Wholesale price discounting at National RV and Country Coach along with production problems related to the introduction of model year 2002 National RV units contributed to parent company National RV Holdings Inc. reporting a $6.1 million loss during the third quarter, according Brad Albrechtsen, president and CEO.

Warranty and recall issues at the National RV subsidiary also were a factor in the parent company reporting a loss during the three months ended Sept. 30, Albrechtsen said.

National RV Holdings’ sales during the July-through-September period also declined 20% to $66.9 million.

During the first nine months of this year, National RV Holdings lost a total of $7.9 million and its sales declined 22% during the period to $210.3 million.

Now that the market environment has changed as a result of the Sept. 11 terrorist attacks, National RV Holdings will take aggressive steps “to reduce costs at all levels of the business,” Albrechtsen said. “Our cost reductions include rightsizing efforts at both operations (National RV and Country Coach) in order to minimize future losses and further inventory build-up.”

The company also has “taken aggressive steps to correct production bottlenecks and manufacturing inefficiencies at our Perris (Calif.) operations, including focusing on reducing our work-in-process inventory and outsourcing more painting operations to clear the backlog of unpainted units,” Albrechtsen continued.

Price discounting of Country Coach units will continue during the fourth quarter to lower its excess factory inventory.

Additionally, at the National RV subsidiary, “production levels have been adjusted and will be further adjusted to minimize the need for ongoing price discounting,” Albrechtsen said. “Targeted incentive initiatives will be pursued to further assist (National RV) dealers in moving aging 2001 retail inventories.”