rvfulltime
2009-01-20 16:54:00 UTC
Nuwa had previously announced that they were halting production of RVs
(Fifth Wheel Trailers) in hopes that market conditions would improve and
allow them to resume productions at a later date. It looks like the
factory closing will now be permanent. The good part of this story is
that parts, service and warranty work will continue. I applaud them for
not taking the bankruptcy way of going out of business.
The CEO of Nuwa recently released the following statement:
“NuWa Industries notified its dealer organization by letter of its
decision not to resume 5th wheel trailer production following the late
January completion of units in process and to make what Mike Mitchell,
CEO describes as a "graceful exit" from the RV industry. Management
could not see enough "light at the end of the tunnel" to feel confident
that market conditions would improve sufficiently to justify continued
losses that would be incurred waiting for the market to return. Dealers
were told NuWa is not going bankrupt and will continue to meet its
financial obligations to suppliers and finance companies. As well, NuWa
has "set aside" the estimated funds to meet continued warranty
obligations of product in the hands of consumers and on dealers lots.
The factory service center will remain open into at least 2010 to
further meet the parts, warranty, and service needs of retail customers
and dealers. NuWa dealers and the factory are working together to offer
modestly reduced prices on remaining dealer inventory, even though the
warranty and parts commitment assures that service support will
continue. A staff of approximately 20 NuWa employees will remain at the
factory to oversee the warranty and service departments, to assist
dealers and customers and to begin an orderly liquidation of equipment,
excess raw materials and real estate. The main facility will continue to
be equipped for "turnkey" production in case a buyer surfaces, who
realizes the value of NuWa's reputation as the oldest 5th wheel
manufacturer today. Mitchell offered his apologies and regrets to
dealers for no longer being able to compete with the mass produced 5th
wheels brands, which continue to gain the attention and "shelf space" of
today's RV dealer.”
I know that members of the NuWa forum and most NuWa owners will be
disappointed to hear of this decision, which was not without a great
deal of agonizing thought. We spent many hours and months considering
our options and trying to see some evidence that the future would
sufficiently improve for NuWa. Our conclusion was obviously not
positive. Even though the economy and gas prices may improve, the
reality is that the “near term” future does not bode well for the RV
industry and NuWa’s high end 5th wheel in particular. Rather than carry
on in a weakened state and eventually risk bankrupting NuWa, Neil Ford
and I decided it best to make our “graceful exit”, where we could meet
NuWa’s financial obligations, meet our warranty and service commitments
to dealers and customers, provide pay and benefits for all employees
through the Christmas season, and preserve some equity for shareholders.
Be cautious about “pre-mature” assumptions of competitors, who “appear”
to have the formula for success. Maybe they will survive and maybe they
just aren’t sharing reality. Reality is that only those products which
sell for less than expected are doing any volume today, and we all know
when something appears to be to good to be true, it often is. At the
same time those who had enough momentum going into this downturn will
have the best chance of survival. I wish them the best, and know that
the competitive atmosphere of the industry will be intense for the next
couple of years, as each company “jockeys” for survival.
It is human nature for some people to be skeptical of statements from
corporate executives. I have no issue with that, and won’t spend much
energy trying to convince of that which they choose not to hear. My
message is for those who have been supportive of NuWa and recognize our
efforts to meet obligations are not necessarily in our best personal
interests. But we will do what I have said we will do, unless something
outside my control should not allow that to happen.
I have been appreciative of the tremendous support from our employees
during this difficult period. Many have already found jobs waiting for
them from other employers, who recognize the talents and skills of
“NuWa” employees. Production will continue though much of January as we
complete customer orders and build a few more inventory units, that we
feel will be requested by customers. My best advice for each of you who
own a NuWa or are contemplating buying a NuWa is that you simply
continue your plans to enjoy the RV lifestyle. Although NuWa won’t build
units after January, little else about your relationship with the
factory will change. We will be here this Spring when the “migration”
North occurs, and we will be hear next year when the “migration” North
occurs. Remaining materials unique to our products will be stored and
should allow service and parts to take care of customer needs for a long
time, just as we have always done. Some of you may find that certain
upgrade features in excess supply are available at value prices from
parts and service this Spring and Summer. I will begin to review such
components following a final inventory in late January.
There is not much more I can say at this time. The entire NuWa staff
will continue efforts to earn your respect and business by our actions
going forward. Thank you again to those who have been supportive; and I
wish everyone a healthful and prosperous new year. I will continue to
monitor the forum and NuWa will eventually use the NuWa web site as a
method of providing information to owners and prospective owners.
