Transatlantic trade conditions for the boating industry

Groupe Beneteau’s Boat Division has a portfolio of 10 boat brands including 4 American brands – Four Winns, Glastron, Wellcraft and Scarab – that are built in Cadillac, Michigan (USA).

The US trade policy sparked from its major trading partners, namely the European Union and Canada, the adoption of rebalancing measures on a number of products manufactured in the United States, including recreational craft.

The European and Canadian tariffs are 25% and 10% respectively. They have come into effect on June 22^nd for products exported to the EU and will be effective July 1^st for products exported to Canada.

The rapid adoption of US measures followed by retaliation measures fueled strong reactions from the EU and US industry associations as well as some heated statements on the potential consequences.

The Group is carefully evaluating the impact of these measures that should have a limited effect on the current fiscal year. All the more so, over the last three years, as the Group implemented a strategy for these brands to gain market share in their core market, i.e. the United States. In addition to new product development, dealer development in underserved markets has been intensified. Over the last 3 quarters, all 4 American brands thus gained market share in the US.

The next announcement is scheduled for July 10, 2018, when revenues for the first nine months of FY 2017-18 will be reported.