Friday, July 25, 2008

 

IT MAY BE ALL OVER FOR WEEKEND WARRIOR

Bob Ashley
RV Business
Friday, July 25, 2008

Weekend Warrior Trailers Inc., the Perris, Calif., manufacturer that led the explosion of West Coast towable sport utility RVs, is still in business, but is on the verge of closing its doors, according to company founder and President Mark Warmoth.

“I'm circling the drain here,” Warmoth said. “So far, the banks and dealers are cooperating. But everybody knows that we are probably done. Officially, we’re still here, but unofficially, we're not going to make it.”

Contrary to reports published elsewhere, Warmoth told RVBusiness that the company has not been seized by creditors, even though the company's production line has been closed since early July. “I have been liquidating,” Warmoth said. “Everything is voluntary. I am trying to turn everything that I own into cash. I'm still optimistic and I'm still answering the phones.”

Warmoth said Weekend Warrior, which is currently finishing off some units, fell victim to the collapsed California housing market, rising fuel prices, a sour national economy and unspecified “internal problems.”

“A sugar daddy could always come in and bail this thing out, but it doesn't look good,” Warmoth said. “I'm dragging my feet as long as I can.”

Warmoth said Weekend Warrior's production line has been closed since early July. “I'm finishing some units, but I have not put a chassis in the door since the first of July,” he said. “For real manufacturing, I'm still on hold.”

Rumors have circulated for months about Weekend Warrior's demise. They escalated after key executives left the firm in the spring.

Weekend Warrior, founded in 1988, at one time employed about 2,000 people in four plants totaling more than 215,000 square feet of capacity in Perris.

In recent years, Weekend Warrior branched beyond the toy hauler sector into Class C motorhomes and traditional travel trailers.

Weekend Warrior had estimated sales of $195 million in 2006 and had growth of 50% in each of the preceding seven years, according to the company at the time.

“I'm still in shock,” Warmoth said. “We were at the top of our game and then things began to happen. If I don't pull this off, I have to apologize to my employees and to my customers.”

 

COACHMAN LAYS OFF

RV Business
Friday, July 25, 2008

Coachmen Industries Inc. executives conceded they did not foresee the economy taking the steep decline it has but President and CEO Richard Lavers confidently told investors the company will survive.

As reported by the Elkhart Truth, the RV and housing manufacturer reviewed Thursday (July 24) its financial results for the second quarter of 2008. Middlebury, Ind.-based Coachmen ended the quarter with a $3 million loss and the opening six months with a $1.6 million loss.

To improve the performance of the RV division, the company has "specific action plans and goals" for further cost savings that include more plant consolidations and additional wage and salary reductions, said Mike Terlep, president of the Coachmen RV Group. These changes are scheduled to happen over the next several weeks.

During the second quarter, the company laid off 261 employees, Lavers said. Coachmen will make "minor adjustments" in the work force but nothing like the impending layoff at Monaco Coach Corp. of 1,430 workers.

The housing division turned in a positive numbers for the quarter, posting income of $3.1 million.

Characterizing the mortgage crunch as "one of the most difficult issues facing our customers, Housing Group President Rick Bedell said Coachmen has entered into a joint venture with American Home Bank to provide mortgage financing for all of the company's single-family home customers.

The partnership is expected to begin offering financial services in the third quarter.

"This will not be a robust year in terms of either sales or profits," Lavers said. "But the tourniquet that we applied in 2007 has staunched the hemorrhage to a dribble and the healing process is well under way. Coachmen will survive to prosper in a coming day."

 

RECALL: 1999-2001 NRC MOTOR HOMES: NORCOLD REFRIGERATORS

Make / Models : Model/Build Years:
NRC / MOTOR HOME 1999-2001
Manufacturer : NRC MODIFICATIONS, INC. Mfr's Report Date : JUL 14, 2008
NHTSA CAMPAIGN ID Number : 08V332000 NHTSA Action Number: EQ08009
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 12
Summary:
NRC IS RECALLING CERTAIN 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:
NRC IS WORKING WITH NORCOLD TO REPAIR THESE REFRIGERATORS (PLEASE SEE 08E030). NORCOLD WILL PROVIDE THERMAL SWITCH KITS TO OWNERS ALONG WITH THE NECESSARY FORMS AND INSTRUCTIONS. THE MANUFACTURER HAS NOT YET PROVIDED AN OWNER NOTIFICATION SCHEDULE FOR THIS CAMPAIGN. OWNERS MAY CONTACT NORCOLD AT 1-800-767- 9101 OR NRC AT 1-574-825-3646.
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.

