Malibu no longer making ski boats?

[Hucklefin]

On 3/28/2024 at 1:04 PM, Jody_Seal said:

what makes you think it is a joke? do you know the boat? it could be an extremely low hour hermetically sealed trailer queen...?? what's it worth to you?? what would you pay for it??

Geez sorry if I pushed a button there. Because that is a bad price regardless. Can easily get a nice next gen PS hull for that.

[UWSkier]

On 4/1/2024 at 4:13 PM, Slaloman said:

I went to the boat show 2 weeks ago and the Malibu rep did not comment on the ski boat but he did say they are seeing a big drop off in Wakeboarding. Surfing is so easy, you're close to the boat and the social media aspect is right on top of you, Grandma can watch the kid on Face Time. Interest is picking up in hydrofoil surfing since you do not need a big wake to propel it, the only problem now is the price of the boards which demand will fix.

At the local public lake last week, it was my Malibu and two guys in a ProStar out at dawn.  We were doing only slalom.  They were alternating slalom and foil-boarding.  The fact you can ride a foil behind an un-weighted ProStar gives me hope it'll catch on and become more popular than surfing.  Though from a tricks perspective, you are more limited on a foil.  You can't go backwards, can't do spins, etc...

[Horton]

Not sure it makes a difference for skiing but I have for sure heard that the whole wakeboarding segment has been in decline for a while. Surf is currently king.

 

[Horton]

Well this is ugly...

https://www.globenewswire.com/news-release/2024/04/11/2861921/0/en/Malibu-Boats-Comments-on-Litigation-Filed-by-Former-Dealer.html

 

[Horton]

this was absolutely not on my bingo card 

https://www.tradeonlytoday.com/manufacturers/lawsuit-filed-against-malibu-boats

 

[buechsr]

I've read the lawsuit.  I'd say its going to be a slow boat sales season if Malibu terminated its dealership agreement with its largest dealer network, responsible for 33% of sales.  Call me Warren Buffet.  

[jpwhit]

And when they liquidate the inventory from Tommy's as part of the likely bankruptcy, that's going to flood the market with boats. 

[Horton]

I think it might be in my best interest to not say much but ....

via GIPHY

[Cooper_Trelawney]

Well, this looks like it will be a shitshow.

[Horton]

From a Tommy's email dated 4/12/24

Tommy’s Family,
 
You may have seen news recently about some current unresolved legal matters between Tommy’s Boats and our long-time partner Malibu. 

We want to assure you that this won’t impact the quality of service you have come to expect from Tommy’s. We will continue to sell and service boats, fulfill warranty claims, and provide our customers with the unparalleled customer service you have come to expect from Tommy’s. 
 
We are looking forward to a great 2024 boating season. We are firmly committed to continuing to deliver exceptional products, services, and support to our entire Tommy’s family for years to come. 
 
If you have any questions, please don’t hesitate to reach out to someone on your local Tommy’s Team. 
 
We have shared a statement on the legal issues on our website, which you can read here. 

https://www.tommysboats.com/blog/tommys-files-federal-lawsuit-against-oem-partner-malibu-boats--70143

 

 

Tommy's Files Federal Lawsuit Against OEM Partner Malibu Boats.

FOR IMMEDIATE RELEASE

GRAND RAPIDS, Mich., April 12, 2024 — Tommy's Boats announced today the company has filed a federal lawsuit against its long-time OEM partner Malibu Boats for several unresolved business issues.

Tommy's has been a provider of Malibu Boats for over a decade. We are very appreciative of our incredible partnership over the years and for the dedication and hard work of Malibu's employees. During this time, we have built relationships with customers and employees that are irreplaceable. 

Unfortunately, after multiple attempts to resolve the issues between Tommy's and Malibu, we were left with no choice but to allow the legal system to address the impasse. While we were disappointed in Malibu's public comments this week that mischaracterized the issues and our relationship, we look forward to more productive discussions in court.

Tommy's would like to thank the outstanding customers, employees, and many partners such as M&T Bank for their patience as we have worked through these issues. As always, our focus will be on servicing all customers and continuing to build strong, lasting relationships as we move into the future.

