Forest River fined $35 Million

$5 mil is a tiny drop in a very large bucket that is Bershire Hathaway. It's a parking ticket. As someone said, cost of doing business.

Quote: "My guess is that after writing a check for $35 large, Mr. Buffett will decide that maybe he will indeed have a conversation with Pete."

OR, his replacement!

dodge guy wrote:
Now, let's the the NHTSA investigate the frame problems the manuf. are having. Particularly 5th wheel pin box/frame failures!!!

Also possibly toss in the issue of putting cheap China bomb tires that show up on quite a few of these 5er's and TT's...In my estimation, that exactly safe either....

Now, let's the the NHTSA investigate the frame problems the manuf. are having. Particularly 5th wheel pin box/frame failures!!!

The government gets all the money. The consumers that got ripped off never see a dime of the fine. It should be split between buyers of FR products, not used to support the government.

I guess no body actually read the report..........

The settlement orders Forest River to pay a $35 million civil penalty, $5 million of which must be paid within 10 days. The other $30 million is deferred unless the company doesn’t comply with the other terms of the agreement.


FR pays $5 million and the other $30 million is deferred.

That means they comply with settlement terms (audits/monitoring etc in future) and they don't have to pay the $30 million.

Slap on wrist in business terms for not reporting/not recalling (until ordered) fire hazards and carbon monoxide issues.

What a GREAT company!!!
And the NHTSA......what a watch dog Grrrrrr

I doubt the fine will result in higher prices - at least not anything substantial.
Fines like this are passed on the to stock holders (I worked for a co. that rec'd the biggest fine in history). The competition for FR's range of RV's is very stiff and they're not going to raise prices beyond the competition.

punomatic wrote:

ChopperBill wrote:
They might have got fined 35 million but consumers will pay that off after they increase the price of each unit a bit.

So, in the end, the cost of RVs will rise to the level required for manufacturers to provide adequate safety features in their products. This is called free market economics.

Not necessarily. Some corporations just chalk up fines as the cost of doing business and make little effort to improve their product.

Way I read it is: 5 mil. fine and 30 mil. deferred?

coolbreeze01 wrote:
In Berkshire Hathaway Inc's 2005 annual report, speaking of buying Forrest River, Warren Buffett states, "Pete is a remarkable entrepreneur" and adds, "You can be sure that I won't be telling Pete how to manage his operation".

Seems like some guidelines were in order.

My guess is that after writing a check for $35 large, Mr. Buffett will decide that maybe he will indeed have a conversation with Pete.