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Volvo to acquire Seven Marine; Outboard Engines...

Discussion in 'General Yachting Discussion' started by YachtForums, Jul 6, 2017.

  1. YachtForums

    YachtForums Publisher/Admin

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    Volvo to acquire Seven Marine; Outboard Engines

    Volvo Penta has signed an agreement to become the majority owner of Seven Marine,
    enabling the Swedish company to extend its scope of integrated propulsion systems.

    “With this acquisition, Volvo Penta is entering the outboard motor segment, says Volvo Penta president, Björn Ingemanson. “With Seven Marine, we are on a journey to expand the scope of supply with our customers and invest in the growth of a platform to shape the future of the outboard industry.” The deal will broaden Volvo Penta’s technology platform, offering a modular, cutting-edge solution, regardless of the energy source, to deliver the desired power in the water. Seven Marine will be able to further develop its existing innovative outboard technology to satisfy a wider range of needs for its premium and exclusive customer base. This acquisition will strengthen their combined footprint in the marine market.

    “This is an exciting step for Volvo Penta,” says Ron Huibers, president of Volvo Penta of the Americas. “We are combining the strength of two highly innovative companies to deliver an unbeatable engine range for the gasoline segment. We will not only come to market with an extremely attractive outboard solution, but we will deliver the benefits of our world-class service network to a broader range of customers.”

    Seven Marine...

    Seven Marine, based in Milwaukee, Wisconsin USA, was founded in 2010 by a team with many years’ specialist experience in marine technology. the founder was a cheif engineer behind Mercury's outboard division. With a proven track record in delivering high performance gasoline outboards for the high-end leisure market, Seven Marine produces the most powerful outboard models in the world, running at 557 and 627 hp.

    Thanks to the unmatched horsepower of its outboards, the company is able to meet the demand for larger, outboard powered boats. Customers benefit from the ability to go farther, faster, more efficiently with leading and innovative product style and design.
    The company’s small block V8 engines are fitted horizontally and leverage modern, automotive quality and technology. This includes use of fresh-water cooling for enhanced durability and corrosion protection and a supercharger to produce excellent performance.

    Volvo-Penta...

    Volvo Penta has over 110 years of experience as a market leader in engine and propulsion systems, delivering a history of innovations to the marine industry, such as the Aquamatic Sterndrive, Volvo Penta IPS, and Forward Drive. The company’s easy boating philosophy is the driving force behind groundbreaking solutions to make boating easy, enjoyable and more fun. With its current product portfolio, Volvo Penta offers one of the widest ranges of world-class marine diesel and gasoline engines in the industry.

    Shared Vision...

    The use of automotive technology is a common aspect between Volvo Penta’s gasoline sterndrive range and Seven Marine’s outboard motors. Seven Marine’s approach to exploring new techniques and design architecture is a key driver behind Volvo Penta’s decision to become majority owner in Seven Marine.
    With this acquisition, the two companies will collaborate to continue to develop Seven Marine’s leading outboard offerings, which not only leverages the strength of the company’s existing technology, but also has sustainability in mind.

    “The Seven Marine concept mirrors the successful strategy we have followed in pursuing automotive technology,” says Björn Ingemanson, president of Volvo Penta. “Just as we are a leader in diesel and gasoline engine technology, Seven Marine leads its market for state-of-the-art outboards.”
    He adds: “We have a shared vision for the future, and this deal provides an ideal platform for us to grow and adapt together. We will move forward in leading the development of world-class performance and sustainability for the most premium of outboard motor segments.”

    Seven Marine will operate as a stand-alone entity retaining its brand, product line and organizational structure. Ron Huibers, Volvo Penta’s president of the Americas region, will be the chairman of Seven Marine and Rick Davis will remain as Seven Marine’s president and CEO.
    With this approach, Seven Marine will benefit from the strength and stability of being part of a larger, international organization, while still maintaining its entrepreneurial spirit.

    “This is a great development for us,” says Rick Davis, president and CEO, at Seven Marine. “As a young company we have pushed ourselves forward to revolutionize the outboard experience in a short period of time. And in partnering with Volvo Penta, we will have a solid backing to continue improving the customer experience through the pursuit of technological and innovation advancement.”
    The agreement is subject to conditions and is expected to close in the nearest future.



