Friday, June 27, 2008

 

DAN GAMEL RV CLOSING IT'S DOORS

RV Business
Friday, June 27, 2008

It was just over six months ago when Fresno, Calif., businessman Dan Gamel returned to the helm of the corporation that carries his name and the company’s six RV sales and service centers that he had sold off in 2005.

Today (June 27), Gamel announced in a press release that he will begin liquidating the inventory of all RVs in his remaining dealerships and will close the doors for good once the inventory is sold off.

Gamel’s current California locations are in Bakersfield, Modesto, Rocklin, Anderson, and two locations in Fresno – his original RV sales center and the flagship Camp America store that he opened in a former Super K-Mart.

Earlier this year, Gamel closed three of his under-performing stores in Santa Rosa, Chico, Calif., and Yuma, Ariz.

After resuming his role in January, Gamel said he quickly implemented many programs designed to improve performance and the company said it "enjoyed increased sales during the first quarter of 2008." Gamel attributed the increased volume to aggressive value pricing and a "proprietary sales system" known as Project 4, which computerizes the entire selling process.

Though overall profits have been down compared with the first quarter of 2007, March and April both showed sharp increases in sales. But Gamel said revenue fell in May when gas prices continued to climb and "the media continued to paint a bleak picture for summer travel and the future of gas automobiles."

“Despite media reports, data shows there are more people RVing now than ever in history," said Gamel. "Retirees are still traveling and families are still taking their RVs camping. Unfortunately, they’re also sitting back and waiting to see what will happen before upgrading to a new RV.

“We’ve been working to educate the consumer about the true cost of RVing and the effect of gas prices on their vacation budget. The fact is that new RVs actually cost less this year than last due, in part, to the reduction in interest rates from as high as 9% last year to about 6% now."

Despite investing millions in the operation, Gamel said the cost of "flooring inventory that is moving too slowly" and the inability to secure loans led to the decision to close his dealerships while the corporation is still solvent.

“The hardest part of this decision is knowing how many good people are losing their jobs, some who have worked for me 30 years or more," he said. "They’ve been vital to the lifeblood of this company.”

Gamel’s management team is cutting back staff in all stores to a skeleton crew to facilitate the liquidation of inventory which will begin June 28. Once all inventory is liquidated, the company will evaluate whether it’s feasible to keep one or two stores open.

Gamel said the size of today’s RV market can no longer sustain the number of dealers in California, even though the state is one of the largest RV markets in the country.

Gamel plans to sell off his commercial real estate holdings in Fresno, Modesto, Rocklin and Redding. One of two parcels he owns in Rocklin has been in escrow for several months, and his Camp America store in Fresno is also in escrow. Both of those properties are due to close this Fall.

Gamel has been a pioneer in the RV industry. At the age of 27, he was the youngest person to serve as president of the California RV Dealers Association and was a delegate to the national association from 1977 to 1981. In the 1990s, Gamel was one of the first dealers to sell RVs on the Internet, and in 2007 his Project 4 software and central desk system made it possible for his team to sell RVs from anywhere there’s an internet connection, even at campgrounds.

“I’ve been in this business 32 years. It’s been quite a ride and I’ll always be passionate about RVing and helping others to experience that freedom," Gamel said. "There are few activities that you can enjoy with your family that bring you together to spend real one-on-one time – parents with children, sisters with brothers, grandparents and cousins. It’s the stuff that strengthens family ties and grounds our kids and helps us to nurture strong leaders. That’s what RVing will always be about to me.”

Gamel also made a pitch to sell his remaining inventory, noting: “You’ll never find RV prices as low as you can get at my RV centers while we’re liquidating. Heck, folks from across the country can get our liquidation prices when they buy online at our website. We have to sell these RVs now, which makes it a real buyer’s market from coast to coast.”

 

MORE WEEKEND WARRIOR NEWS

By Greg Gerber @ 10:27 PM :: Manufacturing News
ONTARIO, Calif. -- The president of Weekend Warrior insists the company will be back in operation as early as July 7.

