Friday, February 01, 2008

 

LAYOFFS AT NEWMAR

Southbend Tribune
YaVONDA SMALLS
Tribune Staff Writer

NAPPANEE -- Newmar Corp. has joined a growing list of area RV companies that are handing pink slips to workers in light of a slowing economy.

The company, which manufactures motorhomes and fifth wheels, said Thursday that it eliminated 118 positions Wednesday "as a result of the current economic conditions, especially in the RV industry."

Newmar's 905 employees were notified last week that a reduction in the workforce would take place Wednesday.

"The future demand for RV products will affect Newmar's ability to rehire the employees that were affected," the company, located at 355 N. Delaware St., said in a statement.

The layoff comes after Wakarusa's Travel Supreme laid off about 25 of its 230 workers this week. And, a week ago, Monaco Coach Corp. trimmed staff when it laid off 200 workers, the majority at its Wakarusa plant.

Unfortunately, Newmar's layoff also comes on the heels of the F-3 tornado that tore through the town in October, virtually wiping out RV maker Franklin Coach, which employed between 65 and 70 people.

"When things slow down, it's a pretty big domino effect," said Nappanee Mayor Larry Thompson. "But I have to be an optimist."

Everyone understands that what the area's going through is all part of the RV industry, Thompson said. "I don't blame the company," Thompson said. "They have companies to run."

For now, it's best, he said, to just take a deep breath and look back on how good things have been.

"We've had a lot of growth," Thompson said. "A lot of new companies."

From six people in 1968, Newmar in particular has grown to employ more than 900. In 1995, Newmar moved into a new, 116,000-square-foot manufacturing facility considered by many to be one of the most state-of-the-art in the RV industry.

In 2003, a 21,000 square-foot addition was added to this facility to accommodate changes in its products. In the fall of 2004, Newmar announced the opening of its new 144,000-square-foot Chassis, Weld and Assembly Facility.

 

RECALL: FOURWINDS (FREIGHTLINER CHASSIS)

Make / Models : Model/Build Years:
FOUR WINDS / MANDALAY 2008
FOUR WINDS / PRESIDIO 360 2008
Manufacturer : FOUR WINDS INTERNATIONAL Mfr's Report Date : JAN 17, 2008
NHTSA CAMPAIGN ID Number : 08V034000 NHTSA Action Number: N/A
Component: SERVICE BRAKES, AIR:SUPPLY:CHECK VALVE
Potential Number Of Units Affected : 10
Summary:
ON CERTAIN MOTOR HOMES BUILT ON FREIGHTLINER CHASSIS AND EQUIPPED WITH BENDIX SR-7 SPRING BRAKE MODULATING VALVES, THE INTERNAL RUBBER CHECK VALVE MAY LEAK CAUSING A DELAY IN THE APPLICATION OF THE SPRING BRAKES TO PARK THE VEHICLE AFTER THE OPERATOR PULLS THE DASH VALVE BUTTON.
Consequence:
THIS COULD CAUSE A DELAY OR FAILURE IN APPLYING THE PARKING BRAKES WHICH COULD RESULT IN A VEHICLE ROLL AWAY, INCREASING THE RISK OF A CRASH.
Remedy:
FOUR WINDS IS WORKING WITH FREIGHTLINER AND BENDIX TO REPAIR THESE VEHICLES (PLEASE SEE 07V302 AND 07E037). BENDIX WILL INSTALL A CHECK VALVE REPAIR KIT FOR THE AFFECTED SR-7 SPRING BRAKE MODULATING VALVE FREE OF CHARGE. OWNERS MAY CONTACT FREIGHTLINER AT 1-800-547-0712, BENDIX AT 1-440-329-9000 OR FOUR WINDS AT 1-937-596-6849.
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: ACTIBRAKE (DOUBLETREE RV)

