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Sadly, another RV manufacturer may be finished

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Sadly, another RV manufacturer may be finished

Unread postby jp rver on Tue Aug 12, 2008 1:13 am

Pilgrim International has ceased operations and layed off workers at 4 plants. This news hits close to home for me because my parents just bought a new Pilgrim lightweight TT back in June. Instead of the usual 2 year warranty, they may only have gotten a 2 month warranty. I fear for them should they have any major issues with their new trailer. I also feel bad for the workers at those factories, and the dealers out there now with new trailers for sale with likely no warranty. In an already slow market, those Pilgrim trailers will move even slower without some major price drops.

And let me tell you, it(my parents') is a NICE trailer! I have looked it over from top to bottom and had pretty much decided it was a better built trailer than my Surveyor, and I wanted to get one when we replace our current TT. Well it looks like that likely won't be an option now, unless I buy used, or want to take a chance on a new one with no warranty (not likely).

Here is a link to an article about this sad story.

http://www.manufacturing.net/News-Pilgrim-Closes-4-Plants-In-Latest-RV-Setbacks.aspx?menuid=36
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Re: Sadly, another RV manufacturer may be finished

Unread postby skipnchar on Tue Aug 12, 2008 9:45 am

That is sad and somewhat puzzling to me. When I recently posted about a long time RV DEALER in our area who said that sales were so low it was impossible to stay in business any longer I got quite a few responses about how other dealers are reporting busier than normal sales. Seems strange to me that sales can be up for the dealers and too low to remain in business for yet another manufacturer. Pilgrim made some nice looking units.
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Re: Sadly, another RV manufacturer may be finished

Unread postby jp rver on Tue Aug 12, 2008 11:19 am

Yes I remember your post about that dealer closing.

When I was at my dealer getting the Dometic recall performed on our Surveyor at the end of last month, the salesman told me they had only sold 6 new units for the entire month of July. They used to move that many in a week. He said they are okay financially, but he really hopes sales begin to pick up. Then he told me they had a new Surveyor coming in soon and asked if I would be interested. I smiled and said no thanks. :D He then excused himself as a truck had just pulled onto the lot and he wanted to greet the potential customer with a smile!

I guess it depends where you are geographically, but I believe that the for the vast majority of dealers, sales are down and in some cases way down.
Last edited by jp rver on Tue Aug 12, 2008 9:30 pm, edited 1 time in total.
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Re: Sadly, another RV manufacturer may be finished

Unread postby PrivatePilot on Tue Aug 12, 2008 6:47 pm

Sad to hear, but the rules of supply and demand hut sometimes. It seems to me that there's simply too many RV manufacturers making too many RV's for the market to support anymore. Do the math, and some must fall.

Anyhow, to the contrary when it comes to RV sales, apparently they're booming here in Canada: http://www.thestar.com/Business/article/475870
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Re: Sadly, another RV manufacturer may be finished

Unread postby jp rver on Tue Aug 12, 2008 9:42 pm

PrivatePilot wrote:
Anyhow, to the contrary when it comes to RV sales, apparently they're booming here in Canada: http://www.thestar.com/Business/article/475870


That's interesting about Canadian RV sales. I follow car sales numbers pretty closely, particularly sales of Chrysler vehicles. Chrysler's numbers in Canada are actually pretty good as well, with each month showing increases in sales for most models. Here in the USA however, Chrysler is getting hit hard with sales decreases for most models (as are nearly all of the auto manufacturers). It seems to mirror the RV sales as well between the two countries.

Hopefully for you Canadians, your economy continues to remain strong and healthy. And likewise, it would be great if our economy down here would turn around as well! Time will tell.

It is definately a buyer's market down here. But as I have said in other threads, I can't afford to buy anything right now! :lol:
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Re: Sadly, another RV manufacturer may be finished

Unread postby Zinger on Wed Aug 13, 2008 6:41 am

Not surprising Americans buy buy name not quality the big names get bigger the lesser known go out of buisness.
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Re: Sadly, another RV manufacturer may be finished

Unread postby Mike in Calgary on Wed Aug 13, 2008 7:20 pm

This is sad news. I have a Pilgrim Lite 27LBH that we bought 2 years ago as a 2007 model. Its a lot better quality that a lot of the other units that I looked at prior to purchasing. It was, however, about $8000 more than most of the other units which I would consider to be "entry level". It's a sad fact that people realize, usually much too late, that cheap is not good value. I'm really happy with the unit that we bought, and its been largely trouble free. Tows really nicely too.
There is no such thing as a bad day camping.
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Re: Sadly, another RV manufacturer may be finished

