Brunswick Downgraded

[ziemann]

I thought you guys would find this thread interesting-

http://www.tradeonlytoday.com/index...runswick-stock-to-junk-drops-value-22-percent

I apologize if this has been posted here already...JB feel free to delete it if it has been....

 

[ziemann]

Re: Brunswick Downgraded

With Brunswick having already made huge cutbacks, I would imagine that this latest news will only further endanger many of their boat companies and I would think that even their Mercury unit wouldn't be immune...

 

[tashasdaddy]

Re: Brunswick Downgraded

Brunswick is in big trouble and trying to regroup. if you read the other theads, you will find the are closing plant, and going to try to build there lines only out of 4 plants.

 

[TOHATSU GURU]

Re: Brunswick Downgraded

We heard that they may end up shifting more production overseas when business picks back up rather than re-open plants or re-hire here.

 

[SnappingTurtle]

Re: Brunswick Downgraded

Sounds like the Brunswick pieces, are wide open as take over candidates.

Who's in the best position to become the new Mercury Brand owner, the Chinese.

Goodbye middle class jobs, goodbye middle class, goodbye sales to the middle class, goodbye American Brands.

Everything going according to plan.

 

[tashasdaddy]

Re: Brunswick Downgraded

let's not get into politics here.

 

[SnappingTurtle]

Re: Brunswick Downgraded

let's not get into politics here.

Thats not politics, thats business in the global economy.

 

[gss036]

Re: Brunswick Downgraded

Yeah! So true, but the overpriced auto industry is doing the same thing, Dodge pickups at 40% off and I saw a 08 Ford 150 in the paper this morning for under 15K.
Talk on another board has Mako/Seacraft shutting down in December. Olympic boats went broke and shut down all thier stores here in the NorthWest. Also a boat Factory in Arlington shutting down, another Brunswick
company.

 

[NelsonQ]

Re: Brunswick Downgraded

Here in Canada, a friend just purchased an 08 Nissan Pathfinder 5.7L V8. Incentive was they'd throw in a new 08 Nissan Versa.

They're having a tough time moving expensive or high gas consuming products (boats and trucks)

 

[tashasdaddy]

Re: Brunswick Downgraded

that's some incentive. tow vehicle, and a everyday driver.

 

[SnappingTurtle]

Re: Brunswick Downgraded

My brother bought a new 2008 Nissan Titan two months ago, list $27,500+, paid $16,000.

Dealer added $2,000 in options.

 

[NelsonQ]

Re: Brunswick Downgraded

that's some incentive. tow vehicle, and a everyday driver.

Still runs you almost $50K in Canada with the taxes.... Ouch!!!!

 

[SnappingTurtle]

Re: Brunswick Downgraded

Boat manufactures are like auto manufactures. Haven't worked with many boat manufactures, but have a lot of experience with the automotive side.

They will choke the last breath out of you when it comes to price. I have the same sorrow for their business, that they have for mine. NONE!

I do feel bad about their employees though.

 

[ondarvr]

Re: Brunswick Downgraded

There's not much profit in building boats, even during good times they just barely make ends meet, when times get bad like this there's no extra money or profit that can be cut from the price. If the price goes down much at all it means there's no profit, if it goes down more, it's coming out of their pockets and they do it just to recoup at least some cash to pay the bills.

 

[tashasdaddy]

Re: Brunswick Downgraded

Brunswick got too big for their Britches, when mom and pop would develope a good boat, that gave just a little competion, they would buy them out. the Mercury Division, has not keep up with the market. the reason you see so many Brunswick boats with I/Os, and not offered in an Outboard, is Mercury does not have a cost effective Outboard Motor, for these boats. it is cheaper for Brunswick to put an I/O in them than an Outboard.

these words were said to me, by a high up executive of one of the Brunswick lines.

 

[marquette]

Re: Brunswick Downgraded

i think boat manufacturers are facing a threefold problem. first with the downturn in the ecconmy dicretionary money is gone and the solution to that problem is way beyond the marine industry so they have to wait until that problem gets fixed. second the recreation industry as a whole has expanded over the last 10-15 yrs on the back of marginal credit. we have all seen the ad's "with a phone number and a pay stub you can buy a boat " without that credit they are going to have to adapt to smaller sales numbers for a long time. third (and this is a real catch 22) they got too good. buy any boat or motor today from a decent manufacturer and it will last 20yr with minimum mantaince. with today's materials, manufacturing processes and design they build a good product. but if you clog up the supply for 20 yrs there isn't enough room to sell new product. auto manufactures have been facing that problem for several years. today people don't think twice about putting 100,000 miles on a car. adding 2 years to the perceived life of every car hurt sales. quality isn't what is putting manufacturers out of business but it is a positive/negative factor on sales.
i hope when we come out the other side of this recession companies like Brunwick will have survived and used this time to design us a whole new crop of exciting fuel efficient boats that will set a new standard in USA manufacturing.

 

[steelespike]

Re: Brunswick Downgraded

I guess Brunswck was trying to become another General motors.GM bought up Chevy,Buick,Olds,Caddy,Oakland,and some others.Created Pontiac as a companion to Oakland,Lasalle companion to Caddy.
The great depression thinned out boat and motor builders.Also was a time of
inovation.Hopefully the good ones will hold on and come out the end of the tunnel with improved product lines.Has anyone heard anything about BRP and Etec?

 

[tashasdaddy]

Re: Brunswick Downgraded

nothing, on BRP as they are Etec, but they are now a Canadian Owned Company.

 

[SnappingTurtle]

Re: Brunswick Downgraded

Genmar Holdings seems to be better positioned to ride this one out. They are bringing a new, as yet unnamed new Brand onto the market to compete head to head with Brunswick's aluminum boats, at a cheaper price.

It is to be built in what they promise to be the most modern, high-tech aluminum boat factory in the world. We will have to see if they go through with these plans under the current market situation.

It is nice to see them investing in new boating technology, instead of just bleeding to death the traditional brands they bought in the past, like others have and are doing.

 

[5150abf]

Re: Brunswick Downgraded

Genmar,Brunswick and OMC al went on a buying spree in the late 80s, OMC went way too fast and went under first but the other 2 are big enough to ride this out, what is left when we come out of this i don't know but they should make it.

As stated by Marquette, alot of people who want to buy boats can't get the money and all the discretionary buyers are gone which eventually causes the dealer to cut way back or close.

The manufaturers are pretty far down the line, what is out there needs to be sold before they will order new boats so that has to happen first.

I really comes down to if they stocked boats or built to order, the ones who stocked, build up a big inventory all winter then sell them in the spring/summer are hurt the most, the build to order ones had time to adjust as orders dropped off.

It is not very pretty though.

I think one of the biggest keys is that someone wins the election and we wake up on Nov 5th knowing who the next president is, worst case would be another 2000-2004 where we have to wait to see who won, one side needs to clearly win.