Make / Models : Model/Build Years:
ACTIBRAKE / AB-1-14 9999
Manufacturer : ACTIVE TECHNOLOGY Mfr's Report Date : JAN 03, 2008
NHTSA CAMPAIGN ID Number : 08E007000 NHTSA Action Number: N/A
Component: SERVICE BRAKES, HYDRAULIC
Potential Number Of Units Affected : 359
Summary:
ACTIVE TECHNOLOGY IS WORKING WITH DOUBLETREE RV TO RECALL 359 ACTIBRAKE ELECTRIC-HYDRAULIC ACTUATOR, P/N AB-1-14, USED FOR HYDRAULIC DISC BRAKES INSTALLED AS ORIGINAL EQUIPMENT ON CERTAIN DOUBLETREE TRAILERS. THE TRAILER WIRING CONFIGURATION OF THE CIRCUIT BREAKER ALLOWS HIGH CURRENT TO BE CONTINUOUSLY APPLIED TO THE ACTIBRAKE EVEN AFTER THE TRAILER CIRCUIT BREAKER IS TRIPPED AND THE 30 AMP FUSE ON THE ACTIBRAKE IS BLOWN. THEREFORE THERE IS A SITUATION WHEREIN THE 50 AMP BREAKER IN THE TRAILER WIRING DOES NOT PROTECT THE ACTIBRAKE BATTERY CHARGER CIRCUIT FROM OVER-CURRENT.
Consequence:
TRAILER BRAKES ARE NOT OPERATIVE WITH AN INCAPACITATED BRAKE ACTUATOR, POSSIBLY RESULTING IN A VEHICLE CRASH.
Remedy:
ACTIVE TECHNOLOGY IS WORKING WITH DOUBLETREE TO NOTIFY OWNERS AND REPAIR THE TRAILERS FREE OF CHARGE. OWNERS SHOULD CONTACT DOUBLETREE FOR MORE INFORMATION. DOUBLETREE'S RECALL NO. IS 08V-040.
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.

Thursday, January 31, 2008

 

RECALL: KEYSTONE (PROPANE HOSE)

Make / Models : Model/Build Years:
KEYSTONE / FUZION 2007-2008
Manufacturer : KEYSTONE RV COMPANY Mfr's Report Date : JAN 21, 2008
NHTSA CAMPAIGN ID Number : 08V037000 NHTSA Action Number: N/A
Component: EQUIPMENT:RECREATIONAL VEHICLE:LPG LINES AND FITTINGS
Potential Number Of Units Affected : 247
Summary:
ON CERTAIN FIFTH WHEEL TRAVEL TRAILERS, THE PROPANE HOSE FOR THE SLIDE ROOM IS TOO LONG ALLOWING THE HOSE TO DROOP TOO CLOSE TO THE TIRE. THE PROPANE LINE MAY BECOME DAMAGED AS A RESULT OF CONTACT WITH THE TIRE.
Consequence:
A PROPANE LEAK, IN THE PRESENCE OF AN IGNITION SOURCE, COULD RESULT IN A FIRE AND/OR EXPLOSION CAUSING PROPERTY DAMAGE AND/OR PERSONAL INJURY.
Remedy:
DEALERS WILL REPLACE THE PROPANE HOSE WITH ONE OF SHORTER LENGTH AND WILL ALSO SHORTEN THE HOSE SUPPORT TO MOVE THE HOSE AWAY FROM THE TIRE. THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT FEBRUARY 1, 2008. OWNERS MAY CONTACT KEYSTONE RV AT 1-866-425-4369.
Notes:
KEYSTONE RV RECALL NO. 08-100. 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: FREIGHTLINER CHASSIS (BRAKES)

Make / Models : Model/Build Years:
FCCC / XCR 2008
FREIGHTLINER / CASCADIA 2008
FREIGHTLINER / CENTURY CLASS 2008
FREIGHTLINER / COLUMBIA 2008
Manufacturer : DAIMLER TRUCKS NORTH AMERICA Mfr's Report Date : JAN 17, 2008
NHTSA CAMPAIGN ID Number : 08V029000 NHTSA Action Number: N/A
Component: SERVICE BRAKES, AIR:DISC
Potential Number Of Units Affected :
Summary:
ON CERTAIN TRUCKS AND MOTOR HOMES CHASSIS, INCORRECT FASTENERS MAY NOT PROVIDE ADEQUATE CLAMPING FORCE BETWEEN THE BRAKE CALIPER AND BRAKE ANCHOR PLATE POTENTIALLY RESULTING IN REDUCED BRAKE EFFECTIVENESS.
Consequence:
REDUCED BRAKE EFFECTIVENESS COULD LEAD TO A VEHICLE CRASH.
Remedy:
DEALERS WILL INSPECT THE VEHICLES TO DETERMINE IF INCORRECT BOLTS WERE USED. IF INCORRECT BOLTS ARE FOUND, VEHICLES WILL BE INSPECTED FOR POSSIBLE ADDITIONAL DAMAGE AND REPAIRED AS REQUIRED. OWNERS MAY CONTACT DAIMLER TRUCKS NORTH AMERICA AT 1-800-547-0712.
Notes:
DTNA RECALL NO. FL-521. 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: TIFFEN (ZF STEERING GEAR)

