for a very uneasy Christmas for a lot of people associated with OMC not to mention customers that own their products. Maybe some group will come forward and try to make a go of it but, at the moment, prospects don't seem to be good.
That is the situation as I know it. Maybe there is someone on this board who is an employee or dealer that has more, or different, information.

[This message has been edited by Tom on Lanier (edited 12-27-2000).]

Formula Jr
12-27-2000, 12:04 AM
http://www.boatered.com/topic.asp?topic_id =6471&forum_id=1&Topic_Title=News+Flash+%2D+OMC&forum_title=Ask+the+Captain&M=False&S=True (http://www.boatered.com/topic.asp?topic_id=6471&forum_id=1&Topic_Title=News+Flash+%2D+OMC&forum_title=Ask+the+Captain&M=False&S=True)
http://www.rbbi.com/company/omc/omc.htm

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http://albums.photopoint.com/j/View?u=943763&a=6906956&p=35473642

[This message has been edited by Formula Jr (edited 12-27-2000).]

Looped
12-27-2000, 07:36 AM
On a better note, at least OMC doesn’t still own Donzi.

Stromer
12-29-2000, 08:06 PM
Yes - OMC did file Chapt 11 last Friday. It is unfortunate and I am very upset sisnce my company (Chris Craft) was making money, has a new line of boats Heritage series, all tooling was paid for! The parent OMC pulled us down with quality and sourcing prolems. The plant is closed for the Holidays and will remain closed until a purchaser is found. The OMC boat companies and Engines are being sold as seperate entities. Many companies are interested in Chris*Craft - especially simce our new Launch Series is a hit with retro looks - we are on Five magazine covers for January - the press love it! We are confident there will be a purchaser named very soon. Some very large marine companies and some familiar folks are said to be involved. It has been a hard Christmas - so I spent my time with my daughter and in the garage under my Donzi grinding and repairing small gel cracks!!!

Looped
01-04-2001, 09:47 AM
Just ran into this from a daily posting:

Toyota, Yamaha Motor to form watercraft venture in U.S.
Kyodo News 01/04/01
Copyright Kyodo News International Inc. 2000

Toyota Motor Corp. and Yamaha Motor Co. will broaden their tie-up in the marine business and plan to form a joint venture to manufacture large pleasure boats in the United States, a Japanese business daily reported Thursday.

Toyota will also sell its domestic marine business operations to Yamaha Motor as it has lost money in the business since its entry into the market in 1997, the Japan Industrial Journal said in a front-page story.

Emmo
01-04-2001, 08:25 PM
I read in Car & Driver today that Honda is going to make a 4-stroke PWC called oddly enough the "four stroke Personal Watercraft". Evidently, this was announced in September but it is news to me.

http://www.hondamotorcycle.com/models/2001lineup/images/FOURSTROKEPERSONALWATERCRAFT.jpg

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Emmo mailto:emmette@emmette.comemmette@emmette.com</A>

Tom on Lanier
01-04-2001, 10:24 PM
Emmo - the Honda PWC was announced to Honda motorcycle dealers at a national dealer meeting in September. Very little info. More details to be made available this month or next. Current plan is to release late this year as a 2002 product. Like the world really needs another PWC. At least it will be a 4-stroke and will steer with the throttle shut down.

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Tom
"Tomahawk"