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Brunswick Cuts Employees at Cabo Yachts
By: Louis Gerlinger | Wednesday, May 28, 2008 12:00:00 AM
Last updated: Thursday, June 05, 2008 10:15:00 AM


LOG NEWS SERVICE — Blaming the “prolonged slowdown” of the U.S. marine economy, Brunswick Corp. said it has laid off employees at its Southern California-based Cabo Yachts facility, will cease production of its Bluewater Marine brands and will close a boat manufacturing plant in Newberry, S.C.

Brunswick said May 13 that production of the Bluewater Marine brands — which include Sea Pro, Sea Boss, Palmetto and Laguna — will end with the upcoming 2009 model year, commencing July 1.

As a result, some 175 employees will be laid off and a production facility in Newberry, S.C., where the boats are made, will be closed by the end of June.

Brunswick spokesman Daniel Kubera told the Associated Press that boat sales have been dropping for two years, especially for the smaller 15- to 27-foot boats made in Newberry.

The impending layoff of employees at the Newberry facility follows news from Brunswick’s Southern California-based Cabo Yachts that 49 employees had been laid off there May 12. Brunswick said about 300 employees remain at Cabo Yachts and production is continuing.

Cabo Yachts, which is located at Adelanto, was founded in 1991 and purchased by Brunswick in February 2006. It manufactures offshore sportfishing boats ranging from 32-52 feet in length.

Brunswick’s chief executive, Dustan McCoy, said in a statement that the U.S. marine industry has been in a prolonged slowdown since late 2005. “An uncertain economy, high fuel prices, the housing slump and other economic factors have affected consumers’ confidence and eroded their discretionary spending,” McCoy said.

“As a result, we are assessing the recovery potential for all marine segments in which we participate, their fragmented nature, the costs of our continued presence in certain of them and the position of brands,” he said.

McCoy said Brunswick will concentrate its efforts on such brands as Boston Whaler, Triton, Trophy and its sportfishing offerings from Hatteras, Cabo and Albemarle.

Chicago-based Brunswick Corp. manufactures boats, Mercury outboard engines, MerCruiser sterndrives and inboard engines, and other recreational products.

A report from the Associated Press was used in this story.



This article first appeared in the May 2008 issue of The Log Newspaper. All or parts of the information contained in this article might be outdated.
 
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