Mark Warmouth, founder of Weekend Warrior, told RV Industry News Wednesday night that the company is not closing its doors. It has suspended operation through the July 4th weekend to give Warmouth time to address some financial issues impacting the company.

"We are going to take a few weeks off and start up again as a smaller company so our cash flow will be enough to manage our expenses," said Warmouth. "We will reopen restructured and reorganized. I want to build trailers.

"We were damaged by a cash flow issue. The company is still a gold mine producing a wonderful product with wonderful margins," he explained. "This would be the opportunity of a lifetime for someone with cash to get involved. As for me, I am in this for the long haul."

Warmouth said Weekend Warrior fell out of covenant with a lender, which caused a cash flow problem to satisfy a debt. By taking some time off, Warmouth said the company will emerge stronger once they have time to turn some assets into cash.

"Everything is for sale, but nothing is really liquid," he explained. "This was actually a good lesson for me as I muddle through the process. I simply allowed some sloppy practices to enter the company and we've addressing those issues.

"As a result, the company is now better managed than it has ever been," he added. Warmouth said is in active discussions with several potential financiers either interested in buying the company or providing cash to help bail it out of its current predicament.

Thursday, June 26, 2008

 

WHAT IS REALLY GOING ON AT WEEKEND WARRIOR?

Bob Ashley
RV Business
Thursday, June 26, 2008

Weekend Warrior Trailers Inc. has shut down its Perris, Calif., manufacturing facility for two weeks and will reopen July 7, according to President Mark Warmoth.

Aware of a flurry of rumors that have circulated lately throughout the RV industry, Warmoth acknowledged the company has been “wounded” by the downturn in the economy, particularly in Southern California.

“We are still finishing units and we are shipping yard units,” Warmoth said. “The world is still getting our trailers.”

The shutdown is the second since May for Weekend Warrior, a leading manufacturer of towable sport utility RVs (SURVs). Warmoth in May reorganized the company after losing several key managers and consolidating four factories into two.

“It was a major restructuring, but I put it back together,” he told RVBusiness. “I pulled the trigger and pushed the change button. I'm trying to get this fixed.”

Bottom line, Warmoth maintained, rumors of the company's demise are false, although he said Weekend Warrior is dealing with “cash flow” problems and “10 years of major growth that developed bad habits.”

“I'm in full control,” he said. “I'm still here, wounded. There's cash all over the place, but it's not liquid. I absolutely can open on July 7, but I don't want to open without the cash.”

In 2007, Weekend Warrior was second in towable SURV sales with 21.2% of the market, according to Statistical Survey Inc., Grand Rapids, Mich., behind only the combined units of Thor Industries Inc., Jackson Center, Ohio.

 

RECALL: 2001 FOREST RIVER TSUNAMI: NORCOLD REFRIGERATOR

Make / Models : Model/Build Years:
FOREST RIVER / TSUNAMI 2001
Manufacturer : FOREST RIVER, INC. Mfr's Report Date : JUN 13, 2008
NHTSA CAMPAIGN ID Number : 08V277000 NHTSA Action Number: EQ08009
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 1
Summary:
FOREST RIVER IS RECALLING 1 MY 2001 TSUNAMI CLASS A DIESEL PUSHER MOTOR HOME MOTOR HOMES EQUIPPED WITH A NORCOLD REFRIGERATOR. A FATIGUE FAILURE IN THE SECTION OF THE COOLING UNIT WHICH CONTAINS THE REFRIGERANT COULD ALLOW THE LIQUID SOLUTION TO SLOWLY LEAK.
Consequence:
EXTENDED OPERATION OF A LEAKING COOLING UNIT COULD LEAD TO A FIRE FROM GAS WHICH MIGHT ESCAPE.
Remedy:
FOREST RIVER IS WORKING WITH NORCOLD TO REPAIR THESE REFRIGERATORS. NORCOLD WILL PROVIDE THERMAL SWITCH KITS TO OWNERS ALONG WITH THE NECESSARY FORMS AND INSTRUCTIONS. THE RECALL IS EXPECTED TO BEGIN DURING JULY OR AUGUST 2008. OWNERS MAY CONTACT NORCOLD AT 1-800-767-9101 OR FOREST RIVER AT 1-574-389-4600.
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: 2008 SPARTAN SU MOTOR HOME CHASSIS: CHASSIS FASTENERS