Make / Models : Model/Build Years:
TIFFIN / ALLEGRO BUS 2005-2008
Manufacturer : TIFFIN MOTORHOMES, INC. Mfr's Report Date : JAN 21, 2008
NHTSA CAMPAIGN ID Number : 08V027000 NHTSA Action Number: N/A
Component: STEERING:GEAR BOX:SHAFT PITMAN
Potential Number Of Units Affected : 1292
Summary:
CERTAIN MOTOR HOMES BUILT ON FREIGHTLINER CHASSIS AND EQUIPPED WITH ZF MODEL 8018 STEERING GEARS MAY HAVE BEEN ASSEMBLED WITH THE INCORRECT RECIRCULATING BALL SPACER. THIS COULD POTENTIALLY ALLOW THE RECIRCULATING BALLS TO ESCAPE FROM THE RECIRCULATING BALL CIRCUIT RESULTING IN A LOSS OF STEERING.
Consequence:
THE OPERATOR MAY NOTICE HIGHER REQUIRED STEERING WHEEL INPUTS, OR THE NEED FOR MORE STEERING WHEEL ADJUSTMENTS WHILE DRIVING IN A STRAIGHT LINE IN COMBINATION WITH METALLIC CRACKING NOISES PRIOR TO A LOSS OF STEERING. LOSS OF STEERING COULD RESULT IN A VEHICLE CRASH.
Remedy:
TIFFIN IS WORKING WITH FREIGHTLINER TO REPLACE THE STEERING GEAR FREE OF CHARGE (PLEASE SEE 07V343 AND 07E049). OWNERS MAY CONTACT FREIGHTLINER AT 1-800-547-0712 OR TIFFIN AT 256-356-8661.
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: NEWMAR (FORD SPEED CONTROL)

Make / Models : Model/Build Years:
NEWMAR / DUTCH STAR 1994-2003
NEWMAR / KOUNTRY AIRE 1994-2003
NEWMAR / KOUNTRY STAR 1994-2003
NEWMAR / MOUNTAIN AIRE 1994-2003
NEWMAR / SCOTTSDALE 1994-2003
Manufacturer : NEWMAR CORPORATION Mfr's Report Date : JAN 15, 2008
NHTSA CAMPAIGN ID Number : 08V025000 NHTSA Action Number: EA05005
Component: VEHICLE SPEED CONTROL
Potential Number Of Units Affected : 5575
Summary:
ON CERTAIN CLASS A MOTOR HOMES CONSTRUCTED ON FORD F-53TY1 AND P131 MOTOR HOME CHASSIS AND EQUIPPED WITH SPEED CONTROL, THE SPEED CONTROL DEACTIVATION SWITCH MAY OVERHEAT.
Consequence:
OVERHEATING COULD RESULT IN SMOKE OR BURN AND AN UNDERHOOD FIRE.
Remedy:
NEWMAR IS WORKING WITH FORD IN CONDUCTING THIS RECALL. FORD WILL INSTALL A FUSED WIRING HARNESS INTO THE SPEED CONTROL SYSTEM FREE OF CHARGE. OWNERS MAY CONTACT FORD AT 1-866-436-7332 OR NEWMAR AT 574-773-7791. (NOTE: ALSO SEE FORD RECALLS 05V017, 05V388, AND 06V286)
Notes:
NEWMAR RECALL NO. 05S28. 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.

