More on Ethanol

In the January issue of Power & Motoryacht, Capt. Patrick Sciacca chronicled two boaters’ adventures with ethanol gasoline (Encounters With Ethanol). In 2003, several states switched from traditional methyl tertiary butyl ether (MTBE) to a fuel blend containing 10 percent ethanol (E10)—with many arguing that the move will help reduce our dependency on foreign oil. However, Sciacca’s article detailed how E10 can also erode fiberglass fuel tanks and rubber hoses.

Now the Marine Retailers Association of America (MRAA) has taken a stand on the issue. Its board of directors recently approved a resolution supporting “all efforts to retain current federal ethanol gasoline additive standards of E10 and oppose any attempts to increase additive levels beyond that level due to the destructive nature of ethanol to marine engine systems and the resulting safety considerations to vessel passengers.”

The resolution was one of several given to the MRAA by the Advisory Council of Marine Associations at MRAA’s annual convention this past November.

Lining Up for Dealer Certification

Although social networking is a popular reason to log on to the Web, the Marine Dealership Certification Program—hoping the industry uses the Web to its advantage—is now offering a series of online Launch Workshops. The idea beyond the virtual workshops is to make it more convenient for dealerships to earn the Marine Industry Certified designation, at a reduced cost.

Signing on for a Launch Workshop is the first step in the certification process—which explains the program requirements and provides the tools need to complete the process. "The new Web-based workshops provide exactly what the dealers themselves told us they wanted: A quality program with an eye toward keeping the dealers' program costs as low as possible," explained Phil Keeter, president of the Marine Retailers Association of America and vice president of Marine Certification Inc.

With the new format, more dealership employees can participate without having to travel to attend classes because they can log on from their office computer. The workshops with take place over the course of two consecutive days. The Web-based Launch Workshops will be offered January 20-21, February 24-25, March 17-18, April 7-8, April 21-22, and May 12-13.

Rule Change

Just in time for the winter boat show season, boatbuilders and dealers are getting some relief from the National Marine Manufacturers Association. NMMA's executive committee voted today to temporarily relax the non-current show policy for the 2009 winter boat show season. The association's show committee originally made the recommendation.

Under existing rules, exhibitors are only allowed to display 20 percent of their previous model year products at any 2009 NMMA winter boat show. However, in a move to help dealers sell their existing stock, that limit has been raised to 50 percent, according to a release from the NMMA.

"The NMMA show committee, executive committee and staff understand the economic realities currently facing the boating industry and believe this one-time policy change will give dealers a prime opportunity to sell more product at boat shows over the next few months," explains NMMA executive vice president Ben Wold.

Equity Boost

Riviera, a luxury boatbuilder based in Australia, is taking steps to weather the global economic storm, and those steps include getting a financial shot in the arm.

After a strategic and operation review of the current economic climate, and its resulting slowdown in demand, the builder received an injection of new equity from its institutional investors which include Ironbridge and Greshman Private Equity, according to a Riviera statement. The financing arrangement, which includes a new three-year debt facility, provides the management team with greater flexibility as it responds to the challenges in today's global market, CEO John Anderson said. Riviera did not release the amount of the new equity.

Anderson noted Riviera's "encouraging" sales performance at international trade shows in the latter part of 2008; however, he expects the market in general to continue to slow as a result of the overall economic situation.

"We believe our new banking arrangements provide the business with greater operational flexibility and a more stable platform from which to build the business over the medium term and that the support of our bankers and institutional investors clearly reflects the underlying strength of the Riviera business," he added.

In addition, the builder is making changes to its executive team, appointing Ly-Eng to chief financial officer and Les Galbraith to managing director of the company's Australian retail organization R Marine. Former managing director Tim Sayer is moving up to new position of director of global sales and marketing. Also, Michael Burke climbs the ladder to director of operations.

Change Is in the Air

Brunswick Corporation is making some strategic organizational moves to strengthen its operations internationally and to ensure the continued integrity and quality of its Hatteras Collection.

William Naumann is taking the role of chairman of the Hatteras Collection, effective immediately. He will be charged with, among other things, leading the efforts to build upon relations with dealers, customers, and suppliers. Naumann retired from Hatteras in 2006. In addition, James Meyer is stepping up to president-Hatteras Collection, replacing Keri Theophilus. Meyer was formerly vice president-product development, supply chain and business integration for the Brunswick Boat Group. Both Naumann and Meyer will report to Dustan E. McCoy, Brunswick's chairman and chief executive officer.

In turn, Theophilus is taking a new assignment in Brunswick International; however, details were not released at this time. He will report to John Pfeifer, president-Brunswick Marine in Europe, Middle East and Asia.

“These actions are a testament to the managerial bench strength and resources we have at our disposal at Brunswick, both from within and outside the company,” McCoy said in a company release announcing the moves. Meyer joined Brunswick in 2006 from the Ford Motor Company. Theophilus, who joined Brunswick in 2007, had most recently worked for Samsung Petrochemicals, a joint venture between BP and Samsung based in Seoul. Naumann, who led Hatteras for nine years, recently had been heading up a number of civic and philanthropic activities in retirement.

Hybrid Discount

As boaters continue to search for ways to beat see sawing gas prices and, at the same time, become more eco-friendly, their efforts are now being met with at least one reward. Travelers offers the industry’s first hybrid boat insurance discount—up to 10% on hybrid boat and yacht insurance. “Hybrid vessels are using the latest, state-of-the-art technology in the marine industry,” says Chantal Cyr, vice president of the Boat and Yacht Division for Travelers.

The move comes as several versions of hybrid boats enter marinas around the world, including the Island Pilot DSe Hybrid, which is currently making its debut at the Fort Lauderdale International Boat Show. “Travelers marine specialists thoroughly reviewed the functionality and operation of hybrid boats currently in the marketplace,” adds Cyr. “Our research suggests boat manufacturers will begin incorporating hybrid designs into different models to provide a hybrid option similar to what’s taking place in the automotive industry.”

Travelers defines hybrid boats as those with an integrated propulsion system that incorporates both an internal combustion engine and an electric motor in its original design. For more on hybrid boats, and an in-depth look at the Island Pilot DSe Hybrid, look for Power & Motoryacht’s special January Engines Issue.