Make / Models : Model/Build Years:
SPARTAN / K2 2008
SPARTAN / K3 2008
SPARTAN / MM 2007-2008
SPARTAN / SU 2008
Manufacturer : SPARTAN CHASSIS, INC. Mfr's Report Date : JUN 18, 2008
NHTSA CAMPAIGN ID Number : 08V275000 NHTSA Action Number: N/A
Component: STEERING
Potential Number Of Units Affected : 213
Summary:
SPARTAN CHASSIS IS RECALLING 213 MY 2007-2008 MM, AND MY 2008 K2, K3, AND SU MOTOR HOME CHASSIS. CERTAIN CHASSIS FASTENERS MAY FRACTURE RESULTING IN POOR HANDLING OF THE VEHICLE, LOSS OF STEERING, AND/OR REDUCED LEVEL OF SUSPENSION PERFORMANCE.
Consequence:
LOSS OF STEERING WILL INCREASE THE RISK OF A CRASH.
Remedy:
DEALERS WILL INSPECT AND REPLACE THE FASTENERS AS NEEDED FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT JUNE 27, 2008. OWNERS MAY CONTACT SPARTAN CHASSIS AT 1-800-543-4277.
Notes:
SPARTAN CHASSIS RECALL NO. 07024. 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, June 25, 2008

 

WEEKEND WARRIOR SUSPENDING OPERATIONS UNTIL LABOR DAY

From rvinews.com:
(June 25, 2008) -- Weekend Warrior shut down one trailer line Tuesday and the rest of the company on Wednesday, according to dealers who carry their line. Mark Warmouth, president of Weekend Warrior, told dealers today that the company would shut its doors until Labor Day. Then, Warmouth hopes to reopen the company and build units on a limited basis of one or two a day.

 

RECALL: GEORGIE BOY: NORCOLD REFRIGERATORS

Make / Models : Model/Build Years:
GEORGIE BOY / CRUISE AIR 1999-2000
GEORGIE BOY / CRUISE MASTER 1999-2002
GEORGIE BOY / LANDAU 1999-2002
GEORGIE BOY / MAVERICK 1999-2001
GEORGIE BOY / PURSUIT 1999-2002
GEORGIE BOY / SUITE 2000-2002
Manufacturer : COACHMEN RV COMPANY, LLC Mfr's Report Date : JUN 16, 2008
NHTSA CAMPAIGN ID Number : 08V271000 NHTSA Action Number: EQ08009
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 4231
Summary:
COACHMEN IS RECALLING 4,231 MY 1999-2002 GEORGIE BOY CRUISE MASTER, LANDAU AND PURSUIT, MY 1999-2000 CRUISE AIR, MY 1999-2001 MAVERICK AND MY 2000-2002 GEORGIE BOY SUITE MOTOR HOMES EQUIPPED WITH NORCOLD REFRIGERATORS. A FATIGUE FAILURE IN THE SECTION OF THE COOLING UNIT WHICH CONTAINS THE REFRIGERANT COULD ALLOW THE LIQUID SOLUTION TO SLOWLY LEAK.
Consequence:
EXTENDED OPERATION OF A LEAKING COOLING UNIT COULD LEAD TO A FIRE FROM GAS WHICH MIGHT ESCAPE.
Remedy:
COACHMEN IS WORKING WITH NORCOLD TO REPAIR THESE REFRIGERATORS. NORCOLD WILL PROVIDE THERMAL SWITCH KITS TO OWNERS ALONG WITH THE NECESSARY FORMS AND INSTRUCTIONS. THE RECALL IS EXPECTED TO BEGIN DURING JUNE 2008. OWNERS MAY CONTACT NORCOLD AT 1-800-767-9101 OR 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.

