Genmar files for Chapter 11 bankruptcy

[NCLakeboater]

MINNEAPOLIS, Minn. ? Genmar Holdings, Inc. has filed for Chapter 11 reorganization protection in the U.S. Bankruptcy Court, the company reported in a statement last night.

?I have been in the boating industry for over 30 years, and throughout those many years, I have personally experienced several of what I thought were the worst and most difficult business conditions our industry had ever gone through,? stated Irwin L. Jacobs, chairman and CEO of Genmar. ?However, those conditions do not even remotely resemble anything close to what has taken place in the retail and wholesale recreational boating industry over the past approximately 12 months. If someone would have said to me as recently as even one month ago that Genmar would someday be filing for Chapter 11, I would have said it was not even a remote possibility.?

http://www.boating-industry.com/output.cfm?id=2172997

 

[SeanMcl]

Re: Genmar files for Chapter 11 bankruptcy

One month ago he didn't see it coming? Nah. He would have to have a better handle on the company's cash burn rate. Sounds like he's justifing statements made to share holders and board members.

That said, I love the Larson boats "Deep Vee" hull design from the 90's. I hope that Genmar comes back from Chapter 11 with some innovative designs and quality builds.

 

[This_lil_fishy]

Re: Genmar files for Chapter 11 bankruptcy

So much for my lifetime hull warranty.


Ian

 

[tashasdaddy]

Re: Genmar files for Chapter 11 bankruptcy

Genmar Boats:
Carver? Champion? FinCraft Four Winns? Glasstron Hydra-Sports? Larson? Marquis? Ranger? Seaswirl? Stratos? Triumph?
Wellcraft? Windsor Craft?

 

[Huron Angler]

Re: Genmar files for Chapter 11 bankruptcy

One month ago he didn't see it coming? Nah. He would have to have a better handle on the company's cash burn rate. Sounds like he's justifing statements made to share holders and board members.

Couldn't have said it better myself...that's exactly what it seems like to me.

Very similar to how the federal government denied that our economy was in a recession for an extended period of time and then all of a sudden the "bailouts" were necessary or else the world would've ended.

Can't trust those folks any farther than you can throw them.

My dad has a Seaswirl with a few years left on the 10 year hull warranty. Hopefully that won't be an issue...just have to be a little more careful maybe.

 

[NCLakeboater]

Re: Genmar files for Chapter 11 bankruptcy

There are too many boat lines with little too difference for fewer new boat buyers.

 

[CATransplant]

Re: Genmar files for Chapter 11 bankruptcy

What I hate about this is that they gobbled up a bunch of very good boat companies. Now, all those brands are in danger of going out of existance. The conglomeration of boat makers over the past decade is not a good thing, in my opinion.

 

[RotaryRacer]

Re: Genmar files for Chapter 11 bankruptcy

Wow. This is unfortunate.

I really hope they can come back strong. It would be a shame to see any of the brands they own disappear. Companies like Wellcraft, Carver, Larson, Glastron and FourWinns have been around for a long time.


Any word on Brunswick. I see that they shut down the SeaRay plant in Tenn for 3 months.

I hope this industry can survive this economic storm. If it can survive this there is likely little chance of surviving the green movement.

 

[Huron Angler]

Re: Genmar files for Chapter 11 bankruptcy

Excellent point CAT...couldn't agree more.

Reminds me how AT&T bought up everything, was forced to divest everything, and now has bought back everything again.

Corporate reorganiztions/mergers/buyouts just keep lawyers and what used to be called investment banks employed for exorbanant salaries if you ask me.

 

[CATransplant]

Re: Genmar files for Chapter 11 bankruptcy

Sadly, Brunswick is probably next. Who knows what brands will survive if they file Chapter 11. They own way more boat brands than Genmar.

 

[ezmobee]

Re: Genmar files for Chapter 11 bankruptcy

There are too many boat lines with little too difference for fewer new boat buyers.

Boy that sure sounds like GM.....

