NEWS BLIPS
Actions Dealers Can Take If A Manufacturing Facility Shuts Down
Editor's Note: This news item was retrieved and first published through The National RV Dealers Association's website.
The National RV Dealers Association (RVDA) provides suggestions on what options RV dealers have if a manufacturing plant is closed, in the midst of Erwin Hymer North America, in Ontario, Canada, ceasing operations. Erwin Hymer North America, the company that built Roadtrek- and Erwin Hymer-brand motorhomes, closed Friday (February 15) when it fired all employees at its two factories, according to news reports from Canada.
According to the RVDA article, "Erwin Hymer North America was audited because Thor Industries Inc. refused to buy the North American portion of Germany's Erwin Hymer Group SE after financial irregularities were reportedly discovered at the Canadian operation a few weeks ago." So in the case a manufacturer has to shut down like Erwin Hymer North America, what happens to all its affiliates. RVDA offers the considerations to RV dealers if such situation occurs. For one, RVDA says to discuss with the dealership’s attorney the possibility of titling the out-of-business manufacturer’s units in your dealership’s name, and selling them used with a limited express warranty, or “as is.” Another item is to "ask your service agreement provider if they provide / sell extended protection for out-of-business manufacturers’ units." For instance, Protective’s XtraRide offers a 12-month service agreement should the manufacturer's warranty be unavailable. Dealers may also sell the customer a longer term service agreement in addition to the 12-month term. XtraRide is exclusively endorsed by RVDA.
For the full list of recommendations offered by RVDA, see here.
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