Malibu keeps open mind on expanding Aussie-made boat range

Malibu has hinted that it could build a range of Cobalt and Pursuit-badged boats in Australia if the market here warmed to them.

Malibu chief executive Jack Springer, in Australia this week to look over the only part of the business making boats outside North America, hinted that the US brands it had snapped up over the last two years – ski boat maker Cobalt and saltwater fibreglass fishing boat specialist Pursuit – could also have Aussie-specific models roll out of the Albury, NSW factory.

“It could be possible, especially the Cobalt class first,” Springer said when asked if expanding Australian manufacturing beyond just the Malibu and Axis Wake Research brands was on the radar.

Malibu has spent more than $US200 million expanding its boat range through acquisitions, and the Australian market was high on the radar.

Springer said the real driver of any bid to add to the model mix built in Australia “is going to be the volume per model.”

“If we start seeing that a particular model, call it an R3 or an R5, is generating enough volume in Australia, that it makes sense to build, then we would absolutely look at that,” he said.

“As we look at Pursuit, one of the great opportunities we have is to expand the distribution, not only for the united States but around the world” Springer said. “Australia, without a doubt, could be a market for Pursuit.”

Some of that manufacturing focus comes from the importance to Malibu of the Australian market.

“Outside of America, it [Australia] is the single biggest market that we’re shipping to,” Springer said. “It’s very important. We’re building boats here, and it’s the biggest single market outside the US for us.

“That’s only occurred in the last five to seven years – it used to be Canada, and then Australia and Europe were very close to being third – I think Australia was always number three. But now, with what’s happened with the oil and gas markets, and Canada with minerals … and the currency, Australia is now the number two market.”

What is making Cobalt attractive as an Aussie-built brand is a move in the market from sterndrive to outboard.

“I see there is some demand [in Australia] for that sterndrive product, but I also see that outboard product for Cobalt is now in demand as well,” Springer said.

He said Australian manufacturing gave Malibu and Axis boats a distinct advantage over imported rivals.

“The thing that is the advantage for us is that you take a used boat, the resale value on our boats is much higher than any other boat being shipped from America,” Springer said.

“Because it is built here, the market share that we have here, the ability to resell it – so for that consumer, if they ever plan to sell their boat, they will hold 10-20 per cent more value.”