Back to the 100% Made In Germany boats
The new management of bavaria Group presented its strategy to get out of the difficulties it went through until the announcement of its takeover by the CMP investment fund september 2018. The first decision of the new management is the repatriation of the entire production of its boats in its German fiefdom of Giebelstadt. In this way, Bavaria intends to better control the quality of its boats and regain the prestige of Made In Germany. The Bavaria R55 motorboat, which has been outsourced to Croatia until now, will be built in Germany from the first half of 2019. The repatriation of the tooling is underway.
Take back control of the development and construction of the boats
The Bavaria Group is pleased to have been able to retain its staff during its safeguard period. It now intends to rely on the loyalty of its employees to re-internalize a maximum of skills. "The staff identify very well with Bavaria Yachtbau, it is the heart of our company," says Erik Appel, Managing Director of Bavaria Yachtbau. "That is why we want to continue to develop our permanent staff while reducing the number of temporary employees. This will allow us to reduce production costs considerably."
This strategy also applies to the field of boat design. The Bavaria manager announced the creation of interdisciplinary teams to better organize the transfer of newly developed models from engineering to production and to reduce costs.
2 times less boat models
The new Bavaria management considers the current product portfolio to be too complex. It has set itself the goal of reducing the number of models from 26 boat types to 10/12 within three years, focusing on the core demand of the yachting market. In this way, he intends to increase the reliability of the product.
End of the C65 and the electric boat
Several boat models are already being discontinued, while others are being redesigned. The C65, Bavaria's largest sailboat, has been discontinued, as well as the range of electric and hybrid powerboats. The sailing range is being re-engineered. The process started with the Bavaria C50 and will continue with the C57 and then the C45.
Slow down the pace of new developments
Bavaria intends to limit the pace of new boat developments. The German shipyard announces 2 to 3 new models per year, a choice of consolidation that contrasts with the strategy of rapid renewal of competitors such as the Bénéteau group.
Return of the Nautitech catamaran brand
The Nautitech brand, which disappeared when the French multihull builder was acquired by the German group in favor of Bavaria Catamarans, will be reborn. "It is important for us that both companies can in the future emphasize their respective identities even more. On the technical side, the two countries will work closely together and significantly develop the partnership between Germany and France," said Ralph Kudla, Chief Restructuring Officer.
Employee and dealer involvement
Kai Brandes, managing partner of the buyer CMP, confirmed the completion of the acquisition process. "The Federal Cartel Office (Bundeskartellamt) has given its approval and the closing, i.e. the execution of all contractual conditions, has just taken place. This means security for employees, customers and distributors as well as for suppliers". Without giving further details, he is pleased with "a good investment at a good price".
Christian Hartmann, chairman of the Bavaria Yachtbau works council, welcomes the fact that 800 jobs in Giebelstadt and France will be saved and calls for strong employee involvement. "We as employees want to be more closely involved in the development of production and sales. The people who work on the yachts every day are extremely important for the improvement of existing processes and methods."
Ralph Kudla, wants to involve Bavaria's worldwide distribution networks in strategic choices. "Among other things, a dealer advisory board will be set up to enable us to hear customer feedback, take it into account and incorporate it as quickly as possible into our product manufacturing. In other words, to improve our products."
Difficult economic results until 2020
Restructuring specialist Ralph Kudla predicts that it will be many months before the effects of the changes at Bavaria are felt. "Stabilization, further development and returning to the growth path are central themes of the restructuring. In addition, the future model range must be defined. This is the biggest challenge and we will certainly take a good six months to make the first decisions and give impulses."
In the first, shorter year, and due to the start of production, Bavaria will make a loss, which CMP will bear as an investor. In addition, it takes a relatively long time to achieve efficiency gains in boat building. The German boat manufacturer expects a zero result for the next full year (1.8.2019 to 31.7.2020). and significant improvements within two to three years.
