The story of Baja

NSBCraig

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A small fiberglass company named Aeroglastics Inc., which built parts and products for other companies, moved into building fiberglass boats in 1971.

That company, Baja Boats, was originally located at 543 Jones St., which had been a roller skating rink. The company had many ups, and downs, in its turbulent 37-year history in Bucyrus.
Aeroglastics was incorporated on Feb. 5, 1970, by Neil E. Baker, Charles F. Coulter and John D. Sears.
The company broke ground for a new $1 million facility in the Bucyrus Airport Industrial Center on Dec. 10, 1974. The new building was the first phase of a four-year expansion program which saw all aspects of the company's operation move to Issac Beal Road.
Company president Baker said at the time that plans for the expansion began some years before when it became clear that projected sales would exceed the capacity of the Jones St. plant.
The plans were rushed, however.
While still on Jones Street, the company suffered a series of fires in 1976, the first happening on Jan. 23 and the second Feb. 5. Both were small fires, causing little damage.
The third fire, however, was different. Much different. Fire ripped through the plant in the early morning hours of Sept. 20, causing more than $140,000 in damages and virtually destroying the plant. Flames were estimated as high as 100 feet.
"We couldn't have saved the building by the time we got there," then Bucyrus Fire Chief Gordon Grove said. "The building was down and gutted within 45 minutes after we got there."
The fire occurred just two weeks before an annual trade show in Chicago, but dealers loaned boats to exhibit to generate subsequent sales.
In the meantime, the Jones Street plant was shut down and Baja executives decided to move quicker to build the new plant on Issac Beal Road.
The building suffered another major fire on Nov. 29, 1977. This fire hit a building just 20 feet south of the site of the first fire. Both fires were eventually ruled to be of suspicious origin.
Aeroglastics also suffered another setback on Dec. 20, 1976, when an administrative judge of the National Labor Relations Board found the company engaged in unfair labor practices and was ordered to restore three employees with seniority and other rights and pay them their earnings.
Aeroglastics appealed the ruling, kicking the case up to a three-member panel, who affirmed the ruling of judge Almira Abbot Stevenson on April 10, 1977.
Baja completed its expansion plans in mid-1979, finishing a 12,000-foot square building. At the time, the company expanded its work force by 40.
The company held yet another groundbreaking for a $1.5 million expansion on Jan. 17, 1984, to build a 20,000-square-foot warehouse. The expansion was expected to create 35 new jobs with more jobs coming as other phases of the expansion were completed.
By 1986, Baja reported sales of more than $20 million and 235 employees, that raised to $32 million and 360 over the next year. During peak periods, production hit between 55 and 60 boats per week coming out of the Bucyrus plant.
In 1987, president Doug Smith announced that the company was opening a new manufacturing facility in Mabank, Texas. In that story, Smith said his company is experiencing unprecedented growth. The Texas facility closed after a short time.
Baja opened an 86,000 square foot engineering facility in 1989 and its Baja Sport 250 was named full size boat of the year by Powerboat magazine.
"Our business has doubled every two years for the last eight years," Smith said in 1989. "We have had tremendous growth."
But ominous days were still ahead.
On Jan. 8, 1994, workers were stunned when they went to pick up their paychecks and were told there was no money. National City Bank of Columbus froze the company's assets after the company laid off most of its 380 workers, including those in management.
According to then Baja vice president Michael Scruggs said that the problem resulted from two missed loan payments.
National City Bank, however, in a subsequent story, said that the decision to close the facility and lay off the employees was solely Smith's decision.
"Anything (Smith) has done as far as closing or slowing down his operation was a business decision on his own," said Stanley Harris, manager of public relations for National City Bank at the time.
Baja announced Jan. 29 it would reopen on Feb. 7, and filed for bankruptcy protection on Feb. 3, filing a reorganization proceeding under Chapter 11 in U.S. Bankruptcy Court in Canton.
Things gradually began to return to normal, and Baja employees were offered insurance in March.
Baja's mortgage with National City was purchased on March 31 by Genmar Holdings in Minneapolis, Minn. But management agreed to let Brunswick purchase assets to enable the company to come out of Chapter 11. In October of 1995, Baja Boats became the sole property of Brunswick/SeaRay Division.
 