Mike Mitchell
NuWa, Industries
(Fifth Wheel Trailers) in hopes that market conditions would improve and
allow them to resume productions at a later date. It looks like the
factory closing will now be permanent. The good part of this story is
that parts, service and warranty work will continue. I applaud them for
not taking the bankruptcy way of going out of business.
The CEO of Nuwa recently released the following statement:
“NuWa Industries notified its dealer organization by letter of its
decision not to resume 5th wheel trailer production following the late
January completion of units in process and to make what Mike Mitchell,
CEO describes as a "graceful exit" from the RV industry. Management
could not see enough "light at the end of the tunnel" to feel confident
that market conditions would improve sufficiently to justify continued
losses that would be incurred waiting for the market to return. Dealers
were told NuWa is not going bankrupt and will continue to meet its
financial obligations to suppliers and finance companies. As well, NuWa
has "set aside" the estimated funds to meet continued warranty
obligations of product in the hands of consumers and on dealers lots.
The factory service center will remain open into at least 2010 to
further meet the parts, warranty, and service needs of retail customers
and dealers. NuWa dealers and the factory are working together to offer
modestly reduced prices on remaining dealer inventory, even though the
warranty and parts commitment assures that service support will
continue. A staff of approximately 20 NuWa employees will remain at the
factory to oversee the warranty and service departments, to assist
dealers and customers and to begin an orderly liquidation of equipment,
excess raw materials and real estate. The main facility will continue to
be equipped for "turnkey" production in case a buyer surfaces, who
realizes the value of NuWa's reputation as the oldest 5th wheel
manufacturer today. Mitchell offered his apologies and regrets to
dealers for no longer being able to compete with the mass produced 5th
wheels brands, which continue to gain the attention and "shelf space" of
today's RV dealer.”
I know that members of the NuWa forum and most NuWa owners will be
disappointed to hear of this decision, which was not without a great
deal of agonizing thought. We spent many hours and months considering
our options and trying to see some evidence that the future would
sufficiently improve for NuWa. Our conclusion was obviously not
positive. Even though the economy and gas prices may improve, the
reality is that the “near term” future does not bode well for the RV
industry and NuWa’s high end 5th wheel in particular. Rather than carry
on in a weakened state and eventually risk bankrupting NuWa, Neil Ford
and I decided it best to make our “graceful exit”, where we could meet
NuWa’s financial obligations, meet our warranty and service commitments
to dealers and customers, provide pay and benefits for all employees
through the Christmas season, and preserve some equity for shareholders.
Be cautious about “pre-mature” assumptions of competitors, who “appear”
to have the formula for success. Maybe they will survive and maybe they
just aren’t sharing reality. Reality is that only those products which
sell for less than expected are doing any volume today, and we all know
when something appears to be to good to be true, it often is. At the
same time those who had enough momentum going into this downturn will
have the best chance of survival. I wish them the best, and know that
the competitive atmosphere of the industry will be intense for the next
couple of years, as each company “jockeys” for survival.
It is human nature for some people to be skeptical of statements from
corporate executives. I have no issue with that, and won’t spend much
energy trying to convince of that which they choose not to hear. My
message is for those who have been supportive of NuWa and recognize our
efforts to meet obligations are not necessarily in our best personal
interests. But we will do what I have said we will do, unless something
outside my control should not allow that to happen.
I have been appreciative of the tremendous support from our employees
during this difficult period. Many have already found jobs waiting for
them from other employers, who recognize the talents and skills of
“NuWa” employees. Production will continue though much of January as we
complete customer orders and build a few more inventory units, that we
feel will be requested by customers. My best advice for each of you who
own a NuWa or are contemplating buying a NuWa is that you simply
continue your plans to enjoy the RV lifestyle. Although NuWa won’t build
units after January, little else about your relationship with the
factory will change. We will be here this Spring when the “migration”
North occurs, and we will be hear next year when the “migration” North
occurs. Remaining materials unique to our products will be stored and
should allow service and parts to take care of customer needs for a long
time, just as we have always done. Some of you may find that certain
upgrade features in excess supply are available at value prices from
parts and service this Spring and Summer. I will begin to review such
components following a final inventory in late January.
There is not much more I can say at this time. The entire NuWa staff
will continue efforts to earn your respect and business by our actions
going forward. Thank you again to those who have been supportive; and I
wish everyone a healthful and prosperous new year. I will continue to
monitor the forum and NuWa will eventually use the NuWa web site as a
method of providing information to owners and prospective owners.
Mike Mitchell
NuWa, Industries