Wednesday, January 30, 2008

 

LOTS OF INVESTIGATION NEEDED HERE

RV Business
Wednesday, January 30, 2008

Four men burned in a fire at the Austin City Limits Music Festival in September have sued, alleging that their injuries were caused by an overfilled and improperly manufactured propane tank and an improperly designed RV generator, the Austin American-Statesman reported.

Dave Smith, Darryl Jackson, Stuart Givens and Kenny Burleson and the company they all work for, Brown Distributing, filed the lawsuit Tuesday in District Court in Travis County against various companies that leased and made the propane tank, as well as the manufacturer of the recreational vehicle.

The defendants include Evergreen RV Center, Coachmen Industries Inc., Coachmen Recreational Vehicle Co., Manchester Tank and Equipment, Rotarex and Harsco Corp.

Two of the men who were burned were flown to Brooke Army Medical Center in San Antonio, and one had burns over 40% of his body, said their lawyer, Jim Ewbank.

While all of the men have returned to work for Brown Distributing, they are still recovering and three of them probably will have permanent scarring, including one man who had the word "staff" burned into his back from the letters on his T-shirt, Ewbank said.

The men were working at the ACL Festival in Zilker Park on Sept. 14 for Brown Distributing, which was selling beer, when the fire started, the newspaper reported. They heard a hiss and smelled gas, said Ewbank, so they opened a compartment on the right side of the recreational vehicle to move some food away from the odor. A propane tank on the vehicle's left side then ignited, he said. "There was sort of like a flash of gas catching on fire, and it knocked them to the ground," he said.

The fire was caused, the suit claims, when the propane tank was overfilled by the leasing company; the valve that was supposed to stop overfilling malfunctioned or was overridden; and heat from the exhaust pipe of the RV's generator, placed too close to the propane tank, caused the gas in the tank to expand and be released by a pressure valve. The valve stayed open too long, causing the escaping gas to be ignited by either the generator or muffler, Ewbank said.

The amount of damages sought by the defendants was not specified because they are still receiving medical treatment, the lawyer said. Damages specified for Brown Distributing totaled $219,658.64, he said. Attorneys for the companies named in the suit either refused to comment or could not be reached.

 

WILL THOR STOP HERE?

Bob Ashley
RV Business
Wednesday, January 30, 2008

Thor Industries Inc. has about halfway completed a move of its corporate support services to Elkhart, Ind., from Jackson Center, Ohio.

"We can better serve our companies by being in close proximity to where they are located," said Thor COO Richard E. "Dickey" Riegel.

The move was announced last June and about 15 people in Thor's legal, information technology and human resources departments have moved into the 10,000-square-foot building that Thor purchased in the Windsor Park commercial office complex near the Indiana Toll Road on Elkhart's north side.

Riegel said that eventually CFO Walter Bennett and Thor's accounting and auditing staff will be relocated as well to the new support facility, which will house about 30 people when the move is complete.

"The office is not Thor corporate," Riegel said. "It's called Thor Support Services." The office of Thor Chairman and CEO Wade F.B. Thompson, as well as Riegel's, will remain in New York City.

Riegel said that a completion date for the move has not been set. "It will be happening over many months," he said.

Thor subsidiaries in Elkhart County, Ind., where Riegel said about 75% of Thor's revenues originate, include Keystone RV Co. and Dutchmen Manufacturing Inc., both in Goshen; Damon Motor Coach and Four Winds International Corp., both in Elkhart; CrossRoads RV, in Topeka; and Breckenridge, in Nappanee.

 

COACHMAN IS CONSOLIDATING

RV Business
Wednesday, January 30, 2008

Coachmen Industries Inc. outlined several cost-cutting measures as part of the company’s ongoing restructuring plan during a conference call with investors Tuesday (Jan. 29), including consolidating its corporate headquarters in Elkhart, Ind., into its manufacturing complex in nearby Middlebury.

The recreational vehicle and manufactured housing builder cited the impact of “bleak conditions” in its core markets during 2007, resulting in a 15% decline in revenue and a net loss from continuing operations of $33.8 million.

During the conference call, Coachmen President and CEO Rick Lavers noted: “As a result of the restructuring we undertook, the redirection of the company we launched, the new products we introduced and the cost reductions we made, we expect to make a profit in 2008, even if our markets do not fully rebound.” Lavers replaced Claire Skinner, daughter of co-founder Tom Corson, in August 2006.

