Tough Times For Boat Manufacturers

[zad0030]

Mastercraft is cutting down their workforce and Crownline is out cold.

http://www.tradeonlytoday.com/index....facturers.html

[mtnsmith]

I heard there was talk of malibu shutting down the california plant for a bit too. Back in january the proline factory shut down for supposedly a month, but they are not open yet. They are a boat brand built here in Florida and have been around forever, you see them everywhere here. They are great bang for the buck in the fishing boat arena, hopefully they will make it back.

[MoneyPity]

What is in store for multibrand boat companies like Genamr where the dillution of brand recognition may hurt them.

Genamr has at least two or more builders in the various market segments and with less floor credit and lack of consumer confidence we will probaly see the demise of the low end and may be some mid market boats genmar makes. The Mid Market served by FourWinns and Wellcraft may have those two as survivors but Larson might be a fatality there. Many of the Manufactures that Genmar owns builds from low end entry boat all the way to cruisers. Does this force out others rhat are low end and entry level?

[jwanck11]

from the artivcle, I take it that a bomb is just sitting there ticking away.......

[illiniboarder88]

Interestingly, last night I heard a radio ad from a local bank encouraging people to come in for "boat and RV loans."

[SPBFAN]

For the boat dealers there may soon only be one boat dealer called GE financial. What has happened is that 3 of the major four finance companies have dropped out of carrying flooring for boats. GE is the only one that stayed in the game and they raised there fees so HIGH I have know idea how the dealers are even paying to floor a boat. It could come down to GE owning a ton of inventory and them taking control of it and liquidating it them selfs.

[da.bell]

^^ Reduction of models available for viewing on the showroom floor or even smaller boat dealerships that don't even have any boats. Unlikely but a possibility.

[jwanck11]

survival can take many forms. I know the dealer I was working with has a LOT of last year and now used inventory too.

[KonaKing]

I wonder how this compares to the late 70's early 80's recession for boats and RV's. I had a friend who's father lost his dealership back then. He was a Wellcraft Polaris dealer. He went under in about 82/83

There a couple dealerships in Salt Lake that are about ready to fold from what I hear.

[da.bell]

In NorCal, we have had 5 dealerships fold and one that is calling it quites.

[chpthril]

For the boat dealers there may soon only be one boat dealer called GE financial. What has happened is that 3 of the major four finance companies have dropped out of carrying flooring for boats. GE is the only one that stayed in the game and they raised there fees so HIGH I have know idea how the dealers are even paying to floor a boat. It could come down to GE owning a ton of inventory and them taking control of it and liquidating it them selfs.

The other's dropped out due to hard times but GEC may drive themselves out off business. Dealers will stop keeping boats in inventory and only speacial order. Dealers will stop taking trades (stop paying off leans and flooring it) and broker aal the trades.

[KonaKing]

MoneyPity is old enough to remember back then. In 1980 we moved to a new home and the interest rate was 11% but the home was only 55k. Where will it all end.

[chpthril]

Story on WW is that CC is way off and laying off a BUNCH of peeps. I bet the Maloons (sp?) are glad they got out when they did............but then again, they jumped from the kettle to the fire with MC leading the way gain in going under J/K, hate to see boat manf doing bad right now, it hurts the boating industry as a whole.

[dogbert]

MoneyPity is old enough to remember back then. In 1980 we moved to a new home and the interest rate was 11% but the home was only 55k. Where will it all end.

Sadly, so are we...

[KonaKing]

Sadly, so are we...

Yes yes we are