Bavaria Yachts, the German boat builder still in trouble

Bavaria Yachts factory in Giebelstadt

Dismissal and rumours of part-time work... The German recreational boat specialist has not emerged from the difficulties since its takeover by the investment fund CMP.

Workforce reduction at Bavaria Yachts

The local German press reported persistent difficulties within the Bavaria Yachts shipyard. After an extremely troubled 2018 summer season and a takeover under protection, the German yachting leader was finally taken over in the autumn by the investment fund CMP Capital Management Partners. The latter had quickly announced his desire to retain employees and internal know-how, by limiting the subcontracting that had strongly developed in the company. According to the Bayerischer Rundfunk site, however, about 5% of the workforce will have to leave. A Bavarian spokesman confirmed the departure of 24 employees.

Production of boats too slow to restart

The employment difficulties are the result of a slower recovery than expected by CMP. Before 2008, when the Giebelstadt shipyard was operating at full capacity, Bavaria Yachts produced 3500 pleasure boats per year. The target of 450 units set by the buyers has not yet been reached. CMP now announces it for the first full year of 2019/2020. According to Christian Hartmann, chairman of the workers' representative council cited by Bayerischer Rundfunk, the difficulties can be explained by the loss of customer confidence after the safeguard period when the company no longer accepted orders for new boats.

Towards a return to part-time work?

Bavaria's management has not confirmed that it will again use part-time work to cope with the limited activity. However, she says she would like to work on the principle of a "breathing factory". This would apply "to both time and the flexible deployment of employees in the different production areas."