The company said it is in the process of moving its corporate headquarters to Middlebury and will sell the facility in Elkhart.

“As we no longer have any manufacturing operations in Elkhart or Edwardsburg, (Mich.), Elkhart offices really no longer make sense,” Lavers said. “This relocation will reduce our costs and use empty office space at the complex, eliminate the time inefficiencies of many daily 45-minute, one-way trips by executives and managers between Elkhart and Middlebury.

“We will increase senior management interactions by having all of our senior RV housing and corporate offices housed in one location, and perhaps most importantly, we will place the corporate officers in the middle and where the action is, closer to the manufacturing operations that are at the heart of our business, in fact on our major RV manufacturing complex.”

Other restructuring moves by Coachmen include:

• Consolidating all Class A production into one plant and all travel trailer production for its Indiana facilities into one plant.

• Consolidating two support plants at its north Middlebury complex to the primary Middlebury complex.

• Sale of its paint facility in Elkhart and moving operations to Middlebury.

• Significantly downsizing its West Coast service center and subleasing the 65,000-square-foot plant.

“These actions have improved our overall capacity utilization to approximately 70% from the prior utilization of less than 50%,” said Michael R. Terlep, president of the Coachmen RV Group. “ We are pleased to report that our consolidation action plan has been fully executed and we are tracking ahead of plan in overall cost savings of $7 million annually.”

Tuesday, January 29, 2008

 

RECALL: NATIONAL RV (FEDERAL CERTIFICATION LABELS)

Make / Models : Model/Build Years:
NATIONAL RV / DOLPHIN 2008
NATIONAL RV / PACIFICA 2008
NATIONAL RV / SEA BREEZE 2008
NATIONAL RV / TROPI-CAL 2008
Manufacturer : NATIONAL RV, INC. Mfr's Report Date : DEC 20, 2007
NHTSA CAMPAIGN ID Number : 08V023000 NHTSA Action Number: N/A
Component: EQUIPMENT:OTHER:LABELS
Potential Number Of Units Affected : 107
Summary:
CERTAIN MOTOR HOMES FAIL TO COMPLY WITH ALL THE REQUIREMENTS OF PART 567, 'CERTIFICATION.' THE VEHICLES WERE PROVIDED WITH INCORRECT FEDERAL CERTIFICATION LABELS.
Consequence:
THE TAGS COULD CONTAIN ERRONEOUS INFORMATION REGARDING CHASSIS MODEL, WEIGHT AND TIRE PRESSURE.
Remedy:
NATIONAL RV WILL PROVIDE CUSTOMERS WITH CORRECTED FEDERAL CERTIFICATION LABELS AND CORRECTED RVIA CONSUMER INFORMATION STICKERS BY CERTIFIED MAIL ALONG WITH INSTALLATION INSTRUCTIONS. THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION (NHTSA), AN AGENCY OF THE UNITED STATES DEPARTMENT OF TRANSPORTATION, HAS BEEN NOTIFIED THAT NATIONAL RV, INC. AND ITS HOLDING COMPANY, NATIONAL RV HOLDINGS, INC., HAVE FILED FOR BANKRUPTCY. NHTSA HAS BEEN ADVISED THAT OWNERS WHO WISH TO PURSUE CLAIMS RELATED TO SAFETY RECALL REPAIR WORK ON THEIR NATIONAL RV VEHICLES MAY FILE A PROOF OF CLAIM WITH THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, RIVERSIDE DIVISION. THE CASE NUMBER ASSIGNED TO THIS MATTER IS 07-17941. THE PROOF OF CLAIM FORM AND INSTRUCTIONS ARE AVAILABLE ONLINE AT THE COURT'S WEBSITE WWW.CACB.USCOURTS.GOV. ADDITIONAL INFORMATION ABOUT THE BANKRUPTCY AND ITS PROCEEDINGS MAY ALSO BE FOUND AT WWW.OMNIMGT.COM/NATIONALRV. NATIONAL RV'S PHONE NUMBER IS (951) 943-6007. INFORMATION ABOUT SAFETY RECALLS ON NATIONAL RV'S PRODUCTS MAY BE FOUND AT WWW.SAFERCAR.GOV. THE NHTSA WISHES TO ADVISE OWNERS OF RECALLED PRODUCTS THAT, IN THE INTERESTS OF THEIR SAFETY AND THE SAFETY OF THE MOTORING PUBLIC, ALL SAFETY RECALL WORK SHOULD BE PERFORMED ON MOTOR VEHICLES AND ITEMS OF EQUIPMENT.
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.

