Will The Increasing Fuel Prices Push The RV Industry Into Another Crisis? Part 1
by Alan Wiener
Editors Note: This is the first in a series of 3 articles I originally wrote in 2009 about the crisis that the RV industry was experiencing. RV Industry Crisis Introduction
With the recent dramatic increases in fuel prices and experts stating that a gallon of fuel could cost as much $5 to $6 by July; the question needs to be asked: "Are we going to experience Déjà vu all over again in the RV Industry or have they learned their lessons from their past mistakes?"
By Alan Wiener; Editor: Everything-About-RVing.com
RV sales had been declining prior to the beginning of 2008. In fact, some RV manufacturers started having financial problems in 2007 and tried to cut costs where they could. The rumors starting flying that certain RV Manufacturers were in deep trouble unless they found some new sources of funding. But, the RV Industry still kept producing RVs in the hope that if you build them they will come. The writing was on the wall, but nobody was reading what it was saying
Then in early 2008 fuel prices started to escalate. There were rumblings about banks having problems with certain bad loans. The overall economy took a turn for the worse and unfortunately the RV Industry and several other US Industries were not quick to respond to the downturn in consumer confidence. Throughout 2008 the fuel prices continued to escalate with no end in sight. People were no longer looking at "fuel-guzzling" RVs. Lending agencies were pulling out of making loans on "luxury items" such as RVs. Throughout 2008 some RV manufacturers starting filing for chapter 11 bankruptcy. Even though this crisis had really begun years earlier, the snowball started to grow rapidly in 2008. There was now a glut of new RVs on the market and no one was buying them.Let The Good Sam Extended Service Plan Pay Your RV Repair Bills
When the reality finally struck the RV Industry that they needed to take drastic action; the RV Manufacturers started reducing production, laying off employees, shutting down factories and trying to find even more ways to cut their costs. For a lot of RV Manufacturers, even these drastic cost-cutting moves were too little too late. Now the RV Industry has been brought to its knees and is hoping that some miracle will happen to make this crisis go away.
The visitors to the EARV website are well aware of this crisis, in fact, here are some questions that they recently asked us. Is The RV Dealer Responsible For Warranty When The Manufacturer Goes Bankrupt? I Want To Purchase An RV Made By A Manufacturer In Chapter 11 Bankruptcy Has Fleetwood Stopped Manufacturing Travel Trailers?Editors Note:
What do you think? Is the RV Industry heading for another crisis? Give us your opinion by clicking on the "Click Here To Post Comments" link located near the bottom of this page.