Big Shake-Up @ Malibu??

[theskiflyer]

Have been informed by a very reliable source in Tennessee that John Sisson, V.P. of Operations has been let go. A long time employee.

By Malibu's own statements it has been Tennessee that has been building boats for the last number of months!?

First layoff Tn. staff and consolidate warranty, etc. in Ca., then turf the Tn. V.P.; sounds like Ca. people are trying to protect their rear ends at the expense of productive people in Tn.

[CRASH]

Bob Alkema stepped down from being the president of malibu today also.

[johnsvt]

whoa

[bigD]

[theskiflyer]

Well I for one can't believe that Paul Singer's @@$ would not be first in a sling...John Sisson actually was productive when I knew him. He kept that Tn. plant huming, while Singer was ....?

[Lakenut]

How bad is it for Bu? How many boats/week are they turning out..at both plants. What are the #s like compared to a few years ago?

[SmoothWaterMan]

In hopes to stop irresponsible scuttlebut from appearing -

- John Sisson and TN parted ways earlier this year, that's old news. Everyone has an opinion on that, so let's leave it alone. John's a good man.

- The TN plant was revamped into a lean production facility, with outstanding quality, controls, and less waste than ever in history. I don't know the dollars invested by the group, but it was well worth it by looking at the finished product. TN is currently building the majority of the US production.

- Bob Alkema did step down as President, although this news has hardly reached all the dealers (released today). I wish people would take a breath before telling the world. Bob has built and incredible company since 1982, and apparently felt it was a good time to let the new team excel in their own areas of expertise. Bob won't be far away from the company, it's a love that hasn't diminished.

Please don't let themalibucrew have posts only worthy of wakeside or TMC.

Thank you,

Peter Brown

Malibu Dealer

[theskiflyer]

In hopes to stop irresponsible scuttlebut from appearing -

- John Sisson and TN parted ways earlier this year, that's old news. Everyone has an opinion on that, so let's leave it alone. John's a good man.

- The TN plant was revamped into a lean production facility, with outstanding quality, controls, and less waste than ever in history. I don't know the dollars invested by the group, but it was well worth it by looking at the finished product. TN is currently building the majority of the US production.

- Bob Alkema did step down as President, although this news has hardly reached all the dealers (released today). I wish people would take a breath before telling the world. Bob has built and incredible company since 1982, and apparently felt it was a good time to let the new team excel in their own areas of expertise. Bob won't be far away from the company, it's a love that hasn't diminished.

Please don't let themalibucrew have posts only worthy of wakeside or TMC.

Thank you,

Peter Brown

Malibu Dealer

Agreed about John, and yes probably time to move this topic to an area were open conversation and reality may be discussed.

From what I have been told the "outstanding quality" is in dispute by many on the recent production. In addition I called our dealer today and they said they have e-mailed photos and a description to Malibu Ca. for a boat with a compromised fuel tank; and after 2 full days, no response!??

[68Slalom]

I'm sure we'll have articles to read soon so I'm just wondering how bad it really has gotten for our product.

[funkcity]

Bob sold the company at the right time. Almost like having a crystal ball reading the future.

The investor holding group that owns Bu obviously hasn't been enjoying the success they'd anticipated.

We all know that these large operations can hemorrhage money at a huge rate... just ask Roger Penske, MC's relatively new owner!

You lose your sales base.

You create a new boat line... a new expense, one that most folks know nothing about. The economy tanks.

This is really the perfect storm. Now the thought of multiple manufacturing locations could become a liability instead of an asset.

But the product is solid. The reputation is solid.

One might think that if the company can weather the storm they will come out clean.

R and D usually suffers in down times but I believe this is the time to design and innovate.

This industry will bounce back... even if it is a smaller version of it.

And when it does the company that grows the technology will excel.

For comparison, note that industry giant Genmar is now in Chapter 11.

I'm sure all of the pain will create a lean solid industry to those companies that can stick it out and engineer smart,

efficient, cost-effective product.

It was not that long ago that Malibu was cranking out 8 boats a day. Will that success return? Well who knows.

The country as a whole needs to bounce back. And confidence is low.

But I feel if the current management (who ever they are?) can project a longer period of time to bounce back then all can be better.

I'm sure there will be some press release issued with appropriate politically-correct jargon so we may never really know the real scoop.

But we have all invested in their product. And love it! I hope the management does the right thing!

Many of us bought when the company was "employee owned".

I contend that the "employee owned" concept was a major factor in Malibu's success.

