Wednesday, July 30, 2008
MONACO HAS A CORPORATE AIRPLANE
Saj Karsan
Seeking Alpha
We've discussed here why it's important to read the notes to the financial statements of any company before investing in it. We've also seen how home builder M/I Homes (NYSE: MHO) may have gotten ahead of itself during the housing bubble when it bought itself a corporate airplane, as we discussed here.
Today, we see a combination of the two above situations! Buried in a footnote on page 24 of its quarterly financial statements, Monaco Coach (NYSE: MNC), a leader in the RV market, makes reference to obligations as part of an operating lease on an airplane. Since it's an operating lease, it's not included on the balance sheet, so you'd never know about it unless you read the notes.
A careful reading of the notes to the financial statements of last year's annual report reveals the company owes $1.3 million annually for this aircraft for the next four years. But the real kicker happens in Year 5. If the counter-party can't sell the aircraft for a certain price, Monaco is on the hook for up to $11 million. Considering both fuel prices as well as current economic conditions, it wouldn't be a surprise if aircraft are selling for a lot less than Monaco thought they would be when they originally signed this deal. If it turns out that Monaco does have to make this payment, the cash amount represents Monaco's combined earnings before tax of about the last 10 quarters!
If this plane is a required cost of doing business, then an investor can't really complain too much. But for an RV manufacturer which is already in an industry characterized by high fixed costs, it seems rather strange that an in-house airplane is required. Therefore on the surface this expense appears to be a remnant from when good times were rolling and management spending was over-the-top, and this obligation is something investors should be aware of.
Seeking Alpha
We've discussed here why it's important to read the notes to the financial statements of any company before investing in it. We've also seen how home builder M/I Homes (NYSE: MHO) may have gotten ahead of itself during the housing bubble when it bought itself a corporate airplane, as we discussed here.
Today, we see a combination of the two above situations! Buried in a footnote on page 24 of its quarterly financial statements, Monaco Coach (NYSE: MNC), a leader in the RV market, makes reference to obligations as part of an operating lease on an airplane. Since it's an operating lease, it's not included on the balance sheet, so you'd never know about it unless you read the notes.
A careful reading of the notes to the financial statements of last year's annual report reveals the company owes $1.3 million annually for this aircraft for the next four years. But the real kicker happens in Year 5. If the counter-party can't sell the aircraft for a certain price, Monaco is on the hook for up to $11 million. Considering both fuel prices as well as current economic conditions, it wouldn't be a surprise if aircraft are selling for a lot less than Monaco thought they would be when they originally signed this deal. If it turns out that Monaco does have to make this payment, the cash amount represents Monaco's combined earnings before tax of about the last 10 quarters!
If this plane is a required cost of doing business, then an investor can't really complain too much. But for an RV manufacturer which is already in an industry characterized by high fixed costs, it seems rather strange that an in-house airplane is required. Therefore on the surface this expense appears to be a remnant from when good times were rolling and management spending was over-the-top, and this obligation is something investors should be aware of.
Tuesday, July 29, 2008
WEEKEND WARRIOR CONFIRMS SHUTTING DOWN
RV Industry News:
By Greg Gerber
PERRIS, Calif. -- Weekend Warrior Trailers Inc. is shutting two Perris factories and has laid off about 250 workers, owner Mark Warmoth said Monday.
The company, like the entire recreational vehicle industry, has been battered by the declining economy and the slumping residential real estate market, he said.
The absence of home price appreciation, which often yields equity that can be tapped for the RV purchase, has cost the industry about 40 percent of its peak business, Warmoth said. Another 10 percent or more has vanished as consumer confidence has waned, he said.
Weekend Warrior, Warmoth said, was ill-prepared for the market to fall off after a boom that lasted more than a decade.
"I expected to be here for my customers forever," he said. He described his company as "still open, but in trouble."
Owners will still be able to get replacement parts, which are sold by other companies, he said.
It's been a rough year for Weekend Warrior -- three executives resigned in April, and the company let 100 people go in March.
Warmoth said earlier that he was expecting the company's sales for 2008 to fall about 25 percent from last years' $155 million, which was itself a 25 percent drop from 2006 sales.
By Greg Gerber
PERRIS, Calif. -- Weekend Warrior Trailers Inc. is shutting two Perris factories and has laid off about 250 workers, owner Mark Warmoth said Monday.
The company, like the entire recreational vehicle industry, has been battered by the declining economy and the slumping residential real estate market, he said.
