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Malibu layoffs


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Saw this on Wakeworld and thought I would post it here. Also here is the link to the article

http://www.mercedsunstar.com/167/story/769697.html

Thursday, Apr. 02, 2009

Malibu Boats files for mass layoffs

In two letters, boat manufacturer says as many as 153 may lose jobs in coming weeks.

By SCOTT JASON

[email protected]

Malibu Boats sent a letter to its Merced employees Monday announcing that the company will probably be forced into mass layoffs at the end of May.

"We are sorry to have to take this action," company CEO Bob Alkema wrote to employees.

Letters were sent to all 200 or so employees at the Merced plant and company headquarters. Malibu officials said the worst-case scenario is that boat production would temporarily stop.

In a symbolic move, Alkema listed himself and other top managers among the people who could lose their jobs, though he said there are some positions that are safe.

He included himself to show that everyone's dealing with the recession. "If I give (a notice) to my guys, I give one to me too," he said. "We're in this together."

The boat company, like automakers and other manufacturers, is reeling from the effects of the credit crunch and lower consumer demand.

The 90,000-square-foot factory sent eight boats a day out the door in 2007. Now it's down to making one a day.

Dealers typically buy boats with bank loans and pay the debt off when it sells.

They're having a harder time buying as many boats to keep their floors stocked because banks are tightening the amount of credit available, marketing director Amy Mauzy said.

Alkema was among the company's founders and said he's never seen a market as troubled as this.

Mauzy said that it's been doing better than competitors because it began scaling back its production sooner. "We've been prepared," she said.

Nonetheless, Merced is faced with another major employer shedding some of its work force because of the recession.

Further, Arvin Sango, which manufactures Toyota parts, announced last week that 50 people accepted voluntary separation plans and another 29 were laid off companywide.

The cutback means that 15 people will be leaving the Merced plant, representing 22 percent of its work force.

Malibu was founded in 1982 in Merced and has remained based here. It has a plant in Tennessee and also an Australian headquarters.

There are no plans to move the company's headquarters from Merced, she said.

The Tennessee plant hasn't received any layoff notices because demand for boats has remained relatively high at four to five a day, Mauzy said.

Under the Worker Adjustment and Retraining Notification Act, major employers are required to alert government when they plan to dramatically reduce their work force.

They must also give a 60-day notice before layoffs become effective.

The two letters sent by Malibu's human resources director to the city mean that up to 153 workers could be let go, though Alkema said there are many jobs that are safe.

One letter sent March 23 said the company reasonably expects to lay off 83 workers in the manufacturing operation.

A second letter, dated March 30, listed an additional 70 workers that it expects to lay off. The job categories range from receptionist to chief executive officer.

In both memos, the company noted that it hopes business improves so that it may not be forced to let go as many workers.

It also wants to re-hire some of them when the economy begins to recover. The next 60 days will prove crucial to how deep the cuts will be, the CEO said.

In the meantime, Malibu plans to focus on building boats and pushing sales.

Reporter Scott Jason can be reached at (209) 385-2453 or [email protected].

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As some of you have already heard, a local newspaper article was published about Malibu Boats today. And as we have come to expect, the writer failed to put the piece of news reported into context or explain it thoroughly.

This latest report was prompted by a “Warn” letter that was presented to every employee at the Malibu Boats California factory and subsequently filed with the County and City of Merced, CA. This letter was Malibu Boats’ response to a State and Federal requirement of the Warn Act. Employees must be given at least 60 days notice of possible layoffs. This notice was not to inform employees they are being laid off. The letter was to inform them of the possibility. Malibu Boats will strive to avoid layoffs, but if some cut become necessary for the health of the company, they will be temporary. The letter went to everyone at Malibu California including the CEO. This does not mean these warnings have or even will be enacted. This means Malibu has given the required notice of the possibility of layoffs.

While all boat manufacturers have been adversely affected by this economy, Malibu is the only water sports boat manufacturer to not cease production. Since we are the only manufacturer to have multiple manufacturing facilities, we have the ability to strategically plan our production from either factory. Malibu Boats has also been preparing for this downturn in the economy for nearly two years. That foresight is paying off for Malibu now as we are the only manufacturer continuously building boats and employing the talented individuals who choose to work here.

Currently we are building boats at both the California and Tennessee plants. We happen to be building more boats in Tennessee right now. Our production levels at each plant fluctuate based on regional demand. A higher percentage of current orders are originating in the South, Midwest and Eastern United States. This is the reason for increased production levels in Tennessee right now. Malibu Boats cannot build out-of-region boats in California only to incur large freight bills getting these orders to their destinations. We need to be as efficient as possible.

Malibu Boats has successfully launched a new boat division (Axis) in the middle of this downturn providing further opportunities for big wake riders in the lower price market. This move is unprecedented and will allow Malibu Boats to hit the ground running when the economy beings its recovery.

Another bright side is the amazing value Malibu Boats offers. This value is being realized by consumers, but also by the company in the form of increased retail sales numbers over the last couple of months. We stand to benefit as the economy as well as wholesale and retail financing begins to pick back up. We look forward to continued success for the entire Malibu Family when this takes place.

