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Cabo Officially Closed

Discussion in 'Cabo Yacht' started by Liam, Oct 4, 2014.

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  1. Liam

    Liam Senior Member

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    Here is the note coming from Cabo's Facebook Fanpage.

    CABO Owners and Enthusiasts!

    CABO Yachts is an iconic American brand with an exciting past and rich history. The brand is known worldwide and has grown to represent the very best in the segments in which it competes. As the boating industry grows and changes we are constantly looking for ways to improve our products and incorporate innovative design without jeopardizing the fundamentals of the CABO heritage in being a high quality, “purpose built” sport fishing platform.

    At this point in time, we will no longer be building the current CABO models. While we work on the future of the CABO brand, we will continue to service and support our existing customers and be a resource for those in the industry who rely on us.

    We thank you for your dedication and passion to the CABO brand over the years and look forward to sharing our future plans.

    Continued Tight Lines!

    John W. S. Ward
    President/CEO
    Hatteras Yachts/CABO Yachts
  2. olderboater

    olderboater Senior Member

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    Yes, their website has had that same message for several days. What a statement of double talk and nothingness though.
  3. TBY

    TBY Guest

    As Hatteras and Cabo are the same company now and were made out of the same factory in New Bern, NC, they are focusing all their R&D and production time into coming out with 7 new Hatteras models over the next 3 years, including the GT70 and 45 Express that are being introduced at the Ft. Lauderdale boat show.

    Cabo is a great brand and one of the most synonymous with quality in the sportfishing world...it is going to come back for sure, but they want to do it right, update and re-tool the line, which will take time.
  4. olderboater

    olderboater Senior Member

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    Are you saying Cabo wasn't done right when built in California?

    And the statement "going to come back for sure." That sounds just like corporate public relations. How many brands do you know that have been shut down completely for a period of time and have come back? Is Cabo going to be a completely different boat than in it's past? Moving Hatteras into those ranges sure leaves no need for them within the company.

    To imply that this is all about looking for a way to make Cabo better as John Ward tries to with "looking for ways to improve our products and incorporate innovative design without jeopardizing the fundamentals of the CABO heritage" is, at best, disingenuous. This is all about Hatteras and not about Cabo. They weren't forthright in sharing this information. For a long time after the decision was made to stop production and after they decided Hatteras would now have the 45, they said nothing. They even left their website as always. Finally as they got close to showtime, they announced something.

    Maybe you'll turn out right, but history says this isn't good for Cabo and I know with your new relationship formed in February and with the events you've been involved you've been given the Corporate spiel. But if they had a concrete plan and had new designs waiting in the wings and were on a schedule to reintroduce Cabo, then they'd be publishing the new designs to maintain interest and continuity.

    This isn't arguing at all of whether this was best for Hatteras. Hatteras certainly needs more of a line than Brunswick had reduced them to. Their line right now looks so incomplete compared to Viking, who they aspire to compete with. Oh I do remember how it was reversed when I was young.
  5. TBY

    TBY Guest

    Olderboater- You are right on about Hatteras being reduced by Brunswick...getting new ownership is the best thing that Happened to Hatteras in years.

    It is a shame what Brunswick did, the lack of funding and poor leadership of old CEO's are why Hatteras got to where it has been in the last few years...Viking was pouring money into new models and R&D while Hatteras stagnated.

    But things are turning around. The new owners are pumping a lot of money into R&D and with John Ward at the helm things are going to change for the better. John was the CEO of Boston Whaler and Mercury previously and has the experience, energy and charisma to make it happen. I form this opinion not from a "corporate spiel", but from my observations at the factory and spending time with John and the rest of the execs at Hatteras...the guys that made Hatteras great like Bruce Angel the chief engineer who has been there for many years and is a genius...he has been given back the freedom to innovate and create better products.

    There is a long road to hoe making this happen and it takes time...I wish it would all happen instantly with both Hatteras and Cabo, but right now they are righting the ship with Hatteras...Cabo will come, but it may be a couple years...I believe that we will see a great American turnaround story with iconic American brands...stay tuned...
  6. RER

    RER Senior Member

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    I hope they do make but the odds are against it. Cabo built in the 31' to 48' range (They introduced a 52' just prior to their sale to Brunswick). Profits in the under 50' production sportfisher market are difficult if not impossible. Who in the USA today is building production sportfishers in that size range?
    Last edited: Oct 4, 2014
  7. TBY

    TBY Guest

    RER you are right and that is why CABO struggled so much in the past few years...it was in part due to the economy...the typical buyer of those sportfishes were small business owners like people in the construction industry that were hit hard by the recession...I can personally attest that these people are now coming back as their businesses are improving and the economy has started moving again to some degree.

    Viking, in this vacuum, has been very successful with their 42 Open and has expanded this hull to the 42 Sport cruiser and 42 Sport tower. The 45 Hatteras Express that is coming out will directly compete with that boat.
  8. Caltexflanc

    Caltexflanc Senior Member

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    Henriques and Tiara to quickly name two.
  9. RER

    RER Senior Member

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    Seriously? How many boats is Henriques producing? And Tiara is not a sportfish brand.
  10. olderboater

    olderboater Senior Member

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    You do realize the ultimate goal of Versa, don't you? It is to build value and sell at a nice profit for their investors. Same thing Platinum has just done with most of their purchase and is now trying to do with their fishing boats. Not good or bad, necessarily. They sold to Beneteau which could be very good. The normal timing would be a sale to a new owner in four to five years. That's not to say it's impossible for them to hold long term, but their history is a lot of buying and selling and also includes divesting parts of businesses. Now, like you, I've heard from "inside" sources that they have no plan to sell Cabo. But this is Hatteras management speaking and may of may not be something Versa would do. That kind of decision will not be made in New Bern.