The absence of home price appreciation, which often yields equity that can be tapped for the RV purchase, has cost the industry about 40 percent of its peak business, Warmoth said. Another 10 percent or more has vanished as consumer confidence has waned, he said.
Weekend Warrior, Warmoth said, was ill-prepared for the market to fall off after a boom that lasted more than a decade.
"I expected to be here for my customers forever," he said. He described his company as "still open, but in trouble."
Owners will still be able to get replacement parts, which are sold by other companies, he said.
It's been a rough year for Weekend Warrior -- three executives resigned in April, and the company let 100 people go in March.
Warmoth said earlier that he was expecting the company's sales for 2008 to fall about 25 percent from last years' $155 million, which was itself a 25 percent drop from 2006 sales.
BANK OF AMERICA PULLS OUT OF CREDIT LINE BUSINESS FOR RV DEALERS
By Greg Gerber
FORT ATKINSON, Wisc. -- RV Industry News has learned that Bank of America pulled the financial rug out from under more than 800 RV dealers across the country last weekend.
Dealers received e-mail notification announcing that Bank of America was deactivating their retail finance line of credit effective immediately due to "insufficient volume of business."
"I apologize for the abrupt notice. Time constraints have made it difficult to contact all dealers impacted by this action," one Bank of America retail representative wrote to a dealer July 26th. "I would like to have contacted each of you by phone but as implementation of these deactivations began Friday afternoon it became imperative to get word out as quickly and efficiently as possible.
"Of particular concern are those dealers that utilize our Empower program. I cannot guaranty that Empower deals received for funding beyond 7/25/08, will be funded," the retail rep had noted.
The dealer alerting of the development reported that he had sent a loan contract to Bank of America a few hours before receiving word that the bank was withdrawing the dealership's line of credit. "I still don't know if it will be funded," the dealer wrote.RV Industry News
The news came as a blow to smaller RV dealers struggling not only to get business into the door, but to find retail financing for customers who do want to by RVs.
"I guess smaller dealers are not important to Bank of America," said one dealer in the Northwestern region of the country. "What is sad is that it seems to me that with GE Retail pulling out of the RV industry and then, of course, Thor Credit Corporation going away, there would be some opportunity for Bank of America. But, I guess they don't see it that way.
The same dealer also noted that he received word from U.S. Bank today that it was increasing its retail lending rates to the dealership. "Just what this industry needs at this point, less lenders and higher rate," he said.
FORT ATKINSON, Wisc. -- RV Industry News has learned that Bank of America pulled the financial rug out from under more than 800 RV dealers across the country last weekend.
Dealers received e-mail notification announcing that Bank of America was deactivating their retail finance line of credit effective immediately due to "insufficient volume of business."
"I apologize for the abrupt notice. Time constraints have made it difficult to contact all dealers impacted by this action," one Bank of America retail representative wrote to a dealer July 26th. "I would like to have contacted each of you by phone but as implementation of these deactivations began Friday afternoon it became imperative to get word out as quickly and efficiently as possible.
"Of particular concern are those dealers that utilize our Empower program. I cannot guaranty that Empower deals received for funding beyond 7/25/08, will be funded," the retail rep had noted.
The dealer alerting of the development reported that he had sent a loan contract to Bank of America a few hours before receiving word that the bank was withdrawing the dealership's line of credit. "I still don't know if it will be funded," the dealer wrote.RV Industry News
The news came as a blow to smaller RV dealers struggling not only to get business into the door, but to find retail financing for customers who do want to by RVs.
"I guess smaller dealers are not important to Bank of America," said one dealer in the Northwestern region of the country. "What is sad is that it seems to me that with GE Retail pulling out of the RV industry and then, of course, Thor Credit Corporation going away, there would be some opportunity for Bank of America. But, I guess they don't see it that way.
The same dealer also noted that he received word from U.S. Bank today that it was increasing its retail lending rates to the dealership. "Just what this industry needs at this point, less lenders and higher rate," he said.
COVERMASTER GOES OUT OF BUSINESS
RV Business
Monday, July 28, 2008
CoverMaster Inc., a truck cap supplier that once employed 100 people in Elkhart, Ind., is closing its doors.
Company President James Fletcher confirmed last week to the South Bend Tribune that the company has ceased operations. Fletcher blamed gas prices as the reason.
"With gas so high, people cannot afford to buy anything but gas (for their trucks)," he said. "It's a good viable product and there are just no pickup sales.
"We were one of the smaller (companies that make the covers), and we just couldn't ride out the downturn in business."
The company, which had as many as 100 employees two years ago, started this year with more than 40, he said. It currently employed about 16 people, he said.
