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CHANGES TO MODEL YEAR DESIGNATIONS IN THE MARINE INDUSTRY

REPLACING “MODEL YEAR DESIGNATION” WITH “DATE OF MANUFACTURE”

BENEFITS OF ELIMINATING MODEL YEAR DESIGNATIONS

In 2006, Mercury® stopped using Model Year designations on its outboards and replaced them with actual manufacturing dates, including month and year, because Model Year designations were often misleading regarding engine updates. Replacing the Model Year designation with the date of manufacture lets consumers know if they are purchasing the most up-to-date and current products.

In order to provide consumers the most recent product upgrades without waiting for the start of a new Model Year, Mercury Marine has eliminated Model Year designations to provide:

1. Quicker Product Upgrades In some cases, recently produced and updated products will be available much more quickly than in previous years.

Model Year Designations and the Marine Industry The History of Model Year Designations For many years, outboard engines and boats were sold to dealers as separate items. Dealers then created “packages” for consumers by pairing engines and boats from their inventories. During the past two decades, however, boatbuilders have been more inclined to sell boat and outboard engine packages to dealers, who in turn sell them to consumers. Sterndrive and inboard engines traditionally have been installed by boatbuilders and are not identified by Model Year designations. For purposes such as resale and titling, those engines are considered to have originated the Model Year of the boat they are paired with.

2. Improved Product Availability Boat companies and dealerships can more effectively manage inventory levels, thereby ensuring that the latest models are available to consumers.

3. Simplicity This change is consistent with current trends within the marine industry. Mercury MerCruiser ® sterndrive engines, MotorGuide™ electric trolling motors and other major outboard manufacturers have already eliminated Model Year designations.

Difficulties With Model Year Designations Many consumers are surprised to discover that outboard engines historically have been manufactured the calendar year prior to their Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Calendar Year 1

Ship Model Year (2006) to Builders/Dealers Model Year (2006) Retailed to Consumers

mercurymarine.com 800-MERCURY © 2007, Mercury Marine, All Rights Reserved Part # 90-899883220

Jun

Jul

Calendar Year 2

Manufacturing Model Year (2006)

Replacing Model Year Designation With Date of Manufacture

May

designated Model Year. For example, most 2006 Model Year engines were manufactured in 2005. That practice sometimes created confusion because consumers were unaware that engines could be built nearly two years before they were sold. For example, a 2006 Model Year engine built in early 2005 might not be sold until the end of 2006. There are no official designated Model Year dates for boats or engines in the marine industry. There are more than 1,000 boatbuilders in the U.S. alone, and they start and end their Model Years when they see fit. Some builders begin their Model Year as early as April of the preceding year, while others tie their Model Year to the calendar year. It is virtually impossible for an engine manufacturer to match every boatbuilder’s Model Year with a given Model Year of engine. Since 1998, the Environmental Protection Agency has mandated that outboard manufacturers must display the month and year their engines are built. That mandate, however, often resulted in confusion because each engine then displayed two different date designations – one for date of manufacture and another for Model Year.

Aug

Sep

Oct

Nov

Dec


CHANGES TO MODEL YEAR DESIGNATIONS IN THE MARINE INDUSTRY

REPLACING “MODEL YEAR DESIGNATION” WITH “DATE OF MANUFACTURE”

BENEFITS OF ELIMINATING MODEL YEAR DESIGNATIONS

In 2006, Mercury® stopped using Model Year designations on its outboards and replaced them with actual manufacturing dates, including month and year, because Model Year designations were often misleading regarding engine updates. Replacing the Model Year designation with the date of manufacture lets consumers know if they are purchasing the most up-to-date and current products.

In order to provide consumers the most recent product upgrades without waiting for the start of a new Model Year, Mercury Marine has eliminated Model Year designations to provide:

1. Quicker Product Upgrades In some cases, recently produced and updated products will be available much more quickly than in previous years.