# # # #

Tommy's Boats is community of passionate water sports enthusiasts that live the lifestyle, promise uncompromising service, and bring people together on the water. One of the largest boat dealers in the country, Tommy's Boats as 20 retail and waterfront locations across the United States, including Arizona, California, Colorado, Florida, Michigan, Nevada, Texas, and Tennessee. The company is best known for its performance the water sports industry, which includes wakeboarding, waterskiing, wakesurfing, and more.

[jerseysfinest]

$MBUU 3 month stock price chart. Major sell off around same time they made budget cuts leading TXi program being scrapped (if that has been confirmed) and 8% drop in stock value yesterday when lawsuit news came out.

[Horton]

On 4/12/2024 at 9:07 AM, jpwhit said:

when they liquidate the inventory from Tommy's as part of the likely bankruptcy, that's going to flood the market with boats. 

That is one of the worst case scenarios. 

[jpwhit]

To be clear, I meant Tommy’s going bankrupt. But it certainly could be a tough year or two for Malibu as well. 

[Horton]

@jpwhit It might be a hard time to be a stockholder but MBUU will be fine in the long run.

[Horton]

Back to the TXi ... are Australian TXi built in Tennessee or down there?

[George Hazelwood]

Australia have a factory producing ski boats and wake boats. Very good quality judging by the 2 I bought

[Horton]

who is surprised by this news? 

[Mastercrafter]

Does this just leave Tgas? 

[Drago]

20 minutes ago, Mastercrafter said:

Does this just leave Tgas? 

I'd say that's the final nail 

[DonT]

So if this is a continuing to emerge trend -  what does the rumor mill say about the Malibu Open?

[Horton]

Imagine being the guy who interviewed a PR person from Malibu and believed that the TXi was not going away.

---

@DonT

My guess is the event will continue. The only question is if the name will change.  Title sponsors change. It happens.  

[Mastercrafter]

27 minutes ago, Horton said:

Imagine being the guy who interviewed a PR person from Malibu and believed that the TXi was not going away.

---

@DonT

My guess is the event will continue. The only question is if the name will change.  Title sponsors change. It happens.  

Wait… is the TXi going away? 

[Horton]

@Mastercrafter 

Malibu says it is not canceled. If I was the PR guy that is what I would say.

I am just speculating that the product is not going to get any support and even if it is available for order it will never get updated.  So it is effectively done.

[DW]

Didn’t Aussie Malibu announce a waterski OZ support thru 2030 for the TXI?

[Horton]

@DW yes something like that and that is why I asked if Malibu was building those boats in Oz of Tennessee 

[spud]

https://www.marketwatch.com/story/lawsuit-against-malibu-boats-could-put-110-million-worth-of-boats-in-limbo-analyst-says-in-downgrade-69e99132

[Horton]

https://seekingalpha.com/news/4089668-rough-waters-ahead-malibu-boats-dealer-lawsuit-weighs

 

[BraceMaker]

Another side line of this story is that Tommy's separately is in litigation with their lender with Tommy's having sold some 20 million in inventory that's collateralized with the lender and not reporting those sales.  Which while maybe not simple theft indicates that they are quite behind on their bills.

The other interesting bit is that part of Malibu's claim is that their agreement with Malibu was for a 65/35 Malibu/Axis product split but that Malibu hadn't been delivering the Axis boats agreed upon.  So while the focus here is on Malibu it is possible that Malibu has really cut back on production of anything lower margin for them (axis and Txi program?) 

Hopefully people here haven't already paid Tommy's for a boat pending delivery because I anticipate that the inventory is going to be tied up.

[buechsr]

48 minutes ago, BraceMaker said:

Another side line of this story is that Tommy's separately is in litigation with their lender with Tommy's having sold some 20 million in inventory that's collateralized with the lender and not reporting those sales.  Which while maybe not simple theft indicates that they are quite behind on their bills.

 

What’s the source of that if other than Malibu’s statement? 