One of them, Linda Cole, of Mishawaka, had been off work since last Monday, when she and others were sent home and told to come back today to get their final paychecks.
At first, she thought the meeting was to announce another layoff that was coming. But the signs had been there for a while, she indicated, including significantly smaller paychecks and people being told they could not go on vacation and be paid.
"We knew that they couldn't keep going like that," she said. "I kind of felt sorry (for the owners). They weren't making any money. They were a good company. They had really good people to work for."
Fletcher himself had been with the company for 13 years.
"It's been a slow process of sales continuing to slide," he said. "It's unfortunate."
Monday, July 28, 2008
CoverMaster Inc., a truck cap supplier that once employed 100 people in Elkhart, Ind., is closing its doors.
Company President James Fletcher confirmed last week to the South Bend Tribune that the company has ceased operations. Fletcher blamed gas prices as the reason.
"With gas so high, people cannot afford to buy anything but gas (for their trucks)," he said. "It's a good viable product and there are just no pickup sales.
"We were one of the smaller (companies that make the covers), and we just couldn't ride out the downturn in business."
The company, which had as many as 100 employees two years ago, started this year with more than 40, he said. It currently employed about 16 people, he said.
One of them, Linda Cole, of Mishawaka, had been off work since last Monday, when she and others were sent home and told to come back today to get their final paychecks.
At first, she thought the meeting was to announce another layoff that was coming. But the signs had been there for a while, she indicated, including significantly smaller paychecks and people being told they could not go on vacation and be paid.
"We knew that they couldn't keep going like that," she said. "I kind of felt sorry (for the owners). They weren't making any money. They were a good company. They had really good people to work for."
Fletcher himself had been with the company for 13 years.
"It's been a slow process of sales continuing to slide," he said. "It's unfortunate."
RECALL: 2008 J&L CARGO TRAILERS: DOMETIC REFRIGERATORS
Make / Models : Model/Build Years:
J&L / CARGO TRAILER 2003
Manufacturer : J&L CARGO EXPRESS Mfr's Report Date : JUL 17, 2008
NHTSA CAMPAIGN ID Number : 08V338000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 121
Summary:
J&L CARGO EXPRESS IS RECALLING CERTAIN CARGO TRAILERS WITH LIVING QUARTERS 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:
RELEASE OF COOLANT UNDER CERTAIN CONDITIONS COULD IGNITE AND RESULT IN A FIRE.
Remedy:
J&L CARGO EXPRESS WILL BE WORKING WITH DOMETIC IN ORDER 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 J&L CARGO EXPRESS AT 574-848-7441.
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.
J&L / CARGO TRAILER 2003
Manufacturer : J&L CARGO EXPRESS Mfr's Report Date : JUL 17, 2008
NHTSA CAMPAIGN ID Number : 08V338000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 121
Summary:
J&L CARGO EXPRESS IS RECALLING CERTAIN CARGO TRAILERS WITH LIVING QUARTERS 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:
RELEASE OF COOLANT UNDER CERTAIN CONDITIONS COULD IGNITE AND RESULT IN A FIRE.
Remedy:
J&L CARGO EXPRESS WILL BE WORKING WITH DOMETIC IN ORDER 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 J&L CARGO EXPRESS AT 574-848-7441.
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 WINNEBAGO/ITASCA MOTOR HOMES: INCORRECT TIRE PRESSURES ON TAGS
Make / Models : Model/Build Years:
ITASCA / CAMBRIA 2008
ITASCA / IMPULSE 2008
ITASCA / SPIRIT 2008
WINNEBAGO / ACCESS 2008
WINNEBAGO / ASPECT 2008
WINNEBAGO / CHALET 2009
WINNEBAGO / OUTLOOK 2008
Manufacturer : WINNEBAGO INDUSTRIES, INC. Mfr's Report Date : JUL 14, 2008
NHTSA CAMPAIGN ID Number : 08V337000 NHTSA Action Number: N/A
Component: EQUIPMENT:OTHER:LABELS
Potential Number Of Units Affected : 1040
Summary:
WINNEBAGO IS RECALLING CERTAIN MY 2008-2009 MOTOR HOMES BUILT ON MY 2008 FORD E450 CHASSIS FOR FAILING TO COMPLY WITH THE REQUIREMENTS OF FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 120, "TIRE SELECTION AND RIMS FOR MOTOR VEHICLES OTHER THAN PASSENGER CARS." THE VEHICLE CERTIFICATION LABEL REFLECTS THE INCORRECT TIRE PRESSURE.
