- Outboard Marine
The Outboard Marine Corporation (OMC) was a maker of
Evinrude andJohnson boat motors and many different brands of boats based inWaukegan ,Illinois . [cite web|url=http://my.boatus.com/consumer/OMCBankruptcy.asp|title=OMC Bankruptcy Sets Consumers Adrift] They also owned several lines of boats such asChris Craft ,Lowe ,Princecraft ,Four Winns ,Sea Swirl ,Stratos , andJavelin . OMC was also a parent company to Ryan, which made lawn mowers. OMC sold 100,000 motors in 2000 and had one third of the outboard market. OMC filed for bankruptcy 22 December 2000 and laid off 7,000 employees. They announced they would no longer warranty their product. This left many owners in limbo wondering if the future owner would warranty their products as the future owner is not legally liable but could as a sign of goodwill. The names Johnson and Evinrude were won by bid in February 2001 byBombardier [cite web|url=http://www.cbc.ca/money/story/2001/02/07/bombarider_omc010207.html|title=Bombardier takes aboard Outboard Marine Corp.] and the boat division by Genmar corp of MN. At the 2001 Miami Boat Show they both said they would do their best to support dealers and warranties. [cite web|url=http://www.parislanding.com/omc_news_part2.htm|title=OMC Sputtering Along] The former OMC plant #2 in Waukegan, IL is now anEPA superfund cleanup site funded by taxpayers. [cite web|url=http://www.epa.gov/R5Super/npl/illinois/ILD000802827.htm|title=OUTBOARD MARINE CORP.]=History=Outboard Marine Corporation was formed in 1929 when
ELTO was merged with Lockwood-Ash Motor Company. They began using the name OMC in 1956. The company faced net revenue losses of 7.3 million in the 2nd quarter of 1997 ending March 31 and would have been worse if 2 million in dividends were not suspended. The previous quarter loss was 14.3 million even after selling assets such as the corporate jet. In April 1997 OMC hiredSalomon Brothers to explore future option such as a buyout or merger. [cite web|url=http://www.rbbi.com/news/omcnews1.htm|title=Outboard Marine Corporation Financial Problems News Page] In 1997Detroit Diesel made a $16 dollar a share bid for OMC. They were outbid at $18 a share by Alfred Kingsley who previously owned 2 million shares purchased at $17 a share and had no experience in the outboard industry. The deal was backed by GeorgeSoros .Carl Icahn , a corporate raider who boughtTWA in 1988, is said to blame Kingsley his lieutenant during the 80's for the ensuing TWA bankruptcy a few years later. David Jones formerMercury Marine Division president until August 1997 was hired by Kingsley in September of 1997 to become the President and CEO of OMC and resigned in August 2000 due to financial turmoil at OMC. [cite web|url=http://www.rbbi.com/company/omc/jones/jones.htm|title=David Jones Named CEO & President] In March 1998 OMC laid off 200 hundred employees after earlier laying off 348. [cite web|url=http://www.rbbi.com/company/omc/omcjobs1.htm|title=OMC Workforce Reduction] In September of 1998 OMC announced the closure of theirMilwaukee ,Wisconsin and Waukegan, IL plants over the next two years. [cite web|url=http://www.rbbi.com/company/omc/closing1.htm|title=OMC Closes 2 Plants] OMC released the 1997 FICHT fuel injected motor in 1996 to meet stiffer EPA guidelines. This motor usedGasoline Direct Injection developed by Ficht GmbH Germany. This motor was very troublesome and some outboard motor industry insiders have speculated the rush to meet EPA standards helped with the undoing of OMC.Their previous engines were known to be reliable in most applications, and have been popular with fisherman and boaters for many years. They dominated the race scene in the 70's and even held many records. Mercury and OMC competed fiercely. Since then, Mercury has stood alone in the race scene. OMC was innovative and even raced an experimental rotary engine built in a joint effort withWankel . Business and quality issues took its toll on the company and they were forced to file for bankruptcy. [cite web|url=http://my.boatus.com/consumer/OMCBankruptcy.asp|title=OMC Bankruptcy Sets Consumers Adrift]=Factories=
*Peterborough, Ontario =See also=
*Johnson Outboards
*Evinrude Outboard Motors =References=
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