Mastercraft and Malibu in trouble?

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  • CAN'TSKI
    • Feb 2007
    • 205

    • Boerne, TX

    • 2008 196 Limited 2007 211 Team 1995 MC Prostar 190 Tournament

    AIRTOOL, Canyon is at its historic low. I am not even sure you can get your boat in. Come see us at Medina Lake. You can launch in my yard. Prettier lake and my M's are hard to beat. I have a three slip boat dock and the parties are usually memorable. Would love to have you.

    Comment

    • CD
      • Oct 2008
      • 87

      • British Columbia

      • 2008 216 Air Nautique

      read these comments regarding layoffs at MC

      In your voice
      Read reactions to this story - in descending order

      I agree. I just dont see 200 people left at the plant everyody i know that works there is gone. What about the people who are working on next years model all of them are laidoff to. To me that seems like this could be the end for them. You dont just let the people go who are working on next years models go if something else is not going to happen.
      2/28/2009 4:10 PM EST on WBIR.com
      Recommend (3) Report Abuse

      crft90 wrote:
      I need help to understand wasn't the first layoff in Aug. of atleast 60 plus. Then another layoff about 60 plus in Jan. and now 110. If you add it up that is over 240 plus layoffs. Yet , its said cut back a third and still have 200 workers. These numbers just don't add up. 220 laid off 200 working. OK it shows they cut their work force well in half not no 1/3. This has also brought alot of their production standards down as quality control was taken out and left to line supervisors. Buy a boat, you better inspect or have your own quality control check it out top to bottom.
      2/28/2009 1:32 PM EST on WBIR.com
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      BothOpenEyes wrote:
      MasterCraft is in a survival mode at this point. The investors could opt to shut the doors at anytime now that the director/CEO John Dorton has ran this company into the ground. He had plenty of help with his marketing dept that lined their pockets with production bonuses as the company continued at a record pace of 18 boats/day until only a few weeks ago. Everyone wondered why they refused to cut production several months ago, as even joe worker could tell the light at the end of the tunnel was the train coming at them. Now production workers are left jobless, No severance, lost vacation pay and trying to pay COBRA while on unemployment. MasterCraft was once a well rspected name in Monroe county as well as in the boating industry, but now BAD leadership and the third lay-off in less then six months has left this company fighting to stay afloat. My wife was one of the first to go, now they've given me my walking papers, and nothing more. Thanks for the memories John.
      2/27/2009 7:08 PM EST on WBIR.com
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      crft90 wrote:
      Yes, I heard about this coming. The employees after years of service loose everything from all insurance the night your discharged to any vacation time gone. This is the way you don't want to treet these employees. They say hard times what about the worker ? After all didn't PENSKE buy Mastercraft out at the first of 2008. Is Penske doing that bad I see their trucks out all the time. Their a nascar sponsor. Don't they sell motor oils and patroleum products ?
      2/27/2009 5:18 PM EST on WBIR.com
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      • SkiTundra
        Senior Member of PLANETNAUTIQUE
        • Jul 2008
        • 513

        • Unknown


        A company that plans to remain in business is careful about the bridges it burns. If Mastercraft expected to ramp production up again at some point in the future would they not have treated outgoing employees a little better? Engender a little bit of loyalty?

        Comment

        • j2nh
          Senior Member of PLANETNAUTIQUE
          • Dec 2003
          • 628

          • Spread Eagle Wisconsin


          Tough call.
          Do you lay off early with extended benefits or hang on hoping for a turnaround and if it doesn't you get caught cash short?

          Biggest problem may have been the planned doubling of production 2007. Gear up and the bottom falls out.
          To be honest I don't see the economy turning around for probably 2 very long years. Hope they can hang on in some form and get through this. Realistically sales will never return to pre 07 years so a smaller company like CC might be able to make it.
          2018 200 Team H6
          2009 196 Team ZR 409
          2005 196 Limited ZR 375
          2003 196 Limited Excalibur
          1999 196 Masters Edition
          1995 ProStar 190 LT1 (Bayliner)
          1987 ProStar 190

          Comment

          • TravisFling
            Senior Member of PLANETNAUTIQUE
            • Mar 2008
            • 889

            • London, Ohio

            • 1989 Ski Nautique 2001

            This thread is crazy. Bullets for Bankers and all that. I'm a banker and I didn't make bad loans to start with. (we have to collect our own loans that go bad - a great idea that makes you a little more careful who you give credit to!!!) and we've only had 2 foreclosures in the last two years, or so. We're a really strong little bank who makes individual decisions on every loan, the way it should be... let the big guys fail, someone with great wits and smarts will pick up the pieces at a discount, the way it should be, and make a landslide of money on their way to doing their part to turning this thing around. I don't feel bad for investors who put money in these companies without paying attention to what they were doing, and doing their due diligence and researching, just like I don't feel bad for someone who bought their first house and it was 3200 sq. ft. of luxury on a stated loan with no money down. The bank that issued it should have to pony up, go under, take their lumps, etc. Without the sting of failure we're doomed to repeat. You prop it up and it will still fail, just farther down the road. Wasn't the bailout money meant to correct the balance sheet? I didn't see one bank write down the balance on one bad loan... Did you?
            Travis Fling
            Choctaw Lake
            Current - 1989 Ski Nautique 2001

            Comment

            • gride300
              1,000 Post Club Member
              • Apr 2008
              • 1356

              • mobile, al


              i agree with travis. in china they kill people who F up this badly. i think people would think twice about being so greedy if city bank leader and another few people bit the bullet on nat' tv.