Model Year Designations and the Marine Industry The History of Model Year Designations For many years, outboard engines and boats were sold to dealers as separate items. Dealers then created “packages” for consumers by pairing engines and boats from their inventories. During the past two decades, however, boatbuilders have been more inclined to sell boat and outboard engine packages to dealers, who in turn sell them to consumers. Sterndrive and inboard engines traditionally have been installed by boatbuilders and are not identified by Model Year designations. For purposes such as resale and titling, those engines are considered to have originated the Model Year of the boat they are paired with.

2. Improved Product Availability Boat companies and dealerships can more effectively manage inventory levels, thereby ensuring that the latest models are available to consumers.

3. Simplicity This change is consistent with current trends within the marine industry. Mercury MerCruiser ® sterndrive engines, MotorGuide™ electric trolling motors and other major outboard manufacturers have already eliminated Model Year designations.

Difficulties With Model Year Designations Many consumers are surprised to discover that outboard engines historically have been manufactured the calendar year prior to their Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Calendar Year 1

Ship Model Year (2006) to Builders/Dealers Model Year (2006) Retailed to Consumers

mercurymarine.com 800-MERCURY © 2007, Mercury Marine, All Rights Reserved Part # 90-899883220

Jun

Jul

Calendar Year 2

Manufacturing Model Year (2006)

Replacing Model Year Designation With Date of Manufacture

May

designated Model Year. For example, most 2006 Model Year engines were manufactured in 2005. That practice sometimes created confusion because consumers were unaware that engines could be built nearly two years before they were sold. For example, a 2006 Model Year engine built in early 2005 might not be sold until the end of 2006. There are no official designated Model Year dates for boats or engines in the marine industry. There are more than 1,000 boatbuilders in the U.S. alone, and they start and end their Model Years when they see fit. Some builders begin their Model Year as early as April of the preceding year, while others tie their Model Year to the calendar year. It is virtually impossible for an engine manufacturer to match every boatbuilder’s Model Year with a given Model Year of engine. Since 1998, the Environmental Protection Agency has mandated that outboard manufacturers must display the month and year their engines are built. That mandate, however, often resulted in confusion because each engine then displayed two different date designations – one for date of manufacture and another for Model Year.

Aug

Sep

Oct

Nov

Dec


DETERMINING THE MODEL YEAR VS. THE MANUFACTURE YEAR

THE VALUE OF YOUR OUTBOARD Warranty

Resale or Trade-In Value

Serial Number Label

Production Era Code

Warranty coverage is not affected by the elimination of Model Year designations. Your warranty, which takes effect when your new outboard is registered with Mercury, actually begins according to the date on your bill of sale. For example, a 250 hp Verado ® sold and registered in September 2006 has a three-year limited, nondeclining warranty, regardless of when it was manufactured.

Organizations such as the NADA (National Automobile Dealers Association) typically establish values of boat packages based on the Model Year of the boat. From a propulsion standpoint, the engine designation is determined by the Model Year of the boat. This is common practice in many applications, including automobiles and sterndrive boat packages, because the engine is considered a component of the entire package. From this perspective, eliminating the Model Year should not affect resale value. Most of today’s marine engines have the ability to measure hours of use, which is the marine equivalent to mileage on cars. “Hours” are typically the best determining factor regarding trade-in value. Historically, most consumers take delivery of new boats and engines in the spring. However, by that time, most engine manufacturers have already begun shipping the next Model Year’s engines to builders and dealers. In that case, the consumer is taking delivery of engines that are already non-current and hypothetically losing value instantly. Sterndrive and inboard engines are included in the boat value when it comes to resale or trade-in value. In such cases, the Model Year of the engine is based on the Model Year of the boat.

Every Mercury outboard has a serial number label located on the transom bracket area of the engine. The latest serial number labels display a manufacturing date that provides a month and year of production. For example, an engine manufactured in June of 2006 will have a label stating “JUN 2006” just below the serial number.

