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Location: Austin, Tx | This totally blows.....what a crock
All of mine are USA. bought one celebrity years back because it had this whorled sunburst thing going on, kept it about 3 years. Never regretted selling it. This is death by capitalism. Same sentiment that ran Wall Street. Narcissistic MBA's only trained for profit at all costs even if it means shutting down and moving jobs. We have to start taxing oversees products like other countries do. Many countries put import duties so high that it steers consumers to home grown products and makes it harder for native companies to move production to other countries. And those profits are taxed at a higher rate. The playing field isn't level and big interest lobbyists are all bought and payed for. I can go on but I am sitting down and playing my 1869..........Damn I feel old
Edited by Patriot 2014-04-23 11:56 AM
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Posts: 6992
Location: Jet City | I have never liked Fender, not since day one. I remember seeing nd playing a Strat that was hanging on the same wall as my UKII back in '82, and I remember thinking how inferior it was to the Ovation solid bodies I was contemplating.
To this day, I've never owned a Strat, and there have been nearly 100 guitars that have come through these doors. Never owned a Tele either. I've had versions of both (and still do) from other manufacturers, but never Fender. I have owned 2 Fender acoustics, both sub-par at best.
I could never quite pinpoint what it was about the brand that rubbed me the wrong way... till now.
Edited by Damon67 2014-04-23 11:54 AM
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Location: Brighty in Blighty | Feel sorry for the people affected by this, never great, when one door closes hopefully another one opens. Thanks for the happy times.
Edited by dweezil 2014-04-23 1:36 PM
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| Sad news indeed! I'm gonna be holding on tight to my mini-fleet of vintage USA made Ovations!
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Location: Colorado Rocky Mountains | Well said, Bobbo. |
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Location: Keepin' It Weird in Portland, OR | 
Fender sux... Still got the sticker.
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Posts: 152
| Lots of unhappy folks out there.
Check out the reaction of these two guys to the news and what they think of Fender guitars:
http://www.youtube.com/watch?v=0QXUEKbMlyE
http://www.youtube.com/watch?v=MHVGbE8aWsY
I never understood why they did that but I think I finally get it. |
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Posts: 846
Location: Canada | On other forums it was stated that Fender closed the plant because they are deep in debt and this is a last resort cost cutting. So just maybe they will cut themselves out of business soon, too bad some of their good pieces will be gone for good by then. I for one will not shed a tear when they are gone ... |
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Location: Keepin' It Weird in Portland, OR | Stuff Happens when your only motivation is Profit.
Once people have experienced the Good Stuff at a Good Price it is harder to screw them.
That goes for most of Fender's products.
The board-of-directors and the shareholders want a 1,000% return.
That is why the Kaman board sold KMC. (Kaman is an Aerospace Company, not a Music company)
That is why Fender moved manufacture to Asia.
Fender is trying to maintain a market by buying-out the competition.
But that won't support them. Even by making everything in Asia.
People buy a Fender until the can afford something better.
Because if you compare a Fender guitar against an Epiphone or a BC Rich, Fender loses.
That is not even putting Fender near PRS, Moser, or even Gibson.
Nobody is playing a NEW Fender on stage... They are playing a '59 Tele.
You could by a Fender Custom shop road-worn Gilmore Strat for $10,000, but WHY?
I can get a true custom guitar for that much.
Fender is on a Race to the Bottom which won't work.
There are too many Good Products to compete with.
And that isn't even talking about Acoustic guitars. There, Fender is dead.
Plus the good acoustic companies are not "Public" companies.
Gibson, Martin and Taylor are privately owned companies. So their priorities are different. 
There is nothing wrong with the product that Ovation was producing. (except maybe the LT-60)
There is something wrong with Fender.
