Friday, December 07, 2007

 

NEW CALIFORNIA LAW CONCERNING AGREEMENTS BETWEEN DEALERS AND MANUFACTURERS EFFECTIVE JANUARY 1, 2008

(Dec. 7, 2007) -- A reminder was issued advising of the new California law requiring a written agreement for transactions between manufacturers and dealers, that will be effective on January 1, 2008.
RVIA
RESTON, Va. – A new law drafted and supported by the California RV Dealers Association makes it unlawful upon a mutual agreement of the parties to enter into a dealer agreement for a manufacturer, licensed manufacturer, manufacturer branch, distributor, or distributor branch to refuse or fail to provide a recreational vehicle dealer a written dealer agreement that complies with California’s statutory franchise requirements. The bill does not require an RV dealer to accept or sign a written agreement. The bill will become an effective law on January 1, 2008.

This law requires the agreement between the manufacturer and the recreational vehicle dealer to include, but not be limited to, provisions regarding dealership transfer, dealership termination, sales territory, and reimbursement for costs incurred by the dealer for work related to the manufacturer's warranty for each line-make of recreational vehicle covered by the agreement as required in the California RV franchise law.

Existing law prohibits a manufacturer, manufacturer branch, distributor, or distributor branch that is licensed under the Vehicle Code from engaging in certain conduct involving a dealer having a franchise for the sale of new vehicles or vehicle parts. A violation of the Vehicle Code is a crime.

For a dealer and manufacturer agreement involving recreational vehicles, this bill would additionally prohibit, upon mutual agreement of the parties to enter into a dealer agreement, a licensed manufacturer, manufacturer branch, distributor, or distributor branch from failing or refusing to provide a written dealer agreement that complies with statutory franchise requirements.

The agreement would be required to include provisions regarding dealership transfer and termination, sales territory, and reimbursement for dealer costs for work related to the manufacturer’s warranty for each line-make of recreational vehicle covered by the agreement.
Following is the California Legislative Counsel’s Digest of the new law along with the precise legislative language of the new requirement. Please contact RVIA’s government affairs department if you have any questions about the new requirement.

Thursday, December 06, 2007

 

RECALL

Make / Models : Model/Build Years:
FORD / E-SERIES 1997-2003
FORD / EXCURSION 1997-2003
FORD / F-450 SUPERDUTY 1997-2003
FORD / F-550 SUPERDUTY 1997-2003
Manufacturer : FORD MOTOR COMPANY
NHTSA CAMPAIGN ID Number : 07V553000 Mfr's Report Date : DEC 03, 2007
Component: ELECTRICAL SYSTEM: SOFTWARE
Potential Number Of Units Affected : 1176000
Summary:
ON CERTAIN HEAVY DUTY TRUCKS EQUIPPED WITH 7.3L DIESEL ENGINES, THE CAMSHAFT POSITION SENSOR LOCATED ON THE ENGINE OF THE VEHICLE MAY FUNCTION INTERMITTENTLY, POSSIBLY RESULTING IN AN ENGINE STALL.
Consequence:
IN THE EVENT OF AN ENGINE STALL, A CRASH COULD RESULT WITHOUT WARNING.
Remedy:
DEALERS WILL INSPECT THE SENSOR AND REPLACE IT WITH AN IMPROVED CAMSHAFT POSITION SENSOR FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT DECEMBER 17, 2007. OWNERS MAY CONTACT FORD AT 1-866-436-7332.
Notes:
FORD RECALL NO. 07S57. CUSTOMERS MAY ALSO 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.

 