Unread postby ClassicHammond on Fri Aug 15, 2008 10:13 am

Sadly this is only the beginnings of the far-reaching effects of this oil pricing. Watch your price of food as it is all moved by truk/train and much is packaged in plastic (OIL). Something has to give............
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Re: Sadly, another RV manufacturer may be finished

Unread postby The Wood Tinker on Tue Aug 26, 2008 1:02 am

Sign of the times indeed. The dealer for our Tango just closed up shop....
Lucky enough the factory is closer to home than the dealer and they report sales are steady and other dealers are doing Ok.
Time will tell. 8-)
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Re: Sadly, another RV manufacturer may be finished

Unread postby beddows on Mon Nov 03, 2008 10:58 pm

I bought a new Truck Camper last November, a Snow River. A Canadian manufacturer (BTW Okanagan, another Canadian manufacturer, has also ceased production) I was President of the North American Truck Camper Owners Association & during my travels, I visited most factories. This was the best built on the market, bar none, and I eventually bought one myself. Trouble is they only made about 70 a year and with the turn down dealers were not ordering product unless they were pre-sold. A death knell for a small manufacturer. They always operated on a cash in/cash out basis so did not declare bankruptcy, the owner who had no kids wanting to take over, simply retired. I'm not too worried about warranty issues, its well built & the appliances etc have their own. My main fear is writing it off & not being able to replace it.

I took some photos of it under construction & after

http://www.vancouver.hm/sr.html
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Re: Sadly, another RV manufacturer may be finished

Unread postby skipnchar on Tue Nov 04, 2008 8:40 pm

I always hate to see that sot of thing. The more it happens the less options we have to choose from. Gotta tell you though, that's a nice looking rig.
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Re: Sadly, another RV manufacturer may be finished

Unread postby ralphl on Mon Nov 24, 2008 8:13 pm

Apparently a lot of RV mfgs are going down fast. Any idea what percentage of RV,s are financed? Someone on another forum guessed at 75% If this is true can we expect to see a lot of them sacrificed at fire sale prices in light of the economy?? I am shopping for a relative who wants a 5ver and wondering if waiting doesnt make sense right now.Appreciat your imput.
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Re: Sadly, another RV manufacturer may be finished

Unread postby cwit on Tue Nov 25, 2008 9:11 am

I would think a great percent of campers would be bought as a second morage. I have a friend who just bought a new Pilgrim. They made a great camper, it is hard to believe they folded. I was told they wanted to build only upper end no entry level campers. This may be why they folded. Would I buy a camper with no warrenty, only if the price was right, but than I can fix most things myself. :)
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Re: Sadly, another RV manufacturer may be finished

Unread postby PrivatePilot on Sun Nov 30, 2008 12:48 pm

I think that those who are buying new nowadays are going to start leaning towards the less expensive models, either as a necessity to actually get financing, or to reduce payments.

Face it, RV's depreciate like a rock, and the banks are no longer willing to 100% (or 90%, or probably even 60%) finance a high priced brand new RV which is going to loose 20% (or more) of it's value the next year, and even more in the years after. The risks that the bank will loose their shirt if it ends up in repo is simply too large now and the bank will be stuck taking a huge loss at liquidation.

Unless you are well to do with perfect credit and a significant down-payment, I think the days of the "average guy" financing an RV that is nearly beyond his means is over.

We looked at a few $80,000-$100,000 Fivers last spring when looking for ours, but quite honestly I could not imagine having payments that large, especially when one stops and thinks about the massive depreciation factor. Instead we bought a much more reasonable used fiver and paid 50% of it off with cash at the onset, and it's about 70% or so paid for now.
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Re: Sadly, another RV manufacturer may be finished

Unread postby Big Rig Guy on Sun Nov 30, 2008 2:06 pm

We were looking in the summer at a new Alfa 60 grand, I had 40 cash, to finance the remaining 20 or so over 20 years would have cost me 20. Went with a 05 Designer Legacy like new for 40, paid for. My buddies Mobile Suites which is comparable to ours and a 05 as well has many years of payments left. He bought his new. He would be hard pressed to get 35 for it now, lots of depreciation. The previous owner of my trlr paid 80 so it cost him 40 to own it for 2 1/2 years.

The dealership did not want to finance the remainder over 5 years which is what I figured the smart thing to do.
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