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Location: Hot Springs, S.D. | OMA, they wanted to learn how to make Guilds so they could come out with that new line of "high end" Fender acoustics, which are basically just Guilds with that hideous Fender headstock. Now that they've got what they wanted, they are throwing Guild and the people who built them under the bus. |
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Location: GA USA | I'm so sad about all this. I was sad a few weeks ago when I went into the acoustic room at GC and they had a whopping two Celebs that were hung way out of reach. And every time I look at the Ovation offerings in Musicians Friend. I'm sad that a lot of folks won't get to appreciate a great Ovation guitar. I'm thankful for this club and you guys and gals. |
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Location: Tennessee | arthurseery - 2014-04-23 3:55 PM Stuff Happens when your only motivation is Profit. Plus the good acoustic companies are not "Public" companies. Gibson, Martin and Taylor are privately owned companies. So their priorities are different. Just for the factual record, Fender is a privately owned company too. And I believe that Fender's only motivation right now is staying in business. They are in dire financial straits. In order to refinance their debt and not default on it, they recently had to go back to their investors and raise another $40 million. Their CEO has just announced his immediate "retirement". And they have huge receivables from Guitar Centar, who are teeteing on the edge. This is about a whole lot more than figuring out ways to screw over the little guy. We may be on the verge of witnessing a spectacular crash and burn. That said, my statements above do not in any way lessen the pain I feel for the brand,and moreso, the incredible people who have been loyal and steadfast in their commitment to making better guitars for all of us. |
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Location: Texas | I felt that the writing had been on the wall for quite a while, (but I had hoped I was wrong.)
I just received the June issue of "Acoustic Guitar" and noticed "Ovation" on the cover, and found inside, not one, but TWO articles about Ovation. It was bad enough that they were both about Celebrity and Applause, but then I read about the "Celebrity Elite and Elite Plus" and the "Applause Balladeer and Elite" models, and an alarm went off in my head. So, I logged on here and discovered that it's even worse news than an "Applause Balladeer" model being prominently promoted. I don't think it's a coincidence that FMIC managed to get those two positive "editorials" in the current issue at the same time that they announced the closing of the U.S. plant.
Like most of you, I'm sad, disappointed, frustrated, etc. by this news. (I think G8r pretty-well summed up my feelings a little earlier in this thread.) I feel especially bad for the fine folks at the mothership. It's sad that the result of their un-compromised commitment to quality, craftsmanship and customer service didn't fit the Fender business model. I guess that, what's best for employees, the country they call home, or even their customers is not a priority for FMIC. It's easier to just buy-up as many brands as possible and cash-in before customers even realize that they're buying a cheap Fender mass-produced import and no longer getting the quality and reputation of the name that's on the headstock. Besides, the junk versions with the famous names only make Fender models compare more favorably, and when that trick dries up, just close 'em down, that's one less competitor to deal with.
Sadly, what our little group here thinks couldn't be less relevant to a giant multi-national corporation. I'll join you in boycotting all things FMIC, but I don't think it will make much of a dent in sales, nor have any impact on their business model. (But it might make us feel just a tiny bit better.)
EDIT: Bobbo, you and I must have cross-posted, but if what you say is accurate (and I'm sure it is,) it may be evidence that the FMIC business model doesn't work so well after all.
Edited by standing 2014-04-23 7:53 PM
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Location: Steeler Nation, Hudson Valley Contingent | Google is turning up articles all over the place. Here's one written by Mike Snider, who started another thread asking for input from us. Ovation Guitar Factory in CT to Close |
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Posts: 3084
Location: Brisbane Australia | A very sad time indeed!!
I have made numerous friends in the US and around the world because of my love for Ovation guitars.
It is all about people so we, as the owners, players and lovers of these great instruments it is up to us as a group and individuals to honour and further promote the wonderful legacy that Charlie and Bill and all the great people who have worked for and contributed to Ovation have created.
Let us all give thanks for the journey.
AJ
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Posts: 23
Location: Flint Hills of Kansas, USA | Wow...hate to hear this news. Got my first Ovation in 1992. Got two USA Os the past couple of years. The USA Os are such a pleasure to play and are very difficult to put down.
Thank you so very much to those that built my guitars. I will treasure these guitars always. I wish I could have only obtained more to add to my herd.
All of us in "Podunk, KS" wish the best for those employees affected by the plant's closing. For some of us, you have produced the guitar of a lifetime. Thank you. |
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Location: SoCal | This is all based on the fact that Fender got what it wanted (distribution network) from the purchase of Ovation and they seem to indicate that they are just shutting everything down. Unless they transfer equipment off-shore, they really can't use anything at the factory except the wood. Also, this is written late at night.
It would be very unique for a company to buy another company without stipulation as to liabilities...the "limited lifetime warranty" is a liability. Another liability for Fender is the current retirement (pension) plan and plan payments to current retirees. Doubt if the Fender's CFO is excited about Ovation's warranty and retirement liabilities on their books.
