Chris-Craft:1961 to 1981 Chris-Craft Industries

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The Smith family had discussed the possibility of selling Chris-Craft Corporation in the late 50’s.They knew the approximate value of the company and were in search of a buyer who would be in a position to offer liquid assets. They would not entertain one that involved stock options as part of the closure and would be influenced by potential buyers with intentions to keep the company in tact.

Contents

[edit] The Sixties:

In a chance meeting at the 1959 New York Boat Show between Owen Smith and an executive from NAFI (National Automobile Fibers, Inc.), a fairly short term negotiation process began that would end in the eventual sale of the Corporation to NAFI. The assets exchanged hands on February 7, 1960.

The European connection began in 1961 with the parent company’s permission to open Chris-Craft, S.A. in Lausanne, Switzerland to expand sales and production. A production facility was added in Fiumicino, Italy in 1962 named Chris-Craft of Italy, S.p.A.

In 1962 NAFI changed their corporate name to Chris-Craft Industries, Inc. Later that year Chris-Craft entered into the fiberglass Sailboat business, opened a new Research and Development Center in Pompano Beach and purchased the Thompson Boat Company of New York, all were related to their need to enter into the fiberglass age of boat building.

The Corsair Division was in business beginning in 1963, building fiberglass runabouts and small cruisers that were initially designed and developed by Thompson of Cortland of New York. This turnkey attempt to enter the fiberglass boat business was a success this time. See Lake 'n Sea for details on their first turnkey fiberglass experience.

The new Research and Development Center along with the Holland, Michigan facility turned out the first all fiberglass 38’ Commander Cruiser which was introduced at the New York Boat Show in 1964.

In 1965 a new facility was introduced in Stratford, Ontario to serve the growing Canadian market.

Controlling interest in Chris-Craft Industries, Inc. was taken over by Herbert J. Siegel and in January, 1968 he became the president and CEO. He moved quickly to reorganize the corporation, creating the Boat Division, the TV Broadcasting Division and the Industrial Division.

The Aqua Home was introduced in 1968 with fiberglass hulls and vinyl covered plywood upper structures. The general trend was moving away from plywood hulls. This was beginning to affect the Cavalier and Sea Skiff fleet dramatically. However, the trend was favorable for the Corsair and Commander fleets of all fiberglass boats.

[edit] The Seventies:

The Decade of the 70’s began with several changes, primarily due to world-wide sliding economy. The Stratford, Ontario facility closed, the unthinkable closing of the Algonac, Michigan facilities occurred, sending the engine operation to a new plant in Gallipolis, Ohio, the Sea Skiff fleet was merged into the Main fleet and the Cavalier fleet was discontinued.

The energy crisis of 1974 added significantly to economic climate of the country, causing more unpopular decisions to consolidate the remaining four facilities into two. In 1976 the Roamer operation in Holland, Michigan was moved to Pompano Beach, Florida and the Sport Boat operation in Chattanooga, TN was moved to the Fiberglass Cruiser plant in Holland, MI. In 1976 the Sailboat Division was terminated and in 1978 the operation in Fiumicino, Italy was closed.

In 1978 Richard E. “Dick” Genth was persuaded by Herb Siegel to become president of the Boat Division to help turn things around as the Division had been working in the red for several years. Genth immediately stopped production of sport boats in the crowded Holland plant, returning it to cruisers only, marketed the remaining unsold sport boat inventory and negotiated an impressive deal with the city of Bradenton, FL to convert an existing facility into Sport Boat fleet production facility. The next move was the very controversial closing of the Pompano Beach facility, terminating production of aluminum Roamers.

Before the decade ended Genth persuaded the board of directors to withdraw the Chris-Craft engine, parts and mail-order operations from the Boat Division. These entities were transferred to Chris-Craft Industries, Inc. Industrial Division and continued to operate. The Boat Division was split into two separate corporations; The Holland operation remained Chris-Craft Corporation while the Bradenton operation became Chris-Craft Sportboats, Inc. Thus, the Boat Division was trimmed down to only the two boat-building corporations and showed a profit in the final year of the decade.

[edit] The Eighties:

The Eighties started with an announcement from Chris-Craft Industries, Inc. that "...the Boat Division will continue to operate routinely, but it will be accounted for as a discontinued operation, pending divestiture". On December 4, 1981 G. Dale Murray and a small group of investors that included Dick Genth purchased the Boat Division, keeping the name sake (via a licensing agreement with Chris-Craft Industries, Inc.) by establishing Murray Chris-Craft (The official name was Murray Industries, Inc.).

[edit] References

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