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Hatteras / Cabo put up for sale by Brunswick

Discussion in 'Hatteras Yacht' started by PacBlue, Jan 5, 2013.

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  1. PacBlue

    PacBlue Senior Member

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    Not much discussion on this topic so far, so here is my 2 cents:

    Hatteras - has had a multitude of well meaning owners over its' history, but struggled to remain profitable as they face stiff competition from the Custom SF guys, not to mention the other Production SF builders. All the customizing they do has eaten away at their bottom line, the business model needs to be revamped to ensure their profitability. I do think Brunswick did a better job with the Hatteras brand than the previous ownership group and there are a lot of good long term Industry guys in New Bern who I wish the best for.

    Cabo - this purchase was doomed from the start, as it appeared to me to be a commodity purchase (smaller SF line), and they did not fully understand the Cabo "magic" that kept it's appeal so strong. The restructuring of the existing Distribution channel was key to it's inevitable demise, as this negatively impacted the loyal customer base.
  2. SHAZAM

    SHAZAM Senior Member

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    I've always been told that Hatteras has never been profitable.

    EXACTLY! Decimating their dealer network and having everything under the marine max umbrella was one of the dumbest moves they could have possibly made.
  3. Capt J

    Capt J Senior Member

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    I agree totally. Cabo sold a lot of boats because their dealerships were highly regarded by their customers and most had a level of service above and beyond the usual. The problem with Brunswick is everything has to go through too many channels to get approved and therefore changes and updates may or may not get approved.
  4. Pascal

    Pascal Senior Member

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    When it come to MYs, it s a real shame that the company which invented the modern small to mid size MYin the 60s and 70s has let others take over their market share: Lazzara, ferreti, Azimut, Sunseeker, Fleming etc

    While still well built with well engineered systems, the latest generation of Hatteras MY just don't really offer any special features. Small aft decks, narrow platforms, etc... Compare to the space on others, dinghy garages, etc
  5. PacBlue

    PacBlue Senior Member

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    I agree, too many owners of Hatteras, too many corporations, totally lost focus on what the Hatteras "magic" was all about, including leaving the design offices of Jack Hargrave.

    They should be the premier global Yacht brand for motoryachts under 100', and the past chain of ownerships has dug way too big a whole (of competitors) for them to fight their way out quickly.
  6. Iluvyachts

    Iluvyachts Member

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    Their boat designs are just plain boring!! (nothing new). Customers in the under 100 market are going for looks i suppose?

    That's why they choose the Azimut type yachts builders. Just look at the global order book. Production yacht builders like Azimut, don't have a problem selling many yachts. Even though, the Hatteras yachts are a better built.

    Use the Hatteras brand and hire some real exterior yacht designers! Maybe that's why Brunswick's Meridian line is doing a little better... Sure does look better!!
  7. Capt J

    Capt J Senior Member

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    Hatteras exterior designs look the way they do because they are a lot more functional than the European MY's. The Hatteras' have a lot more interior volume and the styling of the Hatteras allows the boat to have NO STEPS throughout the entire salon,galley, dinette level. It also allows for a lot more storage and volume in the staterooms.

    I feel that the swim platforms could be bigger. I do feel that the aft deck is plenty large enough for what you do on an aft deck.....which is having a nice seating area, table, and plenty of room to get around it all.

    I have been running a lot of European MY's on trips lately and for say 6-7 guests/crew, they are just a nightmare to do a week long trip on. The galley is so small it's virtually unusable. Refrigeration and freezer space is another major challenge. You have steps everywhere. You're storing dry food under couches, under berths and wherever there is a little bit of storage. You look at the 64,72, or 80 MY, there is plenty of refrigeration and freezer space, plenty of galley space, it's very very functional. You're also don't have 15 steps between the salon door and master stateroom. The galley is not in a hole below the salon floor that makes getting an appetizer platter to the aft deck a challenge in and of itself.

