Boatbuilder set to hire back workers

Boatbuilder set to hire back workers

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Consumer confidence posts another increase

Consumer confidence posts another increase

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December is the BEST Month To Buy a New Boat

December is the best time to buy a new boat and get a great deal. In fact, if you’re looking for a bargain, between December 14 and the end of the year is the best time of all. In this “Special Section” we are featuring some of the most affordable well-constructed boats built in America today. Remember: It is the Best of Times (for Buyers), and the Worst of Times (for Sellers) – is the second half of December.

If you are like most boat buyers, chances are in December you are too distracted by gift-giving, family travel plans, office parties, and a host of other once-a-year complications to give boat-buying much of a thought.

The boating industry has long abhorred the month of December for just that reason. Historically, this is the month with the lowest new boat sales and as a result most builders do not even advertise in December, which, of course, helps fulfill the promise. Dealers, too, pull in their marketing horns, close their showrooms early, give sales staff time off for the holidays and generally try to reduce expenses that month, treating it as a lost cause – which, once again insures that it is.

This is a chart of the best dates in December to get a big discount on automobiles. The same concept holds true for boats.

Behind the Scenes

In December dealerships have their accountants going over their year-end books and – if they were lucky enough to make a small profit -- are trying to minimize their taxes by paying bills and blowing out non-current inventory to get it off their books. Dealers that have no taxes to pay – which unfortunately this year is far more likely -- are desperate for cash to meet their floor plan obligations, rent, payroll, and as a result are often willing to make a great deal for the consumer, just to make their financial ends meet.

All of this means that the last half of December is a perfect storm for the aggressive buyer. Ironically, most aggressive buyers don’t know that and figure they’ll wait until May or June when dealers will be “desperate” to sell unsold 2010 model year inventory. But the fact is, dealers are much more desperate in December to get rid of his 2009 models!

Model Year Date Forces Action

Long ago the boating industry followed the lead of the automobile industry and started introducing the new model year in August or September. That means this fall dealers have been selling both 2010 and 2009 models. Guess what? Those 2009 models turn into non-current pumpkins at the stroke of midnight Dec. 31st!

Every dealer in the country is motivated to get rid of 2009 models because on December 31st the perceived value of that boat drops! And some dealers still have 2008 models in inventory. How about that for a little dealer motivation!

Boats Don’t Change Much

In reality, the differences between model years can be subtle, and because 2009 was the worst year in recorded history for the boating business most boats have changed not at all. Many builders are simply reprinting their 2009 brochures changing only the date and a couple of pictures.

With only a few exceptions, the 2009 boat you buy will be the same as the 2010. The biggest difference, in fact, will come when you go to sell the boat, and then – all things being equal – a newer model should be worth more. Increasingly, however, buyers are becoming more savvy, and are paying more attention to engine hours and the overall condition of the boat than the model year.

Best Time for Small Boat Buying

Because large boats are more of a considered purchase and are more likely to be used in cooler months, their sales distribution is more even around the calendar. Small boats on the other hand, are used when the days are warm and summer is looming. In fact, the largest selling month for small boats is July.

The dealer knows that. When a buyer comes in and makes a reasonable offer on a small boat in December, the dealer is forced to think about a small profit now vs. sitting with the boat until June or July. Let the dealer make a little money, and you can probably get a great deal.

Sales Goal Bonuses and Rebates

There is something called an “Objective Bonus” that few boat buyers seem to know about, but which can be worth an extra discount. It’s a simple concept: The owner of the dealership sets targets for sales for each month and quarter. Sometimes the boat builder might do the same thing. If they sell a certain number of units by the end of the month or quarter, they get a bonus from the dealership or the boat builder.

If you time your purchase for the last few days before the calendar switches over, you might find yourself negotiating with a salesman or sales manager who knows he needs to sell just a few more boats to qualify for a big check – so he’s willing to take less from you in order to get one sale closer to his quota.

Buy on Saturday

The day of the week you go shopping can change the amount you’ll pay as well. In most weeks, the biggest discounts tend to fall on Saturdays. As the general quality of boats has improved across the board, dealers have become acutely aware of all the competition they face from other brands. They know that when boat shoppers leave the house intending to make a purchase, they generally do.

