Malibu Sale...The Man Speaks!

[theskiflyer]

clearly do not want them to continue were they've headed over the last 2 years.

Better power, performance, handling. . .Higher quality materials, more comfortable interior. . .More features, innovations, options. . .

Clearly, MC & CC do not want them to continue were (sic) they've headed over the last 2 years. . .

I guess if the total number of boats you produce is your measurement of success; than Malibu wins.

Well we are on our 3rd Malibu, and the 2006 is a far cry from our others. Previously the JD Power was a big deal, when Malibu was at the top.. and so was our boat. Our purchase was based on Malibu's high rating on JD Power ratings and we were not dissapointed. Now the present JD Power is inaccurate??? Not by our experience. Not according to the automotive world! Reminds me of 1998 (or there about) when CC pulled out of the WaterSki magazine tests... could not win and picked up their toys and went home.

I am not a "funny guy", have invested more in Malibu than the majority of posters here.

Anyone who thinks Malibu has not been focused on the sale of the company for the last 18-24 months (pumping boats out the door to enhance their value), still believes in Santa Claus.

Unfortunatley Bob Alkema was more interested in building his houseboat and enhancing his share value, than watching what was happening at the Tennessee plant and probably the California plant.

Currently our boat is unusable, and it our last week of the summer. Customer Service @ Malibu has not responded to our dealer about our issues after 4 days. Our dealer has always responded to our needs with the utmost urgency.

As a footnote, we went to Tennessee plant and while we there also toured the MC plant (very close to each other)... the MC build process confirms the root issues we are now experiencing with our present boat. Do your self a favor and tour Malibu and MC, then argue with me!

[SunriseH2OSkier]

No question awards like Motor Trend Car or Truck of the year are pretty much for sale, but JD Power is not in that same category. It is truely based on the input from a sample of customers, and consequently cannot be purchased by a manufacturer.

That said, I also believe that the results in the marine world tend to be much less reliable than for the auto industry, given the volume of product sold (and consequently the smaller sample size). Because of the lower volumes, the marine industry must rely on considerably more manual labor than the auto industry. This translates directly into more product-to-product variability. As a result, it is not uncommon for someone to get a lemon (even CC and MC), even though a company may be sitting at the top of the quality rankings according to JDP.

In fact, year after year you will hear on this site from some unfortunate soul(s) that got the raw end of this process (even the years you bought your other 'good' Bu's). You'd like to think it all averages out in the JDP results, but it doesn't necessarily because of the small sample size.

Bottom line is that (at least in the marine industry) you can't rely on JDP completely to accurately predict the quality trends. Not that it is gonna make you feel any better...

Oh, and word to the wise - there's a lot of people here that turn boats every year. So the 'I've invested more in Malibu so I know from experience' isn't likely to 'fly' around here.

[VinRLX]

clearly do not want them to continue were they've headed over the last 2 years.

Better power, performance, handling. . .Higher quality materials, more comfortable interior. . .More features, innovations, options. . .

Clearly, MC & CC do not want them to continue were (sic) they've headed over the last 2 years. . .

I guess if the total number of boats you produce is your measurement of success; than Malibu wins.

I didn't say anything about the number of boats produced.

Our purchase was based on Malibu's high rating on JD Power ratings and we were not dissapointed. Now the present JD Power is inaccurate??? Not by our experience.

Currently our boat is unusable, and it our last week of the summer. Customer Service @ Malibu has not responded to our dealer about our issues after 4 days. Our dealer has always responded to our needs with the utmost urgency.

Sounds like you are having an unfortunate experience with this boat that is not what you would expect based on your other Malibus. I hope your dealer is able to resolve the situation quickly so you can get back on the water.

[BlastRlxi]

I'm on my third Malibu and maybe I have been lucky but I've never had any major issues with any of them. The few small issues I have had were handled very efficiently by our dealer (No Wake Marine). I have never received a survey from jd power or anyone else, except Malibu. Now, if someone received a boat that maybe did have some problems, the severity of which is all relative to the new owner, or had a bad dealer and gave the boat a poor rating because of this, it could greatly influence the outcome of the poll. With a low sample rate, one bad evaluation could really lower the final average even if most of the other evaluations were very high.

If you go on wakeworld or planetnautique or tmc (the Mastercraft site), you will see people complaining about the other brands with many of the same problems that you may find here. If my last boat, a 2005 Rlxi, is any indication of the quality, performance and value standards that are to come, it will certainly not be my last Malibu.

[2 ThumbsUp]

I guess if the total number of boats you produce is your measurement of success; than Malibu wins.

Well we are on our 3rd Malibu, and the 2006 is a far cry from our others. Previously the JD Power was a big deal, when Malibu was at the top.. and so was our boat. Our purchase was based on Malibu's high rating on JD Power ratings and we were not dissapointed. Now the present JD Power is inaccurate??? Not by our experience. Not according to the automotive world! Reminds me of 1998 (or there about) when CC pulled out of the WaterSki magazine tests... could not win and picked up their toys and went home.

I am not a "funny guy", have invested more in Malibu than the majority of posters here.

Anyone who thinks Malibu has not been focused on the sale of the company for the last 18-24 months (pumping boats out the door to enhance their value), still believes in Santa Claus.

Unfortunatley Bob Alkema was more interested in building his houseboat and enhancing his share value, than watching what was happening at the Tennessee plant and probably the California plant.

Currently our boat is unusable, and it our last week of the summer. Customer Service @ Malibu has not responded to our dealer about our issues after 4 days. Our dealer has always responded to our needs with the utmost urgency.

As a footnote, we went to Tennessee plant and while we there also toured the MC plant (very close to each other)... the MC build process confirms the root issues we are now experiencing with our present boat. Do your self a favor and tour Malibu and MC, then argue with me!

