This press release was made public this week to RV business, and dealers have now received notice of NuWa?s decision.
?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 not needed to support service. 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. 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 here 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
Jack Mayer said
12:24 PM Jan 3, 2009
Now that is a class act. Too bad they won't be around when it is time for our next rig.
?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 not needed to support service. 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. 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 here 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