Maybe they need to start over, dowsize, regain that spirit that I observed the first time I visited the Merced plant!

Enough.

Good Luck Malibu !!!!!

[Boat Rocks]

All customer service and warranty are now handled out of CA, and the TN plant is building the majority of the boats. Remember guys they had to buy back all the Cope boats and move them again. Makes it hard to sell the 09's with that many 08's to move!

[UWSkier]

The big three are going to struggle for some time. They did well to generate revenue when times were good, and raised prices year after year after year because they could... but now it's time to pay the piper. Let's face it. Their products are overpriced and the pipeline of prospective buyers is really weak. They're in a really bad position to keep selling at the levels they have. I wouldn't be surprised before it's over to see it cut to the point where one plant is operating at less than full time.

[brettpendl]

OK, so does anyone know how CC and MC are doing comparatively? Is there any stock watchers here that can add light? I would assume BU, CC and MC would be the last to go in the wakeboating industry, but am I wrong???

[ed obermeier]

I heard yesterday from a reasonably well connected source in the biz that Penski is about to default (or notified management that they were going to default) on the bond they purchased to buy part of MasterCraft (or something like that, I'm not a financial type) which if true will put MC in bankruptsy. Anyone else heard anything on that?

Ed

[wakeup]

I have not seen anything in the news about the changes in Malibu so thanks to the person who posted it here.

Don't know the business end of the wakeboard/ski boat industry, but I can only assume it is reflecting what is happening in all industries.

So far this year I don't believe I've seen a 09 Malibu on our lake (33 miles long) or on the road.

[StillHav'nFun]

If anyone cares I will comment on this. My wife and her family have owned a new car dealership for around 40 years. As we all know the new car business has been terrible for the last couple of years or so. People have over-extended themselves. Look at reality, are these new boats really worth $60,000, $80,000 or more. I saw one dressed out the other day and it listed for over $100,000. Look at the used market, it is flooded with used boats for sale. Most people cannot pay for these boats. Why purcahse a new one when you can get one a year or 2 or 3 years old for 2/3's the price.

I've boated all of my life and I have yet to see a skiboat of any kind worth $60,000. I purchased my 2000 sunsetter lxi from a young boy 2 years ago who was goin to go purchase a new wakesetter and finance it for 20 years ( so he said ). I wud hate to know I was paying $600 - $800 a month for 20 years on a boat that you can only use 6 - 8 months out of the year.

Anyways, only the strong will survive!! Business will come back but only after it naturally cleans itself up. Just my thoughts.

Dennis

[Killer]

If anyone cares I will comment on this. My wife and her family have owned a new car dealership for around 40 years. As we all know the new car business has been terrible for the last couple of years or so. People have over-extended themselves. Look at reality, are these new boats really worth $60,000, $80,000 or more. I saw one dressed out the other day and it listed for over $100,000. Look at the used market, it is flooded with used boats for sale. Most people cannot pay for these boats. Why purcahse a new one when you can get one a year or 2 or 3 years old for 2/3's the price.

I've boated all of my life and I have yet to see a skiboat of any kind worth $60,000. I purchased my 2000 sunsetter lxi from a young boy 2 years ago who was goin to go purchase a new wakesetter and finance it for 20 years ( so he said ). I wud hate to know I was paying $600 - $800 a month for 20 years on a boat that you can only use 6 - 8 months out of the year.

Anyways, only the strong will survive!! Business will come back but only after it naturally cleans itself up. Just my thoughts.

Dennis

I bought a hell of a malibu for 14k last year. the original owner paid $22k with taxes on a trailer in 1999 off the showroom.

this boat is AS good or BETTER than a lot of boats out there, without any BLING...

still looks better than 99% of the boats out there today as well as many agree.

you make your bed you sleep in it right?

60-100k on a ski boat isn't silly, its outright INSANITY!

you can buy a motor yacht for that bloody price, and live on it...

[SunriseH2OSkier]

I'll just comment that the loss of revenue to any company as a result of a collapsed market is much more critical to its survival than most people realize. Doesn't really matter how good their product is, or how innovative the company is, or even how efficiently it is run. Efficiency of the organization is really only noise in comparison to the overall structural costs associated with supporting a given volume level. When that volume level is so severely compromised, you better have a large pile of cash to weather the storm, 'cause your going to need it.