Some dealers tell us that if they don’t give customers enough of a discount to close the deal on Saturday, they will go down the road and buy somewhere else. “They’re shopping on Saturday when Mom and Dad have the time, and maybe the kids, too, and they intend to buy that day,” one dealer told us.

Buy on a Holiday

Look at the chart above showing when are the best days to get a bigger discount on a new car. The same holds true for boat buying: buy when you are the only game in town. On the days before holidays most people are wrapping gifts and getting ready for parties. If a boat dealership is open that day, chances are good that you will be one of its few shoppers. It could be your lucky day.

Genmar working with stalking horse bidder

Genmar working with stalking horse bidder

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“Don’t Get Left Out in the Cold!”

Cold snaps can do a lot of damage to your boat! Water left in your engine could cause the engine to freeze and crack. Carefully winterizing your boat’s engine, can save you hundreds or even thousands of dollars in repairs, not to mention the frustration of poor performance in the spring that can be a result of failing to winterize your boat.

In Texas where we have relatively comfortable winters that are sprinkled with the occassional cold spell, forecasts are not always taken seriously and this often results in a lot of damage for boat owners. Your boat may be vulnerable to a sudden freeze if proper precautions are not taken. Even a brief cold spell that lasts only a night or two can do considerable damage. In temperate states such as Texas, boat owners must winterize engines.

A few quick tips for winterizing your boat:

Stern Drives:
Drain the gear case and check for excessive moisture in the oil. This could indicate leaking seals and should be repaired. Grease all fittings and check fluid levels in hydraulic steering or lift pumps.

Outboard Engines:
Flush engine with fresh water using flush muffs or similar device attached to the raw water pickup. Disconnect fuel hose and run engine until it stops. It is important to follow a step by step process to make sure that all fuel is drained from the carburetor to prevent build-up of deposits from evaporated fuel. Use fogging oil in the cylinders to lubricate the cylinder walls and pistons. Apply water resistant grease to propeller shaft and threads. Change the gear oil in the lower unit.

Fuel:
Add a fuel stabilizer by following the instructions on the product.

Bilges:
Make sure the bilges are clean and dry.

Fresh Water System:
Completely drain the fresh water tank and hot water heater. Pump a non-toxic antifreeze into the system and turn on all the faucets including the shower and any wash-down areas until you see the antifreeze coming out. Also put non-toxic antifreeze in the water heater.

Head:
Pump out the holding tank at an approved facility. While pumping, add fresh water to the bowl and flush several times. Add antifreeze and pump through hoses, holding tank, y-valve, macerator and discharge hose.

Interior:
Once you have taken care of the system you should remove any valuables, electronics, lines, PFDs, fire extinguishers, flares, fenders, etc. Open all drawers and lockers and clean thoroughly. Turn cushions up on edge so that air is able to circulate around them or, better yet, bring them home to a climate controlled area. Open and clean the refrigerator and freezer. To keep your boat dry and mildew-free you might want to use some of the commercially available odor and moisture absorber products.


This is in no way a comprehensive and complete checklist for winterizing your boat. You should consult your owner’s manual for thorough information about winterizing your boat, or visit your local dealer for winterization services they may offer.

Jacobs resigns as head of Genmar

http://www.tradeonlytoday.com/home/500824-jacobs-resigns-as-genmar-ceo

Irwin Jacobs has stepped down as CEO, chairman of the board and as a director of Genmar Holdings to avoid a potential conflict of interest as he pursues a purchase of the company.

In a letter dated Monday, Nov. 9, company president Roger Cloutier says the change was effective Nov. 6.

"I'm keeping all of my options open, everyone will just have to wait and see what the outcome is," Jacobs told Soundings Trade Only this morning, "I've stepped aside, I resigned from the board, so that I'm free to do whatever I want to do. Otherwise it would obviously be a conflict."

