Genmar will be Sold!!!!!!!!

[bassNspear]

In a bankruptcy court motion today, Genmar Holdings, Inc. requested permission to move forward with a sale of its assets and effectively abandon its effort toward a financial restructuring.

The news was announced to Genmar dealers in a letter from Genmar president and CEO Roger Cloutier.

The legal motion notes that both bankruptcy strategies – refinancing/reorganization and sale of assets – were pursued simultaneously, but it was determined that a sale of assets was the only tenable exit strategy.

Additionally, a stalking horse (i.e. potential buyer) has arisen. The stalking horse was not named in the motion – Genmar said to do so would jeopardize the sale process – but the motion did request that Genmar be allowed to enter into an exclusivity and expense agreement with the stalking horse. Such an agreement would preclude Genmar from entertaining offers or negotiating with other potential buyers.

The motion, however, includes language that would allow Genmar chairman Irwin Jacobs (pictured) to match or better the stalking-horse offer through a reorganization/refinancing or purchase offer, provided he act solely as a personal agent and not in connection with Genmar.

Jacobs was reportedly in court this week in the attempt to remove Ranger from the bankruptcy.

What isn't clear is whether the stalking horse has proposed to purchase all of Genmar's assets, or certain brands and facilities.

Rumors have run rampant through the industry the past several weeks that certain parties were interested in a purchase of Ranger Boats – namely Yamaha, Evinrude and a group headed by Ranger founder Forrest Wood and current president Randy Hopper that also includes Ranger employees. There's likewise speculation that Jacobs could seek to regain ownership of the Genmar bass-boat brands, which might help buoy his stake in FLW Outdoors, which he owns, but has recently encountered difficulty in a soft economy and sponsor market.

The fate of the Stratos and Champion brands remains equally cloudy.

[Northlander]

Unfortunaltely this will more than likely drive their already out of wack boat prices up even more.

[snowman678]

Unfortunaltely this will more than likely drive their already out of wack boat prices up even more.

Have you actually priced any other boat brands? They're every bit as out of whack, if not worse in some cases.

[LMITOUT]

Hopefully anyone but Evinrude gets the opportunity to buy Ranger. They've been on the brink of sitting in the same courtroom as Jacobs more than once in the last ten years themselves and would more than likely eventually sink the Ranger boat brand if they were to purchase them.

[Northlander]

Originally Posted By: Northlander

Unfortunaltely this will more than likely drive their already out of wack boat prices up even more.

Have you actually priced any other boat brands? They're every bit as out of whack, if not worse in some cases.

Ya Im saying all boat prices are out of whack. Both glass and tin.

[Northlander]

Hopefully anyone but Evinrude gets the opportunity to buy Ranger. They've been on the brink of sitting in the same courtroom as Jacobs more than once in the last ten years themselves and would more than likely eventually sink the Ranger boat brand if they were to purchase them.

Isnt Evinrude being sued by Wal Mart for not paying out in the FLW?

[bassNspear]

ya if evinrude buys out ranger, good luck getting a ranger without a etec!

[bassNspear]

but they might not do that, becuase ranger sales would be down in the dumps if this would happen!

[LMITOUT]

ya if evinrude buys out ranger, good luck getting a ranger without a etec!

Good luck getting me to buy another Ranger too!

[MuskieJunkie]

It's not just boat prices that are out of wack but the motors too. A Honda 200 hp outboard is $20k but for the same $20k you can buy a Honda Accord car that has a 200 hp engine plus wheels and a stereo.

Or a briggs and straton 5 hp outboard engine is $800 and a briggs and straton 5 hp lawn mower is $300.

I've never understood that. I guess as long as people are willing to pay it they can charge that much.

[gregg52]

not sure bout all this negitive talk bout evrinrude

its own by bombardier and i havnt heard of those folks having any $$$$$$$$$$ problems

plus ease up on the e-tec I have and LIKE it

no rangers thats ok

buy a YAR CRAFT!!!!!!

[bassNspear]

and how many etecs are blowing up right now?

If evinrude does buy it, ranger sales will drop hardcore!

[CJH]

Rangers are nice boats. Love my [PoorWordUsage]-laws 185 Reata. I would hate to see them leave the market place, hopefully somebody solid will pick them up.

[Wish-I-Were-Fishn]

Many more cars sold then outboards. That allows them to save $ by sharing all production & design costs over a higher number of units.

[CAMAN]

It's not just boat prices that are out of wack but the motors too. A Honda 200 hp outboard is $20k but for the same $20k you can buy a Honda Accord car that has a 200 hp engine plus wheels and a stereo.

Or a briggs and straton 5 hp outboard engine is $800 and a briggs and straton 5 hp lawn mower is $300.

I've never understood that. I guess as long as people are willing to pay it they can charge that much.

