Camping World and Forest River Parting Ways?

[nomad_297]

This is what I've heard and read. I've also heard that Camping World will no longer do warranty service on Forest River products unless they were bought from them.

Does anybody have more details of what is happening here? Who fired who?

Bruce

[tsetsaf]

Subscribe to the RV Daily Report email newsletter. Its not just dealers consolidating... it is the supplier network too. Problem with the entire industry is that the customer is pretty low on the importance chain.

[Dutch_12078]

Bamaman1 wrote:
Forest River is owned by Berkshire Hathaway--Warren Buffet's huge investment firm. $5 million is a pittance to them. But what's scary is the government getting into the RV business.

The Feds should be more concerned with tire and brake failures currently going on with RV's. And General Motors' defective ignition switch deaths is up to 147 deaths, and I don't see the National Transportation bunch forcing them to ground those vehicles.

I have no idea of what other RV related issues the NHTSA is currently investigating, and I suspect neither do you. The Forest River penalty involves reporting failures of safety defects that could lead to death or injury. In one case, FR failed to report a fire related defect for four months and then only issued a recall when forced to do so. Also, the NHTSA does not have the power to "ground" any vehicles. They can only enforce recall procedures, they cannot force vehicle owners to actually comply with those recalls. There's an immediate temporary "fix" to the GM ignition switch issue available to every owner, yet it's not uncommon to find owners not even taking that simple precaution.

[Bamaman11]

Forest River is owned by Berkshire Hathaway--Warren Buffet's huge investment firm. $5 million is a pittance to them. But what's scary is the government getting into the RV business.

The Feds should be more concerned with tire and brake failures currently going on with RV's. And General Motors' defective ignition switch deaths is up to 147 deaths, and I don't see the National Transportation bunch forcing them to ground those vehicles.

We see Camping World going through the U.S. buying large RV dealerships. The dominant RV dealership in Alabama was the first dealer to receive the first Grand Design fifth wheel trailer made, but Grand Design was dropped like a hot potato when Camping World bought the dealership.

Camping World is having serious operational problems at the present time, and who knows what's going on politically within an RV industry that's consolidating fast. If there is any strained relationship between Camping World and Forest River, it will come out. Other than F/R, there is only one company that could supply so many RV's to C/W.

[creeper]

bucky wrote:
^^^^^^^^^^^What he said^^^^^^^^^^^^^

At the rate they are buying RV dealers they already have a huge impact on the business. It will only get stronger, like a Wal*Mart leverage thing.

Their impact is growing and not for the better of the industry. According to the former GM, CW hates that other dealers post lower prices online. CW is trying to stop this so they have a better shot at making a deal with their higher prices.

They also hate that other dealer will discount a coach 25-30%, when CW won't.

They don't want you to drive across the country to save 20-30K on a coach when they can mug you locally.

[GMandJM]

The clickies don't seem to work anymore, but yes, it's $5M in 10 days and the rest deferred.

I can sort of see why CW might want to cut ties with a business that has safety and reporting issues.

And, yeah, DF....just tryna be hepful (as we say here in VA).

Best get my Exploder fixed so I can tow that new a-frame home. Rockwoods are great, but they don't tow themselves, ya know? 😉

[Dog_Folks]

BennieH wrote:
A news article about FR. Part of the reason?
http://www.elkharttruth.com/news/business/rv-industry/2015/07/09/Forest-River-RV-agrees-to-35-millio...

My guess is no.

FR has to pay $5 million.

The rest is deferred.

[Dog_Folks]

GMandJM wrote:
Well, if CW starts giving away all the FR campers in their inventory just to get rid of them, let me know.

I'd take a Rockwood a-frame off their hands. You know...just as a favor to CW. 😉

WOW you are such a big hearted, generous person.!! :B

[GMandJM]

Well, if CW starts giving away all the FR campers in their inventory just to get rid of them, let me know.

I'd take a Rockwood a-frame off their hands. You know...just as a favor to CW. 😉

[Dutch_12078]

Above "Clicky" fixed...

BennieH wrote:
A news article about FR. Part of the reason?
Clicky

[BennieH]

A news article about FR. Part of the reason?
http://www.elkharttruth.com/news/business/rv-industry/2015/07/09/Forest-River-RV-agrees-to-35-millio...

[bucky]

^^^^^^^^^^^What he said^^^^^^^^^^^^^

At the rate they are buying RV dealers they already have a huge impact on the business. It will only get stronger, like a Wal*Mart leverage thing.

[creeper]

Dutch_12078 wrote:

Terryallan wrote:
I'm sure it won't bother Forest River. They have so many dealers losing one won't matter. and in truth. CW should be able to replace them pretty easily.

One dealer? That "one dealer" has over 100 sales locations 37 states. That's a lot of potential customer exposure to lose...

But the problem is that CW is damaging the reputation of these poor RV makers with poor service. CW is already stuck at the low end of the market where the margins are small. They don't have the internal structure to get the high end of the market where the margins are much larger.

[Dutch_12078]

Terryallan wrote:
I'm sure it won't bother Forest River. They have so many dealers losing one won't matter. and in truth. CW should be able to replace them pretty easily.

One dealer? That "one dealer" has over 100 sales locations 37 states. That's a lot of potential customer exposure to lose...

[Terryallan]

But I will still stay in their campground

[Terryallan]

Yep. that is what they are doing with Tom Johnson. The top dealer in NC.

That's exactly who I was referring to. Got the info straight from the GM's mouth. She told me that she could have one transferred to her if I wanted a Newmar, but "officially" they can't sell them and the paper work would be from Tom Johnson.


TJs Marion store WAS a great place to do business.