Slovenia’s oldest shipyard, Elan Yachts, announced yesterday that it is temporarily stopping production. At the same time, it revealed plans for a strategic restructuring.
The economic crisis and weaker performance of charter companies in the nautical market have had the biggest impact on sailboat builders, who have already been seeing a decline in their share of the recreational boat and yacht market for years. This particularly affects the segment of sailboats between 30 and 60 feet, which are primarily intended for charter use.
The best-known shipyards, which also build the most sailboats, are tackling this situation in various ways. Bavaria Yachts, for example, has decided to stop attending boat shows and instead focus on in-house events and direct communication with potential clients. Hanse and Dufour are heavily invested in new projects and are trying to innovate their product portfolios. Beneteau has decided to place greater emphasis on the First line and to shift its focus toward smaller boats and younger customers.
Restructuring Begins with a Full Production Pause, Raising Key Questions
Faced with declining market interest, Elan has chosen a strategy of comprehensive restructuring. According to their official statement, this will include both products and technology. To carry it out, they have decided to completely halt production.
Naturally, this decision raises many questions—how long the restructuring will last, who will carry it out, what will happen in the meantime to the production staff, how much it will cost, and what the final results should be. We asked the company’s management these questions and quickly received answers, which we now publish below.
What was the main reason behind your decision to stop sailboat production and undertake a full restructuring?
“The decision to restructure is a result of changes in the market, new demand patterns, and shifts in customer expectations and needs.”
Can you estimate how long this process will take?
“We would prefer not to speculate with specific timeframes. Our goal is for the entire process to be as efficient and as short as possible, but at the same time, we want it to be thorough and of high quality.”
Will this process involve Elan Yachts’ existing staff, or will you engage external experts?
“Elan will rely on its own strengths—its values, extensive experience, and the expertise of its team. However, we are also open to new and fresh solutions, which includes collaborating with external experts where it makes sense.”
Given the decreasing share of sailboats in the recreational boating market, will you continue to produce sailboats in the future, or will you turn to motorboats and yachts? If you plan to keep building sailboats, will it be in the cruising segment or performance vessels?
“At this moment, we cannot say with certainty what the final project will look like. Elan has sailing in its blood, with strong support and respect from the sailing community. For this reason, we believe that the sailing element will remain a core part of Elan’s identity in the future.”
During the restructuring period, what will happen to the employees, particularly in R&D and production?
“During the restructuring, we are making changes across all business processes, but we will continue to rely on key employees from Elan’s nautical division for future projects. It is important for us to retain employees and preserve the experience within Elan.”
There is considerable interest in the Adriatic region in how this story will unfold, particularly given that the largest number of Elan boats are located along the eastern Adriatic coast. Just a few decades ago, these boats dominated the sailboat scene, with Elan producing over 200 sailboats annually. The brand boasts a long line of successful models—from the Elan 31 and 333 to the Impression 434. More recent models, such as the Elan GT6, Elan E6, and Impression 43, also stand out as exceptionally well-crafted and capable sailboats. However, in recent years, reaching customers has clearly become more challenging. This makes it evident that a new approach is needed—although the official statement does indicate that sailboat production will continue.
Elan began building boats in 1949, initially crafting vessels from wooden waterproof panels. Over the decades, it developed a wide range of sailboats and motorboats, including models such as the Elan 31, 33, 34, 38, and 43. The Impression line was both innovative and highly successful. For many years, Elan also produced smaller motorboats and speedboats, and in 2004, it launched the Elan Power line of motor yachts. More than 200 units were built before production was later transferred to other manufacturers.