 

THE RV INDUSTRY IS PREPAIRING

RV Business
Tuesday, January 29, 2008

Circling around Monaco Coach Corp.’s production facility in Wakarusa, Ind., each day on his way home, Mike Martin has noticed more motorhomes than usual parked at the company's dispatch center.

The Elkhart Truth's Marilyn Odendahl reported that the long line of Class A motor coaches that the sales representative from DeMartini RV Sales has seen illustrates the current woes in the recreational vehicle industry: too much product and too few buyers.

When Monaco Coach handed pink slips to about 200 workers Friday (Jan. 25) afternoon, it was the second RV maker in Wakarusa in three days to make cutbacks because of slowing consumer demand.

Other RV manufacturers could follow as worries about the national economy cause buyers to refrain from making major purchases.

The downturn is not unexpected. During the 45th Annual National RV Trade Show in Louisville, Ky., in November, Richard Coon, president of Recreation Vehicle Industry Association (RVIA), told manufacturers and dealers the number of shipments would fall in 2008 to about 334,200, the lowest shipment total since 2003.

At Monaco, the layoffs were made to cut production and, therefore, control inventory. With the reduced work force, production of RVs is expected to fall 10% to 20%, said Monaco spokesman Craig Wanichek.

"The change was made so the units we are producing don't end up as finished goods at the end of the first quarter," Wanichek said, explaining that the manufacturer could be forced to discount the cost to dealers if too many towables and motorhomes are sitting at the factory in March. "It's a difficult decision but we thought it was prudent right now."

A "vast majority," Wanichek said, of the employees laid off were production workers from the Wakarusa plant.

The Truth reported that two days before Monaco downsized, neighbor Travel Supreme Inc. stopped production and closed its front office. The company was back in business Monday but about 25 of the 230 workers were let go, said Glenn Troyer, CEO and president of Travel Supreme.

RVs are not essential, Troyer said, and with high fuel prices, the credit crunch and the financial mess in the housing market, consumers are not confident to buy large-ticket items.

"We were slow," Troyer said of the three-day shutdown. "We were evaluating what we are going to do."

Despite the talk of recession, Dennis Harney does not believe the RV industry is heading to anything like the downturn of the 1970s. Harney is executive director of the Indiana Manufactured Housing Association-Recreation Vehicle Indiana Council in Indianapolis.

In fact, sales of RVs could increase with recent cuts in interest rates and if the economic stimulus package coming from Washington works, Harney said. Conversely, the slump could continue if fuel prices rise dramatically or if unemployment climbs.

"I don't see anything hugely unusual going on right now," Harney said. "It's not unusual for orders to be slow from time to time and layoffs to occur."

 

DID FEMA MANIPULATE THE FORMALDEHYDE TESTING?

RV Business
Tuesday, January 29, 2008

Democratic leaders of a House science subcommittee alleged Monday (Jan. 29) that the Federal Emergency Management Agency (FEMA) manipulated scientific research into the potential danger posed by formaldehyde fumes emitted in trailers still housing tens of thousands of survivors of hurricanes Katrina and Rita.

The Washington Post reported that the congressmen in a letter to Homeland Security Secretary Michael Chertoff stated FEMA "ignored, hid and manipulated government research on the potential impact of long-term exposure to formaldehyde" on Katrina and Rita victims now living in the FEMA trailers.

Reps. Brad Miller, D-N.C., and Nick Lampson, D-Tex., cited agency documents given to Congress in alleging that the federal Centers for Disease Control and Prevention (CDC) – generally considered a repository of nonpartisan scientific expertise – was "complicit in giving FEMA precisely what they wanted" to suppress the adverse health effects.

