Business

BRP vows to remain in Mexico even if Trump pulls out of NAFTA

The maker of Ski-Doos, personal watercraft and off-road vehicles says it will maintain low-cost production in Mexico even if Donald Trump withdraws from NAFTA.

BRP says it expects to take up to $25-million hit if tariffs are restored

Employees work on the SeaDoo assembly line at the Bombardier Recreational Products plant in this June 2014 photo. The company says it will not pull out of Mexico if president-elect Donald Trump withdraws the United States from NAFTA. (Ryan Remiorz/Canadian Press)

The maker of Ski-Doos, personal watercraft and off-road vehicles says it will maintain low-cost production in Mexico even if Donald Trump withdraws from NAFTA.

BRP Inc. says it expects to take a $20-million to $25-million hit if tariffs are restored on more than $1 billion of goods traded annually between Mexico and the United States.

Chief executive Jose Boisjoli says the impact of 1.4 to 2.9 per cent tariffs on goods from Mexico would be "manageable."

The Quebec-based recreational products maker would expect to pass costs to suppliers, increase prices and adjust operations, just as it would if faced with higher inflation.

Chief financial officer Sebastien Martel told analysts Friday that despite the higher tariffs, BRP benefits from access to lower-cost skilled workers and supply base in Mexico.

Boisjoli said in an interview that the situation is similar to Russia's decision to add a new tax on imported goods after years of rumours.

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