"Given the circumstances surrounding Genmar as it moves forward in the sale of the company's business and non-core assets, this change in Mr. Jacobs' role was made in the best interest of all constituents," Cloutier said in his letter. "The separation will allow Mr. Jacobs to pursue his objectives relative to Genmar's asset sale process in an effective and independent manner and eliminates potential conflicts of interest."

Since Genmar filed June 1 for Chapter 11 bankruptcy protection, it has been operating under the direction of Manchester Companies, a firm that serves as the chief restructuring officer.

"At that time, the CRO was given the full authority generally vested in the chief executive officer role," Cloutier said. "An office of the president also was established, which included two representatives of Genmar and two representatives of Manchester."

Mark Sheffert, chairman and CEO of Manchester Companies, commented that Jacobs has "given a great deal to the Genmar organization and the boating industry" and stepping down as head of the company will allow the sale process to move forward in an "effective and independent manner."

Less than two weeks ago, Genmar announced its intention to pursue a sales process rather than a reorganization as a means to exit Chapter 11.

New York-based bankruptcy attorney Leonard Bellavia, of Bellavia Gentile & Associates, told Soundings Trade Only it's not unusual in this economic climate for Chapter 11 reorganizations to result in straight liquidations.

"The bankrupt companies simply do not have the income to remain current on their obligations, even without the pressure of paying old receivables and creditors, especially secured creditors, have little patience seeing the continued deterioration in the value of their collateral," he said.

Bellavia also said that it would be "uncommon" for a current officer or shareholder of the company to bid on his own company in a bankruptcy sale, as it would create a conflict of interest.

Jacobs has said he plans to be the highest bidder for Genmar's assets. No other bidders have been named publicly.

"My interest was in the company intact, for the most part, that's all I can tell you," he previously told Soundings Trade Only. "I can't give you anything more than what's out there right now."

On Nov. 4, a bankruptcy court judge approved Genmar Holdings' motion to enter into an exclusivity and expense agreement with an unnamed potential stalking horse. This gives that unnamed bidder a 20-day exclusivity period. Also, Genmar has been authorized to reimburse this party up to $700,000 for "certain due diligence expenses under specific circumstances."

That bidder is not affiliated with Jacobs or Genmar, Sheffert said.

Jacobs had no comment on the potential stalking horse and said he had "no concerns at all."

Genmar has identified the potential stalking horse as "the party that has submitted the best offer to date from the standpoint of cash consideration and probability of consummation." It does not, however, identify that party, in order to "preserve the integrity of the sale process."

In an unrelated motion, the judge last week also extended the period in which Genmar has the exclusive right to file plans for reorganization through Jan. 31, 2010, and the exclusive right to obtain acceptances of such plans was extended through April 1, 2010.

Crownline Boats Back in Production!!

Crownline Boats went into production early this fall with 100 employees and is now building at the rate of 25 units per week, according to a company spokesman. CEO Kevin Riem says that he expects to be moving to 30 units a week in the near future. This is good news for a brand that closed its doors in December 2008, while the venture capital company that had bought the company a year or so before (timing is everything, boys) searched around to find a buyer.

See local TV video showing the restart of operations and interviews with staff and management:
http://www.wsiltv.com/p/videos.php?videoID=5122&newsID=8547&type=top&vidType=smMov

PRESS RELEASE -- Crownline Boats Proudly Displays Its First 2010 Model

October 14, 2009: The first Crownline boat built since the company shut down production in December of 2008 rolled off the manufacturing line as the company began production of its new 2010 models. The company re-opened its doors under new ownership with a celebratory ribbon cutting ceremony on 8/26/09. This event signifies the rebirth of one of the top boat manufacturers in the industry.

More than 550 boats have been sold since the company’s reopening, a testament to the confidence its dealer associates have in the Crownline name and the company.

Crownline’s Australian distributor, David Fraser of Melbourne, Australia was on site for the event. “Crownline gives you exceptional quality and they are serious about developing a world class product,” he said.

100 Jobs Re-Activated

Most workers say it’s reassuring to see the first boat come off the assembly line.

“Its nice to know that I’ve played a part in that boat- helped roll it from top to bottom,” said Kathy Hilliard. Kathy Hilliard recently rejoined Crownline in the lamination department. She worked there for 11 years before the plant laid off all its employees nine months ago.

