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Old 09-10-2016, 19:30   #1
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Bavaria Yachts USA to Cease Operations

This bombshell just posted:

"It is with a very heavy heart that we have to inform you that the relationship between Bavaria Yachts USA and Bavaria Yachtbau GmbH in Giebelstadt, Germany no longer exists.
With a new management team in Bavaria Yachtbau GmbH, the commitment from the factory has plummeted.
On October 6th, 2016, ten minutes before the start of the 2016 Annapolis Boat Show, the Mr. Lutz Henkel, the CEO of Bavaria Yachtbau, handed us a termination letter which was effective immediately. Bavaria Yachtbau GmbH’s management was fully aware that our team had worked for weeks in preparation of our market’s most significant and costly sailboat show.
Our US company, comprised of experienced boating industry professionals, has committed to ensure our yachts are serviced to Bavaria USA standards which has come at a great financial cost, but we believe providing the highest quality and standards in the industry was worth it because it has been the right thing to do, it’s just good business. For years, under previous German management, we worked in good partnership with Bavaria Yachtbau GmbH to ensure the products sold in the US market were up to the standards fitting the expectations of the American consumer.
Over the last five years, the team at Bavaria USA has actively built the Bavaria brand into a respected and very recognizable entity in the US boating industry. We have represented our products with great care and pride, and have provided a level of service to our owners which we would expect if we were to purchase a yacht ourselves.
Since Bavaria Yachtbau GmbH has chosen to abandon its commitments to Bavaria Yachts USA, the sole distributor and dealer for the US market for monohull Sailboats and Powerboats, Bavaria Yachts USA is now forced to cease all operations.
Best Regards,
Team Bavaria Yachts USA"
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Old 09-10-2016, 22:23   #2
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Re: Bavaria Yachts USA to Cease Operations

Yup, been there. I do have a business degree but yea, not a warm fuzzy feeling.. Although some folks might argue that business and ethics are pretty much mutually exclusive in todays world. But I won't get involved in the ethics debate here. Just feel sorry for the American Bavaria owners.
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Old 09-10-2016, 22:50   #3
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Re: Bavaria Yachts USA to Cease Operations

Quote:
Originally Posted by Spiider View Post
This bombshell just posted:

"It is with a very heavy heart that we have to inform you that the relationship between Bavaria Yachts USA and Bavaria Yachtbau GmbH in Giebelstadt, Germany no longer exists.
With a new management team in Bavaria Yachtbau GmbH, the commitment from the factory has plummeted.
On October 6th, 2016, ten minutes before the start of the 2016 Annapolis Boat Show, the Mr. Lutz Henkel, the CEO of Bavaria Yachtbau, handed us a termination letter which was effective immediately. Bavaria Yachtbau GmbH’s management was fully aware that our team had worked for weeks in preparation of our market’s most significant and costly sailboat show.
Our US company, comprised of experienced boating industry professionals, has committed to ensure our yachts are serviced to Bavaria USA standards which has come at a great financial cost, but we believe providing the highest quality and standards in the industry was worth it because it has been the right thing to do, it’s just good business. For years, under previous German management, we worked in good partnership with Bavaria Yachtbau GmbH to ensure the products sold in the US market were up to the standards fitting the expectations of the American consumer.
Over the last five years, the team at Bavaria USA has actively built the Bavaria brand into a respected and very recognizable entity in the US boating industry. We have represented our products with great care and pride, and have provided a level of service to our owners which we would expect if we were to purchase a yacht ourselves.
Since Bavaria Yachtbau GmbH has chosen to abandon its commitments to Bavaria Yachts USA, the sole distributor and dealer for the US market for monohull Sailboats and Powerboats, Bavaria Yachts USA is now forced to cease all operations.
Best Regards,
Team Bavaria Yachts USA"
Interesting, but we do not know the whole story.

Termination letter with immediate effect without replacement representation? There must be more going on.

However who in his right mind would sign a contract which permits one party to terminate without reasons and then takes the risk to invest good money, hoping everything will turn out fine?

There is more to this story.
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Old 09-10-2016, 22:56   #4
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Re: Bavaria Yachts USA to Cease Operations

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Originally Posted by ErikFinn View Post
Yup, been there. I do have a business degree but yea, not a warm fuzzy feeling.. Although some folks might argue that business and ethics are pretty much mutually exclusive in todays world. But I won't get involved in the ethics debate here. Just feel sorry for the American Bavaria owners.
I suspect exclusivity is the issue. Unlike most dealers in the US, Baveria USA was exclusively selling new Baveria boats. I looked quickly and there were five locations in the US. We don't know the finance behind their arrangement, but it can't be cheap to maintain a dealer organization with only Baveria USA sales.