 

RECALL: 1999-2001 KZRV TRAILERS: NORCORD REFRIGERATORS

Make / Models : Model/Build Years:
K-Z / NEW VISION 1999-2001
K-Z / NEW VISION ULTRA SPORT 1999-2001
K-Z / SPORTSMAN 1999-2001
K-Z / ULTRA 1999-2001
Manufacturer : KZRV, L.P. Mfr's Report Date : JUL 21, 2008
NHTSA CAMPAIGN ID Number : 08V330000 NHTSA Action Number: EQ08009
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 332
Summary:
KZRV IS RECALLING 332 MY 1999-2001 TRAVEL TRAILERS 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:
KZRV IS WORKING WITH NORCOLD TO REPAIR THESE REFRIGERATORS (PLEASE SEE 08E030). NORCOLD WILL PROVIDE THERMAL SWITCH KITS TO OWNERS ALONG WITH THE NECESSARY FORMS AND INSTRUCTIONS. THE RECAL IS EXPECTED TO BEGIN DURING JULY OR AUGUST 2008. OWNERS MAY CONTACT NORCOLD AT 1-800-767- 9101 ORKZRV AT 1-800-768-4016.
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.

 

RECALL: 2007 PACIFIC COACH WORKS: DOMETIC REFRIGERATORS

Make / Models : Model/Build Years:
PACIFIC COACHWORKS / TANGO 2007
Manufacturer : PACIFIC COACHWORKS Mfr's Report Date : JUL 11, 2008
NHTSA CAMPAIGN ID Number : 08V328000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 177
Summary:
PACIFIC COACHWORKS IS RECALLING 177 MY 2007 FIFTH WHEEL AND TRAVEL TRAILERS EQUIPPED WITH A TWO-DOOR REFRIGERATOR MANUFACTURED BY THE DOMETIC CORPORATION. THE REFRIGERATOR MAY HAVE A DEFECT IN THE BOILER TUBE. PRESSURIZED COOLANT SOLUTION COULD BE RELEASED INTO AN AREA WHERE AN IGNITION SOURCE (GAS FLAME) IS PRESENT.
Consequence:
IF THIS SOLUTION IS EXPOSED TO AN IGNITION SOURCE UNDER CERTAIN SPECIFIC CIRCUMSTANCES, IT CAN RESULT IN A VEHICLE FIRE.
Remedy:
PACIFIC COACHWORKS IS WORKING WITH DOMETIC TO REPAIR THESE REFRIGERATORS (PLEASE SEE 08E032). DOMETIC WILL REPAIR THESE REFRIGERATORS BY INSTALLING A SECONDARY BURN HOUSING, A THERMAL FUSE, AND A MELT FUSE FREE OF CHARGE. DOMETIC HAS RETAINED STERICYCLE INC. TO MANAGE THIS CAMPAIGN. STERICYCLE WILL ASSIST THE OWNER IN LOCATING DEALERSHIPS OR SERVICE CENTERS AND WILL PROVIDE ASSISTANCE WITH SCHEDULING OF APPOINTMENTS. OWNERS MAY CONTACT DOMETIC/STERICYCLE AT 1-888-446-5157 OR PACIFIC COACHWORKS AT 1-951-686-7294.
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.

 

RECALL: 2008-2009 COUNTRY COACH: CATERPILLAR FUEL LEAK

Make / Models : Model/Build Years:
COUNTRY COACH / ALLURE 2008-2009
COUNTRY COACH / INSPIRE 2008
COUNTRY COACH / TRIBUTE 2008
Manufacturer : COUNTRY COACH INC Mfr's Report Date : JUL 14, 2008
NHTSA CAMPAIGN ID Number : 08V327000 NHTSA Action Number: N/A
Component: ENGINE AND ENGINE COOLING:ENGINE:DIESEL
Potential Number Of Units Affected : 65
Summary:
COUNTRY COACH IS RECALLING CERTAIN MOTOR HOMES EQUIPPED WITH CATERPILLAR C9 DIESEL ENGINES. THE FUEL PUMP OUTLET CHECK PLUG MAY BE CRACKED WHICH COULD CAUSE FUEL TO SPRAY AND LEAK.
Consequence:
FUEL LEAKAGE, IN THE PRESENCE OF AN IGNITION SOURCE, COULD RESULT IN A FIRE.
Remedy:
COUNTRY COACH IS WORKING WITH CATERPILLAR (PLEASE SEE 08E042). CATERPILLAR WILL REPLACE THE FUEL PUMP PLUG FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING JULY 2008. OWNERS MAY CONTACT CATERPILLAR AT 1-800-447-4986 OR COUNTRY COACH AT 1-800-452-8015.
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.