Apples to Oranges

Its all a quantity ordered thing. When a manufacturer gets to bid on a part to make for an engine they also get an approximate amount per year that will be ordered. For cars that amount is usually in the millions and for outboards they would be lucky if that amount gets up to 50,000 per year. The manufacturer has to take that amount into serious consideration when they give a price per part on the bid to be able to cover the tooling and startup costs for a part and still be able to make a profit. Also because of those amounts per year, most of the manufacturing for automotive parts is fully automated and there is almost zero human interaction in the process. The costs of starting up fully automated production is incredibly high. So because the amounts per year is so low it isn't economicle to have full automation for outboard parts and since each time a human needs to touch the part the cost goes up, the price per part will reflect that.

In automotive manufacturing, the price per part is usually quoted in pennies(even tenths of pennies) that same exact part, if quoted for outboard parts per year, would be quoted in dollars per part.

Make sense?

[CJH]

Love that they censored f-a-t-h-e-r-i-n-l-a-w !

I could definitely see the cost issue for a lot of the manufacturers. But Honda and Yammy I would think it would be better as they produce these engines for multiple uses.

When the market is down, you have to drop prices or add more value to drive up demand.

[MuskieJunkie]

Originally Posted By: MuskieJunkie

It's not just boat prices that are out of wack but the motors too. A Honda 200 hp outboard is $20k but for the same $20k you can buy a Honda Accord car that has a 200 hp engine plus wheels and a stereo.

Or a briggs and straton 5 hp outboard engine is $800 and a briggs and straton 5 hp lawn mower is $300.

I've never understood that. I guess as long as people are willing to pay it they can charge that much.

Apples to Oranges

Its all a quantity ordered thing. When a manufacturer gets to bid on a part to make for an engine they also get an approximate amount per year that will be ordered. For cars that amount is usually in the millions and for outboards they would be lucky if that amount gets up to 50,000 per year. The manufacturer has to take that amount into serious consideration when they give a price per part on the bid to be able to cover the tooling and startup costs for a part and still be able to make a profit. Also because of those amounts per year, most of the manufacturing for automotive parts is fully automated and there is almost zero human interaction in the process. The costs of starting up fully automated production is incredibly high. So because the amounts per year is so low it isn't economicle to have full automation for outboard parts and since each time a human needs to touch the part the cost goes up, the price per part will reflect that.

In automotive manufacturing, the price per part is usually quoted in pennies(even tenths of pennies) that same exact part, if quoted for outboard parts per year, would be quoted in dollars per part.

Make sense?

I realize volume of production plays a part in pricing. So does volume of units sold on the retail end.

My example is of similar products made by the same company so I respectfully disagree that it’s apples and oranges. The price differences are not 10 or 20% more, they’re 2 to 3 times the cost in some cases.

[CAMAN]

I'm not trying to argue with you either just trying to get people to understand that there is really nothing similar between a 200hp outboard engine and a 200hp car engine. Yes, they make the same hp but the designs are completly different so you can't just swap a car part with an outboard part, so yes, it still is apple to oranges. And in regards to the 5hp briggs mower compared to the 5hp briggs outboard, how many mowers do you see compared to outboards, its a MUCH smaller market for an aircooled outboard and they still need to pay for all the tooling required to build that outboard. I've built numerous molds for the automotive and marine industry and the tooling required to build those parts and none of this stuff is cheap. I've built molds that cost as much as$750,000 (that is for ONE part).

Most people are shocked when they see the amount of work involved in making one part for the first time. Multiply that over hundreds or thousands of parts in one outboard and you have a lot of money invested in just one engine model.

Again, I'm not trying to debate with you or anyone on this subject, just trying to get people to realize that you really can't compare the prices between the price of outboards and cars. There is a MUCH bigger market for cars than outboards and it is ALOT more competive in the car market when it comes to keeping costs low because of that larger market. And IMO, those prices are pretty much inline with what they should be for the amount of parts on an outboard that are made in AMERICA or Japan. Its getting harder and harder now days to find that many parts on any car that isn't made in China, Mexico, India or anywhere else that has cheap labor.

[gregg52]

and how many etecs are blowing up right now?

mine's not blowing right now

and i'm sure i'm not the only one that owns one !!!!!!!

somebody above said something about forest wood and a few guys looking at buying it

i would think the pride in wood might just do that

he must be gettin upp there in age though

[marine_man]

Wow... what a deal...

Should be interesting to see how this plays out, seems interesting that they went into bankruptcy, and now all of a sudden they have a buyer in mind.... seems to be moving along pretty quick...

marine_man

[delcecchi]

Evinrude is owned by Bombardier Recreational Products which was spun off from the main Bombardier a few years ago (announced in 4/2003 and completed 12/18/2003). BRP makes Evinrude, Ski-Doo, Sea-Doo, some brand of ATV, and Rotax engines.

I believe BRP is controlled by original Bombardier family.

[MuskieJunkie]

No problem Caman we can agree to disagree. I understand everything your saying, but I think the prices are inflated.

[gregg52]

RIGHT

THEY ALSO BUILD AIRPLANES

[delcecchi]

Nope. That is original Bombardier. Evinrude is Bombardier Recreational Products. Since 2003 different companies.

Original makes airplanes, rail cars etc.

[gregg52]

different companies inc

but all under the same parent company

i would presume i dont know that as fact