Hopefully the USA team can now pick up other companies, and without burning bridges, maintain Baveria line without exclusivity.
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Old 10-10-2016, 09:39   #5
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Re: Bavaria Yachts USA to Cease Operations

I hate to see this but I have seen it before. Usually has to do with the exchange rates do not make it cost effective to be able to import the boats in to the US and compete with US built boats. You have US duty and ocean freight which has to be added into the MSRP of the base price. Great for the Europeans when the dollar is weak but when the Pound and Euro are nearly on par with the Dollar then the boats suddenly seem more expensive.

I've seen this with a lot of Euro builders over the past 30 years in yacht sales and representing a lot of different builders. And then the clients who bought these boats have little to no US representation not to mention with less US name recogniztion, resale values also suffer.

I am sure this is not the only reason why but that's my two cents.
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Old 10-10-2016, 09:46   #6
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pirate Re: Bavaria Yachts USA to Cease Operations

I blame the 'Would you buy a Bavaria 44' Thread...
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Old 10-10-2016, 09:53   #7
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Re: Bavaria Yachts USA to Cease Operations

Nothing on the website, looks the same as always.
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Old 10-10-2016, 10:00   #8
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Re: Bavaria Yachts USA to Cease Operations

Quote:
Originally Posted by Spiider View Post
This bombshell just posted: "It is with a very heavy heart that we have to inform you that the relationship between Bavaria Yachts USA and Bavaria Yachtbau GmbH in Giebelstadt, Germany no longer exists.... Since Bavaria Yachtbau GmbH has chosen to abandon its commitments to Bavaria Yachts USA, the sole distributor and dealer for the US market for monohull Sailboats and Powerboats, Bavaria Yachts USA is now forced to cease all operations. Best Regards, Team Bavaria Yachts USA"
Hi ! Doing some research on Bavaria Yachtbau GmbH, I just discovered that in 2010 Bavaria bought DUFOUR. They might have decided to merge Dufour USA & Bavaria USA ? Last summer, on holiday in France, I discovered that Honda cars were sold by Renaud dealers Why not ? I wouldn't be surprised that owners of Bavaria yachts, still under waranty, receive a letter from Bavaria Yachtbau GmbH telling them that Dufour USA & Bavaria USA are now under one management ???

(Express l'Entreprise: 08/31/2011) Redressement d'entreprise, comment Bavaria Yachtbau a passé la tempête: Le fabricant allemand de bateaux de plaisance, numéro deux derrière Bénéteau, et repreneur de Dufour en décembre 2010, avait vu partir les deux tiers de sa clientèle avec la crise. Jean Ludmann, son nouveau patron, a appliqué les recettes de la production automobile pour redresser la barre.
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Old 10-10-2016, 10:16   #9
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pirate Re: Bavaria Yachts USA to Cease Operations

Or.. it could be linked to the Deutsche Bank affair.. get out while the goings good
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Old 10-10-2016, 10:25   #10
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Re: Bavaria Yachts USA to Cease Operations

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Originally Posted by YachtBroker View Post
I hate to see this but I have seen it before. Usually has to do with the exchange rates do not make it cost effective to be able to import the boats in to the US and compete with US built boats. You have US duty and ocean freight which has to be added into the MSRP of the base price. Great for the Europeans when the dollar is weak but when the Pound and Euro are nearly on par with the Dollar then the boats suddenly seem more expensive.
Correct me if I am wrong, but wouldn't the current exchange rates make buying a European yacht more attractive for Americans?
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Old 10-10-2016, 10:29   #11
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Re: Bavaria Yachts USA to Cease Operations

I talked to them at the boat show two days ago. Bavaria, USA is still operating, they are just not representing the Bavaria Yacht, GMBh.

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Old 10-10-2016, 10:34   #12
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Re: Bavaria Yachts USA to Cease Operations

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Correct me if I am wrong, but wouldn't the current exchange rates make buying a European yacht more attractive for Americans?
It might if the manufacturer and dealer adjusted USD prices according to exchange rates. However, in a world of global suppliers and transportation - much of the flexible cost is set in USD while your fixed may be Euro - that'll really hurt your bottom line if your business is in the EU. Suddenly paying for US dollar priced raw materials is more expensive for Europeans - and the remitted funds from USD or USD pegged currencies pays for less EU labor/marketing/R&D/profit/development.
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Old 10-10-2016, 10:36   #13
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Re: Bavaria Yachts USA to Cease Operations

Anyone know if this impacts Nautitech line as well?
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Old 10-10-2016, 17:49   #14
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Re: Bavaria Yachts USA to Cease Operations

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Anyone know if this impacts Nautitech line as well?
The letter only mentioned powerboats and monohulls.
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Old 13-10-2016, 12:23   #15
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Re: Bavaria Yachts USA to Cease Operations

Hope there staying really like the vision line

Sent from my SM-N910V using Cruisers Sailing Forum mobile app
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