Thursday, July 24, 2008

 

WEEKEND WARRIOR BEING LIQUIDATED

ONTARIO, Calif. -- RV Industry News has learned that Weekend Warrior is now under the control of a liquidation company and that all assets are up for sale.

CMA Business Credit Services has assumed control of the company. All dealers with warranty claims pending will receive a letter within two weeks outlining procedures for filing a claim for possible reimbursement. An operator answering the phone at company headquarters would not promise that money would be available to pay all pending claims.

Weekend Warrior officials have yet to confirm the information, but dealers calling the company to inquire about warranty work are being told the company is being liquidated and that new warranty claims will not be processed.

Last month, Mark Warmouth, president of Weekend Warrior, assured the industry the factory would shut down temporarily and reopen under better financial controls.

An auction is pending to sell off all remaining assets, according to another source close to the company.

Weekend Warrior joins National RV, Okanagan RV, Alfa Leisure, Kingsley Coach and Western Recreation Vehicles as manufacturers which have shut their doors in the last eight months.

RV Industry News earlier reported that Weekend Warrior's lending partners were forcing the company's hand, said one dealer who has spoken with Warmouth and is familiar with the situation. As the firm sold off its lot inventory to raise cash, it reduced the asset line backing up the company's credit line. As a result, the lenders grabbed Weekend Warrior's operating capital to bring the credit line in line with the company's assets. The action forced the closure around the July 4 holiday.

The company never reopened from that "temporary" closure.

 

RECALL: 2004-2007 KEYSTONE RV'S: DOMETIC REFRIGERATORS

Make / Models : Model/Build Years:
KEYSTONE / CABANA 2004
KEYSTONE / CAMBRIDGE 2006
KEYSTONE / CHALLENGER 2006-2007
KEYSTONE / COUGAR 2004-2007
KEYSTONE / COUGAR-HIGH COUNTRY 2004-2005
KEYSTONE / EVEREST 2006-2007
KEYSTONE / FUZION 2007
KEYSTONE / HOBBI 2006-2007
KEYSTONE / LAREDO 2006-2007
KEYSTONE / MONTANA 2004-2007
KEYSTONE / MONTANA-BIG SKY 2004-2007
KEYSTONE / MONTANA-MOUNTAINEER 2004-2007
KEYSTONE / NRG 2006-2007
KEYSTONE / OUTBACK 2004-2007
KEYSTONE / OUTBACK-SYDNEY 2005-2007
KEYSTONE / PASSPORT 2007
KEYSTONE / SPRINGDALE 2004-2007
KEYSTONE / SPRINGDALE LIMITED 2007
KEYSTONE / SPRINGDALE-CLEARWATER 2004-2007
KEYSTONE / SPRINGDALE-SUMMERLAND 2007
KEYSTONE / SPRINTER 2004-2007
KEYSTONE / TAIL-GATOR 2004-2007
KEYSTONE / VR1 2006-2007
Manufacturer : KEYSTONE RV COMPANY Mfr's Report Date : JUL 11, 2008
NHTSA CAMPAIGN ID Number : 08V325000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 161250
Summary:
KEYSTONE IS RECALLING 161,250 MY 2004-2007 FIFTH WHEEL AND TRAVEL TRAILERS EQUIPPED WITH A TWO-DOOR REFRIGERATOR MANUFACTURED BY THE DOMETIC CORPORATION. THE REFRIGERATOR MAY HAVE A DEFECT IN THE BOILER TUBE. PRESSURIZED COOLANT SOLUTION COULD BE RELEASED INTO AN AREA WHERE AN IGNITION SOURCE (GAS FLAME) IS PRESENT.
Consequence:
IF THIS SOLUTION IS EXPOSED TO AN IGNITION SOURCE UNDER CERTAIN SPECIFIC CIRCUMSTANCES, IT CAN RESULT IN A VEHICLE FIRE.
Remedy:
KEYSTONE IS WORKING WITH DOMETIC TO REPAIR THESE REFRIGERATORS (PLEASE SEE 08E032). DOMETIC WILL REPAIR THESE REFRIGERATORS BY INSTALLING A SECONDARY BURN HOUSING, A THERMAL FUSE, AND A MELT FUSE FREE OF CHARGE. DOMETIC HAS RETAINED STERICYCLE INC. TO MANAGE THIS CAMPAIGN. STERICYCLE WILL ASSIST THE OWNER IN LOCATING DEALERSHIPS OR SERVICE CENTERS AND WILL PROVIDE ASSISTANCE WITH SCHEDULING OF APPOINTMENTS. OWNERS MAY CONTACT DOMETIC/STERICYCLE AT 1-888-446-5157 OR KEYSTONE AT 1-866-425-4369.
Notes:
KEYSTONE RECALL NO. 08-111. 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: 2003-2007 FLEETWOOD RV'S: DOMETIC REFRIGERATORS