The lawmakers said the CDC's Agency for Toxic Substances and Disease Registry ignored one of its experts, Christopher T. De Rosa, after he informed FEMA there was no "safe level" of long-term exposure. They said FEMA bypassed that opinion and "shopped" the agency for its desired recommendation to study only short-term exposure.

FEMA said the health agency's report last February did not address long-term health effects but rather concerned ways to avoid toxic exposure to formaldehyde. "FEMA did not suppress or inappropriately influence any report," agency spokesman James McIntyre said.

More than 40,000 trailers are still being used by families displaced by Katrina in August 2005 and Rita weeks later. CDC began air quality testing on 500 trailers last month and the results are due out later this year.

Monday, January 28, 2008

 

WINNEBAGO CHAIRMAN TO RETIRE IN MAY

CHICAGO, Jan 28 (Reuters) - Winnebago Industries Inc (WGO.N: Quote, Profile, Research) said on Monday that Bruce Hertzke plans to retire as chairman and chief executive of the largest maker of motor homes in May.

Bob Olson, currently the company's president, will succeed him at the helm, the company said.

Hertzke, 56, has held the position of CEO since April 1998 and has been with Winnebago for 36 years.

Olson, 56, was elected president of the company in 2007 and has been with Winnebago for 38 years. He began his career at the company as an hourly production employee.

Olson will take over the helm of Winnebago at a time when the recreational vehicle market has been faring badly. Winnebago and other vehicle makers have seen a sharp drop in showroom traffic over the past 12 months as turmoil in the U.S. housing market - whose ups and downs are highly correlated with RV sales - have weighed on consumer confidence.

Last week, Winnebago said had it begun laying off workers at its plant in Forest City, Iowa due to a slump in sales. (Reporting by Nick Carey and Scott Malone; editing by Carol Bishopric)

 

TRAVEL SUPREME OPENED AGAIN MONDAY

RV Business
Monday, January 28, 2008

Travel Supreme Inc. said today (Jan. 28) that it is back in production but may not remain at full employment due to continued softness in the recreational vehicle market.

The Wakarusa, Ind.-based builder of luxury fifth-wheels and motorhomes closed down last Wednesday and told its around 230 employees not to report back to work until today. Management, including President Glenn Troyer, met privately this morning before talking to personnel.

The Travel Supreme news was a double whammy for the small, rural town in Elkhart County. On Friday, Coburg, Ore.-based Monaco Coach Corp. informed workers at its Wakarusa facility that it would be laying off around 200 people. Other RV companies in the manufacturing-heavy area are reportedly also scaling back on production.

The industry as a whole is feeling the combined effects of volatile gas prices, a meltdown in the finance sector and plummeting consumer confidence. In a report released today by the Recreation Vehicle Industry Association (RVIA), wholesale shipments were down 9.5% last year compared to 2006.

Travel Supreme is a family-owned company founded in 1989, which recently expanded its motorized line with the introduction of the more affordable Avalon diesel pusher motorhome during last November’s National RV Trade Show in Louisville, Ky.

 

LAYOFFS AT MONACO IN INDIANA

RV Business
Sunday, January 27, 2008

Coburg, Ore.-based Monaco Coach Corp. laid off 200 employees at its operations in Wakarusa, Ind., Friday (Jan. 25).

WSBT TV, South Bend, reported that the RV manufacturer blamed the cutbacks on slowing demand.

"On Friday (Jan. 25) we notified those employees that were affected. We reduced our work force by about 200 employees," said Craig Wanichek, director of corporate communications for Monaco. "Overall the RV market has slowed this past year and the consumers out there are facing high fuel prices and some things like that.”

Monaco said the market may begin to pick up with the recent interest rate cuts and lower gas prices, and will bring back workers if sales improve.

Last June, Monaco consolidated its Holiday Rambler and McKenzie towable operations in Indiana. The builder closed a 260,000-square-foot plant in Elkhart and transferred production to facilities in Wakarusa and Warsaw, Ind.

According to WSBT, Wakarusa’s town manager estimates the company employs about 1,200 people at the facility.

The Monaco news added to concerns in the small, rural town as RV builder Travel Supreme Inc. unexpectedly closed its doors Wednesday. The company said it plans to reopen on Monday.

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