The Canadian company BRP announced that it will expand its manufacturing capacity in Mexico, with the construction of a new plant in Ciudad Juarez, Chihuahua.
This expansion of the company’s production facilities is intended to meet the demand for off-road vehicles. Therefore, they will seek to maintain the growing pace of orders for side-by-side Can-Am cars.
The plant, which will be located in the north of the country, will have an investment of approximately 185 million Canadian dollars (about 136 million US dollars) and will create at least 1,000 permanent jobs.
The planning and construction of the plant in Mexico is scheduled to begin in the coming months, so it is expected to be operational by the end of 2021.
After a temporary slowdown due to the health contingency of the Covid-19, retail sales rose by more than 35% in May compared to the previous year, and this rising trend continued in June of this 2020.
José Boisjoli, President and CEO of BRP, said that despite the pandemic, demand for its models has been sustained and even exceeded the 2019 figures.
“Our continuous innovation and constant growth of side-by-side vehicles make this additional capacity necessary to meet our goal of 30% market share,” he said.
This new factory, combined with the other two off-road vehicle plants in Ciudad Juárez, Chihuahua and Querétaro, will create operational synergy and greater efficiency. BRP’s total capital expenditures for fiscal year 2021 are now projected to be in the range of C$275 million to C$300 million.
The models that BRP builds in Mexico are sold in more than 100 countries. These cars are considered all-terrain vehicles with an added value whose commercial price is between 200,000 and 500,000 pesos.
BRP is a company of motor sports vehicles, propulsion systems and boats. It has nine brands: Ski-Doo, Sea-Doo, Can-Am On-Road, Can-Amm Off-Road, Lynx, Evinrude, Rotax, Manitou and Alumacraft, which are iconic in the motor sport and marine industries.
Source:
By Elenne Castro. July 2020
mexicoindustry.com
