A sad day for sailing

[barnakiel]

I say buy Russian. Great satellites, vodka, caviar. Or Australian, which is second best, especially their imported vodka (from Russia!).


Seriously though: I think buy QUALITY. Sure it costs more, but it will make this planet last this one tick longer.


ivan

[MicHughV]

American boat builders can surely take a leaf out of Beneteau's designs and construction methods.

They are very good sailing boats, and countless numbers of them have circumnavigated and their relatively low price point was/is enabled by their design and construction technique, which was and is light years ahead of their American counterparts.

By and large, it's the " used" sailboat market and not the " new" boat market, that is the driving force behind yacht sales, so even with the departure of Beneteau, there is no end to the number of used"Beneteau's for sale.

Nah, not a sad day for sailing...just a new chapter....time to turn the page...

[Montanan]

Let's Go Beyond! strategic plan for 2020-2025
New Group dynamics to achieve an operating margin of over 10% when business has returned to 2019 levels
Rationalization of the “House of Brands” to cover the same number of segments with less investment
Improved operational efficiency for the product development teams and plants
Managerial reorganization around a more streamlined team

Groupe Beneteau's Strategic plan to emerge from the crisis in a stronger position

Groupe Beneteau has further strengthened the strategic plan that it initially drew up during the first quarter of 2020 in order to move more quickly and go further with its adaptation to the period that is taking shape. A more developed financial breakdown of this plan will be presented in autumn 2020, when the Group releases its full-year earnings.

It is inspired by the ambition to facilitate access to the world of boating for everyone by creating simple and innovative solutions for life, with respect for nature and marine balances.

The Board of Directors has approved the plan proposed by the Executive Leadership Team, based on the following key pillars:

A strategy built around eight global brands – compared with 12 previously – covering the same number of markets segments with reduced investment thanks to their complementary features and specific positionings;
A better level of efficiency for the plants and an acceleration of development times, by specializing industrial assets and adapting product development resources in line with the Product Plan;
A more streamlined managerial organization structured around global core functions.
This evolution is fully aligned with the Group’s commitment to being a pioneer for sustainable recreational boating.

Moving forward, the plan also includes measures to expand its portfolio of downstream activities to include services, in synergy with its distribution networks. The Group’s future investments will be focused to a great extent on the digitalization of its activities (Band of Boats transaction platform, CRM, configuration feature, connected boats, etc.) and its processes (ERP, etc.).

The Housing division, the leading supplier of leisure homes for European campsites, will capitalize on the strong levels of interest in the outdoor accommodation sector and the premiumization of campsites. Thanks to its capacity for innovation and its effective management of production costs, it is targeting market share growth both in France and for export (Italy, Benelux), as well as a double-digit operating margin by the end of the plan.

The first phase of the plan will move forward in a market environment disrupted by the crisis resulting from Covid-19
The post-Covid 19 crisis is bringing in a new economic cycle. During an initial period, from 2020 to 2021, the sharp contraction in activity worldwide, which is being observed, will affect the recreational boat market. This is expected to be followed by a significant upturn, whose scale will depend on how quickly the health crisis is resolved.

With over €600 million of shareholders’ equity at February 28, 2020 and €300 million of undrawn confirmed credit lines, which will be further strengthened with a €120 million State-backed loan, and zero net debt, as well as its experience managing previous crises, the Group is therefore preparing to take on board changes in volumes, initially falling then rising, potentially on a similar scale to that seen with the 2008-2009 crisis.

In view of this, it plans to significantly scale back its production capacity over the coming months, while reducing all of its fixed costs. Discussions are underway with the employee representative partners in France and other countries.

To be able to share wealth with its employees and shareholders, the Group needs to create it first
This is the purpose of the Let’s Go Beyond! plan, which intends to achieve, when the markets have returned to their 2009 levels, operational profitability of over 10% of revenues.

[33trippindaisy]

Sad for those who might well lose their jobs in the current environment, that is for sure a bad thing.