Best I’ve found is suggestion of 17 boats that might have some issues.  I did see it reported that Tommy’s has defaulted on $115M.

https://www.crainsgrandrapids.com/news/retail/bank-alleges-tommys-boats-defaulted-on-115m-in-loans-seeks-court-appointed-receiver/

 

[kmenard]

19 hours ago, Horton said:

Imagine being the guy who interviewed a PR person from Malibu and believed that the TXi was not going away.

---

@DonT

My guess is the event will continue. The only question is if the name will change.  Title sponsors change. It happens.  

It will heretofore be known as the Malibu closed

[Drago]

4 hours ago, spud said:

https://www.marketwatch.com/story/lawsuit-against-malibu-boats-could-put-110-million-worth-of-boats-in-limbo-analyst-says-in-downgrade-69e99132

Thanks for the paywalled link @spud 🫤 

[UWSkier]

10 minutes ago, kmenard said:

It will heretofore be known as the Malibu closed

[swc5150]

Risking another panda here, but did you guys see the new Land Cruiser's starting price has been lowered drastically to $56k from near $90k?  Toyota admitted to pricing their core customers out of the market, resulting in huge reductions in sales, so they did a reset.  And it's not some completely stripped base model, it's still a pretty loaded up LC.  I personally went from "no freaking way" to "when can I place my order".  Listen up big 3:)

[Horton]

@swc5150 I'm going to hold off on awarding you, your pandas temporarily.

have you read this article? 

https://www.autoblog.com/2024/02/20/2024-toyota-land-cruiser-2024-pricing-announced/#:~:text=Starting at %2457%2C345%2C it's a,last model back in 2021&text=The 2024 Toyota Land Cruiser,plus a %241%2C395 destination charge.

[WoodySkier]

On 4/12/2024 at 4:15 PM, Horton said:

From a Tommy's email dated 4/12/24

Tommy’s Family,
 
You may have seen news recently about some current unresolved legal matters between Tommy’s Boats and our long-time partner Malibu. 

We want to assure you that this won’t impact the quality of service you have come to expect from Tommy’s. We will continue to sell and service boats, fulfill warranty claims, and provide our customers with the unparalleled customer service you have come to expect from Tommy’s. 
 
We are looking forward to a great 2024 boating season. We are firmly committed to continuing to deliver exceptional products, services, and support to our entire Tommy’s family for years to come. 
 
If you have any questions, please don’t hesitate to reach out to someone on your local Tommy’s Team. 
 
We have shared a statement on the legal issues on our website, which you can read here. 

https://www.tommysboats.com/blog/tommys-files-federal-lawsuit-against-oem-partner-malibu-boats--70143

 

 

Tommy's Files Federal Lawsuit Against OEM Partner Malibu Boats.

FOR IMMEDIATE RELEASE

GRAND RAPIDS, Mich., April 12, 2024 — Tommy's Boats announced today the company has filed a federal lawsuit against its long-time OEM partner Malibu Boats for several unresolved business issues.

Tommy's has been a provider of Malibu Boats for over a decade. We are very appreciative of our incredible partnership over the years and for the dedication and hard work of Malibu's employees. During this time, we have built relationships with customers and employees that are irreplaceable. 

Unfortunately, after multiple attempts to resolve the issues between Tommy's and Malibu, we were left with no choice but to allow the legal system to address the impasse. While we were disappointed in Malibu's public comments this week that mischaracterized the issues and our relationship, we look forward to more productive discussions in court.

Tommy's would like to thank the outstanding customers, employees, and many partners such as M&T Bank for their patience as we have worked through these issues. As always, our focus will be on servicing all customers and continuing to build strong, lasting relationships as we move into the future.

# # # #

Tommy's Boats is community of passionate water sports enthusiasts that live the lifestyle, promise uncompromising service, and bring people together on the water. One of the largest boat dealers in the country, Tommy's Boats as 20 retail and waterfront locations across the United States, including Arizona, California, Colorado, Florida, Michigan, Nevada, Texas, and Tennessee. The company is best known for its performance the water sports industry, which includes wakeboarding, waterskiing, wakesurfing, and more.

