Now we are all shareholders in Fairline.......

[Deleted User YDKXO]

Whilst all the above makes sense, I have to say in my industry, Art; paintings are selling very very well.
I attend and watch online regular sales from the big boys and works in the hundreds of thousands, sometimes millions - proves that there is still plenty of cash for spending, by the rich.

Thats as maybe but Art is generally viewed as an investment so buyers can indulge themselves as well as make money. By no stretch of the imagination is buying a new motorboat an investment and in any case, the typical motorboat buyer is not likely to be the kind of high net worth individual who can afford to splash out on artworks but more likely to be somebody who's better off than average but for whom a boat is their only indulgence and for which they may have to make other sacrifices

 

[photodog]

I still think though, in the long term, motorboat builders cannot survive by building boats consuming fuel at a rate of less than 1mpg and the boat builders who will prosper in the future will be the ones who can make boats that are significantly more fuel efficient

Already done..... the technology is called "Sails"....

Note how Magnum has gone down that route.....


With that in mind... is there really a future for these builders at all if the consumer becomes energy concious?

 

[Deleted User YDKXO]

Already done..... the technology is called "Sails"....

Note how Magnum has gone down that route.....


With that in mind... is there really a future for these builders at all if the consumer becomes energy concious?

Ha, ha, I fell straight into that one. I should have qualified my statement. I think there will always be a market for fast boats just like there will always be a market for fast cars. But, just like the manufacturers of fast cars have been forced to improve the economy and emissions of their vehicles, so, I believe, will manufacturers of motor boats.
Personally, as an unreconstructed petrolhead, I'd rather give up boating than be forced into a sailing boat but even I recognise that economic, environmental and social pressures are going to make gas guzzling motorboats unviable in the long term. I still think there will be a market for motorboats but they'll have to consume a lot less fuel. My point was that the companies that recognise this and innovate radical new designs will stand a chance of prospering but those companies which carry on building the same old same old will die

 

[MikeJ42]

Pete thats not quite correct. What I criticised them for was that they had not taken sufficient care of their brand image in order to allow them to compete at the bigger end of the market, which is not quite the same thing.
Building larger boats is only a short to medium term strategy though as that market will get crowded if many builders follow that strategy and there is a limited market for boats of that size anyway. I still think though, in the long term, motorboat builders cannot survive by building boats consuming fuel at a rate of less than 1mpg and the boat builders who will prosper in the future will be the ones who can make boats that are significantly more fuel efficient

I dont understand (still). Name one other manufacturer that is the class leader across the board. Sealine compete in their chosen market space. I dont think it has anything to do with them "not taking sufficient care at the bigger end of the market...".

Sunseeker and Fairline have proved thats not the place to be. I worry for Princess. Those three have failed to keep in the game at the bread and butter end.

 

[Deleted User YDKXO]

I dont understand (still). Name one other manufacturer that is the class leader across the board. Sealine compete in their chosen market space. I dont think it has anything to do with them "not taking sufficient care at the bigger end of the market...".

Sunseeker and Fairline have proved thats not the place to be. I worry for Princess. Those three have failed to keep in the game at the bread and butter end.

Obviously no one manufacturer can dominate every segment of the market but there are a few groups that try to cover most like Brunswick (owner of Sealine), Azimut and previously, Ferretti. As for Sealine, they have been trying for years to break into the larger end of the market, first with their T46/47/51 and then T50/60 models but with limited success. Their problem has always been that buyers in that segment of the market tend to gravitate towards what they perceive as more prestigious brands like Fairline and Princess and the reason for that is that Sealine's brand is more associated with the smaller end of the market, or what you refer to the bread and butter end of the market. Yes, Fairline, Princess and S/S have abandoned this market because its too competitive and margins are supposedly higher at the larger end of the market but Sealine dont have this option

 

[Croc]

Sealine have sold about 300 SC35s since 2008....to misquote Liberace they must be crying all the way to the bank while they worry about their down-market image.

 

[Deleted User YDKXO]

Sealine have sold about 300 SC35s since 2008....to misquote Liberace they must be crying all the way to the bank while they worry about their down-market image.

And that illustrates my previous point. The SC35 is an innovative and radical design which has hit the spot with buyers although of course we dont know how profitable the model actually is

 

[Bassplayer]

although of course we dont know how profitable the model actually is

And I suspect neither do they... or they wouldn't be struggling

 

[rafiki_]

And I suspect neither do they... or they wouldn't be struggling

Is Sealine struggling? I haven't heard this.

 

[AdeOlly]

And I suspect neither do they... or they wouldn't be struggling

Recently announced eight new model launches over the next few years if memory serves. Doesn't sound like they're struggling, and don't forget they took early and decisive action to downsize when the recession hit.

 

[aviator]

From Nasdaq today.

Nothing particularly new except more details on the Fairline deal.

http://www.nasdaq.com/aspx/stock-ma...s-take-stock-of-businesses-taken-on-in-crisis

"By contrast RBS, which is 83%-owned by the U.K. government, is keen to remain an owner if it sees upside in a company's growth.

"We are definitely at the more active end of the spectrum," said John Davison, global head of RBS's Strategic Investment Group, which handles all aspects of the equity positions that the bank takes through debt-for-equity swaps and new money investments in restructuring situations. SIG has 320-350 companies in its stable.

Just last month, the bank wrote off all its debt and took control of Fairline Boats, the luxury yacht and powerboat-maker owned by 3i Group.

"We have put in additional capital together with Better Capital and are working together on an operational turnaround of the business," Davison said."

When you think that Sunseeker had a forced sale it must be that going into the bigger boat markets needs such huge capital that they run out of money. Obvious really.

As I pointed out before 3i can be the kiss of death. Ok I also had a bad experience but working on 'an operational turnaround of the business' is very ominous for management.