Consequence:
FAILURE TO FOLLOW PROPER VEHICLE LOADING SPECIFICATIONS AND TIRE INFLATION RECOMMENDATIONS CAN RESULT IN TIRE DAMAGE AND VEHICLE INSTABILITY, INCREASING THE RISK OF A CRASH.
Remedy:
OWNERS WILL BE PROVIDED WITH CORRECT VEHICLE CERTIFICATION LABELS AND INSTALLATION INSTRUCTIONS. A DEALER CAN INSTALL THIS LABEL FOR OWNERS IF THEY SO DESIRE. THE RECALL BEGAN ON JUNE 27, 2008. OWNERS MAY CONTACT WINNEBAGO AT 1-641-585-6939.
Notes:
WINNEBAGO RECALL NO. 109. 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.
ITASCA / CAMBRIA 2008
ITASCA / IMPULSE 2008
ITASCA / SPIRIT 2008
WINNEBAGO / ACCESS 2008
WINNEBAGO / ASPECT 2008
WINNEBAGO / CHALET 2009
WINNEBAGO / OUTLOOK 2008
Manufacturer : WINNEBAGO INDUSTRIES, INC. Mfr's Report Date : JUL 14, 2008
NHTSA CAMPAIGN ID Number : 08V337000 NHTSA Action Number: N/A
Component: EQUIPMENT:OTHER:LABELS
Potential Number Of Units Affected : 1040
Summary:
WINNEBAGO IS RECALLING CERTAIN MY 2008-2009 MOTOR HOMES BUILT ON MY 2008 FORD E450 CHASSIS FOR FAILING TO COMPLY WITH THE REQUIREMENTS OF FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 120, "TIRE SELECTION AND RIMS FOR MOTOR VEHICLES OTHER THAN PASSENGER CARS." THE VEHICLE CERTIFICATION LABEL REFLECTS THE INCORRECT TIRE PRESSURE.
Consequence:
FAILURE TO FOLLOW PROPER VEHICLE LOADING SPECIFICATIONS AND TIRE INFLATION RECOMMENDATIONS CAN RESULT IN TIRE DAMAGE AND VEHICLE INSTABILITY, INCREASING THE RISK OF A CRASH.
Remedy:
OWNERS WILL BE PROVIDED WITH CORRECT VEHICLE CERTIFICATION LABELS AND INSTALLATION INSTRUCTIONS. A DEALER CAN INSTALL THIS LABEL FOR OWNERS IF THEY SO DESIRE. THE RECALL BEGAN ON JUNE 27, 2008. OWNERS MAY CONTACT WINNEBAGO AT 1-641-585-6939.
Notes:
WINNEBAGO RECALL NO. 109. 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: 2004-2007 PILGRIM TRAILERS: DOMETIC REFRIGERATORS
Make / Models : Model/Build Years:
PILGRIM / CIRRUS 2006-2007
PILGRIM / LEGENDS 2006-2007
PILGRIM / OPEN ROAD 2004-2007
PILGRIM / PILGRIM 2004-2007
PILGRIM / PURE SPORT 2005
Manufacturer : PILGRIM INTERNATIONAL INC Mfr's Report Date : JUL 17, 2008
NHTSA CAMPAIGN ID Number : 08V336000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 25500
Summary:
PILGRIM IS RECALLING CERTAIN 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:
RELEASE OF COOLANT UNDER CERTAIN CONDITIONS COULD IGNITE AND RESULT IN A FIRE.
Remedy:
PILGRIM WILL BE 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 PILGRIM AT 574-825-8686.
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.
PILGRIM / CIRRUS 2006-2007
PILGRIM / LEGENDS 2006-2007
PILGRIM / OPEN ROAD 2004-2007
PILGRIM / PILGRIM 2004-2007
PILGRIM / PURE SPORT 2005
Manufacturer : PILGRIM INTERNATIONAL INC Mfr's Report Date : JUL 17, 2008
NHTSA CAMPAIGN ID Number : 08V336000 NHTSA Action Number: EQ08010
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 25500
Summary:
PILGRIM IS RECALLING CERTAIN 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:
RELEASE OF COOLANT UNDER CERTAIN CONDITIONS COULD IGNITE AND RESULT IN A FIRE.
Remedy:
PILGRIM WILL BE 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 PILGRIM AT 574-825-8686.
