Interesting !

[Jody_Seal]

http://www.nautique.com/Press/index/correct-craft-acquires-two-engine-companies-pcm-marine-engines-and-crusader-engines

[oldjeep]

Very interesting, I wonder if there will be a quick change at Malibu or if they will keep using PCM for 2015 Response and Axis?

[Nick Sullivan]

I wonder what this will do to PCM. Will the other boat manufacturers who currently use the PCM engine decide to go someplace else? I worry that they may decide they don't want to support the competition and switch back to Indmar or some other engine builder.

 

I love PCM and after having the others I would always choose a PCM boat over any other.

[eleeski]

Is there a ZO V6 or 4 in there?

Eric

[Horton]

I was not sure how to read this so I called my super-secret boat industry insider. Let’s call him “Deep Spray”.

 

Deep Spray said that he thinks that CC will want PCM to be a good supplier to other brands. CC will save money on their engines and will make money selling engines to other brands. Making other brands switch engines would be a short term disruption and long term would lower PCM profits.

 

He says that this deal was a total surprise to the industry.

 

[Skoot1123]

From the website it appears that Crusader is the saltwater side of PCM.

[swc5150]

So with lower engine costs for CC, will they lower the price of the 200? ;)

[TallSkinnyGuy]

The press release says they are not planning on changing the management or the location of the acquired companies. There is a good chance that these purchases were not made with the goal of lowering engine costs but rather gaining more control of their supply chain. There will probably be some cost savings from eliminating some back-end support redundancies (e.g. accounting) if they do that, but it seems likely that buying these engine companies will not result in any substantial cost savings.

[Wish]

Hmmm, I wonder if there will be a price discount for crate 343s for a Nautique owner. Ya, probably not but a guy can dream.

 

@TallSkinnyGuy‌ buzz kill. ;-)

[Horton]

@TallSkinnyGuy‌ by technical accounting terms I think you are right but when you make money selling stuff to you self ...

[TallSkinnyGuy]

When you buy a company that is making a profit you generally pay a price that considers that that profit is going to continue to be made in future years. When the purchased company is one of your suppliers you do indeed get to "sell to yourself" and earn that profit within your own company. But you want the purchased company to continue making a profit to make it worth its purchase price. If you lower the price to yourself you may increase your own profit but only by the amount that you are decreasing the profit of the purchased company (this is assuming the price of the end product stays the same along with some other assumptions about other things staying the same). So, in this scenario it will be a zero-sum game.

 

Ultimately, unless CC bought these companies with the intention of making changes that will make the companies more profitable than they are now, they are just buying them to have more control over their supply chain. Regardless, whatever reason CC had for the purchases, it was likely not because they wanted to be able to lower consumer prices. Wow, I really am a buzz kill. Sorry.

[Kelvin]

It will be interesting to see if Nautique's competitors continue to use PCM/Crusader products.

[LeonL]

What business will be left for Indmar, what with Centurion using PCM, MC using Ilmore, Malibu using PCM/Crusader, and of course CC with PCM?

[oldjeep]

@Leon In 2015 Malibu uses Indmar in all of their boats except for the Response. Their 2015 Axis line (cheaper) uses Crusader. Gekko, Supra, Moomba, MB, Sanger, Tige all use Indmar as well.