RVRESOLVE

Make / Models : Model/Build Years:
SETRA / S417 2003-2007
Manufacturer : SETRA OF NORTH AMERICA
NHTSA CAMPAIGN ID Number : 07V198000 Mfr's Report Date : MAY 01, 2007
Component: ELECTRICAL SYSTEM:WIRING
Potential Number Of Units Affected : 507
Summary:
ON CERTAIN MOTOR COACHES, THE ELECTRICAL WIRING HARNESS LOCATED BEHIND THE REAR TOILET WAS NOT PROPERLY INSTALLED. AS A RESULT, RUBBING CAN OCCUR ON THE OUTSIDE WIRE INSULATION CAUSING THE INSULATION TO WEAR AWAY AND EVENTUALLY CAUSE SUBSEQUENT ARCING.
Consequence:
THIS COULD LEAD TO A SHORT CIRCUIT AND POSSIBLY A SUBSEQUENT FIRE.
Remedy:
DEALERS WILL CHECK THE WIRING HARNESS ROUTING AND WILL CHANGE THE DAMAGED WIRES. IN ADDITION THE WIRING HARNESS WILL BE RELOCATED IN SUCH A WAY AS TO PREVENT RUBBING. THE RECALL IS EXPECTED TO BEGIN DURING JUNE 2007. OWNERS MAY CONTACT SETRA AT 1-800-882-8054.
Notes:
CUSTOMERS MAY CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION’S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY: 1-800-424-9153); OR GO TO HTTP://WWW.SAFERCAR.GOV.

RV Business
Friday, May 18, 2007

EDITOR’S NOTE: The following is a transcript from a CBS News report that aired Wednesday (May 16) re-addressing an alleged formaldehyde problem in trailers built for Hurricane Katrina victims. The story gained national prominence last year when the Sierra Club first made claims of sickness caused by the fumes. The Federal Emergency Management Agency (FEMA) subsequently began testing for existing levels of formaldehyde in the trailers. Industry OEMs also claim that quality materials were used in production of the FEMA units.

August marks the two-year anniversary of Hurricane Katrina.

Today the government says 86,000 families are still living in those white FEMA travel trailers across the Gulf — more and more waking up with a host of health problems — tied, medical experts believe, to the place they still call home.

When Hurricane Katrina tore apart homes here in Bay St. Louis, Miss., Angela Orcutt and her young son Nicky found shelter in a FEMA trailer meant for weekend trips.

That trip has now lasted 21 months — something these trailers were never built for. Time has turned them into human Petri dishes — unregulated experiments on the health of thousands still stuck inside.

What were the symptoms?

"Pretty much just the constant coughing,” Angela Orcutt told CBS News chief investigative correspondent Armen Keteyian. “He would just — you could hear it, just in his chest."

Dr. Scott Needle, a pediatrician in Bay St. Louis, was the first to notice Nicky was not alone. Dozens of his patients were suffering from the same symptoms that kept coming back: coughing, burning eyes, nose bleeds, sinus infections.

They had one curious connection.

“Every one of them said you know, we are living in a FEMA trailer. And not only that, but you know, little Johnny wasn't having these problems before we moved into that trailer,” Needle said.

Trailers with floors and cabinets built with particle board containing the chemical formaldehyde. Under hot humid conditions, formaldehyde lets off toxic fumes, especially harmful to young lungs.

"It's the long-term carcinogen issue that really concerns me," Needle said.

Terry Sloan was a floor supervisor at a Gulf Stream Coach factory in Etna Green, Ind. Gulf Stream Coach built more than 50,000 stripped-down travel trailers.

Sloane says his crew worked at a breakneck pace for months, which, he says, forced the company to use cheaper wood products.

“Quality suffered dramatically because of the drive and pressure to put these trailers out,” Sloan said.

Executives at Gulf Stream Coach declined an on-camera interview. Instead, the company issued this statement saying, in part, "For the FEMA trailers it used components and materials that met or exceeded industry standards."

But there are no federal standards for formaldehyde. The Environmental Protection Agency recommends a workplace exposure limit of .1 parts per million.

Last year the Sierra Club tested 31 travel trailers in Mississippi and found that virtually all — 94% — had levels of formaldehyde above that limit.

And CBS News has discovered this internal FEMA document that cites cancer as a potential job hazard for those just inspecting the trailers.

FEMA'S recommendation for fixing the problem? Open the windows and turn on the air conditioner.

David Paulison, FEMA’s administrator, told Keteyian, "I don't know that the trailers are causing" any sickness.

As for Angela Orcutt, she's long suspected something in her home was making her son sick.