RECALL

Make / Models : Model/Build Years:
COACHMEN / FREEDOM EXPRESS 31 2008
COACHMEN / FREELANDER 3130 2008
COACHMEN / MAVERICK 313 2008
Manufacturer : COACHMEN RV COMPANY, LLC
NHTSA CAMPAIGN ID Number : 07V539000 Mfr's Report Date : NOV 09, 2007
Component: ELECTRICAL SYSTEM:WIRING
Potential Number Of Units Affected : 395
Summary:
ON CERTAIN CLASS C MINI-MOTOR HOMES, THE 12 VOLT SLIDEROOM WIRE CONNECTION TO THE CHASSIS IGNITION SYSTEM MAY BE WIRED INCORRECTLY CAUSING THE BRAKE ON THE SLIDEROOM MOTOR TO DISENGAGE WHEN THE IGNITION IS IN THE 'ON' OR 'RUN' POSITION. THIS COULD CAUSE THE SLIDEROOM TO 'RELAX' AND POSSIBLY MOVE TO THE OUT POSITION WHILE IN TRANSIT IF THE TRAVEL LOCKS PROVIDED WITH THE VEHICLE ARE NOT INSTALLED AS RECOMMENDED.
Consequence:
SHOULD THE SLIDEROOM EXTEND WHILE THE VEHICLE IS IN MOTION, A CRASH COULD OCCUR.
Remedy:
DEALERS WILL PROPERLY WIRE THE SLIDEROOM MOTOR BRAKE ACTIVATION SYSTEM FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING DECEMBER 2007. OWNERS MAY CONTACT COACHMEN AT 1-800-453-6064.
Notes:
CUSTOMERS MAY ALSO 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.

Tuesday, December 04, 2007

 

THEY JUST RAN OUT OF MONEY

Steve Bibler
RV Business
Monday, December 3, 2007

The inability to raise additional cash to finance operations was the final blow that led to National RV Holding Inc.’s decision last week to file for Chapter 11 bankruptcy.

“We did get out of debt but we couldn’t stop the burning of cash,” said Dave Humphreys, acting CEO, in an interview with RVBusiness. He said company officials during last week’s National RV show in Louisville “were having crisis calls every day to try to figure out how to get to a point of getting some income for our shareholders.”

The Perris, Calif.-based company, parent to Class A motorhome builder National RV Inc., is mired in a five-year decline during which it lost some $80 million. The company ranked No. 7 in gas-powered Class A motorhomes sales in September, according to Statistical Surveys Inc. of Grand Rapids, Mich., but its retail sales were off 31% for the year through September and its market share had fallen from 5.5% a year ago to 4.7%.

But despite an encouraging response from its dealers to some of its new products, the company was forced to file for Chapter 11 bankruptcy, which it did on Friday (Nov. 30) in federal court in Riverside, Calif. The action will free the company from the threat of its creditors’ lawsuits while it reorganizes its finances. Unless the court rules otherwise, National RV remains in control of the business and its assets.

Approximately 600 employees were informed on Friday that the company was closing. Letters to the idled workers said in part, “This layoff is expected to be permanent and the entire site will be closing.”

In a press release announcing its Chapter 11 filing, Humphreys stated, “We are saddened to let go our excellent employees, especially so close to the holidays, and even more so because National's motorhomes have never been better than they are today. After evaluating our options, however, we ultimately determined that seeking protection in bankruptcy was in the best interests of creditors and shareholders.”

The company introduced two new entry-level Class A motorhomes at Louisville: the gas-powered Rip Tide featuring two slideouts retailing for $85,000, and the diesel-powered Nautica featuring a full-wall slideout retailing for $140,000. Humphreys called these offerings “spectacular products.”

He said dealers “really loved the diesel” but didn’t like the floorplan for the gas-powered unit. “Our guys said that would be easy to adjust,” Humphreys said.

Both new products employed newly developed, patent-pending “Dura-Hull” construction, utilizing interlocking aluminum extrusions and lightweight framework. Both also feature integrated water management channels designed to route water across the length of the coach into hidden drains, thus eliminating streaking.

Humphreys said the impression he got from talking with other manufacturers at the show was that “the low end and high end (Class A motorhomes) are very strong but the middle is ‘mushy’ and we had a lot of products in the middle.”

Humphreys said “one of the tragic things is they had orders for 200 motorhomes before the show. We just couldn’t get the capital to build them.”

In the company’s most recent quarter ending in August, sales were down 42% while losses topped $8 million.

“We thought we had a realistic plan to return to profitability,” Humphreys said. He said he is confident the liquidation of the company will yield enough revenue to pay off all the company’s creditors.

“There are a lot of parts to this company that are very valuable in the liquidation,” he said. “The question is whether someone will buy the whole company or parts of it.”

Humphreys said that he and other key management officials will stay on and see through liquidation of the company as well as a lawsuit the company has against Channahon, Ill.-based Crane Composites Inc. and its parent, Crane Co., over faulty sidewalls.

The sidewall issue was a major blow to National RV’s recovery, Humphreys maintains. National RV began 2006 by showing significant progress in its turnaround efforts, with continued market share gains and reduced losses, but the defective fiberglass issue resulted in substantial unexpected costs and created a liquidity strain. That was compounded by a continued decline in the Class A industry, the company said in an earlier statement.

