Hatteras News

[Pete]

Below is the article from the local news paper today. It speaks for itself and is another blow to these good folks.

Hatteras Yachts held a series of meetings with employees in New Bern on Tuesday to announce the timeframe for a production furlough anticipated since company layoffs in January.

"The major furlough will commence July 1 and concludes in mid-August," said Bill Naumann, Hatteras Yachts chairman, who returned to the company from retirement in November to help keep the luxury yacht company afloat.

"Typically we take the first week in July as furlough and we are extending it for six weeks for all except those necessary for boat deliveries and new product development deadlines we have to meet," he said.

For 90 of the about 300 employees remaining at the plant which once employed 1,400, however, "it will be an indefinite furlough," Naumann said.

"We have every intention of bringing them back. They have pay and benefit continuation up until the 1st of August and after that they are eligible for unemployment. There is also federal aid for assistance with COBRA payments."

Naumann said the meetings with "our Hatteras family was one of the more touching experiences of my life. I was overwhelmed by the sense of loyalty and mutual support. There were lots of hugs and tears in eyes.

"They are looking forward to the day they will be back at work but for those who have an end call date, there was a sense of relief."

The boating industry is cyclical and Hatteras made significant cutbacks at the New Bern Plant in 1995 and 2001.

But Naumann said, "This is by far the worst thing I've seen from an economic standpoint."

The National Marine Manufacturers Association reports that new boat sales fell 30 percent in 2008 and expects another 20 percent drop this year.

Genmar, the industry's second largest U.S. manufacturer, declared bankruptcy on Monday, following the close in the wake of Australian manufacturer, Riviera, which went into receivership in May.

Hatteras, established in 1959 in North Carolina and acquired by Brunswick Corporation in 2001, has made dramatic changes to cope with economic doldrums and the resulting downturn in consumer demand.

It closed its Swansboro facility in January 2008, eliminating 200 jobs, and cut 325 jobs at the New Bern and Edenton plants in August 2008. In December 2008 it sold the Albemarle Plant in Edenton with about 100 employees.

Hatteras continues to produce two brands in New Bern and in Adelanto, Calif., Cabot and Hatteras Yachts sport fishing and motor yachts between 50 and 100 feet long.

Naumann said "this is a production furlough, not a business furlough. We will continue to support our customers and dealers right through this time. What we will not be doing in the furlough is starting any new boats."

Pete

[Sparky1]

Does this mean there won't be any free tickets to FLIBS this year either?

Sorry, bad joke. Let's hope this economy turns around and puts those folks back to work... building Hatts.

[krush]

And when it turns around, maybe I can hope to be poised to take advantage of it and then be able to buy a NEW hatt and help these people.

Then again, my aunt always said, "Hope in one and, shit in the other...see which fills up first"

[Pete]

Unfortunately, the way I read this, is a purging of the assembly line of all salable assets in preparation for whatever the economy dictates as the next required action in a few months. Let's hope it is a restart of production.

Pete

[Sparky1]

And when it turns around, maybe I can hope to be poised to take advantage of it and then be able to buy a NEW hatt and help these people.

Then again, my aunt always said, "Hope in one and, shit in the other...see which fills up first"

I hope I never have to shake hands with your aunt. I'd have a 50/50 shot at "hope".

[mobilemn1]

There is a 50/50 chance you could get the hand she catches with too, LOL

[GJH]

We just took the Whaler up to the plant. They have three of the 100 footers in the water for commissioning or other work. Plus, a 60MY, a 64MY and an 80MY and 4 sport fishers of various sizes. A BIG sport fish (80?) that has been doing some sea trials by us was up on the hard. Couldn't see what if anything was up in the barns. Pretty sleepy, looks like they are finishing up some of the boat show orders (?).

[Bugsy]

There is a 50/50 chance you could get the hand she catches with too, LOL

You guys aren't too good at figuring odds. Is she left-handed or right-handed?

[spartonboat1]

While by no means a Hatteras product, I was once employed in the Ford Motor Co. Wixom, MI plant, which in the 60'-70's was the single most profitable mfg. plant in the world, at $1Bn/year, when that was a lot of money.

We made Lincolns, T-birds, and later Crown Vics there. She had 13,500 employees at the peak, but kept cutting back over the years. Finally, in the early 2000 period, she was down to 1,350 employees and finally was closed about 2-3 years ago.

So very unfortunately, some downturns are never reversed or remain down for an extended period. And since the current administration loves to lavish money on itself ($250k dinner dates, arriving late, etc.- enuf about that), but greatly suppresses spending by others, the big spending days may be gone for quite awhile.

I hope Hatt does not hit the wall!!
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Update per above and pay scales: "Pay Czar Appointed", not only for TARP money firms, but others as well!
http://online.wsj.com/article/SB124416737421887739.html