Mercury uses a code to identify each outboard model it produces. In the past, the second-to-last character in the code identified the Model Year. Because Mercury had a Model Year, that character within the code was automatically updated every 12 months. For example, a 1275V23ED model code referred to a Mercury 275 XL Verado and the “E” in the second-to-last position Mercury Model Code Label represented the 2006 Model Year. However, the second-to-last character now identifies the “production era” of a given model. Further, by eliminating Model Year designations, Mercury will no longer arbitrarily update the model code every 12 months. Instead, updates to model codes will take place only when a significant product change occurs, such as a new model introduction that replaces a prior version. Under this system, models sharing the same code are physically identical, whether they are built in December 2005 or March 2006. Your Mercury dealer can help you identify the model code(s) on the engine(s). This is also of particular importance if you are repowering a boat with two, three or four engines.

Mercury Warranty Registration Form

Title Only six states require outboards to be titled (Missouri, Ohio, Oklahoma, South Carolina, Texas and Utah), so most owners are not affected. If you reside in one of those states, Mercury will supply an MSO (Manufacturer’s Statement of Origin) for your outboard that will be submitted by a dealer to the state for titling purposes. In the past, the MSO document indicated a Model Year. Today, however, it displays a manufacture date (for example, “Sep 2006”). Those six states do not require titling for sterndrive or inboard engines.

Mercury Serial Number Label

Individually Purchased Outboards Outboards purchased individually (not part of a boat package) are normally pulled directly from a dealer's inventory. Dealers typically order specific quantities of products in anticipation of selling them during the next several months. This helps ensure an ample supply of engines to quickly fulfill customer requirements. That means you won't have to wait for an order to ship from the factory. While these outboards are normally as current as the products shipped directly to boatbuilders, it is possible they were built up to 18 months prior to delivery. Your Mercury dealer can help you confirm you have the latest version by verifying the model code as described above.


DETERMINING THE MODEL YEAR VS. THE MANUFACTURE YEAR

THE VALUE OF YOUR OUTBOARD Warranty

Resale or Trade-In Value

Serial Number Label

Production Era Code

Warranty coverage is not affected by the elimination of Model Year designations. Your warranty, which takes effect when your new outboard is registered with Mercury, actually begins according to the date on your bill of sale. For example, a 250 hp Verado ® sold and registered in September 2006 has a three-year limited, nondeclining warranty, regardless of when it was manufactured.

Organizations such as the NADA (National Automobile Dealers Association) typically establish values of boat packages based on the Model Year of the boat. From a propulsion standpoint, the engine designation is determined by the Model Year of the boat. This is common practice in many applications, including automobiles and sterndrive boat packages, because the engine is considered a component of the entire package. From this perspective, eliminating the Model Year should not affect resale value. Most of today’s marine engines have the ability to measure hours of use, which is the marine equivalent to mileage on cars. “Hours” are typically the best determining factor regarding trade-in value. Historically, most consumers take delivery of new boats and engines in the spring. However, by that time, most engine manufacturers have already begun shipping the next Model Year’s engines to builders and dealers. In that case, the consumer is taking delivery of engines that are already non-current and hypothetically losing value instantly. Sterndrive and inboard engines are included in the boat value when it comes to resale or trade-in value. In such cases, the Model Year of the engine is based on the Model Year of the boat.

Every Mercury outboard has a serial number label located on the transom bracket area of the engine. The latest serial number labels display a manufacturing date that provides a month and year of production. For example, an engine manufactured in June of 2006 will have a label stating “JUN 2006” just below the serial number.

Mercury uses a code to identify each outboard model it produces. In the past, the second-to-last character in the code identified the Model Year. Because Mercury had a Model Year, that character within the code was automatically updated every 12 months. For example, a 1275V23ED model code referred to a Mercury 275 XL Verado and the “E” in the second-to-last position Mercury Model Code Label represented the 2006 Model Year. However, the second-to-last character now identifies the “production era” of a given model. Further, by eliminating Model Year designations, Mercury will no longer arbitrarily update the model code every 12 months. Instead, updates to model codes will take place only when a significant product change occurs, such as a new model introduction that replaces a prior version. Under this system, models sharing the same code are physically identical, whether they are built in December 2005 or March 2006. Your Mercury dealer can help you identify the model code(s) on the engine(s). This is also of particular importance if you are repowering a boat with two, three or four engines.

