R.i.p. Nuwa

[steamboatinn]

NUWA, who manufactures Hitchhiker fifth wheels, announced that it is ending production. An effort will be made to sell the business. Mike Mitchel (?), the main man at NUWA, says resources have been set aside to honor warrantees. The service department will continue operations through 2010. We are pleased with our Hitchhiker. Their products are reliable. Mike is a stand up guy. This saddens me.

 

[Ramtough]

Mike posted an explanation on the NUWA Owner's forum. It did not include anything about making an effort to sell the business. Where did you get this informaiton from?

 

[GaryOwen]

From RV Industry News -



Nu-Wa to cease operations in January

Greg Gerber posted on December 30, 2008 23:53

CHANUTE, Kansas -- Fifth wheel RV manufacturer NuWa Industries has announced that it will quit manufacturing RVs in late January.



Products already in production will be completed. In a letter to dealers, company CEO Mike Mitchell wrote that he could not see enough “light at the end of the tunnel to feel confident that market conditions would improve significantly to continue. "



The company says it is not going bankrupt and will continue to meet warranty claims of its customers. It will keep its factory service center open until at least 2010.



NuWa is the manufacturer of HitchHiker, SnowBird, and Stow-A-Wa fifth-wheels and is located in Chanute, Kansas. The company is the oldest existing manufacturer of fifth wheel trailers, dating back to 1969. It is well-respected in the industry for the high quality of its products.



SOURCE: RV News Service



Posted in: Manufacturing News

 

[steamboatinn]

I thought that Mike's email read that they would leave the factory in turn-key condition. Maybe I read too much into that statement.

 

[HBarlow]

You read it correctly but on another RV news blog.

"BREAKING NEWS
NuWa Industries to Cease Production in January
RV Business
Tuesday, December 30, 2008

In a letter to dealers, Chanute, Kan. -based NuWa Industries Inc. said it is ceasing production of its high-end fifth-wheels after completing product already in process and will be making "a graceful exit from the RV industry. ”

CEO Mike Mitchell said that the company 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. "

The builder anticipates closing down production in late January.

Dealers were told that NuWa is not going bankrupt and “will continue to meet its financial obligations to suppliers and finance companies. ” The company said it has set aside the estimated funds to meet continued warranty obligations of product in the hands of consumers and on dealers lots.

In addition, 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.

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 by the service department.

NuWa said the main facility will continue to be equipped for "turnkey" production in case a buyer surfaces.

In November, NuWa told RVBusiness that it was temporarily stopping production and would cancel its reservation at the National RV Trade Show in Louisville, Ky.

"We want to take a look to see what kind of sales are going to come in 2009," said NuWa President Neil Ford, noting that the parts, warranty and service departments would remain open.

Ford added, “The problem is the whole economy. Most of our customers are retired, and the price range of our units is not inexpensive. People can't get financed or they fear what the economy is going to do. "

NuWa was formed in 1969 and earned a reputation as an innovative and quality builder. The company produces all-season fifth-wheels under the Hitchhiker LS, Hitchhiker Discover and Hitchhiker Champagne brand names. "

Mike Mitchell, CEO and owner, apparently decided he had to stop the bleeding before he lost his entire fortune accumulated over many years of owning and operating NuWa Industries, Inc.

I am sad to see NuWa close. I'm very pleased with the HitchHiker fifth wheel I bought in early 2007. I'm not worried about any warranty issues, I simply hate to see a fine company and fine product leave the RV industry.

 

[Ramtough]

You read it correctly but on another RV news blog.



"BREAKING NEWS

NuWa Industries to Cease Production in January

RV Business

Tuesday, December 30, 2008



In a letter to dealers, Chanute, Kan. -based NuWa Industries Inc. said it is ceasing production of its high-end fifth-wheels after completing product already in process and will be making "a graceful exit from the RV industry. ”



CEO Mike Mitchell said that the company 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. "



The builder anticipates closing down production in late January.



