Bavaria Yachts - perfectly positioned for the future
by Jamie Millar on 8 Jul 2009
Bavaria Yachts production efficiency Bavaria Yachts
On a recent trip to Europe, Bob Mulkearns, MD of North South Yachting, spent time at the Bavaria Yachts factory to see firsthand how they have adapted to the current economic cycle and find out what their strategies were for the forthcoming upturn.
'The first thing I noticed at the Bavaria factory in Giebelstadt was the effect Bavaria Yachtbau’s new CEO, Andres Cardenas, is having on the direction and mood of the business. Flexibility is now a key driver at Bavaria and this is reflected at all levels of the operation.
This was first evident in the new Cruiser 55. The alternate forward cabin configurations cover a range of needs and can allow for future adaptation should these needs change in time. An example is the starboard walk-in wardrobe: this could also be a head, laundry, workshop or combinations of these. I was lucky in being able to see four alternate layouts in production and feel this flexibility will work very well.
Utilisation of space is one of the key design thought processes in the Cruiser 55, setting it apart from previous large Bavaria models. The forward owner’s cabin offers creative storage and focuses on useful personal space in the shower, vanity area and walk-in wardrobe (the midship shower room is a unique feature). It has an apartment feel, keeping the open living spaces focused in the main saloon. With five already on the production line and fifteen sold at the time of my visit, this is an impressive start to a new range and design.
Flexibility is also evident in the interior finish. With three distinct timber colour choices (Mahogany, Light Oak and Walnut) and ten fabric selections, the interior finish can be virtually customised to the buyer’s tastes.
Externally, the Cruiser 55 has loads of new features (flush deck hatches, unobtrusive grab rails around the helm, motor controls neatly tucked away, huge dinghy garage and storage aft, forward sail locker) all lending to the yacht’s up-market feel. The new design concepts will undoubtedly flow downwards throughout the range of new Farr/BMW designed Cruiser models and have already been seen in the recently announced Cruiser 32.'
Giebelstadt is some distance from the sea so not a great place for test-sailing. Nevertheless, Bob found the direction of the rig and sailing design to be clear:
'A smaller Genoa, option of Code Zero for light winds and Gennaker for off-wind sailing keeps the sail wardrobe simple whilst covering a wide range of wind conditions. All the standard Bavaria ease of handling features are continued with familiar options available such as in-mast roller-furling mainsail and new options like a self tacking headsail or bigger Genoa.'
In addition to the new 55, Bob took time to inspect other models not yet displayed in Australia.
'This new theme of flexibility was so infectious the 47 Cruiser forward cabin was having a makeover to allow even better use of space. The 47 Cruisers I saw were all different in some way, allowing so much individuality down below it was hard to remember which model it was. They can have such a different feel through changes in the finish. The new timber choices are really a great move forward allowing individuality at an affordable price.'
This flexibility concept is offered without affecting the economic benefits of economies of scale production. The recent and considerable investment into the production facility included upgrading the joinery facility, paint and varnishing plant and investment in technology to handle a bigger range of options. Economically speaking, investing in a downturn is ideal, if you can afford to do it. Bavaria is perfectly prepared to maximise sales and production as markets improve.
Of course in this current climate the hard topics need to be discussed: How is Bavaria meeting the challenges of the unpredictable market?
'Thankfully some things don’t change.' said Bob. 'Bavaria will never build stock! Part of their ongoing investment has been to make the production line an adaptable entity, capable of meeting the rapidly changing order patterns. One yacht production line can now handle all models (apart from the 55) where previously the range needed two. Bavaria Yachts are also one of the very few yacht manufacturers not to have cut any of their workforce. It’s a bit like new V8 motor technology, you can reduce to four cylinders when the power isn’t needed and scale up instantly when it is.
As for the market in general, Bavaria take the longer term view that production efficiency means a profit is still achievable, even at low sales levels, while the facility is ready to meet the upturn when it begins. Markets have never been energised by risky ventures into financing stock or through short term discounting. Conservative strategies, underscored by a strong, efficient factory and premium brand, will come out on top in the longer term.'
It might seem boring, and perhaps even disappointing, that outrageous discounts will not likely be offered by Bavaria, nonetheless you can certainly feel confident that Bavaria will be there with bigger, better and now more flexible products appealing to a broader market, one that’s ready to invest in a secure and confident brand.
In summary, there are key things that make Bavaria Yachts unique: innovative design technology, exceptional standards, flexible layouts and options and cost efficient production. All-in-all, Bavaria Yachts are a sound buy.
Bob Mulkearns has returned from Europe with renewed vigour and positivity and is confident that Bavaria is the brand that is best positioned for the future. When asked what his final thought was, it came in peerless fashion:
'Don’t wait for a bargain and miss out on a Bavaria before Christmas!'
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To learn more about Bavaria Yachts, please contact North South Yachting.
E: info@northsouthyachting.com.au | T: 02 9998 9600
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