Friday, January 22, 2010
CANADIAN RV BUILDER GLENDALE FILES FOR BANKRUPTCY
From RV Business:
Unions representing workers at RV manufacturer Glendale International Corp. were surprised when the Canadian RV manufactuer announced Tuesday (Jan. 19) that it had filed for voluntary bankruptcy protection, according to the Toronto Star. The Oakville, Ont.-based company said it has spent the past few months undertaking an “extensive” internal review, looking at strategies to rebuild its recreational vehicle division.
However, high gasoline prices, a rising Canadian dollar and the lingering effects of recession have taken a toll on Glendale International, forcing the company into bankruptcy, chief executive Edward Hanna said.
Hanna said there does not appear to be a significant rebound in store for the Canadian RV industry.
“The board of directors determined that a voluntary assignment in bankruptcy was in the best interests of the corporation’s stakeholders,” he said in a statement.
The company said all of the Glendale directors have resigned, but didn’t provide details on how the bankruptcy affects its employees or customers.
Calls to Glendale’s head office were not immediately returned.
About 110 hourly workers were temporarily laid off from the Glendale plant in Strathroy when it shut down in November. Colin Cherry of the International Association of Machinists and Aerospace Workers, which represented the workers, said the laid-off employees expected to be recalled in February.
“We were going into a program to improve the workplace, getting new technology — that was in a couple of weeks’ time,” Cherry said.
“The union and the company were going into a partnership agreement, which is quite disappointing because it’s never going to materialize now.”
In Alberta, the United Steelworkers represented about 60 Glendale workers who worked at a plant in Red Deer, manufacturing Travelaire-brand RVs.
The news of Glendale’s bankruptcy came as a surprise to Nick Stewart, president of United Steelworkers Local 1-207.
“I was under the impression that Glendale was actually in a pretty good financial position,” Stewart said. “They’ve got a rather substantial cash position as well. They haven’t exactly been running on credit. It’s a bit surprising.”
However, he acknowledged Travelaire had been struggling in recent years and tried to diversify into mobile homes and other products beyond its traditional base of recreational trailers and motorhomes.
“I’m not sure how successful that’s been,” Stewart said.
The Glendale RV division had just under $9 million in sales for the first nine months of 2009 – down from about $16.6 million in the same period of 2008. Sales at the Travelaire division totalled $6 million, down from $6.7 million in the first nine months of 2008.
Glendale said in October it was debt-free and had $2.4 million in cash as of Aug. 28.
Unions representing workers at RV manufacturer Glendale International Corp. were surprised when the Canadian RV manufactuer announced Tuesday (Jan. 19) that it had filed for voluntary bankruptcy protection, according to the Toronto Star. The Oakville, Ont.-based company said it has spent the past few months undertaking an “extensive” internal review, looking at strategies to rebuild its recreational vehicle division.
However, high gasoline prices, a rising Canadian dollar and the lingering effects of recession have taken a toll on Glendale International, forcing the company into bankruptcy, chief executive Edward Hanna said.
Hanna said there does not appear to be a significant rebound in store for the Canadian RV industry.
“The board of directors determined that a voluntary assignment in bankruptcy was in the best interests of the corporation’s stakeholders,” he said in a statement.
The company said all of the Glendale directors have resigned, but didn’t provide details on how the bankruptcy affects its employees or customers.
Calls to Glendale’s head office were not immediately returned.
About 110 hourly workers were temporarily laid off from the Glendale plant in Strathroy when it shut down in November. Colin Cherry of the International Association of Machinists and Aerospace Workers, which represented the workers, said the laid-off employees expected to be recalled in February.
“We were going into a program to improve the workplace, getting new technology — that was in a couple of weeks’ time,” Cherry said.
“The union and the company were going into a partnership agreement, which is quite disappointing because it’s never going to materialize now.”
In Alberta, the United Steelworkers represented about 60 Glendale workers who worked at a plant in Red Deer, manufacturing Travelaire-brand RVs.
The news of Glendale’s bankruptcy came as a surprise to Nick Stewart, president of United Steelworkers Local 1-207.
“I was under the impression that Glendale was actually in a pretty good financial position,” Stewart said. “They’ve got a rather substantial cash position as well. They haven’t exactly been running on credit. It’s a bit surprising.”
However, he acknowledged Travelaire had been struggling in recent years and tried to diversify into mobile homes and other products beyond its traditional base of recreational trailers and motorhomes.
“I’m not sure how successful that’s been,” Stewart said.
The Glendale RV division had just under $9 million in sales for the first nine months of 2009 – down from about $16.6 million in the same period of 2008. Sales at the Travelaire division totalled $6 million, down from $6.7 million in the first nine months of 2008.