    I feel the Italian designers put way too much emphasis on looks over function. Unless you're looking for just a cocktail cruiser to spend an afternoon on. IMO, Hatteras builds a motor yacht, not a day boat. Unless you've done a week long trip on both, you don't realize what makes a Hatteras a Hatteras, and a European boat a major pain. European yachts are like camping in the 50-70' size range

    Not to mention how the Europeans love to put every electrical outlet in the entire boat on one breaker, so the wife can't use the hair dryer at the same time you're using the toaster or brewing coffee...... a 58' Azimut I run and a '62 sunseeker I manage and maintain are both this way as well as a 59' Feretti and a 6' Viking SC I've run in the past.

    As for the comment on Azimuts. There is no shortage of Azimuts stocked up at the dealer here in South Florida that are looking for a buyer.

    In the motoryacht side of things. I think Hatteras' biggest mistake was that it waited far too long to change the exterior styling as well as modernize the interior styling. I think they look good on the outside or good enough, and the new interiors the last few years I feel rival the Europeans.....but it took far too many years to get there.
  8. nilo

    nilo Senior Member

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    capt j you are absolutely right, time is the major factor and it flows so fast. the people who buy boats and the way they use the boats changing very fast indeed...
  9. Pascal

    Pascal Senior Member

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    Capt J

    I agree 100% with most of your post except about the aft deck

    Maybe it s because we run boats in different modes but on most charters and even most owners trip we do, most people hang out on the aft deck and the basic table with a settee on one side and 3 chairs forward isn't much with 8 to 10 on board

    Yes a big open flybridge is nice but in warm weather people want to be near the water. That s what people love about the Johnson 70 I run, a big table for 6 with 6 armchairs, plus a settee for 10. Yes the saloon is a little smaller but it gets less use than the aft deck
  10. Capt Ralph

    Capt Ralph Senior Member

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    Here in the Huckins yard the new rumor is Hat/Cabo just laid off over 150 employees, Any info on this?
    ,rc
  11. PacBlue

    PacBlue Senior Member

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    The original release stated (1/03/2013):

    "Recreational boat maker Brunswick Corp. said Thursday that it is seeking buyers for its sportfishing convertible yacht brands Hatteras and Cabo, and that it laid off about 105 workers at its New Bern facility in North Carolina.

    The facility had about 545 employees as of November.

    Brunswick bought Hatteras for $80 million in 2001 and Cabo for $60 million in 2006."

    Not sure if you are talking about additional lay-offs or the original plan. Miami Boat Show can't arrive fast enough for the sales guys, but how can you generate sales if the buyer doesn't know who the new owner will be?
  12. Capt Ralph

    Capt Ralph Senior Member

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    Your release dated? This was to be new (within a day or two) info (but still rumored to me). Sales people have to be humping (anything) before any show when anything like this happens.
  13. crackerD

    crackerD New Member

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    What do you mean?

    We were at contract on a new GT. This news broke. In addition to some other things, we ended up backing out. The contract price was agressive. Just not worth the questions marks of after sale service given the situation.
  14. CaptTom

    CaptTom Senior Member

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    There was another layoff at Hat/Cab after the one earlier in Jan. Here's a blurb from a news story:

    01/17/2013

    Another 40 people at the New Bern Hatteras and CABO Yachts plant off North Glenburnie Road were told by officials Thursday their jobs have been cut.

    The company owned by Brunswick Corporation of Lake Forest, Ill., reduced its force by 105 workers Jan. 3 and announced plans to sell the Hatteras and CABO Yachts brands in its Marine Division.

    The two layoffs mean about 390 are currently employed at what was once Craven County’s largest private employer with about 1,400 people.



    A friend from up there contacted me over the weekend. At least he was able to find a new job, but not close to the old one. It's still tough out there folks.
  15. PacBlue

    PacBlue Senior Member

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    I have heard that quite a few investors have been through the plant for a 'look see' and discussion. The rumour mill even has Irwin Jacobs taking a look at the company which he (Genmar) sold to Brunswick a while ago.

    The sharks are circling the waters, waiting for the price to hit rock bottom. It will be tough sledding for the employees until they get new ownership. I wish them all the best.......
  16. Moby

    Moby New Member

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  17. PacBlue

    PacBlue Senior Member

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    I'll borrow a line from my favorite movie and quote "Who are these guys?"
    courtesy of Butch Cassidy and the Sundance Kid :)