Chaparral and Robalo Boats Form Exclusive Agreement with Yamaha Financial Services

Rhea-AI Summary

Chaparral and Robalo Boats, subsidiaries of Marine Products (NYSE: MPX), have announced an exclusive financing agreement with Yamaha Financial Services, effective January 1, 2025. This multi-year partnership will make Yamaha Financial Services the exclusive provider of dealer inventory finance and the preferred provider of retail finance for both boat brands in the U.S.A. and Canada.

The collaboration aims to enhance the customer experience by offering competitive financing options and protection products. Both Chaparral and Robalo are market leaders in their segments, having received the NMMA CSI Award for Customer Satisfaction for 16 consecutive years. This partnership is expected to drive incremental sales and increase brand loyalty for these premium boat manufacturers.

Positive

• Exclusive financing agreement with Yamaha Financial Services, a reputable brand in the marine industry
• Potential for increased sales and brand loyalty through competitive financing options
• Both Chaparral and Robalo are market share leaders in their segments
• 16 consecutive years of NMMA CSI Award for Customer Satisfaction

Negative

• None.

Insights

Financial Analyst

This exclusive financing agreement between Chaparral and Robalo Boats and Yamaha Financial Services is a strategic move that could significantly impact Marine Products (MPX). The deal, effective January 1, 2025, positions Yamaha as the exclusive provider of dealer inventory finance and preferred retail finance provider for both boat brands in the U.S. and Canada.

This partnership has several potential benefits:

• Enhanced financing options may boost sales by making purchases more accessible to customers
• Streamlined financing process could improve dealer operations and customer experience
• Alignment with a reputable brand like Yamaha may strengthen market perception
• Potential for increased brand loyalty and repeat customers

However, investors should consider that the impact may not be immediate, as the agreement doesn't start until 2025. The long-term effects on MPX's financial performance will depend on how well this partnership translates into increased sales and market share. It's a positive development, but its full impact remains to be seen.

Market Research Analyst

This exclusive agreement signifies a strategic shift in the marine industry landscape. Chaparral and Robalo, both market share leaders in their segments, are leveraging Yamaha's financial strength to potentially expand their reach. The partnership could lead to:

• Increased market penetration due to more attractive financing options
• Enhanced competitive advantage against rivals without such exclusive deals
• Potential for cross-selling opportunities between Yamaha and MPX products

The timing is crucial, coinciding with Chaparral's 60th anniversary, which could be used as a marketing catalyst. With a 344,747,089 market cap, MPX isn't a large player, making this deal potentially transformative. However, the delayed start date (2025) means investors should temper short-term expectations. The long-term success will hinge on how effectively the companies capitalize on this partnership to drive growth and market share in a competitive industry.

KENNESAW, Ga.--(BUSINESS WIRE)-- Chaparral and Robalo Boats, in partnership with Yamaha Motor Finance Corporation, U.S.A. (Yamaha Financial Services), are excited to announce a new multi-year exclusive financing agreement. Beginning January 1, 2025, Yamaha Financial Services will become the exclusive provider of dealer inventory finance and the preferred provider of retail finance for both Chaparral and Robalo Boats in the U.S.A. and Canada. By leveraging robust finance programs and protection products, Yamaha Financial Services is dedicated to providing the best dealer and customer experience in the industry.

“We’ve been a successful boat builder for so many years because of our partnerships, and this agreement with Yamaha Financial Services will continue to build on that foundation,” commented Buck Pegg, Chaparral founder. “We are very proud to have the best dealer network, and we are looking forward to offering both our dealers and our customers an advantage in the marketplace with strong financing options from a brand that has stood for quality and reliability in the marine industry for more than 60 years.”

“As always, Yamaha remains committed to delivering the best boating experiences for our customers. That includes working alongside premium builders and dealers to deliver competitive financing options for boat purchases," said Mark Tracy, Vice President, Yamaha U.S. Marine Business Unit. "Chaparral and Robalo - long time Yamaha partners - understand that the customer experience starts with the sale and continues through exceptional products and memories made on the water. This new, exclusive finance agreement with these two premium brands will help ultimately create customers for life."

“We are thrilled to announce this partnership with such a prestigious and longstanding boat builder,” said Brett Miller, Vice President of Commercial Finance, Yamaha Financial Services. “Combining Chaparral and Robalo’s breadth of quality products with Yamaha Financial Services’ full captive finance programs, we aim to provide best-in-class service to both wholesale dealer and retail customers while driving incremental sales and increasing brand loyalty.”

Both Chaparral and Robalo Boats are top market share leaders in their respective segments and have been awarded the NMMA CSI Award for Customer Satisfaction for 16 consecutive years. Celebrating its 60th anniversary, Chaparral boats lead the recreational sport boat segment with both sterndrive and outboard engine offerings and a variety of models including luxury, surf series, and ski fish. Robalo was founded in 1968 and acquired by Chaparral in 2001 and is known for building high-quality outboard sport fishing models which include center consoles, dual consoles and bay boats. Both brands are wholly-owned subsidiaries of Marine Products Corporation (NYSE: MPX).

Yamaha Motor Finance Corporation, U.S.A., dba Yamaha Financial Services, is an affiliate of Yamaha Motor Corporation, U.S.A. offering financing solutions to support Yamaha Dealers and loyal Yamaha Customers nationwide.

Yamaha Motor Finance Canada Ltd., dba Yamaha Financial Services, is an affiliate of Yamaha Motor Canada, Ltd., offering financing solutions to support Yamaha dealers and loyal Yamaha customers nationwide.

Yamaha Marine products are marketed throughout the United States and around the world. Yamaha Marine U.S. Business Unit, based in Kennesaw, GA., supports its 2,100+ U.S. dealers and boat builders with marketing, training and parts for Yamaha’s full line of products and strives to be the industry leader in reliability, technology and customer service. Yamaha Marine is the only outboard brand to have earned NMMA^®’s C.S.I. Customer Satisfaction Index award every year since its inception.

REMEMBER to always observe all applicable boating laws. Never drink and drive. Dress properly with a USCG-approved personal floatation device and protective gear.

© 2024 Yamaha Motor Corporation, U.S.A. All rights reserved.

This document contains many of Yamaha's valuable trademarks. It may also contain trademarks belonging to other companies. Any references to other companies or their products are for identification purposes only and are not intended to be an endorsement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017267678/en/

Yamaha Financial Services

vera_oh@yamaha-motor.com

Chaparral and Robalo Boats

jschlegel@chaparralboats.com

Source: Yamaha Financial Services

FAQ

When does the exclusive financing agreement between Chaparral, Robalo Boats, and Yamaha Financial Services begin?

The exclusive financing agreement between Chaparral, Robalo Boats, and Yamaha Financial Services begins on January 1, 2025.

What role will Yamaha Financial Services play for Chaparral and Robalo Boats under the new agreement?

Yamaha Financial Services will become the exclusive provider of dealer inventory finance and the preferred provider of retail finance for both Chaparral and Robalo Boats in the U.S.A. and Canada.

How many consecutive years have Chaparral and Robalo Boats (MPX) received the NMMA CSI Award for Customer Satisfaction?

Chaparral and Robalo Boats have received the NMMA CSI Award for Customer Satisfaction for 16 consecutive years.

What is the stock symbol for Marine Products , the parent company of Chaparral and Robalo Boats?

The stock symbol for Marine Products , the parent company of Chaparral and Robalo Boats, is NYSE: MPX.