 

RECALL: 2008 FREIGHTLINER XC MOTOR HOME CHASSIS (REAR SUSPENSION)

Make / Models : Model/Build Years:
FCCC / XC 2008
Manufacturer : DAIMLER TRUCKS NORTH AMERICA Mfr's Report Date : JUN 06, 2008
NHTSA CAMPAIGN ID Number : 08V269000 NHTSA Action Number: N/A
Component: SUSPENSION
Potential Number Of Units Affected : 1860
Summary:
DAIMLER TRUCKS IS RECALLING 1,860 MY 2008 XC MOTOR HOME CHASSIS EQUIPPED WITH SAF-HOLLAND ADL SERIES REAR SUSPENSIONS. IN SOME INSTANCES THE TRANSVERSE BEAM WAS NOT PROPERLY WELDED WHICH COULD RESULT IN A FAILURE OF THE WELD.
Consequence:
IF THE WELD FAILS, VEHICLE STABILITY WHILE CORNERING COULD BE AFFECTED RESULTING IN LOSS OF VEHICLE CONTROL, POSSIBLY RESULTING IN A CRASH. IN ADDITION, THE TRANSVERSE BEAM COULD DROP TO THE GROUND CAUSING SPARKS THAT COULD CAUSE A FIRE HAZARD.
Remedy:
DAIMLER TRUCKS IS WORKING WITH SAF-HOLLAND TO HAVE A VISUAL INSPECTION OF THE ADL TRANSVERSE BEAM PERFORMED. IF A WELD DEFECT IS IDENTIFIED, SAF-HOLLAND WILL PROVIDE A SERVICE REPLACEMENT KIT THAT CONTAINS A NEW TRANSVERSE BEAM, ALL NECESSARY INSTALLATION HARDWARE, BEAM REPLACEMENT, AND INSTRUCTIONS FREE OF CHARGE (PLEASE SEE 08E031). THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT AUGUST 1, 2008. OWNERS MAY CONTACT SAF-HOLLAND AT 1-231-773-3271 OR DAIMLER TRUCKS AT 1-800-547-0712.
Notes:
DAIMLER TRUCKS RECALL NO. FL-530. 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.

 

RECALL: DUTCHMAN: EXTERIOR LIGHTING (REAR REFLECTORS)

Make / Models : Model/Build Years:
DUTCHMEN / N TENSE 2007-2009
DUTCHMEN / VICTORY LANE 2007-2009
DUTCHMEN / WINNERS CIRCLE 2007-2009
Manufacturer : DUTCHMEN MANUFACTURING, INC. Mfr's Report Date : JUN 13, 2008
NHTSA CAMPAIGN ID Number : 08V268000 NHTSA Action Number: N/A
Component: EXTERIOR LIGHTING
Potential Number Of Units Affected : 478
Summary:
DUTCHMEN IS RECALLING 478 MY 2007-2009 N'TENSE, VICTORY LANE, AND WINNER'S CIRCLE TRAVEL TRAILERS FOR FAILING TO COMPLY WITH THE REQUIREMENTS OF FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 108, 'LAMPS, REFLECTIVE DEVICES, AND ASSOCIATED EQUIPMENT.' THESE TRAILERS WERE BUILT WITHOUT REAR REFLEX REFLECTORS.
Consequence:
LACK OF REFLECTORS COULD LEAD TO REDUCED VISIBILITY OF THE TRAVEL TRAILER INCREASING THE RISK OF A CRASH.
Remedy:
DEALERS WILL SEND REFLECTORS AND INSTALLATION INSTRUCTIONS TO CUSTOMERS. CUSTOMERS WILL HAVE THE OPTION OF INSTALLING THE REFLECTORS OR TAKE THEIR TRAVEL TRAILER TO THE NEAREST DUTCHMEN CERTIFIED DEALER TO HAVE THE INSTALLATION DONE FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT JULY 14, 2008. OWNERS MAY CONTACT DUTCHMEN AT 1-866-869-1109.
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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