Bombardier Inc. - History

History

Joseph-Armand Bombardier was a mechanic who dreamed of building a vehicle that could "float on snow". In 1937 he designed and produced his first snowmobile in his small repair shop in Valcourt, Quebec.

Bombardier's technological breakthrough in the design of bush vehicles came in the mid-1930s when he developed a drive system that revolutionized travel in snow and swampy conditions. In 1937 Bombardier sold 12 snowmobiles—named the B7 and, in 1942, created l'Auto-Neige Bombardier Limitée company.

The first snowmobiles were large, multipassenger vehicles designed to help people get around during the long winter months. Snowmobiles were used in rural Quebec to take children to school, carry freight, deliver mail, and as ambulances. His invention filled a very particular need in the region and soon business was booming. In 1941 Armand opened a new factory in Valcourt. Then a major setback hit the growing business: World War II was well underway and the Canadian government issued wartime rationing regulations. Bombardier customers had to prove that snowmobiles were essential to their livelihood in order to buy one. To keep his business going, Armand shifted his focus and developed vehicles for the military. After the war, Bombardier experienced another setback in his snowmobile business. In 1948 the Quebec government passed a law requiring all highways and local roads to be cleared of snow; the Bombardier company's sales fell by nearly half in one year. Armand Bombardier therefore decided to diversify his business, first by producing tracked snowplows sized specifically for use on municipal sidewalks (replacing horse-drawn vehicles), then by making all-terrain vehicles for the mining, oil, and forestry industries.

Of note, the machines had removable front skis that could be replaced with front wheels for use on paved or hard surfaces, thus providing greater utility to his large snowmobiles. Production of these machines evolved over time. During 1951, the wooden bodies were replaced with sheet steel and these vehicles were powered by Chrysler flathead six-cylinder engines and 3-speed manual transmissions. In the 1960s V-8 engines began to appear and during the 1969/1970 production years, the standard round "porthole"-style windows were replaced with larger rectangular windows which allowed more interior light and made them feel less claustrophobic. Following these changes came the switchover to more reliable Chrysler Industrial 318 engines with the automatic Loadflite transmissions. Production of these machines continued into the mid-1970s.

Bombardier wanted to develop a fast, lightweight snowmobile that could carry one or two people. In the early 1950s, Armand set aside his dream to focus on developing his company's other tracked vehicles, but by the end of the decade, smaller, more efficient engines had been developed and were starting to come onto the market. Bombardier resumed his efforts to build a "miniature" snowmobile. He worked alongside his eldest son Germain, who shared his father's mechanical talents. Armand and Germain developed several prototypes of the lightweight snowmobile and finally, the first Bombardier snowmobile went on sale in 1959.

The Ski-doo was originally called the "Ski-Dog" because Bombardier meant it to be a practical vehicle to replace the dogsled for hunters and trappers. By an accident, a painter misinterpreted the name and painted "Ski-Doo" on the first prototype. The public soon discovered that speedy vehicles that could zoom over snow were a lot of fun. Suddenly a new winter sport was born, centred in Quebec. In the first year, Bombardier sold 225 Ski-Doos; four years later, 8,210 were sold. But Armand was reluctant to focus too much on the Ski-Doo and move resources away from his all-terrain vehicles. He vividly remembered his earlier business setbacks that forced him to diversify. Armand slowed down promotion of the Ski-Doo line to prevent it from dominating the other company products, while still allowing him to dominate the snowmobile industry. The snowmobiles produced were of exceptional quality and performance, earning a better reputation than the rival Polaris and Arctic Cat brand of motosleds. In 1975 Bombardier completed the purchase of the Moto-Ski company.

On February 18, 1964, J. Armand Bombardier died of cancer at age 56. He left behind a thriving business, but also one that had been focused on one person. Armand dominated his company, overseeing all areas of operation. He controlled the small research department, making all the drawings himself. By the time of his death sales of the company had reached C$20 million, which is the equivalent of C$160 million in 2004 dollars. The younger generation took over, led by Armand's sons and sons-in-law. The young team reorganized and decentralized the company, adopting modern business tactics. The company adopted the latest technological innovation—the computer—to handle inventory, accounts, and billing. Distribution networks were improved and increased, and an incentive program was developed for sales staff.

In 1967 L'Auto-Neige Bombardier Limitée was renamed Bombardier Limited and on January 23, 1969, the company went public, listing on the Montreal and Toronto stock exchanges.