I remember well the first time I saw one of those boats from France. Ugliest sailboat I had ever seen then, and I still think the same way. However there is an _ss for every seat! So said the big 4 Auto makers whom I worked for in the 90's and 2000's......they also said that "We sell new to keep the sign out front, so buy NEW and we'll cheat you right", all the while we were all driving Company Demo's for free, and not very many of us at all would even think of buying new.

"I lightpole away from the Dearlership, you are driving a used car" worth about 68% of what you just paid for it. Common knowledge.

As a Finance Manager and Business Development Manager it was one of my jobs to create the programs and sell people on leasing instead of buying. Keeps the sign up, keeps the customer hooked, and guarantees good used cars in the coming years that we own and must be turned in to us. The customers got the cheaper payments, and all was good.

Point is, New Boats have never been a good deal and never will be. They do groom the ego of those who can afford to be groomed. That is the Business Model, and we would all be wise to remember that. When that profit scenario suffers....out they go at/and with a quickness.

Thankfully there are so many good used boats available of American and Canadian origin, that we do not need French sailboats here, and if you really want one, head on down to the Caribbean and get you one. No Problem mon.....

Want to spend a bit of good money on a great boat, buy a Pacific Seacraft. Want to buy a nice full keel boat at a affordable, and decent price then find you a nice Cape Dory and chase the moon. There are so many others.......like pound puppies.......just go pick one and love it forever.

I love most all boats built in the 60's and 70's. The look of most of these boats makes me smile. There is a reason they are still here. Quality. Spending your money to "drivetrain" these boats will keep them going. A bit of "freshening" up will make them beautiful again, and best of all.......you can pay cash, have money left over, and again I say "Go chase the moon", you'll be able to do it until the day comes you don't want to or simply can't, due to health etc.

But quit wasting money buying new. I never sold boats but in the car business we all had a laugh every time, (quietly mind you), but we all knew you just blew a wad for nothing. "We need a bucket and mop in the showroom", over the loud speaker was an inside joke as well (you know, to clean up the blood from the slaughter). We used to take a current model Cadillac listing back then (I retired in 2007) for over 50K, buy a factory demo with less than 10k miles on it for around 27k, put GMAC 100,000 mile Certified Warranty on it for a grand, and sell them every day for 39-41k and put that money in our pockets. The spread on new cars, or boats just does not do that. So they close shop and leave the people flat footed.

So no, it's not a sad day for sailing. It's a GREAT day for boat buyers everywhere. Quit financing unless its some magical need to spend money on a depreciating asset, or you are in a place where it simply does not matter. Most of us are probably in the camp of "we got enough, we did well enough, we saved enough, so now we can spend just enough to enjoy our lives till the end"..........anyway thats the camp I am in and hope you are too, if not even better.

And no I never despised the car business. It made a lot of Management a whole lot of money. The sales people made a good living too. And yes, we loved our Customers too, but as they say "Business is Business". And I had to learn that, and it was not easy for me. It's the after the sale treatment that people like me can find ourselves, and turn profit into opportunity for all. Boat company's should learn that, and get deep into the used boat market right now. It's just another division of sales. Likely as not, right now the repo's and turn ins will keep the lot stocked up, and every builder has enough room to house a few used models right on their current property. Adapt and survive!

Thankfully I am back to looking for my next boat. My wife just past her two year mark of battling her cancer, a nasty Triple Negative Invasive Ductal Carcinoma, complicated by a rejection of any chemo treatments by her body. Somehow the girl has made it through some really rough times. Truly, I did not think she was going to make it. Obviously boating has not been a life priority, but finally there is a bit of light. I can now see that little dream boat of mine getting closer. Maybe a Cape Dory 30-33 on the bigger side, maybe even a newer boat like a PS Flicka, small but capable. One thing for certain, it won't be a new French boat!

Be safe, be smart, stay alive, and save your money and buy USED!
One day this will all be over and boating and sailing will again be the greatest reward this side of loving your children and grands!