So we tested it, using the exact same meter used by FEMA.

Our result read .17. That’s 70 percent higher than what the EPA standard is.

“It's scary," Orcutt said.

Make / Models : Model/Build Years:
COACHMEN / ADRENALINE LITE 2007-2008
Manufacturer : COACHMEN RV COMPANY, LLC
NHTSA CAMPAIGN ID Number : 07V200000 Mfr's Report Date : MAY 02, 2007
Component: EQUIPMENT:OTHER:LABELS
Potential Number Of Units Affected : 230
Summary:
CERTAIN TRAVEL TRAILERS FAIL TO COMPLY WITH THE REQUIREMENTS OF PART 567, “CERTIFICATION," AND FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 110, “TIRE SELECTION AND RIMS.” THE INFORMATION PROVIDED ON THE CERTIFICATION AND TIRE INFORMATION LABELS DENOTING THE TIRE PRESSURE IS INCORRECT.
Consequence:
SHOULD THE TIRES BE INFLATED TO THE INCORRECT PRESSURE, IT IS POSSIBLE THAT THE TIRES COULD BE OVERLOADED AND FAIL, INCREASING THE RISK OF A CRASH.
Remedy:
DEALERS WILL INSTALL THE CORRECT CERTIFICATION AND TIRE INFORMATION LABELS AND SET THE TIRE PRESSURE TO THE REQUIRED 65 PSI FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING MAY 2007. OWNERS MAY CONTACT COACHMEN AT 1-800-453-6064.
Notes:
CUSTOMERS MAY CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION’S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY: 1-800-424-9153); OR GO TO HTTP://WWW.SAFERCAR.GOV.

RV Business
Wednesday, May 16, 2007

National RV Holdings Inc. reported a net loss for its first quarter, ended March 31, on a 60% decline in revenue.

The company, parent to motorhome builder National RV Inc., maintained the period reflected the bottom of “a downward spiral in sales” as it improved its working capital with the sale of subsidiary Country Coach Inc. for $38.75 million in February while gaining efficiencies through its ongoing restructuring program.

National RV Holdings also announced that it will be selling the property at its headquarters in Perris, Calif., and entering into a “leaseback” agreement with First Industrial Acquisitions Inc.

"The Crane Composites fiberglass problem discovered one year ago, led to a precipitous downward spiral in sales, which in turn caused a severe strain on our liquidity and created significant uncertainty amongst our customers," stated CEO Brad Albrechtsen. "These first-quarter results hopefully reflect the bottom of that spiral and we believe that we are finally headed back up. We have significantly reduced overhead going forward, are once again well capitalized, are partnering with new dealers and are introducing new and innovative products."

National RV Holdings reported a first-quarter net loss of $4 million compared to a net loss of $2.1 million a year ago after reflecting a $7.3 million gain on the sale of Country Coach and a $2.4 million loss reported by the discontinued operation. Sales during the period fell to $21.9 million from $54.6 million the year prior.

First-quarter shipments of diesel motorhomes totaled 50 units, down 71% from 172 units last year and shipments of gas motorhomes declined 55% to 165 units from 368. Total unit shipments dropped 60% to 215 while the average selling price increased 1% to $102,000.

Regarding the leaseback, National RV said it will sell the property for $31.75 million and be entering into a 10-year, triple-net lease with approximately $2.7 million in annual lease payments, which increase 3% per year. The lease will include two five-year renewal options. The transaction is scheduled to close later this month.

In elaborating on the restructuring and refinancing, Albrechtsen noted: "On an annualized basis, when we complete our restructuring later this quarter, we expect to have reduced our costs by $13 to $15 million dollars compared to 2006.”

He added, “We have launched a commercial public relations campaign that combines a strategically directed media blitz highlighting our products and management team, with an ambitious effort on the part of senior management to get out and visit all of our dealer partners. All of these efforts are beginning to bear fruit as we are seeing demand for our products once again improve."

RV Business
Monday, May 14, 2007

DaimlerChrysler AG said Monday (May 14) it will sell 80.1% of its money-losing Chrysler Group to private equity firm Cerberus Capital Management LP for $7.4 billion, unwinding a troubled 1998 combination aimed at creating a global leader.

The Associated Press reported that the deal is a stunning reversal of the $36 billion takeover of Chrysler by Daimler-Benz AG that tried to set the mold for global automotive manufacturers. It also represents a huge bet for Cerberus, which has agreed to take on billions of dollars in pension and retiree health care costs at Chrysler.

"We're confident that we've found the solution that will create the greatest overall value – both for Daimler and Chrysler," said Chief Executive Dieter Zetsche, who oversaw Chrysler before becoming DaimlerChrysler CEO in 2006. "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler."

