Walleye Discussion Forums
| ||
| View previous thread :: View next thread | |
| Jump to page : 1 Now viewing page 1 [25 messages per page] Walleye Fishing -> General Discussion -> Merc Responds to Jacobs |
| Message Subject: Merc Responds to Jacobs | |||
Shep |
| ||
Member Posts: 3899 | Mercury responds to Jacobs’ charges Boating Industry Thursday August 12, 2004 FOND DU LAC, Wis. – Mercury Marine this morning answered charges made by Genmar Holdings, Inc. chairman and CEO Irwin Jacobs who, in an open letter to the marine industry Tuesday, was very critical of both Mercury and the U.S. Department of Commerce. The DOC recently ruled in favor of Mercury’s engine-dumping complaint filed against Japanese outboard manufacturers. In its two-page statement, Mercury reiterated Jacobs’ right to express his opinion, then took issue with several of the allegations he made, defending not only itself, but also the DOC and the motives of both organizations. “The recent U.S. Department of Commerce’s decision was not determined on opinion, but based on facts considered during a lengthy, thorough and independent investigation,” Mercury wrote. “To assert that the DOC has ‘no interest in facts, but only in how they can protect a U.S. company’ does the agency, its experts and its expertise in such matters a grave disservice. “According to the DOC’s decision, Japanese manufacturers have indeed been violating U.S. dumping law. This determination was not due to some esoteric mathematical error – as demonstrated by the magnitude of the dumping margins – nor was it a result of an inability by the U.S. Department of Commerce to winnow out any distribution differences. The Department of Commerce is extremely skilled and practiced at such investigations, and Mercury is confident the U.S. government has completed a thorough, legitimate and fair evaluation of the situation.” Mercury said its objective in seeking the ruling was to ensure that the Japanese manufacturers follow U.S. laws and to promote competition and choice in the outboard engine market. Mercury Marine submitted a petition to the U.S. government in January asking for an investigation into the pricing strategies of Japanese engine manufacturers and alleging that the foreign engine builders were “dumping” product into the U.S. market. Dumping occurs when a foreign company sells a product in the U.S. market at less than the price it charges in its own home market or below fully distributed costs and the dumping causes material injury to the domestic producers of the same product. “Mr. Jacobs contends that this is all about pricing,” Mercury wrote. “It is, rather, about redressing price manipulation already done by the Japanese industry with one goal in mind: to harm U.S. outboard makers. One can only ponder what an outboard market without strong American competition would ultimately be.” Mercury closed its letter saying it awaits the final determinations of the DOC, which is expected to rule in December, and the International Trade Commission, which may issue its findings early next year. Jacobs releases follow-up letter Jacobs, meanwhile, issued another letter this morning in which he wrote he had “found out some very interesting and astonishing information regarding Mercury’s anti-dumping case against the Japanese outboard engine manufacturers.” “First of all, neither Mercury nor Bombardier have told the marine industry (manufacturers and dealers) that they also will have to put up the same amount, approximately 22-1/2 percent, for a bond that all importers of Japan engines and power heads also must post,” Jacobs wrote. “Bombardier imports four-stroke engines to the U.S. from Japanese Suzuki under the Johnson brand. Mercury will also have to post a bond for any Tohatso engines and Yamaha four-stroke heads and engines that Mercury imports from Japan, the same as Yamaha." However in its Aug. 6 press release, Mercury did acknowledge its actions would impact the engines it imports, saying “Even though engines Mercury imports from Japan will be subject to the duty, we believed it was our responsibility to our shareholders and employees and the U.S. marine engine industry to follow this course.” Jacobs said Yamaha had assured Genmar that it believed the necessary pricing adjustments both in Japan and the U.S. had already been made. Yamaha says that it has lowered engine prices in Japan and raised prices in the U.S. 3 to 4 percent at the beginning of the model year in July 2004 — including raising Mercury’s price on four-stroke engine heads over 90 percent. “If Yamaha is able to split Mercury’s anti-dumping complaint into two categories: one for complete engines shipped to the U.S. and one for four-stroke heads shipped to Mercury, I am told that Yamaha’s cash bond would go down to approximately 15 percent on complete engines, and Mercury would then have to post a cash bond with the U.S. Government in excess of 100 percent of the value of the four-stroke heads,” Jacobs wrote. “In other words, Mercury could conceivably be at risk for even a higher percentage cash