NSBCraig

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Re: The story of Baja

The Evolution of Performance

Like all Baja? boats, our very first model was something special. In a bold display of drive and determination, four owner/employees assembled the original design in an abandoned roller skating rink in 1972. What they lacked in resources, they made up for in motivation ? a single-minded mission to build the finest performance boats in the world. Over the next two years, Baja Boats was born, and a product line of 14- to 20-footers, including the classic CT 150 racing design, took shape.
We spent the 1970s perfecting our nontraditional designs, further solidifying Baja's styling and position as an innovator. That?s when Baja took the lead in exclusively pursuing the sport boat market. It was a move that paid off when our first big high-performance boat, the Carrera 240, was introduced in 1978. And the 1979 Carrera SS Bowrider earned a Powerboat Magazine "Boat of the Year" award its first year out!
In the 1980s, we successfully expanded the Baja line to include distinctively styled, world-class offshore boats like the 240 Sport and the 420. Our interest and attention slowly shifted towards creating bigger, better offshore products with improved design and structural integrity. Progressive product development has always been the core of the Baja philosophy.
As we expanded our line in the early 1990s, Baja confirmed its place as the industry leader in style, performance and quality with the .38 Special? and the 272. We kept pushing the envelope ? introducing the 20 Outlaw? and 32 Outlaw? with modern performance styling for the power-hungry, speed-seeking, hard-core offshore runner.
The new millennium has brought with it innovation and style unlike anything you?ve seen from Baja. The 30 Outlaw, 242 Islander and a complete retooling of our Sportfishing line are just of few examples of how ?performance under control? is the driving force behind everything we do.
Over four decades of mind-blowing innovation, and Baja continues to blaze new trails and redefine the category of performance boats. We call it the evolution of performance. Now strap yourself in and get ready for a revolution in performance. . .the next generation of Baja.

Copied from Baja Marine present website (not Baja by Fountain w contact email @donzimail)
 

NSBCraig

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Re: The story of Baja

Checkmate?s legendary reputation for speed, incredible styling and finishes appealed most to Checkmate?s current President, Doug Smith. A former co-founder and president of BAJA marine, Smith decided to come take on a new challenge. He dusted off the cobwebs and rekindled the fires of his love for speed. In 2007, Doug Smith grabbed the opportunity to re-join the performance boating industry and came aboard at Checkmate. Leveraging Checkmate's top-notch quality and outstanding performance record, Doug inaugurated a new era in Checkmate?s history. True to his word, Doug Smith continues to uphold the classic styling, high standards and commitment to quality that?s always been part of the racing icon called Checkmate.

Copied from Checkmate website

There is a rumor that the first Baja mold was made directly off a brand new Checkmate hull.
 

NSBCraig

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Re: The story of Baja

BUCYRUS, Ohio ? The founder and former president of Baja Boats, Doug Smith, has acquired Checkmate Powerboats in Bucyrus, Ohio, according to a statement yesterday from the company.

While details of the sale were not released, it was announced that molds, inventory, manufacturing facilities and related assets were included in the transfer of ownership.

Smith, a 36-year boat building veteran and executive, began contemplating his return to the marine industry in early 2006, according to the company.

"I've never lost my love for boating or the business," commented Smith, who now assumes the position of Checkmate Marine, Inc. owner/president. "I think the recreational boating market is ready for some new direction and that's where we plan on taking future Checkmate product."

Checkmate will immediately begin building 2008 models.

"It just makes good sense to start fresh and supply our dealers with brand new product,? Smith said. ?Our line will consist of models from 16 to 33-feet, including a special emphasis on eight exciting outboard packages. With all of the recent technological advancements in outboard engines, now's the time to develop and offer a variety of models that take full advantage of those new-age benefits in fuel efficiency, dependability and environmentally-friendly low emissions. Rest assured that we also intend to continue the high standards of construction, quality, workmanship and performance that have become synonymous with Checkmate Powerboats for four decades."