Shareholders reacted positively, sending DaimlerChrysler's shares up more than 7% after the deal was announced, before settling back at 64.04 euros ($86.36) for a gain of 5.6%.

Zetsche added that the two companies would still work together, particularly on existing conventional and alternative drive systems, purchasing, sales and financial services outside North America.

"We very much look forward to our continued cooperation as business partners, as we want to continue to reap the mutual benefits of working together," Zetsche said in a statement. "That's one of the reasons why we're retaining a 19.9% equity position in Chrysler."

DaimlerChrysler said the deal is likely to be complete by the third quarter and that it would reduce its overall profit by as much as $5.4 billion for 2007.

Shareholders must approve changing the company's name to Daimler AG. A vote will likely be scheduled this fall, the company said.

The German-American automaker said an affiliate of Cerberus will hold the majority of a new Chrysler Holding LLC, while DaimlerChrysler will keep a 19.9% stake. Chrysler will keep its heavy obligations for pensions and health care costs — a key issue complicating DaimlerChrysler's effort to sell the division.

RV Business
Monday, May 14, 2007


Dometic Corp.'s Brad Sargent
Faced with the prospect of a sizable product recall earlier this year – its first ever – Elkhart, Ind.-based Dometic Corp. was confronted with the same kind of serious strategic challenge that scores of American companies experience every year: How best to get the word out to consumers from coast to coast and, at the same time, exact the quickest and most efficient fix possible.

“Dometic is committed to offering RVers the best and safest in RV products,” Brad Sargent, vice president of marketing, stated in a Feb. 12 release announcing the recall of 926,866 refrigerators manufactured between April 1997 and May 2003. “We apologize for any inconvenience this may cause.”

The release went on to point out that of those recalled units, “99.99% do not pose a danger to the owner.” Nevertheless, a recall is a recall, and the RV Business staff wanted to hear more from Dometic’s Sargent about steps that were taken.

RVB: Given the fact that this was your first recall ever, how did you figure out where to start in sorting through the bureaucratic and procedural issues awaiting companies in situations like this? Did you seek outside assistance?

Dometic monitors its warranty program very closely. We look for trends, and act on the information that we see. In 2006, we were disturbed to notice a couple of reports of fires. We knew that the first step was to contact the proper authorities. The CPSC received a call from us, and they pointed us to the National Highway Traffic Safety Administration (NHTSA) as the entity with jurisdiction.

NHTSA’s input has been invaluable. Recalls are very formalized processes with a list of regulations that at first seemed daunting. There were self-imposed deadlines and NHTSA-imposed deadlines, and we worked hard to meet both.

We recognized early on that we needed to assemble the right people for a team. We sat in a room and started asking questions. Each question brought a solution and the program began to take shape. Every day we learn more about how to bring efficiency and accuracy to the management of this recall.

RVB: What, specifically, did this recall involve?

In our notification to NHTSA, we indicated that an oversized heating element could possibly over time create a fatigue crack in the adjacent boiler tube. The crack could then release a pressurized coolant, which could in very rare circumstances catch fire.

The incident rate is quite low; testing and analysis has determined that 99.99% of the recalled refrigerators will never experience a fire. But, clearly, this is a safety issue. Our own standards for quality, as well as NHTSA’s, demanded that we take a good look at the problem and find a solution. This recall is the most effective way to take care of our valued customers who have affected refrigerators.

RVB: The total number of units recalled – 926,000 – is considerable by most standards.

You’re right. The logistics behind a program of this magnitude are very complex. There are a lot of consumers to contact and to distribute critical information to. Each customer group had specific information that we needed to communicate to them – scores of OEMs to work with, thousands of dealerships and installers to educate, and then we had to pay for their work.

It was important to have a strategic notification plan for OEMs, dealers and consumers. These formal notifications were sent out this past January.

It has been a truly monumental undertaking. We contracted with a company that specializes in recall administration to handle the data storage and processing, as well as communication to all of our customer groups. They have staffed our recall information hotline, and they receive thousands of calls every day.

RVB: Do you have the resources necessary to handle a program of this magnitude?

Yes. We have the manufacturing capabilities to produce the rework kit and we have the distribution chain to ensure that customers have access to the kit. And we have good people making sure that this program runs smoothly. From a financial standpoint, Dometic is a strong, global company. We have allocated the proper funds, along with insurance, to handle this recall effectively.

RVB: So, how have owners of RVs containing refrigerators with the affected serial numbers been learning about the recall? It’s obvious that magazine advertising was one of the ways, as we’ve seen recall notices most everywhere.