Mercury Warranty Registration Form

Title Only six states require outboards to be titled (Missouri, Ohio, Oklahoma, South Carolina, Texas and Utah), so most owners are not affected. If you reside in one of those states, Mercury will supply an MSO (Manufacturer’s Statement of Origin) for your outboard that will be submitted by a dealer to the state for titling purposes. In the past, the MSO document indicated a Model Year. Today, however, it displays a manufacture date (for example, “Sep 2006”). Those six states do not require titling for sterndrive or inboard engines.

Mercury Serial Number Label

Individually Purchased Outboards Outboards purchased individually (not part of a boat package) are normally pulled directly from a dealer's inventory. Dealers typically order specific quantities of products in anticipation of selling them during the next several months. This helps ensure an ample supply of engines to quickly fulfill customer requirements. That means you won't have to wait for an order to ship from the factory. While these outboards are normally as current as the products shipped directly to boatbuilders, it is possible they were built up to 18 months prior to delivery. Your Mercury dealer can help you confirm you have the latest version by verifying the model code as described above.


CHANGES TO MODEL YEAR DESIGNATIONS IN THE MARINE INDUSTRY

REPLACING “MODEL YEAR DESIGNATION” WITH “DATE OF MANUFACTURE”

BENEFITS OF ELIMINATING MODEL YEAR DESIGNATIONS

In 2006, Mercury® stopped using Model Year designations on its outboards and replaced them with actual manufacturing dates, including month and year, because Model Year designations were often misleading regarding engine updates. Replacing the Model Year designation with the date of manufacture lets consumers know if they are purchasing the most up-to-date and current products.

In order to provide consumers the most recent product upgrades without waiting for the start of a new Model Year, Mercury Marine has eliminated Model Year designations to provide:

1. Quicker Product Upgrades In some cases, recently produced and updated products will be available much more quickly than in previous years.

Model Year Designations and the Marine Industry The History of Model Year Designations For many years, outboard engines and boats were sold to dealers as separate items. Dealers then created “packages” for consumers by pairing engines and boats from their inventories. During the past two decades, however, boatbuilders have been more inclined to sell boat and outboard engine packages to dealers, who in turn sell them to consumers. Sterndrive and inboard engines traditionally have been installed by boatbuilders and are not identified by Model Year designations. For purposes such as resale and titling, those engines are considered to have originated the Model Year of the boat they are paired with.

2. Improved Product Availability Boat companies and dealerships can more effectively manage inventory levels, thereby ensuring that the latest models are available to consumers.

3. Simplicity This change is consistent with current trends within the marine industry. Mercury MerCruiser ® sterndrive engines, MotorGuide™ electric trolling motors and other major outboard manufacturers have already eliminated Model Year designations.

Difficulties With Model Year Designations Many consumers are surprised to discover that outboard engines historically have been manufactured the calendar year prior to their Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

Calendar Year 1

Ship Model Year (2006) to Builders/Dealers Model Year (2006) Retailed to Consumers

mercurymarine.com 800-MERCURY © 2007, Mercury Marine, All Rights Reserved Part # 90-899883220

Jun

Jul

Calendar Year 2

Manufacturing Model Year (2006)

Replacing Model Year Designation With Date of Manufacture

May

designated Model Year. For example, most 2006 Model Year engines were manufactured in 2005. That practice sometimes created confusion because consumers were unaware that engines could be built nearly two years before they were sold. For example, a 2006 Model Year engine built in early 2005 might not be sold until the end of 2006. There are no official designated Model Year dates for boats or engines in the marine industry. There are more than 1,000 boatbuilders in the U.S. alone, and they start and end their Model Years when they see fit. Some builders begin their Model Year as early as April of the preceding year, while others tie their Model Year to the calendar year. It is virtually impossible for an engine manufacturer to match every boatbuilder’s Model Year with a given Model Year of engine. Since 1998, the Environmental Protection Agency has mandated that outboard manufacturers must display the month and year their engines are built. That mandate, however, often resulted in confusion because each engine then displayed two different date designations – one for date of manufacture and another for Model Year.

Aug

Sep

Oct

Nov

Dec


Mercury 4928_MY_elimination