    As to putting in money, the new owners have actually removed money from Hatteras since the purchase. Quoting from their web site, "Dividends through Q2 2014 have returned 96% of investment cost during first year of ownership." Now that is good that it's created that ability. That is a sign the turnaround is having some success. But Versa will continue to take profits as dividends as that's what their investors expect. Obviously they're doing some R&D as a couple of new models being developed.

    While you're entitled to your opinion, it sounds more like what you'd tell your customers and what I'd hope you felt. But it's also not an independent opinion, but one of a Hatteras dealer.

    The one fact that we all can be certain of is that at the present time there is no Cabo and there has been no announcement of any future plan for Cabo.
  11. Capt J

    Capt J Senior Member

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    Well considering Hatteras stripped Cabo for the use of their molds, the 40', 44' and 52' hull molds to be specific which must be pretty good if Hatteras stole them instead of designing new hulls.

    Cabo posted a $12million net profit in 2011, it would have posted net profits in 2012, 2013, and 2014 if they were left alone in California. Since being moved to New Bern, they have lost money ever since, due to production in-efficiency in New Bern.

    So do tell us.....Is Hatteras coming out with a new 41' Express next.....followed up by a 51' express......or perhaps 53' express?
  12. Caltexflanc

    Caltexflanc Senior Member

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    Henriques is quite busy; no I do not have a counter on site to report when the boats come off the line, but know from a guy who bought a new one and is a fan boy that there is a backlog. Ocean seems to be perking right along with their 50 and under models as well.

    Tiara's Open series and convertibles are frequently rigged as fishing boats. The Sovrans are the cruisers.

    As discussed here a few times, a lot of the serious day-fishing has moved to large center consoles, a market that has been very active the last five years.

    As for Hatteras, I am not sure how a company can "steal" something they already owned. If it's a good hull, why not use it?
  13. RER

    RER Senior Member

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    Henriques is a small family made-to-order builder and by using them as an example you've made my point.

    As far as Ocean, please share what you know about them perking right along with any models because I've heard quite the opposite.

    Sorry, you can put outriggers and a tower on 10% of the Tiaras, but that won't turn the other 90% into sportfishers.
    Last edited: Oct 4, 2014
  14. Caltexflanc

    Caltexflanc Senior Member

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    Ok, you are just going to believe want you want to believe on all fronts. No need to waste further time.

    Obviously you haven't even bothered to look at the Tiara Opens or convertibles have you?

    What do call production? A mile long assembly line filled with boats? Maybe its a semantic issue. Was Luhrs your definition of a production builder?
  15. wac45

    wac45 New Member

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    I don't think there is any argument that Cabo had a good hull design. Seems to make sense that Hatteras would use it instead of reinventing the wheel since they wanted to get into the express market. The move from California is long over and that is water under the bridge. There is talk of a 52 Express in the future which would make sense to base it off the Cabo hull I would think.
  16. olderboater

    olderboater Senior Member

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    Absolutely makes sense for Hatteras and makes sense for the entire company if the plan is to build Hatteras and shut Cabo down.
  17. Capt J

    Capt J Senior Member

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    But why does it make sense to gut a successful company that has a very strong following of customers and close said company, just to use the molds? They could've simply put the other still current models right back on the sales sheet (32', 40' FB, 52' FB, 52' express, etc. etc.) Cabo customers are a lot less likely to buy a Hatterized Cabo and would then look at other brands. Just as Hatteras customers aren't going to be interested in an express. Two different markets. Cabo was a VERY well established worldwide brand with a great reputation and strong following. They are the leading SF builder in the 32'-52' range by a long shot. They also had a good dealer network setup all over the world with dealers in Australia, Costa Rica, Mexico, Greece, Italy, Israel, New Zealand, Singapore, and many other countries all over the map. Who else is a leader in the under 54' SF market? Viking only had a 42' they built and it is a somewhat successful model. Funny enough they just added a 46' and 52'.

    And, Hatteras has never in their entire history been successful in the express market for a lot of reasons I won't get into. So what is really going to change that? Versa honestly should have left Hatteras to focus on what they're good at Sportfish and Motoryachts >54'. And left Cabo doing what they specialize in, in the '52< under range. Just like Riva wouldn't be good at designing and building Bertrams....And Tiara wouldn't be good at building a 60' SF......Combining two companies into one, almost always results in less overall sales and revenue.

    Of course it would make sense to base a 52' express off of Cabo's tank tested Michael Peters hull design, over Blount/Hatteras trial and error method of hull design usually resulting in a wet ride that pounds 1/2 the time. Build a mold, seatrial the finshed boat.....ohh it's wet, ohhh let's add some lips on the side of the hull where it justs out......rides bow down.....that's ok, get the grinder out and grind 1/2" off of the bottom in the last 2' of the stern on someone's finished boat......launch the boat.....ohhh still bow down.....haul it.....grind another 1/2" off......not enough stern lift, rides bow high.....ohhh, we'll just glue a 1" lip behind the props inside of the tunnel.......well that's a little better......let's try a 2" one......ohhh, that works...... ok, lets now glue a piece into the finished mold for the next boats....but what about the previous 2 boats that left the factory that way.....ohhh well.......LOL