RVDA: What to do when a manufacturer shuts down

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From the bloggers at the RV Dealers Association:

Erwin Hymer Group North America, the company that built Roadtrek and Erwin Hymer-branded motorhomes in Ontario, ceased operations Feb. 15 when it fired all employees at its two factories, according to news reports.

Based on past experience when manufacturers cease production, dealers can easily find themselves owed tens of thousands of dollars from a manufacturer for warranty reimbursements and incentives that become virtually uncollectible once the manufacturer ceases its business operations.

Erwin Hymer Group North America was audited because Thor Industries refused to buy the North American portion of Germany’s Erwin Hymer Group after financial irregularities were reportedly discovered at the Canadian operation a few weeks ago.

So, how can dealers handle sales of existing units, warranty obligations, financing and some other issues when a manufacturer goes under?

To read the eight items for RV dealers to consider in responding to the situation, visit the RV Dealers Association website.

Greg Gerber

Greg Gerber

A journalist who has covered the recreation vehicle industry since January 2000, Greg Gerber founded RV Daily Report on April Fool's Day in 2009. He also serves as the editor of the publication and website. As an Eagle Scout, he has enjoyed camping for decades and has visited every state except Hawaii. A DODO -- Dad of Daughters Only -- to three young women, he has two grandchildren as well. He currently splits his time between Wisconsin, Texas and Arizona. Greg can be reached at editor@rvdailyreport.com.

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