From the first internal meeting, we knew the importance of structuring a plan that educated the marketplace. Each component was developed and presented to NHTSA for approval.

We sent official recall notices to hundreds of thousands of end consumers, thousands of dealerships and installers, and every involved OEM. The OEMs have been contacting owners from their customer lists. We have paid for and utilized R.L. Polk vehicle registration lists all in the name of finding good owner information.

We developed a page on our website for consumers to plug in their serial number and model information. If they have an affected refrigerator, it tells them what to do. We worked with an SEO (search engine optimization) specialist, to ensure that consumers looking for Dometic recall information online would receive the latest relevant news.

We are even looking to RV rallies to educate folks on the recall. At the FMCA show in Perry, Ga., we actually sent a team of installers door-to-door on the grounds of the rally, taking care of any consumer we came across with a recalled refrigerator. We created a hotline for consumers to call and we disseminated that number as much as possible. Press releases for RV publications and thousands of posters for dealerships, service centers and campgrounds were distributed. As you noted, we are running an extensive ad schedule. Each component goes to ensuring that we reach as many people as possible.

And frankly, we see this Q&A with RV Business as another opportunity, not just to be forthright, but to spread the word on the recall. We want as many consumers as possible to know to check their model and serial numbers by calling 1-888-446-5157 or going to www.dometicusa.com to find out if they are involved. If they are, we’d like them to call a servicing dealer and set up an appointment to install the rework kit.

RVB: Tell us more about this rework kit that was to be available in mid-April. What is it, and how does it work?

First of all, it’s important to understand that the development of this kit is one of the good things that came from our current situation. The sheer number of refrigerators involved, coupled with the rarity of the problem, created the need for an appropriate and innovative response. We brought in a team of highly qualified industrial scientists to work with Dometic engineers in developing the Secondary Burner Housing (SBH) Kit. Thousands of man-hours have gone into its development and testing. Even so, we were able to develop and begin to ship the kit prior to the mid-April target date.

The rework kit is a secondary housing made of galvanized steel. It encases the burner, effectively encloses the area in the highly unlikely event of a fire. A double redundancy set of fuses is included as well. If any excess heat is sensed by these fuses, the refrigerator shuts down automatically.

We knew how important it was that we get the fix right. Naturally, our number one priority is keeping our customer and the vehicle from harm.

RVB: Is the consumer charged for any of this work?

Absolutely not. It is against federal law to charge the end consumer for recall work on any product.

We really appreciate the thousands of installers across the country that agreed to handle installations of the SBH Kit. We have received a few early reports of consumers being charged for the work. Not only will we not accept that, the National Highway Traffic Safety Administration won’t either. The regulation states that charging the consumer for this fix is a federal violation subject to a fine of $5,000 for each incident, with the potential for a total penalty of $16.5 million.

It is important to Dometic that a member of the servicing network does not receive a large federal penalty. Even more important is the safety and peace of mind of our customers.

RVB: How are dealerships and service shops reimbursed for the installation work, and what’s the most important thing for them to know about this recall?

The strategy here was to streamline the warranty process as much as possible. A postage-paid card is included with every SBH Kit. The installer simply fills out a few lines of information and drops it in the mail. The cards are processed and checks are cut.

During the development process for the SBH Kit, we found that a variety of installation scenarios existed, depending on how the refrigerator was originally installed. While the vast majority of installations will be simple, if the SBH Kit installation job goes longer than expected, we have a program in place for the dealership that will allow for a higher payment.

Naturally, there has been a learning curve with this program early on. But we feel that the program is now running smoothly. The most important things for dealers to know about this recall are that the SBH Kit can be installed quickly and easily, they can contact us if they have any trouble, and they cannot charge the customer under any circumstance. We see this as an opportunity for dealers to demonstrate excellent service and reinforce customer relationships, as well as meet new RV customers.

We want to thank them for being a part of this program and helping to ensure the safety of RV owners.

RVB: Considering this and previous recalls by other manufacturers, do RV owners have any cause for concern regarding the general safety of RV refrigeration?

I can’t speak to other manufacturers and the problems they have had, but Dometic refrigerator owners can be assured that we are using this as a learning experience. While we have always been motivated to design and produce excellent products, this recall prompted us to take an even harder look at our product. It created further testing and development, which has already led to innovation. At the end of this road, Dometic refrigerators will be better than at any point in our history.

We invented refrigeration 80 years ago, and we’ve been developing great products ever since. We have a history of innovation and standing behind our products, and our customers can rest assured that this latest event will not deter us from that, but instead make us an even stronger company as we look to the future.