Make / Models : Model/Build Years:
FLEETWOOD / AMERICAN EAGLE 2003-2007
FLEETWOOD / AMERICAN HERITAGE 2003-2007
FLEETWOOD / AMERICAN TRADITION 2003-2007
FLEETWOOD / BOUNDER 2003-2007
FLEETWOOD / DISCOVERY 2003-2007
FLEETWOOD / EXCURSION 2003-2007
FLEETWOOD / EXPEDITION 2003-2007
FLEETWOOD / FIESTA 2003-2007
FLEETWOOD / FLAIR 2003-2007
FLEETWOOD / JAMBOREE 2003-2007
FLEETWOOD / MALLARD 2003-2006
FLEETWOOD / PACE ARROW 2003-2007
FLEETWOOD / PIONEER 2003-2007
FLEETWOOD / PRIDE 2003-2007
FLEETWOOD / PROVIDENCE 2003-2007
FLEETWOOD / PROWLER 2003-2007
FLEETWOOD / REVOLUTION 2003-2007
FLEETWOOD / SOUTHWIND 2003-2007
FLEETWOOD / STORM 2003-2007
FLEETWOOD / TERRA 2003-2007
FLEETWOOD / TERRY 2003-2007
FLEETWOOD / TIOGA 2003-2007
FLEETWOOD / TRIUMPH 2003-2007
FLEETWOOD / WILDERNESS 2003-2007
Manufacturer : FLEETWOOD ENTERPRISES, INC. Mfr's Report Date : JUL 10, 2008
NHTSA CAMPAIGN ID Number : 08V320000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 70101
Summary:
FLEETWOOD IS RECALLING 70,101 MY 2003-2007 SOUTHWIND, PACE ARROW, BOUNDER, FLAIR, STORM, FIESTA, TERRA GAS CLASS A MOTOR HOMES; BOUNDER, DISCOVERY, PROVIDENCE, EXCURSION, EXPEDITION, REVOLUTION, AMERICAN EAGLE, AMERICAN HERITAGE, AMERICAN TRADITION DIESEL CLASS A MOTOR HOMES; JAMBOREE TIOGA CLASS C MOTOR HOMES; AND PROWLER, WILDERNESS, TERRY, MALLARD, PIONEER, PRIDE AND TRIUMPH CONVENTIONAL AND FIFTH WHEEL TRAVEL TRAILERS EQUIPPED WITH A TWO-DOOR REFRIGERATORS MANUFACTURED BY THE DOMETIC CORPORATION. THE REFRIGERATOR MAY HAVE A DEFECT IN THE BOILER TUBE. PRESSURIZED COOLANT SOLUTION COULD BE RELEASED INTO AN AREA WHERE AN IGNITION SOURCE (GAS FLAME) IS PRESENT.
Consequence:
IF THIS SOLUTION IS EXPOSED TO AN IGNITION SOURCE UNDER CERTAIN SPECIFIC CIRCUMSTANCES, IT CAN RESULT IN A VEHICLE FIRE.
Remedy:
FLEETWOOD IS WORKING WITH DOMETIC TO REPAIR THESE REFRIGERATORS (PLEASE SEE 08E032). DOMETIC WILL REPAIR THESE REFRIGERATORS BY INSTALLING A SECONDARY BURN HOUSING, A THERMAL FUSE, AND A MELT FUSE FREE OF CHARGE. DOMETIC HAS RETAINED STERICYCLE INC. TO MANAGE THIS CAMPAIGN. STERICYCLE WILL ASSIST THE OWNER IN LOCATING DEALERSHIPS OR SERVICE CENTERS AND WILL PROVIDE ASSISTANCE WITH SCHEDULING OF APPOINTMENTS. OWNERS MAY CONTACT DOMETIC/STERICYCLE AT 1-888-446-5157 OR FLEETWOOD AT 1-800-322-8216.
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.