The state of Connecticut may have some say as to the retirement plan - usually relief is only available if bankruptcy. Course, they may have created a separate corporation when they purchased Ovation but they may be on the hook if it is recognized as part of the larger entity.
Fender would probably not release the trademark and patents for 'Ovation', 'Adamas', or 'Hamer' but it is a possibility if they just want out. Think about it, they make wood box acoustic and electrics...doubt if they want to make guitars with bowls. In fact, I have always felt that they felt the electrics were their main line, disdain for Ovation and their non-wood bowl.
Fender may not be interested in off-shore production of these guitars. Doubt if their reps are trained or interested in representing Ovation. Fender wants to sell electric guitars and wood box acoustic guitars with a Fender headstock. And, what remains of the company and the dip in the market may not be of interest to other companies. It may be open to transfer the current and future liability of warranty and customer service.
Again, from the sound of it, Fender just wants to close up and walk away.
The factory may be too big (Fender would have difficulty to sell) but a separate facility could be found in the area, purchase of the current inventory of parts, new logo if retained by Fender, etc., that would utilize the employees in 'Ovation', 'Adamas', and 'Hamer' for customer service, warranty repair, and custom building on demand. In other words, a solution for the current employees. If sufficient demand, then it morphs into a larger entity.
Connecticut and/or local could be solicited for tax relief or other incentives to retain. In fact, Fender may want to get out of the warranty liability enough to transfer the inventory at a discount. Yes, I anticipate that they at least they would want the wood. Not sure how the current retirement plan or payments of benefits could be handled. However, it would need 'seed capital' and a private or public offering.
It is an "out of the box" thought... |
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Location: Cork, Ireland | I feel for you, neighbours across the pond. We have never been a great manufacturing nation here (though a major food producer), but they do say that for long-term economic success, countries need to be MAKING THINGS (e.g. cars, cheese, guitars, matches, ANYTHING) rather than 'providing services', 'adding value' or other such meaningless 'industries'.
Edited by sycamore 2014-04-24 6:10 AM
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Location: Blue Ridge Mountains | I just saw Jerome's Facebook posting...then read this...I feel gutted...
I think we all saw this coming back in '07 but to face reality now is really sad...
I am thankful for the countless hours of playing Ovations over the past 40 years...
I am also thankful for the factory friends like JB and KK who bent over backwards to provide the best Customer Service of any American Company: Thank You is simply not enough it seems...
I'm thankful to Beal and Al for fanning the Ovation entheusiasm and making it possible for this lifelong fan and player to attend the Factory Tour in '07 and Amelia in '08...you shoulda been there...
I am also thankful for all of the friends that this forum has brought into my life...and for the guitars that I know have a great home because of...
I am extreamly thankful to our and my friend Jerome for his love for all things Ovation...and for preserving the history for all...he gets my vote for OFC member of the decade...
Finally, I am both thankful and grateful for Charlie; both for his incredible knowledge and his incomprable vision to create an instrument line that has truly made us realize that the world is round...
RIP Ovation...and thanks! |
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Location: Canada | stonebobbo - 2014-04-23 6:58 PM
Just for the factual record, Fender is a privately owned company too
Wikipedia is a bit conflicting on ownership and the ultimate decision making:
"The company is a privately held corporation, with the controlling majority of its stock owned by a group of its own company officers and managers....
.... Fender is currently owned mainly by the private equity firm of Weston Presidio (43%), and the Japanese distributors Yamano Music (14%) and Kanda Shokai (13%)."
They also tried to go public, but the IPO was pulled. Some interesting info:
http://www.sec.gov/Archives/edgar/data/767959/000119312512298421/d2...
http://finance.fortune.cnn.com/2012/07/20/why-fender-pulled-its-ipo...
Looks like they are not the first ones who could not digest the cost of all their aquisitions. It may only be a matter of time for the company to break up or spin off some components.
Edited by d'ovation 2014-04-24 10:06 AM
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Location: France | what jerome said |
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Location: Orlando, FL | Damn. |
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Location: sitting at my computer | Designzilla - Damn. +1 :-( I hope all those folks make it through this okay. A tough situation, esp. nowadays.
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Location: south east Michigan | Just got back home after a nice 3 hour practice session.
Brian had his Adamas.
I played my AD-II
And the result is
I'm a little less sad. |
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Fender to close New Hartford operations
