Riverside, Calif.-based Fleetwood Enterprises Inc. will be exiting the travel trailer market to “focus on its motorhome and manufactured housing business.”
In a letter to dealers, RV Group President Paul Eskritt explained that the company’s trailer division had incurred significant losses the past several years.
“Fleetwood’s travel trailer division sustained losses of $65.3 million in 2007 and $16.8 million in 2008,” he said. “In recent years, this division has lost market share due to aggressive competition from industry peers. Fleetwood has responded by improving its product lineup, but current market conditions are too severe to permit timely recovery.”
Eskritt went on to say that the move would terminate existing dealer agreements. The rest of the letter stated:
“Because of the decision to withdraw from the travel trailer business, which has resulted in the discontinuance of all travel trailer product lines, the applicable Fleetwood travel trailer manufacturers hereby terminate the travel trailer dealer agreement and/or any other contractual or non-contractual agreements with the dealer relating to the supply of travel trailer products, effective as the date of this letter.
“Law applicable to dealers in some states requires us to inform you that the law in your state may provide you with a right to protest this notice or to take other action.
“To the extent possible, given existing inventory and work in progress, the Fleetwood travel trailer manufacturers will honor and fulfill orders submitted by your dealership for travel trailer products prior to the date of this letter. However, the Fleetwood travel trailer manufacturers will accept no further orders for travel trailers on or after the date of this letter.
“Further information regarding the handling of warranty issues as to travel trailer products will be provided at a later date.
“To the extent that any or all of your previous business arrangements with Fleetwood in connection with travel trailer products ceased or were terminated prior to the date of this letter, this letter will serve only as a general notice to you of Fleetwood’s current status and not as an acknowledgement of any ongoing business relationships.
“Fleetwood intends to concentrate its efforts on its motorhome and manufactured housing business. Our decision to exit the travel trailer business and this letter terminating your travel trailer dealer agreement, does not terminate or otherwise, in any way, affect dealer agreements or other arrangements concerning Fleetwood’s manufactured housing and motor homes business, its products and support of those products.”