MERCED, Calif. – Following the release of a local news article reporting massive impending layoffs at its facility, Malibu Boats has issued a press release setting the record straight. Here is the release in its entirety:
“Malibu Boats was recently the subject of a local news article reporting “mass layoffs” at their California facility. A warning letter issued by Malibu Boats to employees and local government prompted this article. The article failed to fully explain the true implications of the state and federally mandated Warn letter that was presented to all Malibu Boats California Plant employees this week. The law required issuance of the letter and it simply warns of possible layoffs. Malibu Boats continues to fill boat orders at their California and Tennessee Plants in contrast to many other water sports manufacturers who have halted their production completely.
“This latest report was prompted by a “Warn” letter that was presented to every employee at the Malibu Boats California factory and subsequently filed with the County and City of Merced, CA. This letter was Malibu Boats’ response to a State and Federal requirement of the Warn Act. Employees must be given at least 60 days notice of possible layoffs. This notice was not to inform employees they are being laid off. The letter was to inform them of the possibility. Malibu Boats will strive to avoid layoffs, but if some cuts become necessary for the health of the company, they will be temporary. The letter went to everyone at Malibu California including the CEO. This does not mean these warnings have or even will be enacted. This means Malibu has given the required notice of the possibility of layoffs.
“While all boat manufacturers have been adversely affected by this economy, Malibu is the only water sports boat manufacturer to not cease production. Malibu Boats is the only manufacturer to operate multiple manufacturing facilities; they have the ability to strategically plan production from either factory. Malibu Boats has also been preparing for this downturn in the economy for nearly two years. That foresight is paying off for Malibu, as they are the only manufacturer continuously building boats and employing the talented individuals who choose to work there.
“Currently Malibu is building boats at both the California and Tennessee plants. They happen to be building more boats in Tennessee right now. The production levels at each plant fluctuate based on regional demand. A higher percentage of current orders are originating in the South, Midwest and Eastern United States. This is the reason for increased production levels in Tennessee right now. Malibu Boats cannot build out-of-region boats in California only to incur large freight bills getting these orders to their destinations. They need to be as efficient as possible.
“Malibu Boats has successfully launched a new boat division (Axis) in the middle of this downturn, providing further opportunities for big wake riders in the lower price market. This move is unprecedented and will allow Malibu Boats to hit the ground running when the economy begins its recovery.
“Another bright side is the amazing value Malibu Boats offers. This value is being realized by consumers, but also by the company in the form of increased retail sales numbers over the last couple of months. Malibu Boats stands to benefit as the economy as well as wholesale and retail financing begins to pick back up. Malibu is looking forward to continued success for the entire Malibu Family when this takes place.
“The California Malibu Boats Factory is not closing nor is everyone there being laid off. The California plant is and always will be the corporate headquarters for Malibu Boats. Malibu Boats, like many other companies, is working hard to make it through to better times. They believe they will get through this and be a stronger company when it’s all said and done.”
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