Denis Le Vot, pictured at the North American International Auto Show in Detroit, Mich., in 2019, will replace José Boisjoli as BRP's CEO.Paul Sancya/The Associated Press
BRP Inc. DOO-T has named Denis Le Vot its new chief executive officer as the maker of Ski-Doo snowmobiles and Can-Am off-road vehicles bets that a seasoned automotive leader is the right person to steer its future at a volatile time.
Mr. Le Vot, a French engineer with a 30-year career at Renault Group, will start on Feb. 1, the company, based in Valcourt, Que., said in a statement on Tuesday. He replaces José Boisjoli, who is retiring after leading the company since its split from Bombardier Inc. in 2003.
As part of the changes, Pierre Beaudoin will become chairman of the BRP board of directors, while Barbara Samardzich will remain lead independent director. Mr. Beaudoin’s family controls the company, together with U.S. investment firm Bain Capital LP.
“An outsider is a surprising selection to us,” Desjardins analyst Benoît Poirier said in a note to clients. “While we accept that powersports is becoming increasingly similar to the automotive industry ... we had believed the selection would go to a ‘BRP lifer’ or insider who would have a deep understanding of the history of the company, as well as a strong passion for powersports and the development of these products.”
BRP’s vehicles in sights of NATO countries boosting military spending, company says
Still, Mr. Poirier said that fresh eyes and an outside view of BRP could be a “net positive for bringing the company to the next level.” He said there’s a particular opportunity for Mr. Le Vot to improve BRP’s aftermarket and parts business, which has become one of the most profitable vectors for the automotive industry.
Stifel analyst Martin Landry said he “generally favours internal promotions over external appointments” but that Mr. Le Vot’s credentials are impressive. “While José Boisjoli leaves big shoes to fill, the new CEO looks strong at first glance,” he said in a note, adding Mr. Le Vot was recently perceived as a leading candidate for the CEO role at Renault.
Jose Boisjoli, pictured in a BRP research and development plant in 2019, is retiring after having led the company since 2003.Christinne Muschi/The Globe and Mail
Under Mr. Boisjoli’s watch, BRP diversified its product lineup by pushing hard into non-seasonal side-by-side vehicles, hiring thousands more employees and boosted annual profit above $700-million. The company now has a market capitalization of $7-billion and holds a roughly one-third share of the global powersports market.
BRP saw a major boost in sales during the pandemic but industry conditions have been much more difficult of late. Economic uncertainty is biting into consumer confidence in many parts of the world and lower-income customers who finance their purchases are being particularly squeezed.
In light of softer demand in recent quarters, the company reduced shipments to protect the brand and better align deliveries with retail sales. More recently, it also launched new products.
That has yielded results, with the company reporting a double-digit revenue increase earlier this month for the first time in nine quarters. It also increased its annual profit forecast by 11 per cent, to about $5 per share for fiscal 2026.
The Quebec manufacturer, whose biggest market is the United States, is also feeling the pain from President Donald Trump’s trade war, which is affecting both sales and the supply chain. U.S. tariffs on imports of steel and aluminum, which are also applied to products made from the metals, are delivering a moderate bite into BRP’s financials.
The bigger worry is what might happen when the United States-Mexico-Canada trade agreement is renegotiated in 2026.
In hearings on the future of the USMCA, business leaders call on Trump to drop tariffs
Most of BRP’s finished vehicles aren’t subject to any tariffs at the moment because they are considered to be compliant under the deal. But the company does almost all its manufacturing in Mexico and Canada, which leaves it heavily exposed to any future changes.
Mr. Le Vot joined Renault in 1990, taking on several leadership roles in marketing, sales, after-sales service, as well as in operations and supply chain management. He was head of the Renault brand in Russia, and also led Nissan North America as senior vice-president and chairman. Most recently, he managed the carmaker’s Dacia brand.
“Ideally a new BRP CEO would have some powersports experience given the unique market characteristics of the industry,” National Bank analyst Cameron Doerksen said in a note. But he said the sector does share some similarities with the automotive business, particularly in manufacturing, product development, and the dealer distribution model.
In that sense, Mr. Le Vot’s experience makes him “highly qualified for the role,” Mr. Doerksen said.