Are Beneteau in trouble?

  • Thread starter Thread starter tim
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I'm sure they will be suffering, as any provider of non-essential luxury kit/ services. BTW, it has little to do with a credit crunch and everything to do with the recession - although GB would rather pretend the latter wasn't happening and blame it all on the banking crisis.

Meanwhile, I wouldn't worry that Beneteau or any other is in financial trouble, or that dealers are selling stock of cancelled orders. What happens when the housing market turns down is that estate agents try to pretend prices remain firm by quoting the same prices and then settling for less. The same is true of boats now: the manufacturers and agents can't bear to lower the asking price, so they start offering discounts on it instead.

If you're in the market, take the discount as the starting point and negotiate down from there. They need some orders to pay the bills and stay alive. If you're really worried about their solvency (and it probably comes down to the agent's more than the manufacturer's) then beware of leaving deposits that aren't in a lawyer's escrow account.
 
The 37 will be at least 20% off their latest retail. The others will be smaller %age.

this only brings them back to what they were selling for just over a year ago. Prices in £s have increased by well over 20% in the last year from cost increases and currency devaluation.

IMO this is a structural change in the UK market, and those who buy in sterling which will result in a huge drop in volume - made worse by the difficulties of raising finance.

I bought my Bavaria in 2001 and the list price of comparable models was almost static until 2006/7, even with all the "improvements". The days of "cheap" new boats have gone.
 
Tranona, you have hit the nail on the head, these limited Ancasta offers are on Beneteaus that Ancasta bought at a favourable exchange rates and are now passing on these savings with the reduced VAT. These boats are all in their premises in Port Hamble so can be seen.
 
The favourable rates havent been in force since last year, (my bene went to finland in may because of favourable exchange rates) you can only buy ahead so far so i would venture that those boats, if they are as you say, are quite old now? so in effect paying 20% less for a year old boat? sounds about right?
Stu
 
I add this comment as Sales Director for Ancasta International Boat Sales, not just to clear the air, but most importantly to explain and clarify the reasoning and justification behind our extremely good value offers.

The boats in question, and let's be clear, there are only a handful, age from May to August 2008, so they are not VERY old stock. None have been launched so they are not ex-demo or "used". However, they were bought, just as with any car dealership, not just to physically promote the product by having it on show, but also to hit manufacturer's volume targets for sales quarters.

Moreover, with the € rate going from 1.28 to 1.18 in the last 4 months, new boat prices have gone up and these boats were bought at old prices, helping us to give an ever better than usual offer to our customers. This is public knowledge though, so no need for us to be discrete or for you to speculate

What's more, I am open and honest that we don't want stock sitting around over the quieter winter months and would rather spread our commissioning and handover of boats over a wider period. So YOU may as well take advantage on these few boats

You will find similar offers, supported by similar reasons from many other dealers of European brands, even Beneteau's power boat dealer is doing the exact same offers for their 2008 stock motorboats

Yes we are open for business and happy to trade - indeed one boat of the list has already sold this weekend. If any of you are serious buyers, don't miss out

We did similar offers last winter, albeit not quite to the same extent, without the € advantage

Finally, in answer to the original question, best check Beneteau's position on the stock market reports. They currently sit on cash reserves of almost one year's turnover! Who can beat that?

I look forward to trading with those who are serious boat buyers and want to take up this offer

Ashley Overton
 
I expect they bought at about !.33 which was last winter's rate. Euro has gone up by about 12% since then. Remember looking at the 37 at Southampton and thinking how expensive it was both in absolute and relative terms - relative to when it was introduced last year and against its competitors.

IIRC Fairview signed up for 10 of these to replace some of their Bavarias. Bet they got a good deal!

Interesting times
 
Hi Ashley

Your post crossed with mine, but I guess we are saying the same thing. The 37 sure looks good compared with the current price so somebody is up for a good deal.

I admire your confidence in Beneteau and they certainly seem better placed than others. However as we have seen in volatile times anything can happen. Those of us with long memories of earlier recessions such as the late 70s early 80s recall sound companies (like the one I worked for) brought to their knees in less than 2 years. Not easy to manage when you have a factory that depends on volume and can be slow to adjust to changed circumstances.

Quite a challenge!
 
A fair and well balanced reply.
It makes no sense to have 2008 boats still on the hard when the 2009 show, orders sales and deliveries are imminent.
 
[ QUOTE ]
Hi Ashley

Those of us with long memories of earlier recessions such as the late 70s early 80s recall sound companies (like the one I worked for) brought to their knees in less than 2 years.

[/ QUOTE ]

Get with it!

When you work for a French or German company the government will always bail them out to help them over difficult periods if the company can have a future in better times and if unemployment is the alternative.

You must be speaking for a UK company when the IR will be the first to close a company down to secure whatever debt is owed them and leave the government to then pay out many times that amount in unemployment benifits.

Compare the treatment of Dehler Yachts to that of Select Yachts.

When will we ever learn.
 
Ashley
As a committed owner and webmaster, glad to see that yourself and Beneteau are weathering the storm.
I have put a link from the front page of the website to the html email you sent to everybody so that the deals will get a better airing.
Stu
 
Thats a very polarised view. Dehler has been bust several times in its checkered history. It is not the government bailing them out this time, but the local authority providing bank guarantees. Would not like to be in the mayor's shoes when the bank calls them in.

You are right in part about the French. They have had in the past done what you say. However Sarkozy is on record as saying that such policies cannot go on for ever and that he would prefer to see a more market orientated economy. Whether his view survives the current crises and the pressures from the French unions is another matter.

Comparison with Select Yachts is not valid. If you recall in the threads at the time, the general view was that its range of products was past its sell by date and it was unable to generate enough revenue to cover its costs. Managing a dying business is a lot harder than a growth business. Trying to meet all your obligations from a shrinking pool of money is not easy and at some point the Revenue may have to exercise its right to collect taxes due. To suggest that they are "closing businesses down" is diverting attention from the real issue.

On a more general note there is vast overcapacity in the European Boat Building industry. Companies have all expanded capacity as if the growth would go on forever. They will now have to manage the consequences of their past decisions by managing the capacity down to match the lower demands of the future. Mergers, bankruptcies, shrinking of product ranges are all possible scenarios. And sure, governments will play a part. However, they are rarely any good at making rational business decisions.

The key is in your post "if the company can have a future in better times". Would you put money on Dehler which could not even do well in the boom years? And how are governments likely to assess that better than the current owners and providers of finance? That is why their decisions are often political and not commercially rational.
 
Re: Beneteau arent in trouble

Mergers etc etc and rationalisations, one AWB builder been bought by venture capitalists with a load of debt on the books, another one with a years turnover sitting in the bank, no prizes for hazarding a guess as to who will survive!
Hmm can one buy shares in Beneteau as a long term punt?
Stu
 
[ QUOTE ]

The key is in your post "if the company can have a future in better times". Would you put money on Dehler which could not even do well in the boom years? And how are governments likely to assess that better than the current owners and providers of finance? That is why their decisions are often political and not commercially rational.

[/ QUOTE ]

There was a company that kept making a product well past its sell by date and was in grave financial difficulties. The product ? The VW Beetle. Orders dried up and no replacement in sight - now whatever happened to them??

If you have a willing trained workforce its better to keep them working than make them unemployed but agree only if in the future it would be viable.
 
[ QUOTE ]


There was a company that kept making a product well past its sell by date and was in grave financial difficulties. The product ? The VW Beetle. Orders dried up and no replacement in sight - now whatever happened to them??


[/ QUOTE ]

They got bought by Porsche....
 
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