This situation is no different than the automotive industry. The automakers are collectively capacitized to a market in the 18M/year range here in the US. That happened because the market was consistently in that 17-18M range for a long time. Suddenly - in the span of about 6 months - that volume dropped to nearly half that amount. May sales were on an annualized rate of 9.9M units. We are all burning cash at a dramatic pace. Toyota had their first annual loss in 75 years, and it wasn't a small loss - on the order of $7B IIRC.

Toyota is clearly better prepared for these current circumstances in part because of their efficiency in their cost structure, no question. Ford on the other hand is in a better place because the mortgaged everything when they could still get the cash. But they are not fundamentally different than GM in their efficiency/cost structure.

I don't raise the point to claim GM doesn't have its problems. I only do it to demonstrate a contrast that shows how important the size of the market is on a manufacturer. Some things are just beyond your control - and this market crashed so fast, there were a lot of people caught in the wake (so to speak).

I don't presume to know what Malibu's (or MC or CC) financial situation is, but I hope for the best for all of them. In a lot of ways, this situation is much worse for them because of the 'disposable income' this market is so dependant on.

[gregtay]

I heard yesterday from a reasonably well connected source in the biz that Penski is about to default (or notified management that they were going to default) on the bond they purchased to buy part of MasterCraft (or something like that, I'm not a financial type) which if true will put MC in bankruptsy. Anyone else heard anything on that?

Ed

This morning Penske annonced they were buying Saturn from GM... so clearly they aren't hurting as bad as your post suggests.

GM to Sell Saturn Brand to Penske

Penske, who owns the Penske Automotive Group [PAG 15.03 0.43 (+2.95%) ] dealership chain, told reporters on Friday that he plans to offer all 350 Saturn dealerships new franchise agreements. He says Saturn's 13,000 employees will stay on with the company for at least the immediate future.

[Bobby Light]

If anyone cares I will comment on this. My wife and her family have owned a new car dealership for around 40 years. As we all know the new car business has been terrible for the last couple of years or so. People have over-extended themselves. Look at reality, are these new boats really worth $60,000, $80,000 or more. I saw one dressed out the other day and it listed for over $100,000. Look at the used market, it is flooded with used boats for sale. Most people cannot pay for these boats. Why purcahse a new one when you can get one a year or 2 or 3 years old for 2/3's the price.

I've boated all of my life and I have yet to see a skiboat of any kind worth $60,000. I purchased my 2000 sunsetter lxi from a young boy 2 years ago who was goin to go purchase a new wakesetter and finance it for 20 years ( so he said ). I wud hate to know I was paying $600 - $800 a month for 20 years on a boat that you can only use 6 - 8 months out of the year.

Anyways, only the strong will survive!! Business will come back but only after it naturally cleans itself up. Just my thoughts.

Dennis

I bought a hell of a malibu for 14k last year. the original owner paid $22k with taxes on a trailer in 1999 off the showroom.

this boat is AS good or BETTER than a lot of boats out there, without any BLING...

still looks better than 99% of the boats out there today as well as many agree.

you make your bed you sleep in it right?

60-100k on a ski boat isn't silly, its outright INSANITY!

you can buy a motor yacht for that bloody price, and live on it...

So that boat held it's value pretty well.

You won't find many 60-100K ski boats. Wakeboats are another story. To each his own right.

[Madmanacrossthewater]

In hopes to stop irresponsible scuttlebut from appearing -

- John Sisson and TN parted ways earlier this year, that's old news. Everyone has an opinion on that, so let's leave it alone. John's a good man.

- The TN plant was revamped into a lean production facility, with outstanding quality, controls, and less waste than ever in history. I don't know the dollars invested by the group, but it was well worth it by looking at the finished product. TN is currently building the majority of the US production.

- Bob Alkema did step down as President, although this news has hardly reached all the dealers (released today). I wish people would take a breath before telling the world. Bob has built and incredible company since 1982, and apparently felt it was a good time to let the new team excel in their own areas of expertise. Bob won't be far away from the company, it's a love that hasn't diminished.

Please don't let themalibucrew have posts only worthy of wakeside or TMC.

Thank you,

Peter Brown

Malibu Dealer

Well stated, Peter.

[Bill_AirJunky]

I heard yesterday from a reasonably well connected source in the biz that Penski is about to default (or notified management that they were going to default) on the bond they purchased to buy part of MasterCraft (or something like that, I'm not a financial type) which if true will put MC in bankruptsy. Anyone else heard anything on that?

Ed

Haven't these rumors been flying around for years? And considering MC's history in the last 10 - 15 years, couldn't any one of us have said something about them being bought out or sold or whatever & been fairly close.... within a few years anyway.