Tommy’s has started their fire sale on their inventory.

[braindamage]

1 hour ago, WoodySkier said:

Tommy’s has started their fire sale on their inventory.

Doesn’t EVERY dealer say this EVERY spring and fall? 

[dvskier]

I didn’t see any TXIs listed for sale on the Tommy’s site. I looked at all their listed inventory.

[Horton]

@dvskier

I would speculate that every txi built last year was a customer order and none none are sitting on any dealer floors

[scoke]

On 4/16/2024 at 12:48 PM, kmenard said:

It will heretofore be known as the Malibu closed

 

[tmothy07]

11 hours ago, swc5150 said:

Risking another panda here, but did you guys see the new Land Cruiser's starting price has been lowered drastically to $56k from near $90k?  Toyota admitted to pricing their core customers out of the market, resulting in huge reductions in sales, so they did a reset.  And it's not some completely stripped base model, it's still a pretty loaded up LC.  I personally went from "no freaking way" to "when can I place my order".  Listen up big 3:)

It's a Prado and on the same platform as the 4Runner, the old Landy line-topper SUV is gone.

[swc5150]

I can live with this...

"Land Cruiser is built on the TNGA-F global truck platform that is shared with Tundra, Sequoia and Tacoma, and is now offered as just as a 2-row SUV, replacing the old model that was longer and offered three rows."

I'm just saying the market spoke as to what it wanted and Toyota responded, something I never thought I'd see.

[Horton]

@swc5150 

They took the branding from a classic heritage product and slapped it on a new vehicle with 1/2 the cylinders*, 25% less towing capacity,  30% less seating,  & 15% less HP. They did NOT lower the price of the Land Cruiser. They built a new, cheaper truck. Saying they lowered the price for nearly the same product is dishonest.

*yes I understand that the modern V4s are amazing.

Do you want to talk about a 75K ski boat again? Just search for Carbon Pro. I just can't rehash that again. I literally can't. 

 

---

 

As for the Tommy's "liquidation sale" ( my words not theirs ) I do not think this is going to directly impact ski boat prices but if the price cuts are significant it will disrupt the greater boat market in a bad way. Imagine you are a boat dealer ( any brand ) sitting on inventory and paying interest on every boat and then suddenly all the boats from Tommy's dealerships are noticeably discounted. In the short term it might be good for consumers but long term it is hard on the industry. Like it or not we need a healthy ski and boat dealer industry. 

[swc5150]

Yet I'm still ordering one:)

I sure hope the TXi sticks around.  Choice and competition only helps the sport. I know full well an entry boat will not work, just poking the panda;)

[Horton]

@swc5150 Well the Malibu PR guy says the TXi will still be available*. They built 25 last year. Without any promo team boats in 2025 how many will they build? Maybe the boat will stay in the catalog for the moment. If they build 5 or 10 boats next year is it even relevant? The Regina news should speak volumes.

(* The word of a PR guy is as valuable as the word of a politician.)

[ALPJr]

Off topic but… the original Land Cruisers in the US into the early 80’s were a 2 door or 4 door (station wagon) and nearly all were two rows with an inline 6 cyl. 

[Jody_Seal]

@Horton(* The word of a PR guy is as valuable as the word of a politician.)

A little fringe there, gotta keep politics out this!!

[jpwhit]

3 hours ago, swc5150 said:

I'm just saying the market spoke as to what it wanted and Toyota responded, something I never thought I'd see.

The market didn't speak, at least not the market being the consumer. Toyota sees the phenomenal success of the Bronco, another legacy SUV, and they are just trying to get a piece of that action with their similar legacy SUV. 

[swc5150]

And lowered the price so people will actually buy it.  The LC has a rabid following, so Toyota doesn’t need to copy the Bronco idea (which still is more Bronco II anyway) to revive the name.

[Horton]

maybe Nautique will bring back the Ski Tique for 60k

 

[Drago]

"This boat is not equipped with a battery"