Thought this might be interesting for some of you...

Genmar getting back into aluminum boats
Thursday, 25 September 2008 10:12
Genmar is planning to re-enter the aluminum boat market, with plans to have the as-yet-unnamed company up and running in a new factory during the first quarter of 2010.

“After carefully assessing and evaluating the aluminum boat market over the past several months, we’ve concluded there is a major need, along with great opportunities, in the aluminum boat segment of the fishing and recreational boat market,” Genmar chairman Irwin Jacobs said in a letter sent yesterday to dealers.

Genmar previously manufactured Lund, Crestliner and Lowe aluminum boats.

Jacobs said he believes today’s aluminum boats are overpriced, with some even retailing for higher than equally equipped fiberglass fishing boats of identical size.

“It is Genmar’s intention to substantially decrease the wholesale and retail prices in all of the aluminum boat segments of the market,” Jacobs said.

“I believe the only way that Genmar can once gain become the industry in aluminum boats is for us to basically change the entire way aluminum boats are presently priced, manufactured and marketed to dealers and to the retail-boat buying consumers,” he added.

The name of the new company will be announced late next year or early in 2010, though a location for the new boat factory should be announced in 2009.

Genmar plans to initially offer dealerships to existing Genmar dealers and to past dealers of Genmar’s former aluminum boat lines.

“With the above proposed commitment from Genmar, it is obvious that we are very optimistic about the future of the boating industry and believe that the recreational boating market will once again be re-emerging bigger and better than ever,” Jacobs concluded.

Genmar’s current boat lines include: Four Winns, Carver Yachts, Ranger Boats, Wellcraft and Larson, among others.

Wow.. very interesting for sure!

marine_man

Too bad Brunswick brought Lund and they couldn't do this using the Lund brand. While I'd buy another Lund, but why would I buy a Merc when I associate Brunswick with cheap products and poor quality?

Genmar owns Ranger, Champion etc? And Brunswich owns Lund, Crestliner, Merc? Just trying to keep it all straight.

I would love to see prices driven down, but I dont want a 'cheap' boat.

Or a Chinese hull shipped over and assembled.

It will be interesting to see what they are going to build. Its always nice to hear there going to build something that is less expensive, just dont cut to many corners.

And if it ends up being pretty good a little competition can't hurt.

marine_man

maybe it's just me, but I kind of noticed that the prices started going up in the market when everyone started consolidating. Another company can't hurt the prices.

"but I kind of noticed that the prices started going up in the market when everyone started consolidating."

That and when the price of aluminum went through the roof.

Aluminum is about a buck a pound. So the aluminum in a proV is worth somewhat less than a thousand dollars. Pretty good markup eh?

Cost of aluminum materials depends on shape, demand, size, quanity, grade and etc. Scrap prices have little to do with it. Go price enough 5053 alum sheet, Ibeams, formed trim/rails, rivets and etc at a local supplier and see what the price tag comes to, will be wayyyy over $1k.

If the boat is a great quality and performing, Canadian or US built boat I think it will be a winner giving Genmars track record. If its made in China or similar places it has no place in my driveway. Outboard choice is very important to me, thats the reason why a Lund or Crestliner wouldn't be considered as a next boat for me.

There is already enough cheap aluminum boats on the market. We don't buy them up here because well, they are cheap. Us in the upper midwest have really spoiled ourselves with the quality of boats that we have all grown up with. If you are looking for a Pro-V at a 40% savings you will be dissapointed. If your looking for a 18' boat for under $20 they are there now, they just aren't fancy.

The same Lund combo I bought new in 2001 would cost $7-10k more now than back then. Prices and materials didn't inflate that much and I think thats what Genmar is talking about. The same truck I bought new in 04' would only cost about $700 more now than in 04'.

This is great news after so many years of a big run up of prices. I think all manufacturers are going to have to start downsizing and making more stripped down models of boats with the tough economy ahead of us. With credit gone, people won't be able to finance as much as they did before. The consumers are largely to blame, however. We wanted all the new electronics, bigger motors, galvanized trailers. It's so much more than the actual hull that has driven up the price.

They are smart to diversify because much of the rest of their line are fiberglass pleasure boats and cruisers which are taking a bigger sales hit than fishing boats. And aluminum might even be in the future these boat types down the line so it's good to get a good aluminum line going. With people getting rid of their tow vehicles and downsizing to smaller vehicles, they won't be able to tow those heavy fiberglass boats.

I was looking at commodity aluminum prices, not fabricated. This was in reference to "the price of aluminum went through the roof". Lund prices seem to have gone through the roof. In my opinion that is driven by marketing and profit margin considerations more than materials and labor. The materials in a Lexus aren't much more than the materials in a Camry.