Wednesday, July 23, 2008

 

DOMETIC EXPANDING RECALL ON REFRIGERATORS

RV Business
Wednesday, July 23, 2008

Elkhart, Ind.-based supplier Dometic Corp. is voluntarily expanding its recall announced in August 2006 by recalling additional refrigerators that may have a potential fire hazard.

The recall affects two-door refrigerators manufactured between June 2003 and September 2006. For details visit www.dometic.com/recall or call 1-888-446-5157.

"Our customers' safety is our foremost priority. Dometic is continually committed to offering RVers the best and safest in RV products, so we voluntarily decided to expand the recall," said Brad Sargent, vice president of marketing for Dometic. "We apologize for any inconvenience this may cause."

The potentially affected refrigerators have the following model numbers: NDR1062, RM2652, RM2662, RM2663, RM2852, RM2862, RM3662, RM3663 and RM3862. The units have serial numbers beginning with the following combinations: 320xxxxx through 352xxxxx, 401xxxxx through 452xxxxx, 501xxxxx through 552xxxxx, and 601xxxxx through 639xxxxx.

 

FEMA WANTS IMMUNITY (WHAT A SURPRISE!)

RV Business
Wednesday, July 23, 2008

The Federal Emergency Management Agency (FEMA) is requesting immunity from lawsuits filed on behalf of Gulf Coast hurricane victims who claim they were exposed to dangerous fumes while living in government-issued trailers, according to an Associated Press report.

Today (July 23), U.S. District Judge Kurt Engelhardt is scheduled to hear FEMA's bid to be dismissed from a series of consolidated cases filed against the federal government and the companies that supplied FEMA with tens of thousands of trailers after Katrina and then Rita in 2005.

Lawyers for Gulf Coast storm victims accuse FEMA of negligence for sheltering them in trailers with elevated levels of formaldehyde, a preservative used in construction materials that can induce breathing problems and is believed to cause cancer.

In court papers, FEMA's lawyers told the judge the agency is entitled to immunity from such claims challenging its response to disasters such as Katrina.

The federal government's lawyers said FEMA spent more than $2.5 billion to purchase more than 140,000 new trailers from recreational vehicle dealers and trailer manufacturers after the storms. They also said the agency relied on manufacturers to furnish the agency with a "safe, habitable, functional product."

"It is well-established that the (government) is only liable in such situations if it supervised and directed day-to-day activities of its contractors, which did not occur in this case," they argued in the court papers.

The government's lawyers also wrote that a review of legislative history left "no doubt" that Congress intended to enact a broad bar against any such claims arising from disaster relief actions.

Tony Buzbee, one of the lead lawyers for the plaintiffs, said FEMA and the trailer manufacturers "worked hand in hand" after the 2005 hurricanes and should share legal liability in the cases. The lawsuits contend FEMA ignored concerns about formaldehyde levels in trailers for months after Katrina.

"FEMA is right to blame the manufacturers for the production of the toxic trailers, but the agency is not without culpability or legal liability for this debacle," Buzbee said in a written statement Tuesday.

Lawyers for the plaintiffs want Engelhardt to certify the consolidated cases as a class action on behalf of tens of thousands of current and former trailer occupants in Alabama, Louisiana, Mississippi and Texas. The judge hasn't ruled on that request yet.

The plaintiffs' lawyers said it's premature for Engelhardt to consider dismissing FEMA from the cases.

 

MANY PROBLEMS WITH FEMA TRAILERS

RV Business
Tuesday, July 22, 2008

(Editor’s Note: This guest opinion piece from writer Matt Robinson appeared on bestofneworleans.com, the website of a New Orelans weekly newspaper group.)

Manufacturers of FEMA travel trailers appeared before the House Oversight and Reform Committee in Washington earlier this month to answer questions about formaldehyde in units they provided for emergency housing after Hurricanes Katrina and Rita.

Representatives from Gulf Stream, Keystone, Forest River and Pilgrim, which built trailers for FEMA, were called before the same committee that last summer uncovered FEMA's efforts to distance itself from the formaldehyde issue when it first came to light.

A week before the congressional hearing, the Centers for Disease Control (CDC) released its final report on testing it conducted last winter to determine the extent of the formaldehyde problem. The report shows there were elevated levels of the harmful chemical in the majority of units tested. Four makers – Gulf Stream, Forest River, Pilgrim and Keystone, the same companies called to testify before Congress – had particularly worrisome levels, some as high as 590 parts per billion, almost six times the level associated with negative health effects on sensitive persons.