bond than Yamaha.” Jacobs said the DOC will monitor the shipments and pricing of outboard engines from Japan to the U.S. annually, and that at the end of the first year, if the DOC believes there is no longer any monetary damages from anti-dumping, it frequently returns the cash bond deposits with interest at the end of one to two years. Jacobs also reaffirmed his contention that Mercury will have a hard time proving it had been harmed by the dumping given its recent pronouncements of sound financial health. “Finally, I believe that Mercury has caused a bigger problem potentially for themselves than for anyone else,” Jacobs wrote. “Things are going to get very interesting in the U.S. outboard engine business. Stay tuned.” Edited by Shep 8/24/2004 7:48 AM | ||
| |||
| tyee |
| ||
Member Posts: 1406 | Interesting isn't it! Good Luck Tyee | ||
| |||
| jon |
| ||
| Interesting since Jacobs and Genmar have no stake in the Outboard industry and he still is out to try and harm merc because they will not give him the deal he wants on their motors. | |||
| |||
| terroreyes |
| ||
Member Posts: 300 Location: Lincoln Park, Mi | As far as quality, his statements mirror my personal experience and many others. I'm faced with the problem of wanting a Tracker Tundra, but the major drawback is that I have no choice on a motor. Mercury or nothing. I plan on expressing my concerns to Tracker regarding the no coice in motors and hopefully enough people will do the same and MAYBE if it puts a dent in sales, Tracker will give their customers an option. I'm pretty sure that Mercury gives Tracker an exceptional deal to exclusively offer their motors, shutting the other manufacturers out. Is that any different than Mercury's complaint? I'm not bashing Mercury, but I have had enough minor problems to really want to give another manufacturer a shot. If I run into the same problems with an imported motor, then I'l definitely go back to Merc and support American labor again, but this is America with an open economy and it's my right to get the best value for my dollar. You can't FORCE me to buy an inferior product just because it's "Made in America" and you can't do the same to a boat manufacturer or dealer. Like that means something these days. What, 30% American made components constitutes an American product anyways? Edited by terroreyes 8/24/2004 10:28 PM | ||
| |||
| Tyee |
| ||
| Terror, Look hard...... I don't understand your post? Why can't you have another motor on your Tundra? OOOOHHH..Your looking for a better price! I get it! Huh, I think thats what this whole complaint is all about don't ya think! Lost revenues? If you want a certain motor go get it. Theres nothing stopping you is there? Good Luck Tyee | |||
| |||
| terroreyes |
| ||
Member Posts: 300 Location: Lincoln Park, Mi | I don't understand your post. You cannot get anything other than a Merc on a Tracker. Of course I could sell my new Merc motor and get another brand but why go through all that hassle and WASTE money??????? Are you going to pay me retail for it? I'll lose big time. At this point, if I had to pay an extra $1000 for another brand, If OFFERED, I would probably do it, just to save on down time and misc. "out warranty" season 2 & 3 unnecessary repairs. It's not a matter of just money, but I have a real problem with throwing it into the wind for no reason. Hey, if you make the big bucks and have money to throw away, so be it. I don't! Edited by terroreyes 8/24/2004 10:45 PM | ||
| |||
| sworrall |
| ||
Location: Rhinelander | terroreyes, Look at the actual incedence of warranty per brand by percentage of total motors sold. Also, take a look at who owns Tracker Marine, should be available in the corporate stuff about Tracker. I assure you, Tracker picked the motor brand they sell, and did so eyes wide open. | ||
| |||
| terroreyes |
| ||
Member Posts: 300 Location: Lincoln Park, Mi | Where do I find the stats if incidents? That would be some interesting info. I know about Tracker/Mercury. Aren't there other similar motor/manufacturer situations where the manufacturer still offerers a choice in motor? Tracker may be one company not forced to sell Mercs but market conditions may force other manufacturers to go with Merc just to stay competitive on price regardless of anything else. | ||
| |||
| stacker |
| ||
Member Posts: 2445 Location: Fremont, Wisconsin | Terror eyes, can eye' get in on this? Just one question, how old are you and did you grow up in the detroit river area. Thanks. | ||
| |||
| terroreyes |
| ||
Member Posts: 300 Location: Lincoln Park, Mi | 34 and been in Lincoln Park for 19 years. | ||
| |||
| Jump to page : 1 Now viewing page 1 [25 messages per page] |
| Search this forum Printer friendly version E-mail a link to this thread |
Copyright © 2025 OutdoorsFIRST Media | About Us | Contact Us | Advertise
News | Video | Audio | Chat | Forums | Rankings | Big Fish | Sponsors | Classified Boat Ads | Tournaments | FAQ's
News | Video | Audio | Chat | Forums | Rankings | Big Fish | Sponsors | Classified Boat Ads | Tournaments | FAQ's