Brunswick moving Cabo production to Hatteras facility

Posted on 20 July 2010

Brunswick Corp., announced Tuesday it will consolidate production of its Hatteras and Cabo brands at the Hatteras facility in New Bern, N.C., and close the California plant where Cabo yachts are produced.

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The Adelanto, Calif., plant will be closed by the end of the year as production is phased down and moved to New Bern, the company said in a statement. This is the 16th plant Brunswick has closed or is in the process of closing since the end of 2007.

Approximately 40 positions will be lost with the move, Brunswick spokesman Dan Kubera said. Many members of the Cabo manufacturing team and certain managers will be offered jobs and relocation assistance to move to New Bern, the company said in a statement.

"Bringing our brands under one physical roof will allow us to fully leverage our technological and operational advantages, better serve our dealers and customers, reduce fixed costs and more effectively use our available manufacturing capacity," Hatteras president James R. Meyer said in a statement.

"Despite the currently difficult marine market, we have been investing aggressively in developing new products for both Cabo and Hatteras, as well as in increasing manufacturing efficiency at the New Bern factory. Building both brands in New Bern will give us new operating leverage at an opportune time," Meyer added.

Cabo and Hatteras already share services in New Bern for design, engineering, marketing and sales.

To help prepare the New Bern facility and work force to integrate Cabo production, the state of North Carolina, along with various Craven County and New Bern government entities, will provide economic assistance tied to Hatteras and Cabo meeting certain performance measures in the next several years, the company announced.

"Hatteras has been one of the foremost corporate citizens of New Bern since the 1960s," North Carolina Gov. Bev Perdue said in a statement. "I often work to bring new jobs to North Carolina, but it is equally important to help our existing businesses grow."

Comments

Thanks to fraud, workman's compensation in California is out of control. I have NO employees and can survive here in SoCal. But, my neighbor employs about forty people. Thanks to fraudulent claims, their compensation contribution fees have gone from fifty thousand dollars a year to THREE HUNDRED AND FIFTY THOUSAND dollars a year. They manufacture NOTHING. They distribute news papers. Since they cannot relocate, they just have to suffer. Think how costs like that effect the bottom line and the ability to raise wages. Buck knives swore they would never leave El Cajon, but after they were taxed to death, they fled to Blackfoot, Idaho.

One day our politicians may wake up and realize that exporting wealth and importing poverty is killing this country. I hope it's not too late.

Bye CABO - See ya over by the Sea Pro molds.

Easy to blame the left coast but the real probvlem is the continuing decline in the economy. Forget Wall Street figures..until the unemployment situation greatly improves demand for boats is not going to increase. How can it? Don't look for any significant improvement until then. Millions of people without jobs cannot buy boats. Even if many were to all of the sudden gain employment banks and other lending sources would reject them because during unemployment their FICO scores hit rock bottom. Back in the 60's I was a proud skipper of a Hatteras Sport Fisherman. It was a much better vessel then what is being sold today under that badge.

Let's see, Buck Knives is pulling out of Taxifornia for Idaho, Brunswick pulling Cabo out for NC. Will the voters in California EVER get the message, as it seems the politicans certainly won't. It's an anti-business state and with that said, so go the jobs. There is only so much blood in a rock (the taxpayers).

Anyone know of any business's moving into California? Most likely this will be the 1st State to declare bankruptcy and then look to the US Taxpayers at large for a bailout.

I guess they are counting on consumers to have forgotten ALL about the AMF Brunswick HATTERAS boats that the accountants built in the 70's. Cabo will suffer the same cost cutting poor quality cheapest parts available corperate proffitering that ruined Hatteras and Harley for ten years plus. In california you have to pay a decent wage to get english speaking and reading workers that can afford to live there same thing has happened in Florida the cost of living is to high for gross corperate profits. Thats why contender, mako and aqua sport moved north to the low wage states. Soon all boats will be cheap former examples of what they use to be, you will have to go custom to get a decent strong safe boat built correctly with thru bolts and backing plates copper tinned wire heat shrink connections and enough correct glass and proper tested resin to not fracture or fail.And they will not charge less untill the consumer stops buying there cost cutting unsafe junk

What a surprise. Another manufacturer pulls out of California. If Sacramento could grow the private sector at even a fraction of the rate in which they grow the bloated state bureaucracy, marine sector jobs would be coming IN to a state with great boating, wonderful weather, significant infrastructure and millions of boaters. Will the state's voters start to wake up in November? Doubtful, but we can always hope..........

with all the "shrinking" going on, why cant they fit everything in at Merrit Island?

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