Nordic Tugs 42

Nordic Tug Brand Could Revive Under Management Buyout

The Recently Launched Nordic Tug 39

The Recently Launched Nordic Tug 39

The current management team at Nordic Tugs is looking for investors to help them acquire the brand and production capabilities from the current private owner of the company, according to a source familiar with the search. Late last week, the Washington state boatbuilder announced it was shutting down manufacturing operations. The company recently launched a new 42′ for the Seattle Boat Show, as well as a new 39′ for the Show, and has a couple of dozen pre-owned Nordic Tugs listed for sale on its website.

The current owner cited the economic recession as the underlying cause of the manufacturing shutdown. The shutdown is being attempted with the goal of keeping all parties involved as “whole” economically as possible.  Employees who are being laid off are being paid for time worked up to the shutdown and for paid time-off that had been earned. Vendors and suppliers are also being paid, according to one company official.

There were two additional company-owned boats in early stages of construction. A quick check with some Nordic Tug dealers suggests a guarded optimism that the brand will survive and that manufacturing will resume as soon as consumer demand picks up whenever the recession is over. It’s pure speculation on my part, but Nordic Tugs fit into the mid- to upper-market niche and probably have a slightly higher percentage of financed buyers than the very high-end cruising and passagemaking boats.  They may also have a buyer demographic that has been hit harder by unemployment. These factors could exacerbate the difficulties faced by the builder and dealers in finding buyers with either significant discretionary cash on-hand, or access to easy credit. Those last two are characteristics in extremely short supply right now.

In the end, the boats and brand will likely survive, in my opinion. They are high-quality boats, with a diverse and loyal ownership base out there that could move up through the larger models if economic conditions permit.

Copyright © 2010 by OceanLines LLC.  All rights reserved.

Posted by Tom in Boats, Cruising Under Power, Industry News, Powerboats

Good Deals on Trawlers Available

2008 Nordic Tugs 42-105 Shown on Long Island Sound

2008 Nordic Tugs 42-105 Shown on Long Island Sound

It is certainly far too early to call an end to the financial turmoil that has wracked the United States and many other countries for the last several months, but some observers in the financial community are beginning to counsel their clients to start looking for bargains among the detritus of demolished investments.  Potential boat buyers, particularly those looking for good deals on passagemaking-style boats, might consider that advice as well.  There are some stunning deals out there.

For example, Wilde Yacht Sales, in Essex, Connecticut, which is the Northeast regional dealer for Nordic Tugs has an offer on the table for its in-stock tugs that should tempt anyone even thinking about buying.  For starters, Wilde is offering a 2008 Nordic Tugs 42, which normally lists for close to $800,000, for $719,186 (not sure how you get $186, but there you have it).  That is substantially lower than at any time in the last five years, and represents a competitive price for an east-coast, flybridge-equipped 42.  The boat is hull #104 and it’s fully equipped with electronics, and upgraded interior furnishings, including screens on doors and day/night shades.

Wilde is also offering a special deal on Nordic Tug 37-193; a boat that was originally listed at $538, 740, and is now priced at $484,874.  This 37 is also fully equipped both from the factory and with the usual Wilde package of enhancements.  Wilde representative Paul Tortora said today that the dealer also has a 32 on the way that will likely also be elegible for a significant price break.

And if the low price doesn’t quite get you there, Wilde is offering three years of dockage, scheduled maintenance and fuel.  Occasionally, you might get a dealer to throw in a slip at a marina it has a relationship with, for maybe the rest of the summer if you’re buying in Spring, but this deal from Wilde is for three years worth of dockage, wherever YOU dock.  Actually, what they did is take the average of 5-6 marinas on the Connecticut coast, including a Brewers yard that northeast boaters will recognize as a premium yard, and that’s the amount they will give you.  For maintenance, Wilde talked to both Volvo and Cummins representatives and estimated the costs for the first three years of scheduled maintennance tasks.  For fuel, they figured an average of about 115 hours per year, which is about right for a trawler owner in the northeast; it might even be a tad generous given the short seasons.  Wilde calls the incentive “Three Free for Three.”

Nordic Tugs has, like several other manufacturers, been offering factory incentives to help dealers clear out the inventory backlogs.  Even if you’re not interested in a Nordic Tug, check with your trawler dealer of choice; odds are there are some pretty impressive incentives available.  The winter boat show schedule is upon us.  Make some plans to get to one of these shows.  Have a look at the NMMA show database here:

NMMA Boat Show Calendar

Copyright ©  2009 by OceanLines LLC

Posted by Tom in Boats, Industry News