Considering the public news about Penske, I would question the source. Maybe their not all that well connected or have a motive?

[WakeGirl]

Okay guys, I think that I have something to add here. Let me start by saying that I heard yesterday morning about Bob & was greatly saddened by the news. This is a guy that put his heart & soul into Malibu & I am very sure that he will be missed by most in the company. I know that we as boat enthusiasts will without a doubt miss what he brings to the industry as a whole, let alone to Malibu.

Anyway, I've been in contact with Amy about all of this, mainly because it concerned me that this type of issue could create a lot of speculation & really feed the rumor-mill. With that in mind, she emailed me this press release just a short time ago. In addition, I should speak with Paul Singer (hopefully) today about all of this. I'll try to keep you updated as I get more information.

Malibu Crew Members,

As our extended family I thought I should make an announcement to all of you, the

Malibu owners. First of all Bob wanted to extend his thanks for the support of Malibu

over years in his tenure as President. He has stepped down as President of Malibu and

day to day operations but will remain with us on the Board of Directors and as a

consultant. Bob lives just miles from the plant and not only does our family vacation

together but we worship together and I can tell you his presence will be around Malibu

forever.

From this point on I will refer to him as Big Dog since many of you know we all have

nicknames around here. Big Dog is quite happy right now as he has been in the middle of

building his house and ski lake and this will certainly give him the time to finish that up.

I am sure that his wife Anna is ready to have him around to accomplish that growing

“honey-do” list.

I have had the pleasure of working with Big Dog for about 19 years and he has had a

tremendous influence on all of us at Malibu. And while it was a sad day Wednesday for

me and others it was also a time of joy knowing Big Dog gets to do what he has earned.

Plus we know he is still on the board and has quite substantial ownership. It is not a scary

time because that is not how Big Dog ran this company. He did not make all the

decisions in this company because he empowered us to do that. He even took some years

off from Malibu to do some building projects for our Church. Like a great leader he

prepared us for this day if you think about it. The culture of “team” we have built over

the years is still very prevalent and one reason we have faired so much better in this

downturn than others. Yes, there have been changes and those sometimes are not easy

but Malibu is bigger than those changes We have a motto around here at Malibu that we

truly believe: “When the going is good it is good for everybody, but when the going gets

tough it is just right for us”. I know all the changes create speculation on the message

boards but we have always been an open company to deal with. If you have questions

please ask and we will do our best to get you an answer.

Finally, I just want to say on behalf of our long time crew around here we appreciate your

support and we will continue to provide our friends the world’s best boats.

Sincerely,

Paul Singer

Vice President

Malibu Boats

Malibu_Crew_Statement.pdf

[JohnDoe]

I heard yesterday from a reasonably well connected source in the biz that Penski is about to default (or notified management that they were going to default) on the bond they purchased to buy part of MasterCraft (or something like that, I'm not a financial type) which if true will put MC in bankruptsy. Anyone else heard anything on that?

Ed

Haven't these rumors been flying around for years? And considering MC's history in the last 10 - 15 years, couldn't any one of us have said something about them being bought out or sold or whatever & been fairly close.... within a few years anyway.

Considering the public news about Penske, I would question the source. Maybe their not all that well connected or have a motive?

I don't know the deal, but if Penske bought a bond, then they loaned money to mastercraft with certain terms of repayment. If there was a default, then it would have been mastercraft not being able to meet the terms of the repayment, which I heard has ceased production? Can anyone confirm that in the Tennessee area?

[SmoothWaterMan]

I heard yesterday from a reasonably well connected source in the biz that Penski is about to default (or notified management that they were going to default) on the bond they purchased to buy part of MasterCraft (or something like that, I'm not a financial type) which if true will put MC in bankruptsy. Anyone else heard anything on that?

Ed

Haven't these rumors been flying around for years? And considering MC's history in the last 10 - 15 years, couldn't any one of us have said something about them being bought out or sold or whatever & been fairly close.... within a few years anyway.

Considering the public news about Penske, I would question the source. Maybe their not all that well connected or have a motive?

I don't know the deal, but if Penske bought a bond, then they loaned money to mastercraft with certain terms of repayment. If there was a default, then it would have been mastercraft not being able to meet the terms of the repayment, which I heard has ceased production? Can anyone confirm that in the Tennessee area?

That MC would be in default would be the correct manner in which it would progress as you stated. Last I knew MC was on credit-hold with many of their suppliers.