The company also announced three acquisitions this summer. Each is expected to contribute to his BRP electrification plans and expansion into non-traditional markets.
“We wanted to have expertise in our existing product lines, but we also wanted to leverage them. [acquisitions] It’s about entering the mobility and other markets,” Tran said.
In July, BRP agreed to acquire the Austrian subsidiary of China-based automaker Great Wall Motors, adding a research center with around 50 engineers dedicated to e-drive and electric transmission systems. .
The purchase of a majority stake in Germany-based Pinion GmbH was announced on August 5th. The 60-person team designs and manufactures mechanical gearboxes for conventional and e-bikes, and models precision shift systems in automotive transmission technology.
On August 9, BRP announced that it will acquire the Shawinigan, Kay operations of Kongsberg Automotive, one of BRP’s longtime suppliers of electronics and mechatronics. BRP will absorb approximately 300 employees when the deal is completed this quarter.
Focus Beyond Fun
BRP has traditionally focused on the automobile as a source of recreation, but electrification is about how the company can redefine the overlap between driving for fun and traveling from point A to point B. It opens a lot of doors,” said Tran.
“If we can change and improve the way people move, that is definitely part of our mission,” he said.
BRP’s foray into mobility mirrors similar early steps by automakers such as Toyota, Volkswagen and General Motors. These automakers entered the market through various concepts and occasional salable products, such as GM’s ill-fated Ariv e-bike.
Traditional auto parts suppliers are also on board with this trend. For one, in September Canada’s Magna International announced his $77 million investment in India-based Yulu. The mobility technology company operates about 10,000 electric two-wheelers in three cities, and he has aggressive plans to expand to 15 cities in the next 18 months.
Tran believes BRP is well positioned to find that niche.
“It’s a huge market today,” he said. “There is space for everyone to innovate and do things differently. [product market] Make sure you take innovation at its core and make it a little different from the rest. ”