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: 2008-2009 FOUR WINDS MANDALAY/PRESIDIO: REAR SUSPENSIONS
Make / Models : Model/Build Years:
FOUR WINDS / MANDALAY 2008
FOUR WINDS / PRESIDIO 360 2008
FOUR WINDS / PRESIDIO 400 2008-2009
Manufacturer : FOUR WINDS INTERNATIONAL Mfr's Report Date : JUL 07, 2008
NHTSA CAMPAIGN ID Number : 08V335000 NHTSA Action Number: N/A
Component: SUSPENSION
Potential Number Of Units Affected : 69
Summary:
FOUR WINDS IS RECALLING CERTAIN MY 2008-2009 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:
FOUR WINDS IS WORKING WITH DAIMLER TRUCKS AND 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 AND 08V269). OWNERS MAY CONTACT SAF-HOLLAND AT 1-231-773-3271, DAIMLER TRUCKS AT 1-800-547-0712, OR FOUR WINDS AT 1-800-860-5658.
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.
FOUR WINDS / MANDALAY 2008
FOUR WINDS / PRESIDIO 360 2008
FOUR WINDS / PRESIDIO 400 2008-2009
Manufacturer : FOUR WINDS INTERNATIONAL Mfr's Report Date : JUL 07, 2008
NHTSA CAMPAIGN ID Number : 08V335000 NHTSA Action Number: N/A
Component: SUSPENSION
Potential Number Of Units Affected : 69
Summary:
FOUR WINDS IS RECALLING CERTAIN MY 2008-2009 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:
FOUR WINDS IS WORKING WITH DAIMLER TRUCKS AND 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 AND 08V269). OWNERS MAY CONTACT SAF-HOLLAND AT 1-231-773-3271, DAIMLER TRUCKS AT 1-800-547-0712, OR FOUR WINDS AT 1-800-860-5658.
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 AIRSTREAM VAN CONVERSIONS: SWIVEL SEATS
Make / Models : Model/Build Years:
AIRSTREAM / INTERSTATE 2008-2009
Manufacturer : AIRSTREAM, INC. Mfr's Report Date : JUL 16, 2008
NHTSA CAMPAIGN ID Number : 08V334000 NHTSA Action Number: N/A
Component: SEATS
Potential Number Of Units Affected : 14
Summary:
AIRSTREAM IS RECALLING CERTAIN MY 2008-2009 CLASS B VANS BUILT WITH FACTORY INSTALLED DRIVER AND PASSENGER SEAT SWIVEL MECHANISMS. THESE VANS FAIL TO COMPLY WITH THE REQUIREMENTS OF FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 207, "SEATING SYSTEMS."
Consequence:
IT IS POSSIBLE THAT DURING A FRONTAL IMPACT, THE DRIVER AND PASSENGER SEAT SWIVEL MECHANISM COULD FAIL CAUSING SEVERE INJURY TO THE SEAT OCCUPANTS.
Remedy:
DEALERS WILL REPLACE THE DEFECTIVE SEAT SWIVEL MECHANISMS WITH MODIFIED SEAT SWIVEL MECHANISMS THAT HAVE BEEN REINFORCED AND CONTAINS A STRONGER SWIVEL LOCKING BOLT. THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT JULY 31, 2008. OWNERS MAY CONTACT AIRSTREAM AT 1-937-596-6111.
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.
AIRSTREAM / INTERSTATE 2008-2009
Manufacturer : AIRSTREAM, INC. Mfr's Report Date : JUL 16, 2008
NHTSA CAMPAIGN ID Number : 08V334000 NHTSA Action Number: N/A
Component: SEATS
Potential Number Of Units Affected : 14
Summary:
AIRSTREAM IS RECALLING CERTAIN MY 2008-2009 CLASS B VANS BUILT WITH FACTORY INSTALLED DRIVER AND PASSENGER SEAT SWIVEL MECHANISMS. THESE VANS FAIL TO COMPLY WITH THE REQUIREMENTS OF FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 207, "SEATING SYSTEMS."
Consequence:
IT IS POSSIBLE THAT DURING A FRONTAL IMPACT, THE DRIVER AND PASSENGER SEAT SWIVEL MECHANISM COULD FAIL CAUSING SEVERE INJURY TO THE SEAT OCCUPANTS.
Remedy:
DEALERS WILL REPLACE THE DEFECTIVE SEAT SWIVEL MECHANISMS WITH MODIFIED SEAT SWIVEL MECHANISMS THAT HAVE BEEN REINFORCED AND CONTAINS A STRONGER SWIVEL LOCKING BOLT. THE RECALL IS EXPECTED TO BEGIN ON OR ABOUT JULY 31, 2008. OWNERS MAY CONTACT AIRSTREAM AT 1-937-596-6111.
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.