Dealers were told that NuWa is not going bankrupt and “will continue to meet its financial obligations to suppliers and finance companies. ” The company said it has set aside the estimated funds to meet continued warranty obligations of product in the hands of consumers and on dealers lots.



In addition, 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.



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 by the service department.



NuWa said the main facility will continue to be equipped for "turnkey" production in case a buyer surfaces.



In November, NuWa told RVBusiness that it was temporarily stopping production and would cancel its reservation at the National RV Trade Show in Louisville, Ky.



"We want to take a look to see what kind of sales are going to come in 2009," said NuWa President Neil Ford, noting that the parts, warranty and service departments would remain open.



Ford added, “The problem is the whole economy. Most of our customers are retired, and the price range of our units is not inexpensive. People can't get financed or they fear what the economy is going to do. "



NuWa was formed in 1969 and earned a reputation as an innovative and quality builder. The company produces all-season fifth-wheels under the Hitchhiker LS, Hitchhiker Discover and Hitchhiker Champagne brand names. "



Mike Mitchell, CEO and owner, apparently decided he had to stop the bleeding before he lost his entire fortune accumulated over many years of owning and operating NuWa Industries, Inc.



I am sad to see NuWa close. I'm very pleased with the HitchHiker fifth wheel I bought in early 2007. I'm not worried about any warranty issues, I simply hate to see a fine company and fine product leave the RV industry.

This is NOT new news. Here is the verbatim quote from Mike Mitchel dated 11/7/08. I belive it has been posted here before:



Rumors abound in our industry today and any action not viewed as ordinary seems to create emotion and statements without factual basis. Below are some facts to dispel the inaccuracies where they might exist. As well, we typically find the media doesn't a very good job of describing the conversation of an interview. Not sure where they got the word "slamming", but it's not from Neil, just as he wouldn't have said "never" about something that he can not be certain of. Most of our competitors are closing much of November and most of December. NuWa is concerned about meeting our delivery commitments, thus we are finishing all units in the system in Nov. , Dec, and early January and closing for an undetermined amount of time thereafter. Two issues are causing the rumors that we could have avoided. One is our desire to be upfront with dealers and customers. Most manufacturers will "hide" all information as much as possible. And two is the Federal WARN employee notification law, that requires 60 days notice to all employees involved with a "mass" layoff. Because of the uncertainty of what may happen early January, we felt we had no choice but to give the worst possible notice to our employees, even though that decision has not in fact been made. If we don't do so, and business doesn't rebound, then NuWa is required by law to pay "all" employees full pay and benefits for another 60 days. Thus we felt we had to prepare for the worst scenario by giving this early and harsh notice, but hope for something better. The WARN law has little flexibility and clarity in interpretation, just as we might expect.



I am leaving for three weeks on a long planned trip to Europe. I'm not taking my computer. Obviously it's not the best time to be gone, but I'm committed. I just wanted to make sure that members understand why I won't be active on the forum for three weeks. I will provide updates when I return in December.



1. NuWa has announced to it's dealer network a planned production shutdown due to a lack of sufficient orders in the backlog system to keep its plant running efficiently. It is more costly in some cases to build inefficiently, than it is to temporarily cease building at all. We are not comfortable building additional factory inventory. And that is our predicament in today's extremely soft economy. The reason NuWa has chosen to not accept orders at all for a while is to eliminate the possibility of an assumed commitment to build a retail sold trailer by a certain time. Nothing could be worse than for a dealer to sell a trailer, give NuWa the order, sell the customer's trade in, and then find that NuWa will not meet the expectations of the customer for delivery date. We would rather not take the order than to take it and risk disappointing.



2. NuWa has made no announcement or decision about permanently ceasing production of RVs despite what the rumors might suggest. We have made such a decision for the short term and will observe the retail market activity for a few weeks in an effort to determine when and if the market will rebound. Our crystal ball is no more accurate than anyones, thus we simply do not know what cards will be dealt us going forward. I would expect that more will be known by mid December to early January and further announcements will be made as decisions are made.



