In an op-ed piece in the Fond du Lac Reporter today, Mercury president Mark Schwabero said consolidating operations in Stillwater, Oklahoma and Fond du Lac, Wisconsin could be a "possible outcome" for the engine builder. Schwabero's op-ed piece confirms rumours in local news media that Mercury was talking to officials in both states about relocating facilities.
"Quite simply, Mercury Marine is capable of producing many more engines than the market will require in the foreseeable future," wrote Schwabero. "Our facilities were designed and built during much different market conditions, and are now underutilised." The engine builder will now size operations to "be more appropriately in line with anticipated market demand," said Schwabero. Anticipated sales for 2009 are expected to decline by double digit percentage points, he added.
"This global downturn is significantly longer, deeper and broader than those in the past," he wrote. "We have to assume the global marine industry will not bounce back soon, and we must plan appropriately for this new reality."
Schwabero did not say if any concrete decisions have been made about consolidating the facilities, and what type of timetable the company is operating under. Questions sent to Mercury seeking elaboration were not returned by presstime.