Glendale said in October it was debt-free and had $2.4 million in cash as of Aug. 28.
RECALL: 2008 SPORTSCOACH LEGEND: FREIGHTLINER CHASSIS: ADJUSTABLE BRAKE PEDAL
Vehicle Make / Model: Model Year(s):
COACHMEN / SPORTSCOACH LEGEND 2008
Manufacturer: COACHMEN INDUSTRIES, INC. Mfr's Report Date: JAN 13, 2010
NHTSA CAMPAIGN ID Number: 10V013000 NHTSA Action Number: N/A
Component: SERVICE BRAKES, AIR
Potential Number of Units Affected: 50
Summary:
COACHMEN IS RECALLING CERTAIN MODEL YEAR 2008 MOTORHOMES BUILT BETWEEN OCTOBER 2007 AND OCTOBER 2008 ON FREIGHTLINER XC MOTORHOME CHASSIS MANUFACTURED BETWEEN MARCH 6, 2007 AND DECEMBER 11, 2009 WITH KONGSBERG POWER PRODUCTS SYSTEMS ADJUSTABLE BRAKE PEDALS. THE DRIVE PIN WHICH SECURES THE BRAKE PEDAL ARM TO THE BALANCE OF THE ASSEMBLY MAY BECOME DISENGAGED, THIS MAY CAUSE A REDUCTION IN VEHICLE BRAKING AND/OR CAUSE THE BRAKE PEDAL TO MOVE OUT OF POSITION AND INTERFERE WITH THROTTLE PEDAL FUNCTION.
Consequence:
A REDUCTION IN BRAKING OR INTERFERENCE WITH THE THROTTLE PEDAL COULD RESULT IN A VEHICLE CRASH.
Remedy:
DAIMLER TRUCKS, THE PARENT COMPANY OF FREIGHTLINER, HAS INDICATED THAT THEY ARE CONDUCTING THE OWNERS¿ NOTIFICATION AND WILL BE ADMINISTERING THIS RECALL CAMPAIGN PLEASE SEE DAIMLER¿S DEFECT REPORT 09V-461. DEALERS WILL RECEIVE KITS AND WILL INSPECT AND INSTALL A C-CLAMP ON THE ADJUSTABLE BRAKE PEDAL. THIS SERVICE WILL BE PERFORMED FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING JANUARY 2010. OWNERS MAY CONTACT DAIMLER TRUCKS WARRANTY CLAIMS DEPARTMENT AT 1-800-547-0712.
Notes:
OWNERS 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 .
COACHMEN / SPORTSCOACH LEGEND 2008
Manufacturer: COACHMEN INDUSTRIES, INC. Mfr's Report Date: JAN 13, 2010
NHTSA CAMPAIGN ID Number: 10V013000 NHTSA Action Number: N/A
Component: SERVICE BRAKES, AIR
Potential Number of Units Affected: 50
Summary:
COACHMEN IS RECALLING CERTAIN MODEL YEAR 2008 MOTORHOMES BUILT BETWEEN OCTOBER 2007 AND OCTOBER 2008 ON FREIGHTLINER XC MOTORHOME CHASSIS MANUFACTURED BETWEEN MARCH 6, 2007 AND DECEMBER 11, 2009 WITH KONGSBERG POWER PRODUCTS SYSTEMS ADJUSTABLE BRAKE PEDALS. THE DRIVE PIN WHICH SECURES THE BRAKE PEDAL ARM TO THE BALANCE OF THE ASSEMBLY MAY BECOME DISENGAGED, THIS MAY CAUSE A REDUCTION IN VEHICLE BRAKING AND/OR CAUSE THE BRAKE PEDAL TO MOVE OUT OF POSITION AND INTERFERE WITH THROTTLE PEDAL FUNCTION.
Consequence:
A REDUCTION IN BRAKING OR INTERFERENCE WITH THE THROTTLE PEDAL COULD RESULT IN A VEHICLE CRASH.
Remedy:
DAIMLER TRUCKS, THE PARENT COMPANY OF FREIGHTLINER, HAS INDICATED THAT THEY ARE CONDUCTING THE OWNERS¿ NOTIFICATION AND WILL BE ADMINISTERING THIS RECALL CAMPAIGN PLEASE SEE DAIMLER¿S DEFECT REPORT 09V-461. DEALERS WILL RECEIVE KITS AND WILL INSPECT AND INSTALL A C-CLAMP ON THE ADJUSTABLE BRAKE PEDAL. THIS SERVICE WILL BE PERFORMED FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING JANUARY 2010. OWNERS MAY CONTACT DAIMLER TRUCKS WARRANTY CLAIMS DEPARTMENT AT 1-800-547-0712.
Notes:
OWNERS 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 .
