With All Eyes on the Big Three, What About RVs?
RVs December 15th, 2008There’s been so much attention paid to a potential government bailout or bankruptcy of GM, Ford, and Chrysler that it’s easy to forget that the Big Three aren’t the only vehicle manufacturers in the country. Recently, the San Jose Mercury News published an AP story about the impact that the economy is having on the RV market. According to the article, there were over 390,000 RVs shipped in 2006. Compare that to this year’s projection of fewer than 250,000 RVs and a project for 2009 of 186,800 RVs. 
This has had dire consequences for RV manufacturers, which are scrambling to come up with diesel-hybrid models that may have greater appeal. According to the article, Fleetwood “posted a $57 million quarterly loss and said it would close eight plants and lay off 760 workers.” But that may be just the beginning. The company has been trying to exchange stock to meet their debt obligations, and they are in danger of being delisted from the New York Stock Exchange because of undercapitalization. From a 52-week high of $6.85 per share, the company’s stock is currently trading at just 10 cents per share. If the company can’t repay its debt, Fleetwood’s next stop is bankruptcy court.
What I’ve written in posts relating to potential bankruptcy for Detroit automakers also holds true for RV manufacturers. If RV manufacturers go under, it will definitely impact RV owners’ warranties, and potentially their lemon law rights. How it will all play out is still murky, but anyone with a relatively new RV should pay attention to news coming of the RV industry.
Link to LemonJustice Blog



January 6th, 2009 at 5:34 pm
I worked for Fleetwood for 5 years 1993 to 1998. The company was ran by arrogant upper management who didn’t ever want to improve the product or image. The corporate campus was a joke a bunch of pompus overpaid executives driving Porsches and Mercedas. The company deserved to die it was a non-factor in the industry for years. I worked in the RV industry for 12 years and now many dealers and employees in the industry.