The financial crisis of 2008 and 2009 placed yacht manufacturers in a very difficult position. Stock markets in and around Asia were doing very well in the early 2000s. At that time, China’s economic growth and infrastructure development was already high and the Chinese began to show interest in yachts from China. luxury. Shipbuilders seized the opportunity and set up showrooms near newly built marinas in China. Chinese boat shows, such as the Shanghai Boat Show, attracted more manufacturers to the industry. Hong Kong was still the main port at the time, as Chinese buyers bought and moored their yachts in Hong Kong due to zero tax in Hong Kong. All this interest in the industry created quite a stir and the industry grew steadily as more and more manufacturers rushed into China. Other industries in China were also doing very well and wealth was growing at a rapid rate. Many of the large luxury yacht manufacturers decided to expand to improve their delivery times and, in doing so, capture markets. They also believed that expansion would be a low-risk move, because even if European or US markets slowed down, Asian markets, especially China, would still have customers to absorb their production.
In 2007, the Hong Kong stock market hit a new high, with many news channels and so-called professional investors saying once again that the market had reached a new level and would not fall again. Businesses were running smoothly, markets were booming, and banks were lending. The hype surrounding China’s growth and wealth led to rumors among manufacturers about how many ships were being sold in China. Agents and manufacturers exaggerated the number of high-end luxury boats they sold. Due to this exaggeration, many yacht manufacturers around the world had taken out large loans, had purchased a large quantity of building materials, and were expanding their factories on a much larger scale. And then the unthinkable happened. Financial markets collapsed in 2008. Needless to say, many yacht manufacturers are now facing bankruptcy. Although exchange rates were favorable for the Chinese and some high-end customers bought yachts to take advantage of the exchange rate, these sales were not enough to bail the factories out of their financial debts.
As markets collapsed, public companies began to lose money and customers in most Asian countries stopped buying yachts, except for some customers from China. Most of the money for Chinese customers came from internal development in China.
Even years after the market crash, yacht manufacturers still struggled to recover. Many famous Italian and British yacht manufacturers were taken over by Chinese companies. In 2015 many of the yacht manufacturers are still on the mend. The effects of this recovery can still be seen today in many factories. Today it is still possible to buy new boats with engines and generators that were built in 2007, because factories still keep the stocks they bought at that time.
The 2008 market changed the dynamics of the yacht manufacturing business. The reckless expansion to capture market share caused huge financial losses when financial markets collapsed and forced many yacht manufacturers to sell their companies. Economically strong Chinese companies saw the opportunity and bought many of the European yacht factories, moving control and ownership of some very famous brands from the west to the east.
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