3. In order to meet the delivery date expectations of customers, NuWa will complete all units that are already in the production system and those that are ordered in time to join the last groups of units being entered into the production process. I would estimate that a unit needs to be ordered by November 15th or so, to be built before the production shutdown. As was done before, the "staggered" shutdown process will be utilized, which means each department's employee's will go on layoff as their department's work is finished.



4. A somewhat vague federal law which requires advance notice of a "mass" layoff by a business has forced us to provide notice of layoff to virtually all employees as a protection to NuWa of the unknown. This inflexible law forces us to plan for the worst and hope for the best in our efforts to "not trap" ourselves from regulatory actions. This action unfortunately increases the probability of rumor based on emotion and not fact.



5. NuWa has taken action on two very important issues to give confidence to consumers and dealers and to help dispel rumors. First NuWa has set aside in reserve the estimated funds to meet its obligations of warranty for HitchHikers in the hands of customers and on the lots of dealers. In other words, even if the economy deals NuWa the worst possible hand going forward, the assurance of continued warranty support has been committed. As well, NuWa has planned a "stand alone" service, parts and warranty division that will continue to take care of customers, who visit the factory, even if production should not re-activate. Being unsure of what will happen in the future, we feel that it is our responsibility to reasonably meet the warranty and service obligations for our products, and I know of no other manufacturer, who has taken these steps to ensure and protect the position of its customers and dealers. Obviously it is our hope that NuWa will continue to build RVs for a long time in the future, but just in case, we wanted to eliminate unnecessary fear. Nothing can be guaranteed forever, but I would rather be a customer buying a new HitchHiker today with this knowledge, than take a chance that some other manufacturer may not be so open with communication, then file unexpected bankruptcy and leave it's customer with no warranty support.



6. NuWa is not going to the Louisville show for two reasons. One, is that "high end" companies such as ours typically do little business at or because of this show, and two is that we are not anxious to sign any new dealers until we have a better picture of the future. The retail market is what we will watch as a barometer of the industry's health.



Hopefully this information clarifies the concerns of some owners and/or NuWa dealers. We can't provide information that we don't know, but we are sensitive to the concerns that exist. There will always be competitors and others who will "misuse" the information that is known. We cannot control what others say, only what we do. MIKE MITCHELL

 

[Grizzly]

This is not new news, but it is very sad news to the RV industry. If Hitchhiker is not the best 5er made, it certainly is one of the best. They created the 5th wheel concept.

 

[GaryOwen]

From Nu-Wa owners forum -



NuWa status update from Mike Mitchell

« on: December 30, 2008, 06:00:45 PM »



--------------------------------------------------------------------------------

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



RIP - Gary

 

[HBarlow]

This is NOT new news. Here is the verbatim quote from Mike Mitchel dated 11/7/08. I belive it has been posted here before:

Rumors abound in our industry today and any action not viewed as ordinary seems to create emotion and statements without factual basis. Below are some facts to dispel the inaccuracies where they might exist. As well, we typically find the media doesn't a very good job of describing the conversation of an interview. Not sure where they got the word "slamming", but it's not from Neil, just as he wouldn't have said "never" about something that he can not be certain of. Most of our competitors are closing much of November and most of December. NuWa is concerned about meeting our delivery commitments, thus we are finishing all units in the system in Nov. , Dec, and early January and closing for an undetermined amount of time thereafter. Two issues are causing the rumors that we could have avoided. One is our desire to be upfront with dealers and customers. Most manufacturers will "hide" all information as much as possible. And two is the Federal WARN employee notification law, that requires 60 days notice to all employees involved with a "mass" layoff. Because of the uncertainty of what may happen early January, we felt we had no choice but to give the worst possible notice to our employees, even though that decision has not in fact been made. If we don't do so, and business doesn't rebound, then NuWa is required by law to pay "all" employees full pay and benefits for another 60 days. Thus we felt we had to prepare for the worst scenario by giving this early and harsh notice, but hope for something better. The WARN law has little flexibility and clarity in interpretation, just as we might expect.