 

[Home Cookin']

Re: Genmar files for Chapter 11 bankruptcy

I'm sure the high gas prices last summer whacked the industry on top of, and at the beginning of, the recession.
As the small boat market goes soft, we can be left with fewer choices and higher prices at that. I feel most sorry for commercial boat users who have no choice but to pay the going rate for a motor, repairs, tackle, etc.
recreational boating (including fishing) employs a tremendous number of people way beyond just the builders, sellers and fixers. Even the small insurance agent who writes boat policies, the motel owners at beaches in the winter, are all supported by the market.
Meanwhile, the motors become more sophisticated, it is prohibitive to fix problems, hard to train mechanics, and even harder to find ones who will work on old ones. They'll become like the auto and appliance business: replace rather than repair, and we lose choices.

 

[Steve Mahler]

Re: Genmar files for Chapter 11 bankruptcy

I agree it is sad to see old brands (of all types of machines) die off. But let's keep in mind that every brand bought by Genmar or Brunswick was failing on it's own, so.....you cant blame the big conglomerates.

All that said, I agree there are only so many ways to decorate a bowrider, so do you really need 10 competing companies?

In some ways I wish the automakers would get more like boaters, share engines and technology. How many 3.0 liter OHC V6s do we need on the market at one time?

 

[QC]

Re: Genmar files for Chapter 11 bankruptcy

In some ways I wish the automakers would get more like boaters, share engines and technology. How many 3.0 liter OHC V6s do we need on the market at one time?

Funny, but the On-highway truck market has gone just the opposite. Truck engine suppliers are down to two, while almost everybody has their own line of HD engines now. Really Cummins is the only one now as Detroit Diesel is owned by Daimler and nobody but a Daimler brand uses them anymore. How many 13 liter engines can you have?

Caterpillar bet that truck manufacturers would drop their own lines due to the complexity of emission certification. They bet wrong! The players are too big and cost drives everything, building your own takes out one level of profit. In the case of marine you have (had) 100s of builders who could not even think of building their own engines.

 

[haulnazz15]

Re: Genmar files for Chapter 11 bankruptcy

Actually, now would be an excellent time for Ford to jump back into the marine engine market since Chevy is discontinuing the 4.3 and 8.1L engines. If Ford jumped in with their EcoBoost V6 and the already good 5.4L and new 6.2L Boss engines, they could take a good bit of market from GM in the water world.

 

[jaxnjil]

Re: Genmar files for Chapter 11 bankruptcy

Actually, now would be an excellent time for Ford to jump back into the marine engine market since Chevy is discontinuing the 4.3 and 8.1L engines. If Ford jumped in with their EcoBoost V6 and the already good 5.4L and new 6.2L Boss engines, they could take a good bit of market from GM in the water world.

maybe they could get OMC to start up and make drives for them again

 

[Bigprairie1]

Re: Genmar files for Chapter 11 bankruptcy

Actually, now would be an excellent time for Ford to jump back into the marine engine market since Chevy is discontinuing the 4.3 and 8.1L engines. If Ford jumped in with their EcoBoost V6 and the already good 5.4L and new 6.2L Boss engines, they could take a good bit of market from GM in the water world.

I doubt that is going to occur with the 4.3 and that it will no longer be available to the marine industry. If GM decides not to use that design any longer in any vehicle ever again (unlikely) then, like many times in the past, the rights to that motor will be purchased and produced under license (and profit of course) to companies that want it to continue as their power system. That motor now has over 20 years worth of history and momentum for everyone, including parts, repair, etc, etc. It seems to be a very well targeted size to power ratio and have a good reliability history and record unlike some of the previous i/o motors.
It's nothing but a win-win for GM to continue with that motor just like their great SBC.
However, the 8.1...as you said, might be done like dinner. No need for that size of motor when you can upgrade to Diesel.
My two bits.
BP

 

[haulnazz15]

Re: Genmar files for Chapter 11 bankruptcy

maybe they could get OMC to start up and make drives for them again

Ford used merc drives as well (888, 233 - both pre-alpha/alpha I designs). No need to revive OMC. They are also still used in direct-drive/inboard applications like Mastercrafts, Ski Nautic, etc.

 

[QC]

Re: Genmar files for Chapter 11 bankruptcy

I don't know of any marinizers (Indmar, PCM etc.) that offer Ford power any more at all . . .

 

[Action]

Re: Genmar files for Chapter 11 bankruptcy

It's chapter 11 bankruptcy protection guys.....not bankruptcy as in they are shutting down. It is a way to restructure and eliminate debt. Sure some brands may be sold or consolidated, the strongest will survive.