[AKA-None]

All those poor horse and buggy people out of business. That’s how it works

[Rubicon King]

Originally Posted by Fishbust

Buy American when you can.

👍👍👍👍👍

[mjgill1]

Originally Posted by slug

They don’t build boats in the US

Seaward, Island Packet, Blue Jacket, Catalina, etc. etc.

[33trippindaisy]

MJGill.....absolutely! There are so many great used boats that will do the job. Everyone has a look they are looking for in a sailboat. That look is waiting on you.

As always .....be safe out there!

[Doubleplay]

Originally Posted by Fishbust

Buy American when you can.

I buy the best I can afford be it cars or boats. Even if you buy a so called made in USA boat most parts will be coming from overseas anyway.

[Mag3]

Originally Posted by Snore

Tartan, Pacific Seacraft, Catalina-
I could drone on but....

< opinions ahead >

Catalina's are the ford escort of boats... reliable, but ugly and boring.
Pacific Seacraft are well built, but a very old idea of what a sailboat should look like...
Tartan's are pretty nice boats actually...

still... some of this is market dynamics (others are making more interesting boats at a competitive price), and some are challenges due to environmental issues here that make building boats in the US very expensive/challenging.

[Ray R]

They have indicated that they will retain ownership of the facility and if the demand for the boats they manufacture at the Marion plant returns, they will consider re-opening the plant at a future date.

[merrydolphin]

It is sad for the US as we so badly need manufacturing here. It has gone so far away. There is so little done here anymore. We need to look closer at countries like Germany. They import a lot but also manufacture a lot. And have great educational opportunities to get in to industries both on the Trade/apprentice bases and university. We are loosing. So it is sad the see this go.

[MagicBeans55]

Wow..some of us need to make monetary contributions to this forum because seem like we must out on our shrink appointments..It is sad to see such a great boat building local team torn apart..The strongest sail boat I ever sailed was a beneteau 51 named No Comment..Great in a storm..sailed her through a tropical storm in 30 ft waves with a novice crew (big change) from Bequia to Marigot bay Stlucia..Also the fastest I have ever sailed a 40 foot boat was a beneteau with Julius cumberbatch (15 knots) sailing from Mustique to Tobago cays..great boats came out of SC..😎

[Bali43Cat]

Originally Posted by RaymondR

Possibly, but because they don't fit into containers shipping cost from Europe to the US or Caribbean must be a considerable addition to the cost.

Cost for shipping our Bali 4.3 Catamaran from France factory to US last year was a flat €20,000. Originally was scheduled to be sailed over but ended up on a transport ship.

[Dave9111]

The "buy American's" have missed the mark.

Beneteau was manufacturing in American. They are putting their American plant to sleep because the next few years will be crap. So more Americans will be out of work.

America is betting on a "hail mary" on vaccine production for Covid 19. Its more likely that creating an effective vaccine will not happen in the next few years. With the virus running rampant, and no effective plan to contain it, our economy is falling apart. I run a company that supports general industry via automation. I lost two major customers in the last three weeks. One simply shutdown after 32 years due to a loss of 70% of their business. The other is operating at 50% and has decided not to pay their bills. If the Covid 19 virus was immediately contained, it would take years to get out of the hole we are in. As it is, we have no plan. And no plan to even make a plan.

If you were Beneteau, operating in a virus ridden country that is self destructing, what would you do? I'd board up the factory, and retreat until it makes sense to open back up.

If you did buy a new sailboat right now, where would you take it?
Do you think that we will be in a different place next spring?

I keep my sailboat at a high end marina (for the midwest) and they sell new and used boats. The last few years they have steadily increased their new boat business for 28 ft plus boats. This year, that all stopped.

I have been steadily, gradually, losing manufacturing customers over the last 10 years. To the point that most of my work is going overseas. Most was going to China (yes robotic systems in China to minimize labor costs) and Mexico. China is now off limits. Mexico is becoming too risky. And this country is on fire with Covid and in an economic free fall.

This country make a tragic mistake in 2016 that is undermining the country.