“My grandkids always ask me about that, ‘What did you do on that MawMaw?’” Hilliard chuckles. “I said, I put that stuff right there on it.”

The workers are encouraged to know many more boats will follow, and they’re not the only ones.

“Just last Sunday I spoke with a customer that’s buying this boat,” explains international Crownline distributor, David Fraser. “And they’re really excited about it. And it’s great to see it here and finished and looking as good as ever.”

Kevin Riem, CEO, Says…

Kevin Riem says this is the beginning of a beautiful future with domestic and international support for the boat producer. “What this is, is really one of the first steps with re-establishing our company on a global basis.”

Riem says workers will be busy for a while. More than 550 new units are sold. Riem says production is at 25 boats a week right now and expects that to jump to more than 30 within months.

ALL NEW 2010 Blue Wave 1900STL

Has anyone seen the all new 1900STL tunnel bay boat by Blue Wave? This new for 2010 bay boat encompasses every single detail that the experienced shallow water angler and his wife have been asking for in one boat. And it is finally here! We are so excited to give you a little insight about this exciting new model. We now have our first one in stock and we welcome you to come see it in person.

Here is a recent Press Release from Blue Wave:
Blue Wave Boats of Seminole, Oklahoma is proud to introduce the newest member of the Super Tunnel family, the 1900 STL. The 1900 STL brings the already popular shallow water line a whole new level of class and style. This fully lined, 100% composite boat has a modified hull for unsurpassed shallow water performance.

With its standard features that no other shallow water boat has it will blow you away. The exceptional shallow water handling provided by the superior rounded tunnel, slot transom, and modified hull are just some of the exclusive features to Blue Wave's design that will set it apart after just a few minutes in the water.

A full liner interior and 100% composite construction make the new 1900 STL the premium model in Blue Wave's superior line of super tunnel center console bay boats.

The 1900 STL has a roomy interior with a non-skid, anti-glare finish and is packed with standard features that will more than meet the needs of any avid fisherman while staying true to Blue Wave’s style of building family fishing boats. The storage is unbelievable, utilizing every possible inch of space in an organized secure layout that keeps everything out of the way and available for easy access. With a large forward oval livewell and rear baitwell plus multiple insulated forward fish/storage boxes you won't run out of room for all the fish that this outstanding shallow water access boat will net you. With only an 8-10 in. draft (approx.) and the superior handling provided with the 1900 SLT hull and rounded tunnel you will notice the difference from our competitors right away. Blue Wave specially designs anti-splash chimes that direct the wake down and away from the boat giving you the smooth dry ride that our boats are known for.

Blue Wave Boats has been in the business of building quality boats for over thirty-five years. Blue Wave Boats, owned and operated by the Parks family, is renowned for its hand-crafted boats and famous for their dedicated customer service. Blue Wave Boats prides itself on building every center console and dual console boat in its lineup to their customer's specifications. Every boat produced in the new state of the art Seminole factory has a hand laid fiberglass hull with full foam flotation that is virtually unsinkable. All Blue Wave boats have a Limited Lifetime Transferable Warranty so that families can enjoy their boat for generations to come.

Bow Wander

Recently, a customer expressed concern over his boat's desire to wander from left to right and back to left as he navigated at slower idle speeds. So, we felt the need to address his concern and those of you out there that have the same issue due to the age old characteristic known simply as bow wander. Bow wander is common to every boat at slow no- wake speed. Some boats do it more, some less depending on the hull. However, the bow wander one experiences actually has very little to do with the boat itself but rather with the boats single drive propulsion system. Most boats with a single prop Alpha I or SX drive will exhibit some sort of bow wander at slow speeds.
This can take some getting used to. We have found that you must be diligent in training yourself not to oversteer or you will continue to wander back and forth the entire time. We recommend you compensate a bit and let the boat correct itself. If you over steer it the boat never gets a chance to track straight. Don't forget you have a single prop spinning in one direction (righthand) where as the counter-rotating Bravo III and Duo-prop drives greatly improve these common low speed handling characteristics.