Formaldehyde exposure has affected a large number of hurricane evacuees, and longitudinal studies to examine the health impacts of exposure reportedly are in the works. But the CDC's findings validate the perceptions of trailer occupants who have endured an array of health problems since moving into the units.

As trailer manufacturers face congressional scrutiny over the hazards of formaldehyde, the CDC report raises larger questions about the safety of the temporary housing units that are still in use. As a part of the study, occupants of the 519 trailers tested were asked to fill out a questionnaire. In addition to speaking with the trailer residents, investigators conducted walk-throughs of the units and assessed external conditions of the trailers. In the course of the study, investigators learned that 29% of the trailers they examined had no functioning smoke detectors. No reasons were recorded to account for this high percentage, but the ultimate responsibility for the proper functioning of trailer alarms rests with the handful of contractors that provide maintenance and deactivation of the units still in use.

The danger of fires in FEMA trailers is well known. As many as two dozen people have lost their lives in such blazes, and in at least two of the incidents, occupants died of smoke inhalation, not flames. Asleep when fires broke out, they were not awakened by detectors, and when they did wake up, they were overcome by toxic smoke.

Ellen Schools, a 51-year-old Cameron Parish evacuee living in a FEMA trailer after Hurricane Rita, was found dead inside her trailer, 3 feet from the door, in August 2006. Would-be rescuers heard her beating on the wall to draw their attention, but they could not enter the trailer because the fire was too intense.

A month earlier, St. Bernard resident Michael Tufaro died in his trailer when his bed caught fire. No alarm had sounded to warn him of the danger, either. The deaths of Schools and Tufaro might have been prevented had smoke detectors been properly functioning. The failure of CO2 alarms to sound also is suspected in several propane-related explosions and deaths.

The CDC questionnaire also revealed that 21% of the FEMA trailer occupants surveyed had reported problems with mold in their trailers in the prior three months. CDC surveyors reported they saw mold patches of up to 4 square feet in size in the interior of roughly one out of 10 units.

Mold grows best in moist conditions, and 15% of the occupants surveyed reported leaky pipes in their trailers, and 17% said they had roof leaks. The health consequences of prolonged exposure to mycotoxins, or toxic mold, are well-documented, and the prevalence of mold in FEMA trailers led one researcher to refer to them as "beautiful growth media on wheels."

It also is possible that leaks in trailers might exacerbate formaldehyde problems. Cured and dry formaldehyde glues and resins emit less formaldehyde than when they are wet, but formaldehyde is a water-soluble chemical. Should a pipe or roof leak dampen particle board or plywood paneling, these materials could emit formaldehyde fumes all over again, especially in the heat and humidity of a Gulf Coast summer. Such a scenario might explain why, after more than two years of use, the travel trailers still measure high levels of the fumes, while most structures with formaldehyde emit smaller and smaller amounts over time.

The congressional hearings are not the end of the issue for trailer manufacturers. They have been named in a class-action lawsuit, filed in Eastern Louisiana Federal District Court last year, which seeks damages on behalf of trailer occupants exposed to the chemical.

In the meantime, FEMA is relocating trailer occupants to avoid formaldehyde risks in the heat and humidity of summer. But as the CDC's report indicates, the shortcomings of FEMA's emergency housing program are many, varied and don't stop at formaldehyde.

 

THOUSAND TRAILS BEING BOUGHT BY EQUITY LIFESTYLE PROPERTIES

RV Business
Wednesday, July 23, 2008

Thousand Trails LP expects to eliminate 144 positions at its Frisco, Texas, headquarters when a planned sale of the company to Equity LifeStyle Properties Inc. is complete, the company said in a letter to the Texas Workforce Commission.

The Frisco-based operator of RV camping and outdoor preserve communities says an additional 97 employees working off-site will lose their jobs, bringing the total staff reduction to 241 employees. Most of the positions are tied to administrative functions at the company’s Frisco headquarters.

Chicago-based real estate investment trust Equity LifeStyle Properties Inc. (NYSE: MHC) said in July that it would acquire Thousand Trails from its parent company, Privileged Access.

In May 2002, Thousand Trails was awarded $125,000 in cash incentives from the City of Frisco, for moving its headquarters and 100 jobs from an office building along Interstate 635 to Parkwood Office Center in Frisco. The company says the staff reductions will take place on or around Sept. 24.

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