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Fountain Aquired Baja

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Old 03-21-2008, 09:58 AM
  #151
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True, but in some ways the cycle is swinging back. I deal with alot of folks in the specialty macine trades. Most of them are very busy right now. Several years back, alot of their work went to China- especially molds and tooling. What China sent was usually lower quality, lesser lifespan or sometimes totally unusable. Now tooling buyers have been looking at some numbers and seeing that Chinese tooling didn't save them the kind of $$ they thought. Problem is, the supplier-side has contracted. Some of the tool makers have gone under so capacity isn't there. That's helped bring prices up for the guys that remain. problem is, there's a shortage of qualified personnel right now.

Sure, things have changed. The only permanent thing is change. Just as the Chinese took precision tooling, it's coming back. It may go somewhere else someday but something will take it's place. I don't envision the Chinese bringing us high performance boats anytime soon though.
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Old 03-21-2008, 10:02 AM
  #152
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Originally Posted by Chris Sunkin View Post
Maybe, but maybe big corporations just aren't very good at building these kinds of boats. Fountain certainly isn't delivering for his shareholders. At the same time, Skater & Cigarette seem to be busy turning out boats and doing well.

The guys that can afford a brand new Cig or Skater are probably not the ones who are relly affected byhow much a gallon of gas costs or the state of our economy right now. They have made money and will continue making it no matter what.

As far as Fountains profitablity, just because you can make a fast boat that wins races doesn't mean you are a good business man. Boat manfactures really need to look into lean manufacturing and improving process to become more effiecient at what they do. I am not talking about cutting corners, but improving they manufacturing processes to save time, money and labor.
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Old 03-21-2008, 10:13 AM
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Obviously, Brunswick (like Genmar with Scarab years before) wants out of the performance-boat market. What does that tell you about the company's confidence in that market?

Yes, they own Mercury Racing, but Mercury Racing, from everything I've been told, is a cash cow. In terms of profit margins, it's a rock star. So Brunswick will stay in the go-fast power game.

Selling to Fountain, in which Brunswick has a vested interest is succcess, was inspired. The brands most likely will be positioned like Lexus as Fountain (I know, its a stretch) and Baja as Toyota.

As for the people in Bucyrus ... if there's one thing good old corporate America has demonstrated in the last three decades, it's that the good old American worker is disposable. It's shameful.
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Old 03-21-2008, 10:23 AM
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Go to Fountain Website! Its official.
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Old 03-21-2008, 10:26 AM
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What strikes me as odd is that Fountain has said outright it will not be offering employment to current Baja boat building personnel.

What does this mean?

Reggie certainly couldn't have the excess physical production space nor the personnel to assume Baja's existing production volume. Even if he had the space, who would build the boats? I know some of boatbuilding is basic labor jobs but those jobs still require knowledge and skill, not to mention a willingness to do that sort of work.

So he's taking the name, the molds and the equipment but no space or employees. How will he be building Baja boats?
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Old 03-21-2008, 10:38 AM
  #156
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hmmm could they look like this ??
Funny part is I actually like that better!!!
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Old 03-21-2008, 10:43 AM
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Chris,

I agree with you about the value of skilled labor, of course. But in terms of space, Fountain has plenty of it, and probably can absorb Baja without having to expand its physical plant. Also, though I have no idea what the employments numbers are in Washington, N.C., I suspect Fountain will have no trouble expanding its labor pool.

The reason Fountain isn't offering employment in Washington to the crew in Bucyrus has to be directly related to one thing: cost.

Nice, huh? Once again, welcome to corporate America.
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Old 03-21-2008, 10:46 AM
  #158
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Fountain 100, Baja 300.
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woulda guessed 300/600....

fountain took in 70mil... @ 200k a boat = 300+... just a guess

guessing they were forcasting alot worse this year and decided to "team up"
Those are the numbers I used in one of my posts and are not acutal numbers, I just pulled them out of the air. I used those numbers to make the math easy and show my point of view.
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Old 03-21-2008, 11:25 AM
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Google/ News/ Brunswick
It's true. CNN .com, Forbes.com. Bucyrus Ohio Newspapers, etc. ect. etc.
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Old 03-21-2008, 12:08 PM
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Cool Why does the 800 pound black gorilla not want to dance!

I've got a bit of a theory and a hunch why the big black gorilla bailed!
First, its typical of large american corporate attitude today.
boy, if this thing doesn't make money right now and doesn't make the head corporate honchos look good so they can justify their big prefered stock options and golden parachute bonuses and severence packages, its
"Off with its Head" Why heck, they can't be bothered right now with their own bad management style and short sighted deceisions, they're playing a very important round of golf at the club right now!
Forget the fact that these very "Board Lice" instructions, pressures and demands sometimes make those at the design, production and sales ends of these very corporations make short sighted decsions and moves that put corporations like Baja Marine in a bad postion in the market place and lead to weaken products and offerings!
the end result to many times in America today, Cut our losses, close it down and lets not worry about the long term affects on the labor force, suppliers, local economy, or dealers and customers. We must protect the "Shareholder" in all situations ! so goes current American Stockholder corporation mantra and American jobs and production companies, communities and suppliers go right down the tubes of "Profit at all costs" , no matter how bad we the Parent corporation screwed things up!
Since when have stock purchasing shareholders been guarenteed a profit and since when did anyone say running a manufacturing business was easy!
We as a nation put a man ofn the moon in 1969, trust me in 2008 we can fix whats wrong with american business, we just need to have the people in control roll up their sleeves, burn some midnight oil and get to work! and when they make bad decesions or moves, correct those moves and not run crying from the Party! "Oh the poor shareholder!"
Just my theory and worthless two cents!

Best Regards,
Ray @ Raylar

PS When the going gets tough, the tough get going !!
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