What Dealers Should Consider When a Manufacturer Suspends Operations

Feb 25, 2019 | Member News

By RVDA staff

 

Erwin Hymer North America, the company that built Roadtrek- and Erwin Hymer-brand motorhomes in Ontario, Canada, ceased operations on Friday (February 15) when it fired all employees at its two factories, according to news reports from Canada.

This will create challenges for the dealers who sold these units in the past, or who have new products in inventory.  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.

 

Class B motorhomes built by Erwin Hymer North America carried a six-year warranty, according to CTV of Kitchner, Ontario.  The Canadian TV station interviewed a couple that recently bought a Roadtrek brand Class B which needed minor repairs a few weeks ago.  Concerned about whether their warranty coverage still was in effect, they called Roadtrek and were told to get the repairs completed, keep receipts and to contact Erwin Hymer North America after an audit was completed.  However, calls to the manufacturer by other motorhome owners and the TV station were not returned.

Read the complete article at RVDA.org