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  2. YachtForums

    YachtForums Publisher/Admin

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    I don't have sales figures, but IMO interest in Seven Marine engines has been limited by cost and service. With Volvo's dealer network and consumer demand for outboard reliability, this is certainly a great strategic move by Volvo. Hopefully the infusion of cash will give Seven Marine the manufacturing efficiency to price units more effectively. When 7 Marine's engines first debuted at the Miami show about 7 years ago, they were met with great enthusiasm, but this was quickly muted by price. Since then, Seven has made some inroads with builders wanting to showcase premiere, range-topping models. Short of that, the engines remain an oddity invoking deep price point resentment. IMO, if they don't correct this, they are leaving a gaping hole for the big outboard motor manufacturers to fill and that's not a market they can thrive in. Nor survive.

    The cost of the 627hp Seven is around $100k. The 557hp variant is around $75k. The block of this engine is essentially the 6.2 litre, supercharged Northstar V8. A quick Google search shows this engine can be bought, new in the crate for $12,000. I'd be hard-pressed to believe the cowling, harness, throttles, mid-section, lower unit and crating costs would exceed $25,000 for one of these motors!

    For a little perspective... retail on the new Mercury 400R is around $26,000.
  3. Fishtigua

    Fishtigua Senior Member

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    This, on the same day Volvo automobiles say it will no longer sell straight gas/diesel cars to the public. Only electric/hybrids will be on sale.

    I know they are no longer joined but the words kettle: pot: black: springs to mind!
  4. olderboater

    olderboater Senior Member

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    I'd say a good competitive market price would be $50k-$60k for the 557 and $60k-$70k for the 627.

    Part of hitting a reasonable price will probably be getting their cost down.

    Right now they only have dealers and service in the eastern section of the US and PR and one in UAE. None in the rest of the world.

    The only place I've seen their engines is on a few center consoles. Now there are two potential uses for it on CC's and because of price they only get one of them. They get those who just want more total horsepower and until the 40 could only get to 1400 hp with 4 motors without going to Seven. So they'd go from 1400 to 2200 hp by going to Seven. Now, if they were priced competitively which I would consider double or slightly more than double the price of engines with half the hp, then they'd open up the other use and that is someone wanting to get by with few motors. Instead of three 350's, people would go with two 557's. Instead of four 300's they'd go for two 627's.

    Now a different market where I could picture them if marketed and priced differently is the bass boat and small performance runabout.

    I find this move interesting but it doesn't excite me. I would have been at least somewhat more excited to see it done by Mercury or Yamaha. I don't see the synergy with Volvo-Penta acquiring.
  5. AMG

    AMG YF Moderator

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    Perhaps they have seen my proposal for an open 29'... ;)

    D29 Runabout.png
  6. olderboater

    olderboater Senior Member

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    But then can't it be propelled by conventional outboards?
  7. AMG

    AMG YF Moderator

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    Of course, I just had this engine on my desktop since another proposal four years ago on a 23' which was a bit too small for 557 hp... In fact I think the 29' is also too small for this engine since the boat is doing 50 knots with a 370 hp Volvo Penta D6 diesel inboard and I think this is fast enough...

    D23 Runabout.jpg
  8. PacBlue

    PacBlue Senior Member

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    Volvo Penta will have greater purchasing power for the GM blocks used in this OB and hopefully can bring the price down a bit. They usually put an inside guy into the companies they acquire, it will be interesting to see how the Seven Marine management team (ex Mercury Marine guys) work with them.
    They will certainly be hungry for some cash infusion to address some R&D issues.
  9. rcrapps

    rcrapps Senior Member

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    WOW.
    ,rc
  10. Fishtigua

    Fishtigua Senior Member

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    Why are Seven still continuing with ages old technology? A 1960's push-rod smallblock V8 engine is hardly cutting edge, a bit of a gimick really. The only reason the Mercruiser V8 has lasted this long is that parts are cheap and most people have worked on them, so knowledge has been spread around.

    The Se7en has taken away all these advantages. I think I'd stick with the 350/400 production package from Merc.

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