I am leaving for three weeks on a long planned trip to Europe. I'm not taking my computer. Obviously it's not the best time to be gone, but I'm committed. I just wanted to make sure that members understand why I won't be active on the forum for three weeks. I will provide updates when I return in December.

1. NuWa has announced to it's dealer network a planned production shutdown due to a lack of sufficient orders in the backlog system to keep its plant running efficiently. It is more costly in some cases to build inefficiently, than it is to temporarily cease building at all. We are not comfortable building additional factory inventory. And that is our predicament in today's extremely soft economy. The reason NuWa has chosen to not accept orders at all for a while is to eliminate the possibility of an assumed commitment to build a retail sold trailer by a certain time. Nothing could be worse than for a dealer to sell a trailer, give NuWa the order, sell the customer's trade in, and then find that NuWa will not meet the expectations of the customer for delivery date. We would rather not take the order than to take it and risk disappointing.

2. NuWa has made no announcement or decision about permanently ceasing production of RVs despite what the rumors might suggest. We have made such a decision for the short term and will observe the retail market activity for a few weeks in an effort to determine when and if the market will rebound. Our crystal ball is no more accurate than anyones, thus we simply do not know what cards will be dealt us going forward. I would expect that more will be known by mid December to early January and further announcements will be made as decisions are made.

3. In order to meet the delivery date expectations of customers, NuWa will complete all units that are already in the production system and those that are ordered in time to join the last groups of units being entered into the production process. I would estimate that a unit needs to be ordered by November 15th or so, to be built before the production shutdown. As was done before, the "staggered" shutdown process will be utilized, which means each department's employee's will go on layoff as their department's work is finished.

4. A somewhat vague federal law which requires advance notice of a "mass" layoff by a business has forced us to provide notice of layoff to virtually all employees as a protection to NuWa of the unknown. This inflexible law forces us to plan for the worst and hope for the best in our efforts to "not trap" ourselves from regulatory actions. This action unfortunately increases the probability of rumor based on emotion and not fact.

5. NuWa has taken action on two very important issues to give confidence to consumers and dealers and to help dispel rumors. First NuWa has set aside in reserve the estimated funds to meet its obligations of warranty for HitchHikers in the hands of customers and on the lots of dealers. In other words, even if the economy deals NuWa the worst possible hand going forward, the assurance of continued warranty support has been committed. As well, NuWa has planned a "stand alone" service, parts and warranty division that will continue to take care of customers, who visit the factory, even if production should not re-activate. Being unsure of what will happen in the future, we feel that it is our responsibility to reasonably meet the warranty and service obligations for our products, and I know of no other manufacturer, who has taken these steps to ensure and protect the position of its customers and dealers. Obviously it is our hope that NuWa will continue to build RVs for a long time in the future, but just in case, we wanted to eliminate unnecessary fear. Nothing can be guaranteed forever, but I would rather be a customer buying a new HitchHiker today with this knowledge, than take a chance that some other manufacturer may not be so open with communication, then file unexpected bankruptcy and leave it's customer with no warranty support.

6. NuWa is not going to the Louisville show for two reasons. One, is that "high end" companies such as ours typically do little business at or because of this show, and two is that we are not anxious to sign any new dealers until we have a better picture of the future. The retail market is what we will watch as a barometer of the industry's health.

Hopefully this information clarifies the concerns of some owners and/or NuWa dealers. We can't provide information that we don't know, but we are sensitive to the concerns that exist. There will always be competitors and others who will "misuse" the information that is known. We cannot control what others say, only what we do. MIKE MITCHELL

Yes, it was "new news. "

It was me who posted the earlier post by Mike Mitchell, NuWa CEO back in November. It was also me who posted the quote from RV Business dated December 30, 2008. The date of the post was at the top of the article it was quoted from as was the November post.