Smith started his marine industry career in 1971, building and assembling his first Baja boat in an abandoned roller skating rink in his Bucyrus, Ohio hometown.

"It was an exciting and rewarding journey, taking Baja from a small regional boat company to a nationally recognized brand," said Smith. "I see a lot of potential for growth and expansion of Checkmate in the years ahead. With excellent people, motivated dealers and exceptional product, we have a great foundation for success."

Smith also named Dean Reynolds as Checkmate's new general manager; Kip Combs, sales manager; and Mike Combs, purchasing manager. Kip and Mike are sons of former Checkmate founder/owner, Bill Combs.

"Checkmate Powerboats wouldn't be the same without a Combs on the organizational chart," said Smith. "Bill Combs and his sons have lived Checkmate Powerboats for nearly forty years. They're an important part of this legacy."
 

NSBCraig

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Re: The story of Baja

The rebirth (again)

Boating Industry
Friday March 21, 2008




LAKE FOREST, Ill. ? Brunswick Corp. has signed a letter of intent to sell certain assets of its Baja boat business to Fountain Powerboat Industries, Inc., and plans to end production of Baja boats in Bucyrus, Ohio, by the end of May in preparation for the transition, Brunswick reported yesterday in a release.

Terms of the agreement with Fountain were not disclosed, and completion of the sale is subject to certain conditions, Brunswick said.

When completed, the closing of the Baja plant will mean a loss of approximately 285 positions. Baja leadership will be working diligently to transfer as many employees as possible and practical to either Fountain or other Brunswick manufacturing facilities, Brunswick said.

For those employees who do not have the opportunity or do not wish to transfer, severance will be provided.

As a result of these actions, Brunswick estimates that asset writedowns, along with severance and other costs associated with the plant closure, could total between $10 million to $15 million, pre-tax.

?This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward,? said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. ?This action in no way reflects upon Baja or the abilities and performance of the Bucyrus work force. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance boats.?
 

NSBCraig

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Re: The story of Baja

Reggie Fountain is now the planet?s largest builder of high performance boats.

According to Reggie Fountain, he has been in negotiations with Brunswick Corp., owner of Baja Marine, for almost a year. ?This transaction was not forced on me,? Fountain said in an interview yesterday. ?All of my lawyers, bankers, and advisors have said this is a good deal for Fountain Powerboats and I?m very happy with it,? he said.

Fountain says that the $5 million loss reported for last year wasn?t as bad as it sounds as a significant portion of it was for ?book write-offs.? He said that last month the company bought back $1 million worth of its own stock, and he said that neither he nor Brunswick were any longer guarantors of the company?s debt.

?They [Brunswick] wanted Fountain to have it and now I?ll be the largest exclusive user for Mercury Racing engines,? Fountain said.

Future Plans

?We?re planning on only one sales and marketing staff so this acquisition will allow me to spread our overhead over many more units,? Fountain said. Baja Marine has 86 dealers and Fountain has 26, giving the combined company over 100 dealers, all specializing in high performance boats. That will undoubtedly be the largest dealer network in the category and with boats at all price points it may provide tough competition for the few remaining high performance builders.

Keeping 10 Baja Models

?We will let the best Baja dealers sell Fountains, and the best Fountain dealers sell Bajas, so long as there is not a conflict in territories,? he said. Reggie went on to say they he would discontinue the smallest Bajas and start with the 23 and go up from there, keeping in production about 10 of the company's existing 18 models.

In their best years Fountain booked $80 million in sales and Baja Marine booked $70 million, according to Fountain. The last several years, however, have been difficult for both companies. In fiscal 2007 Baja Marine was down 19% in annual sales to about 711 units, 84% of which were under 30?. Fountain was down 7% to about 350 units for the same period.

Two Different Ends of the Market

Fountain?s smallest sport boat is 33? and its smallest fishboat is a 31? center console. The company reported sales of $68 million in 2007, of which $28 million was from the fishboat product line.

