Outboard Tax

[dick]

I got a 70 Suzuki and runs great and I'd buy another if I had to but with new tax I was woundering if anyone has changed their mind and will buy a domestic built engine .<br />So I ask.........<br /><br />Will the tax on Japanese outboards change your mind on the buying of a new engine?<br /><br />If you don't know thw story go here.<br /> web page

 

[JB]

Re: Outboard Tax

Moving to Outboard Non-repair Discussions.

 

[roscoe]

Re: Outboard Tax

Are the dealers actually passing the tax on to the consumers?<br /><br />Some dealers may be trying to hoodwink you into paying more, blaming the tax, when in fact they are trying to increase their profit margin.<br /><br />When the tax was placed on motorcycles to bail out Harley, it had very little actual impact on the actual selling price of the Japanese imports.<br /><br />From the link you posted:<br /><br /> " Yamaha says it has changed pricing policies so that its U.S. customers won't be affected by the 22% import duty. "<br /><br />"The rumors of significant price increases by Yamaha in the U.S. markets are wrong," Phil Dyskow, president of Yamaha's U.S. marine division"<br /><br />I'm sure other manufacturers will do the same if they want to be price competative.

 

[dick]

Re: Outboard Tax

I read that to but Suzuki and Honda have not said anything yet and with Bombardier using Suzuki p/h's above 15 hp they will have to do something or swallow the duty to compete.<br />I do get a laugh that is Mercury complaining.<br />They where using Yamahas till this year when the released the Virado.

 

[BillP]

Re: Outboard Tax

Originally posted by roscoe:<br /> Are the dealers actually passing the tax on to the consumers?<br /><br />Some dealers may be trying to hoodwink you into paying more, blaming the tax, when in fact they are trying to increase their profit margin.<br /><br />When the tax was placed on motorcycles to bail out Harley, it had very little actual impact on the actual selling price of the Japanese imports.<br /><br />From the link you posted:<br /><br /> " Yamaha says it has changed pricing policies so that its U.S. customers won't be affected by the 22% import duty. "<br /><br />"The rumors of significant price increases by Yamaha in the U.S. markets are wrong," Phil Dyskow, president of Yamaha's U.S. marine division"<br /><br />I'm sure other manufacturers will do the same if they want to be price competative.

I was buying motorcycles before, during and after the "Harley" tariff. The tariff went from 4.4% to 49.4% overnight and had a huge impact on jap mcy prices in the USA. It lasted 5 yrs and declined every yr until ended. The avg 750cc bike went up $700 ($2500 to $3200). This was the era of 699cc bike development and mass dropping of 750-899cc models. It also is the reason jap mfgs moved assy operations to the USA. Regardless, the cost of large motorycyles went up big and stayed there. It was a small % of the the industry but a big impact to people who bought "heavy" motorcycles. <br /><br />I don't believe for one second that a 21% tax will be absorbed by the ob industry and not passed on to the consumer. The motors will cost more on the showroom floor just like motorcycles did.

 

[JB]

Re: Outboard Tax

Originally posted by Richard,fka ****:<br /> I read that to but Suzuki and Honda have not said anything yet and with Bombardier using Suzuki p/h's above 15 hp they will have to do something or swallow the duty to compete.<br />I do get a laugh that is Mercury complaining.<br />They where using Yamahas till this year when the released the Virado.

I believe that the "Johnson" EFI 4 strokes are complete, Suzuki-made engines, not just powerheads.

 

[dick]

Re: Outboard Tax

I know .I should of stated that better.They just change the harness plug and shift/throtle hook-up's on the Bombardier engines.<br />All the Merc 4stk. 225 till next model year where all Yamaha and 75-115hp 4stk Mercs used Yamaha p/h's on Merc exhaust and gearcases assmblies.Also small Merc 4stk's are Tohatsu's, but I don't know if there assmbled in the states.

 

[FlyBoyMark]

Re: Outboard Tax

Yep!.....More bloated prices for an already bloated overpriced product...

 

[seahorse5]

Re: Outboard Tax

Here is Bombardier's response:<br /><br /><br />Johnson Raising its Four-Stroke Outboard Prices<br /><br />STURTEVANT, Wis. – September 7, 2004 - Bombardier Recreational Products (BRP) was put in a challenging situation when the U.S. Department of Commerce (DOC) made its dumping ruling in August, said BRP executive Roch Lambert in the company’s “The Real Deal” newsletter, released Friday.<br />Its Johnson engines 25-hp and above are manufactured by Suzuki, a Japanese engine manufacturer, and thus are subject to a preliminary 22.52 duty if imported into the U.S.<br />In response, the company is raising the dealer price of its 25- to 30-hp and 115- to 140-hp four-strokes, for which BRP does not offer an E-TEC engine of the same horsepower, by 5 percent. The dealer price of those Johnson four-strokes from 40- to 90-hp and 200- to 225-hp, for which it does offer an E-TEC alternative, will increase 12 percent, according to Lambert, BRP’s executive vice president, Product Development, Sales, Marketing North America.<br />He pointed out that Japanese suppliers have the option of reducing prices in Japan, increasing prices in the U.S., absorbing the duty or a combination of the three. However, because BRP purchases the engines from Suzuki, it can’t adjust pricing in Japan.<br />“Absorbing the entire duty is not a sound financial option, and the idea of passing a 22.52-percent price increase on to you was simply out of the question,” Lambert added.<br />The price increases take effect immediately; however, BRP said it is price protecting firm orders provided by September 8.<br />The engine manufacturer said it would review the situation after the first of the year, once the DOC and the International Trade Commission issue their final decisions. <br /><br />Johnson four-strokes in short supply <br />Meanwhile, availability of Johnson four-strokes is limited – and is expected to remain so through December – as BRP has been “conservative” in its ordering from Japan.<br />“The situation is very volatile,” stated Lambert. “We strongly encourage you to lock in as much of your order as possible before September 30 for delivery in time for many boat shows.”<br />While BRP’s plan is intended to allow BRP dealers to continue to sell all outboard technologies, Lambert concluded with a final push for the strength of the company’s two-stroke direct injection product.<br />“We strongly believe Evinrude E-TEC is a superior alternative to every four-stroke engine on the market – regardless of manufacturer,” he stated. “Whatever you seek from a four-stroke, E-TEC does it better.”

 

[roscoe]

Re: Outboard Tax

I don't know BillP. I bought a 900, a 1200 Aspencade, and a Suz 1100e during the tariff years. Only the 1100e seemed to be affected by any big price increase, and probably because it was a sportbike and they knew they could get the $ out of the rocket riders.

 

[BillP]

Re: Outboard Tax

You may be right...I didn't get discounts on a 1000cc Kaw or the 750 & 1100 Suzukis. I remember the 750 went up $700. <br /><br />But the posting from seahorse kinda tells us what is happening to the price of ob motors with the tariff. <br /><br />I am REALLY pizzed at merc now. When my merc/mariner is gone I will never buy another merc product...ever.