              Comment

              • zapada
                • Jul 2008
                • 112

                • Sun Valley, ID


                It's a tough call for anyone out there that is running a business. The balance is between cutting profits and cash or cutting people, even if they are loyal and you may need them in the future. It just goes to show that anyone at anytime can over-extend themselves regardless of how well they are doing. Only the strong will survive this.

                Correct me if I'm wrong, but I've heard that even CC is down to 3 productions days a week. I wonder if they are cutting poeple or just reducing hours.

                A little advice for CC and the rest of us...it's during these times of struggle and despare that some can make great strides of progress. While competitors are dragging their feet and doing as little as possible to just stay alive, these times provide an oppoturnity to run as fast and do as much as you can. Once all is said and done, you will have crushed the competitors.

                Comment

                • BSBell
                  • Apr 2008
                  • 159

                  • Memphis, TN

                  • 1996 Sport Nautique GT40 2005 SV211 TE 330 2009 SAN TE 409

                  I was told getting a new nautique built and delivered takes up to 8 weeks now... maybe correct craft isn't doing "too" bad

                  Comment

                  • aarond0083
                    Senior Member of PLANETNAUTIQUE
                    • Aug 2006
                    • 686

                    • Triangle, NC


                    I was told getting a new nautique built and delivered takes up to 8 weeks now... maybe correct craft isn't doing "too" bad
                    Well it has been almost 8 weeks since I ordered mine and it was water tested 4 weeks ago. Been sitting waiting to be shipped for nearly a month now.
                    Previous Nautiques
                    2012 210
                    2009 210
                    2007 210
                    2004 210

                    Comment

                    • JohnE
                      • Sep 2007
                      • 61



                      Originally posted by TravisFling
                      This thread is crazy. Bullets for Bankers and all that. I'm a banker and I didn't make bad loans to start with. (we have to collect our own loans that go bad - a great idea that makes you a little more careful who you give credit to!!!) and we've only had 2 foreclosures in the last two years, or so. We're a really strong little bank who makes individual decisions on every loan, the way it should be... let the big guys fail, someone with great wits and smarts will pick up the pieces at a discount, the way it should be, and make a landslide of money on their way to doing their part to turning this thing around. I don't feel bad for investors who put money in these companies without paying attention to what they were doing, and doing their due diligence and researching, just like I don't feel bad for someone who bought their first house and it was 3200 sq. ft. of luxury on a stated loan with no money down. The bank that issued it should have to pony up, go under, take their lumps, etc. Without the sting of failure we're doomed to repeat. You prop it up and it will still fail, just farther down the road. Wasn't the bailout money meant to correct the balance sheet? I didn't see one bank write down the balance on one bad loan... Did you?
                      This thread isn't that crazy. You and your bank did the right thing. The majority of the lending industry is having a knee jerk reaction to the current state of affairs.

                      Reading the article about MC, the big problem for the industry is the state of the floor plan companies. How do you foresee dealers being able to stock inventory?

                      I'll bet your bank won't lend even the best CC dealer the money to buy boats and only pay the interest on them for a year. That is what the floor plan companies do/ did. And that will change the industry.

                      Comment

                      • INVNO1
                        • Dec 2005
                        • 103

                        • Southern Maine


                        Originally posted by JohnE
                        And that will change the industry.
                        It already has

                        Comment

                        • SkiTundra
                          Senior Member of PLANETNAUTIQUE
                          • Jul 2008
                          • 513

                          • Unknown


                          Originally posted by JohnE
                          the big problem for the industry is the state of the floor plan companies. How do you foresee dealers being able to stock inventory?
                          No, this is not the problem. The problem is over supply - the industry built too many boats over the past few years and there are more boats than there are buyers. Even if every dealer were able to get as many boats as they desired and forget about interest only, even interest free, they wouldn't be able to sell them.

                          Comment

                          • JohnE
                            • Sep 2007
                            • 61



                            Originally posted by SkiTundra
                            Originally posted by JohnE
                            the big problem for the industry is the state of the floor plan companies. How do you foresee dealers being able to stock inventory?
                            No, this is not the problem. The problem is over supply - the industry built too many boats over the past few years and there are more boats than there are buyers. Even if every dealer were able to get as many boats as they desired and forget about interest only, even interest free, they wouldn't be able to sell them.
                            So if and when a buyer wants to visit a dealer to test and see a certain boat there may not be any. You don't think that might be a problem?

                            And my understanding is the 'bu has always built boats as they were ordered. So they didn't oversupply anything. Don't you think the lack of financing is adversely affecting their dealers?

                            Comment

                            • gride300
                              1,000 Post Club Member
                              • Apr 2008
                              • 1356

                              • mobile, al


                              i know that for a small 15 boat dealership you're looking at about $1,000,000.00. good luck getting a loan from the bank for that one.

                              Comment

                              • etwman
                                • Jun 2005
                                • 114

                                • Denver, PA

                                • 2007 Super Air Nautique 220 Team Edition

                                Article in Boating Industry Today

                                Mastercraft slices another 110 employees referencing it as an atomic bomb that has hit the marine industry.

                                http://www.boating-industry.com/output.cfm?id=2052757
                                Current Boat: 2007 Super Air Nautique 220 Team Edition
                                Former Boat: 2003 Air Nautique 216 Team Edition
                                Former Boat: 1994 Ski Nautique

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