Help a guy who hasn't invested as much in Malibu as you...if you saw build process issues when you visited the two plants, why did you go with Malibu?

[theskiflyer]

Standard boilerplate for any private equity investor. Doesn't mean the product or customer service will change.

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].

[VinRLX]

Hi theskiflyer! Been a (long, long) while. Thanks for the copy and paste, however, that info was posted up the other day in a more current venue. Jeez, hope you haven't been carrying this thread in your head for the last three years. . .

[theskiflyer]

VinRLX, I appreciate your concern ; but alas no, I do have a life beyond forums. I just re posted that info to this thread because it was relevant to some points made back then.

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.

[68Slalom]

None of the links opened

[NorCaliBu]

None of the links opened

Because this thread has been asleep for ~ 3 years and most of those links / articles are gone now.

[Pistol Pete]

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.

So,

Guess it's just spilled milk now.

[theskiflyer]

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.

So,

Guess it's just spilled milk now.

Yes, unfortunately and 3 years ago other posters bought into the "everything will be the same" story and I just pointed out the more likely scenario...which came to fruition.

The reality is here: http://www.tradeonly-digital.com/tradeonly...2&u1=friend

Results of the "spill" reported in Feb.:

MasterCraft - down 442 boats / -18.8%

Malibu - down 823 boats / -30.4%

Supra / Moomba - down 567 boats / -29.9%

Correct Craft - down 377 boats / -23.8%

The market has not been kind, but least of all to Malibu.

[Pistol Pete]

I don't get it. I think every luxury item manufacturer is hurting right now.

How many more boats do you think Malibu would be building right now if they were still employee owned?

[bigD]

Results of the "spill" reported in Feb.:

MasterCraft - down 442 boats / -18.8%

Malibu - down 823 boats / -30.4%

Supra / Moomba - down 567 boats / -29.9%

Correct Craft - down 377 boats / -23.8%

The market has not been kind, but least of all to Malibu.

It would be interesting to see overall production numbers and then the negative percentages. Just curious.

[theskiflyer]

I don't get it. I think every luxury item manufacturer is hurting right now.

How many more boats do you think Malibu would be building right now if they were still employee owned?

I did not imply that "employee owned" would have in any way prevented the "storm", I only said they would be better positioned to "weather" the storm.

Clearly their cash flow position under their present structure (debt + leasing plants) versus their prior (little debt + owned facilities) would be a very substantial burden.

Want to buy the plants???

http://www.loopnet.com/xNet/Looplink/Profi...MMoneyCurrency=

$1,708,290 ++ in rent per year.

[theskiflyer]

Results of the "spill" reported in Feb.:

MasterCraft - down 442 boats / -18.8%

Malibu - down 823 boats / -30.4%

Supra / Moomba - down 567 boats / -29.9%

Correct Craft - down 377 boats / -23.8%

The market has not been kind, but least of all to Malibu.

It would be interesting to see overall production numbers and then the negative percentages. Just curious.

Just follow the link, I am sure Mr. Singer squirms in his seat at the meetings, when the board reviews these...probably sounds like Porky Pig when he tries to explain it.

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

[Calexan]

Link looks dead to me..... What did it say?

[theskiflyer]

Link looks dead to me..... What did it say?

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

It is the Market Share and sales data for boat manufacturers published in Feb 2009

[johnsvt]

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.

So,

Guess it's just spilled milk now.

Yes, unfortunately and 3 years ago other posters bought into the "everything will be the same" story and I just pointed out the more likely scenario...which came to fruition.

The reality is here: http://www.tradeonly-digital.com/tradeonly...2&u1=friend

Results of the "spill" reported in Feb.:

MasterCraft - down 442 boats / -18.8%

Malibu - down 823 boats / -30.4%

Supra / Moomba - down 567 boats / -29.9%

Correct Craft - down 377 boats / -23.8%

The market has not been kind, but least of all to Malibu.

Please, Please don't take this wrong way people, but it was my opinion that MC's were more expensive and the owners MIGHT be more insulated from the current economic downturn.

[theskiflyer]

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.

So,

Guess it's just spilled milk now.

Yes, unfortunately and 3 years ago other posters bought into the "everything will be the same" story and I just pointed out the more likely scenario...which came to fruition.

The reality is here: http://www.tradeonly-digital.com/tradeonly...2&u1=friend

Results of the "spill" reported in Feb.:

MasterCraft - down 442 boats / -18.8%

Malibu - down 823 boats / -30.4%

Supra / Moomba - down 567 boats / -29.9%

Correct Craft - down 377 boats / -23.8%

The market has not been kind, but least of all to Malibu.

Please, Please don't take this wrong way people, but it was my opinion that MC's were more expensive and the owners MIGHT be more insulated from the current economic downturn.

I would postulate that this downturn has affected the "high end" (stocks, bonds and investments) and the "low end" (sub prime) consumer more than the middle - middle upper class; although all are suffering, the leveraged "shooters" are probably the worst hit. In addition there is a very little difference in actual cost between Malibu and MC (resale considered) on a "base" boat.

Once you add options like tower accessories...my Malibu tower speakers (chrome plated Hill's Bros cans) versus their solid billet aluminum speakers with JL Audio speakers; the difference is huge! Thus the price spread becomes larger.

Edited April 6, 2009 by theskiflyer

[Calexan]

Oh i meant the wakeworld link from the OP..... It seems to link to a deleted page for me.

[NorCaliBu]

Oh i meant the wakeworld link from the OP..... It seems to link to a deleted page for me.

Well, that link was created on August 17...2006.

[Calexan]

That explains alot....... Im an idiot.....