The merger of these two quite different high performance product lines has many industry observers scratching their heads because Fountain has avoided low price-point boats, and that has been Baja?s market niche. Also, long ago Fountain gave up the small boat market where Baja has most of its business. Nevertheless, Reggie Fountain is unfazed by this apparent contradiction in market strategy saying that he looks forward to moving Baja owners up into larger, more expensive Fountains.

?People have been saying for years that we were going out of business, but we?re still here,? Fountain said. ?In the meantime Cigarette, Wellcraft, Chris-Craft and other high performance builders have all undergone restructuring and ownership changes.?

Baja Marine employs about 285 people at its plant in Bucyrus, Ohio. Brunswick has announced that production will wind up there in May, 2008. Fountain said that he is currently considering incentive offers from a number of different cities and states and that he will make a decision in a few months as to where he will end up building the Bajas. ?We have 250,000 square feet of manufacturing space in Washington, NC, and I can always put on a second shift,? Fountain said.

Fountain said he will change the name of the company to ?Baja by Fountain.?
 

NSBCraig

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Re: The story of Baja

Rebirth (again)

Liberty Associates and American Marine Holdings Chairman Bill Gates is proud to make the following announcement regarding significant changes to the operations of Liberty's recreational fiberglass powerboat brands Donzi Marine, Pro-Line Boats, Baja Marine, and Fountain Powerboats.

Liberty, owner of Fountain Powerboats and Baja; and American Marine Holdings, owner of Donzi Marine and Pro-Line; announced today that manufacturing operations for Donzi and Pro-Line are being relocated from production facilities in Sarasota and Crystal River, Florida; to Liberty's 250,000 square foot, 66-acre waterfront facility in Washington, North Carolina, long known as the home of Fountain Powerboats. Production for both brands is expected to commence by late November. North Carolina officials, lead by Governor Beverly Perdue, were instrumental in working with Liberty and AMH to offer state and county economic grants as incentives to make this project a reality.

John Walker, recently appointed as vice president and chief operating officer of Liberty, explained, "In North Carolina, Donzi and Pro-Line boats will be produced by their own dedicated workforces. Sales, marketing, and administration for both brands will continue to be run from our Florida offices. Donzi and Pro-Line will enjoy the benefits of a state of the art, wholly self-contained facility right on the water. At the same time, the added production volume will significantly enhance manufacturing efficiency at the North Carolina plant, which has been fully operational since November of 2009 when Fountain emerged from bankruptcy under our ownership."

Donzi is currently enjoying strong sales and increased market share in the high performance powerboat segment, where the its upscale models typically sell for more than $200,000. The company has reported retail sales of nearly 160 units in the past 15 months, while at the same time seeing a nearly complete elimination of existing field inventory.
Meanwhile, sales at Pro-Line have been seen a boost following the recent introduction of several new models, including a 35-foot center console.

Liberty has also announced plans to re-launch Baja as a stand-alone brand. According to Walker, who will serve as president of the new company, "We have given Baja a very thorough evaluation. The brand has some of the most loyal customers in all of high performance boating, and many of them, along with several very successful past Baja dealers, have given us some tremendous feedback. We will reintroduce Baja with a very new and fresh model lineup, while retaining the key attributes and features that made this company so popular and successful for so many years."

According to Walker, centralizing production in North Carolina is a strategic move that will provide significant advantages to Liberty's brands. "After evaluating our options, North Carolina was really the only logical choice. The state has a very refreshing pro-industry stance, and the economic development people have been excellent to work with. We feel very welcome here. Beyond the many economic considerations, Eastern North Carolina has a very stable, skilled workforce and a strong boat building heritage."

Gates added, "We have reorganized Fountain over the past 12 months, and are moving forward with our plans to improve operational and cost efficiencies, and gear up for future. Now we're bringing in Donzi, with its dominance in the high end luxury performance boat market, and Pro-Line, the world's largest builder of family fishing boats. With the rebirth of Baja now underway, I think it's safe to say that Washington, North Carolina is the new capital of the boat building world."

 
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