“This created an environment of severe uncertainty that began to significantly adversely affect the company, its employees, suppliers, customers and dealers,” the company added.

Humphreys also defended the sale at the start of the year of Country Coach, National’s only profitable segment, to a group led by the manufacturer’s largest shareholder for $38.75 million. The move was part of a continuing attempt to turn around the financially struggling company. The deal left National RV debt-free but without its only profitable asset.

“It was a very good move,” Humphreys said. “There were a number of things going on and we couldn’t help Country Coach with what it needed. I don’t think the synergism was what it should be. Country Coach deserved to do their own thing.”

Ironically, on the day National RV filed for bankruptcy, Country Coach announced it would lay off a portion of its work force in Junction City, Ore.

National’s closing follows a year of turmoil. In April, the company sold its 607,000-square-foot complex and land and began to lease back the buildings for 10 years. Four months later, the company's chief executive, Brad Albrechtsen, who led the company for six years, stepped down. Humphreys, the company’s recently appointed chairman, was named CEO.

In October, the company’s stock was delisted from the New York Stock Exchange after its share price for a month fell below $1.

 

RECALL

Make / Models : Model/Build Years:
HOLIDAY RAMBLER / ALUMA-LITE 2007
HOLIDAY RAMBLER / SAVOY 2008
MCKENZIE / STAR-LITE 2007
MCKENZIE / STARWOOD 2008
Manufacturer : MONACO COACH CORPORATION
NHTSA CAMPAIGN ID Number : 07V538000 Mfr's Report Date : NOV 14, 2007
Component: ELECTRICAL SYSTEM
Potential Number Of Units Affected : 207
Summary:
ON CERTAIN TRAVEL TRAILERS, THE CONVERTER NEUTRAL WIRE WAS CONNECTED TO THE BONDING (GROUND) BAR INSTEAD OF THE NEUTRAL BAR.
Consequence:
THIS COULD LEAD TO A SITUATION WITH A SHOCK HAZARD INCREASING THE RISK OF PERSONAL INJURY.
Remedy:
DEALERS WILL REMOVE THE NEUTRAL WIRE FROM THE BONDING BAR AND INSTALL IT ON THE NEUTRAL BAR, BOTH OF WHICH ARE LOCATED IN THE LOAD CENTER OF THE VEHICLE. THE RECALL IS EXPECTED TO BEGIN DURING DECEMBER 2007. OWNERS MAY CONTACT MONACO AT 1-800-685-6545.
Notes:
CUSTOMERS MAY ALSO 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.

 

RECALL

Make / Models : Model/Build Years:
HOLIDAY RAMBLER / ALUMASCAPE 2007
MCKENZIE / LAKOTA ESTATE 2007
Manufacturer : MONACO COACH CORPORATION
NHTSA CAMPAIGN ID Number : 07V537000 Mfr's Report Date : NOV 14, 2007
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 53
Summary:
ON CERTAIN FIFTH WHEEL TRAILERS, THE DESIGN SPECIFICATIONS FOR THE SLIDEOUT ACTUATOR AND BRACKET LOCATION IS BETWEEN THE TWO STREET SIDE TIRES. THE ADAPTER BRACKET FROM THE ACTUATOR TO THE SLIDE ROOM HAS SQUARE CORNERS. IF THE FIFTH WHEEL TRAILERS ARE FULLY LOADED AND HIT ANY BUMPS, THE TIRES MAY RUB THE SQUARE CORNER OF THE BRACKET. THE RUB MAY WEAR INTO THE TREAD OF THE TIRE OVER TIME.
Consequence:
A TIRE BLOWOUT COULD OCCUR, CAUSING LOSS OF CONTROL OF THE TRAILER WHICH COULD RESULT IN A VEHICLE CRASH.
Remedy:
DEALERS WILL TRIM THE SQUARE CORNER OF THE LOWER REAR PART OF THE BRACKET GIVING CLEARANCE TO THE REAR TIRE ON THE STREET SIDE. THIS REPAIR WILL BE PERFORMED FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING EARLY DECEMBER 2007. OWNERS MAY CONTACT MONACO AT 1-800-685-6545.
Notes:
CUSTOMERS MAY ALSO 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.

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