The California Malibu Boats Factory is not closing nor is everyone there being laid off. The California plant is and always will be the corporate headquarters for Malibu Boats. Malibu Boats, like many other companies, is working hard to make it through to better times. We will get through this and be a stronger company when it’s all said and done.

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No worries, Lord Obama will save us. All hail his holyship!!

Oh only if that were the thruth. Rather than far from!

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No worries, Lord Obama will save us. All hail his holyship!!

Oh only if that were the thruth. Rather than far from!

I believe this was scarcasim at its best.. a common form of humor, of course another less obvious form of humor is generated by those that mis the intended scarcasm Whistling.gif

As you were - return to the speculating :)

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Malibudude...................you always seem to have the inside scoop. What is your connection with Malibu Boats?

He has a friend, who has a friend, of another friend who works there.

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Malibudude...................you always seem to have the inside scoop. What is your connection with Malibu Boats?

He has a friend, who has a friend, of another friend who works there.

He has a friend :unsure:

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Malibudude...................you always seem to have the inside scoop. What is your connection with Malibu Boats?

His checkbook is connected to Malibu boats.

I know that.

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Malibudude...................you always seem to have the inside scoop. What is your connection with Malibu Boats?

His checkbook is connected to Malibu boats.

I know that.

Aren't all of ours? Thumbup.gif

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Malibudude...................you always seem to have the inside scoop. What is your connection with Malibu Boats?

His checkbook is connected to Malibu boats.

I know that.

Aren't all of ours? Thumbup.gif

ROFL.gifROFL.gif

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Aren't all of ours? Thumbup.gif

Nope,

My checkbook/credit card is connected to Ducati motorcycles. Mad.gif

Mine was connected to my wife...notice the word was Biggrin.gif

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theskiflyer
As some of you have already heard, a local newspaper article was published about Malibu Boats today. And as we have come to expect, the writer failed to put the piece of news reported into context or explain it thoroughly.............................................

It's a nice story Malibudude; but the reality is the market is really bad and all the manufacturers are taking it hard on the chin and according to the latest February published market share data Malibu got hit very hard.

http://www.tradeonly-digital.com/tradeonly...2&u1=friend

It's not pretty.

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No worries, Lord Obama will save us. All hail his holyship!!

Oh only if that were the thruth. Rather than far from!

I believe this was scarcasim at its best.. a common form of humor, of course another less obvious form of humor is generated by those that mis the intended scarcasm Whistling.gif

As you were - return to the speculating :)

Isn't everything Nobama touches steeped in sarcasm??

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theskiflyer

Moved this from the other thread to keep everyone happy in the sandbox ROFL.gif

In the past 3 years Malibu has gone from a basically debt free, employee owned entity, with production taking place in plants that were owned...to a company that needs to make interest payments on debt and lease payments for its facilities. Does seem to be a much different company than it was 3 years ago.

With their plants sold, the only "equity" that exists at Malibu today is "branding", some gel guns and molds.

It can be "spun" many different ways, but at the end of the day the board of directors is steered by some very anxious investment bankers; and they, not the CEO, will decide how this plays out.

It may be a tough pill for us fans to swallow but Malibu would be able to weather a storm far better under their old ownership. This is what I tried to point out a "(long, long) while" ago.

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Another one bites the dust, Magic / Sleek Powerboats

Local boat builder closes after 15 years

By Jayne Hanson

Wednesday, April 8, 2009 5:35 PM MST

A local boat manufacturer of two well-known brands of powerboats closed its doors Wednesday after 15 years of manufacturing and selling the floating luxury items.

Power Marine and Motor Sports Inc, manufacturing corporation of Magic Powerboats and Sleek Powerboats, bid farewell to its employees and consumers Monday for unknown reasons, according to the corporation’s owner.

“We are not bankrupt, we are just closing our doors. …It is very hard,” said Ron Moyes, owner of Magic and Sleek brand boat manufacturing corporation.

The longtime owner of the Lake Havasu City-based manufacturing plant and sales office would not comment as to reasons surrounding the company’s closure.

“We started downsizing (staff) last September,” Moyes said. Approximately 20 employees were affected by the closing this week, he siad.

“I think it is a big loss … it is symptomatic of what is happening in the marine industry right now,” said Jim Salscheider, executive director of Lake Havasu City Marine Association.

Moyes is the immediate past president and one of the founders of the Lake Havasu City Marine Association.

According to Salscheider, Lake Havasu City is currently home to four boat manufacturer companies that build boats from start to finish. Two other local companies build boat hulls and tops, which are then sold to other companies for finishing and branding, he said.

Moyes provided Today’s News-Herald with the farewell letter that will post today on the company’s Web site www.magicpowerboats.com that includes the message “We never imagined that we would be writing this letter to our amazing customers and friends. With tremendous hesitation and heartache we are closing our doors.

“The last 15 years have been filled with challenges, amazing memories, hard work and pride. “Thank your for your business.

“We are so thankful that you were all a part of our journey!

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