If you make otherwise good employees redundant in most developed countries with strong labor laws, the employer has a bill to take care of. It is far more costly and less of an immediate short term saving to let go French employees than folks in SC.So what really drove this? Just covid, or did the new tax law make it less disadvantageous to import boats? Or does the luxury goods import tax just not matter any more from a competitive point of view, now that all the other US manufacturers are out of business?
It just seems unlikely that labor costs in France are lower than South Carolina.
Yup. The US has positioned itself as Europe's labor bitch.I worked for a number of multinational companies during economic contractions. It is extremely difficult to lay off employees in France and Germany with their laws and works councils. The USA was like, fine, have at it, lay’em off. It was frustrating in those times, 2000, 2008 for example, to see large percentages cut here in the US and the French and German subsidiaries would be largely untouched. So, I have to assume Beneteau feels they need to contract and the US is where they can do it. I would guess that this is one of the reasons they put the plant here in the first place (along with labor costs and tax incentives) because if they needed to flex their capacity down In a weak market they could.
Close friend is a Jeanneau dealer and he's selling boats new and used faster than he can get them. Best market he's seen.Group Beneteau is considering closing four of its 16 sites as it looks to scale back production and cut costs.
As a result of the covid-19 pandemic, the organisation predicts its sailing and inboard motorboat segments could see a similar contraction in volumes to the 2008-2009 financial crisis which would not be offset by dayboating market growth.
An option the Group is consulting on is closing, selling or temporarily shutting down four of its 16 sites – one in the US, one in Slovenia and two in France.
Operations at three sites – Italy, France and Poland - could be scaled down.
For the Boat division globally, the measures would lead to job cuts for staff assigned directly to production, resulting in a reduction in the workforce by 300 to 840 people.
With regard to indirect production, product development and support services staff, the cuts being considered would result in a reduction in the workforce by 380 to 460 people for the division.
In August, the Group approved a change to its financial year-end date to December 31 2020.
Financial elements will be published on October 27 2020 that will include information on the end of the Group’s summer season.
The Group has confirmed that business for the period from September 1, 2019 to August 31, 2020, and particularly the last quarter, came in slightly better than it had previously forecast. The same is true for the net cash position at August 31, 2020.
A total of 18 new models have been announced for 2021.