2023-06-02 04:00:00
Bombardier Recreational Products (BRP) held its shareholders’ meeting on Thursday. We took the opportunity to take stock of the Quebec multinational with the man who has been its CEO for almost 20 years, José Boisjoli, now 65 years old.
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Q: Growth continued again at BRP in the first quarter. Does this mean that consumers are showing resilience despite rising interest rates and the economic slowdown?
R: Yes, consumer resilience, but also our product range. One of our goals, when we became self-sufficient [de Bombardier]20 years ago, it was to become the manufacturer of choice for customers and dealers – we have 3000 in 130 countries.
Q: BRP went public 10 years ago. What is your assessment of the progress made?
R: Our revenues were multiplied by 3.5 to reach $10 billion. Our earnings per share increased 8.4 times and we grew from 6,800 to 23,000 employees in 26 countries. I am extremely proud of what we have become.
Q: Where is your electric turn?
R: The first product to be offered on the market will be the electric snowmobile, which will go into production in December for next winter. The first users will be adventure companies. Then there will be the two-wheeled Can-Am and the board hydrofoil Sea-Doo Rise, which will be available around summer 2024.
Q: Does the $300 million development bill for these products still hold up despite inflation?
A: So far so good.
Q: BRP opened its first design center outside Quebec last month in France. Almost all of your vehicles are assembled in Mexico. Is the heart of BRP still in Quebec?
A: The head office is here. If we go back a few years, there were 2,500 to 3,000 people in Valcourt. Now, we are 4000 people between Valcourt, Sherbrooke and Montreal. Last year, we bought Mégatech in Shawinigan, where we have 500 employees. But beyond that, the nerve center in terms of design and R&D – and even manufacturing engineering – is here in Quebec. We have very strong roots here and it continues.
Q: How was BRP able to pay Mexican workers four times less than Quebec workers in its Valcourt facilities, as revealed by Radio-Canada last year?
A: No, no. They were paid the same as Quebeckers for the same work. We are still in discussion with the CNESST. We brought in Mexican employees, that had never happened before. We are convinced that we have done the right things. I don’t want to talk about it any further until we have reached a conclusion with the CNESST. The file is progressing and it should be completed soon.
Q: Was this case a blow to BRP?
A: Of course we didn’t like it. We did not agree with what was said. We will explain our point of view when the CNESST has completed its investigation.
Q: Can Russians still obtain your products through unofficial channels despite Western sanctions?
A: We have completely withdrawn from Russia. We don’t have precise figures on that, but it is certain that if a Russian really wants to buy a snowmobile or a personal watercraft, he can find them elsewhere in the world. On the other hand, there are not large quantities going to Russia. Otherwise, it would be seen by the product warranty registrations.
Q: Have you managed to shed any light on allegations that motors made by BRP in Austria ended up in Iranian drones that attacked Ukraine?
A: We have very clear policies to the effect that we do not sell engines for military applications. We follow it very closely – even more so now. We sell to distributors and aircraft manufacturers. The difficulty in this case is that a drone costs a few million dollars and a Rotax engine can cost $25,000. There are companies that can buy a complete plane to use the engine, which makes it difficult for us to manage. But we are doing the best we can to monitor what is happening in this area.
The interview content has been condensed for space and readability.
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