Entire Staff Laid Off at Erwin Hymer North America (Roadtrek)

Entire Staff Laid Off at Erwin Hymer North America (Roadtrek)

By Jason Epperson

RV Daily Report and CTV News are reporting that Erwin Hymer North America in Kitchener, Ontario, has been placed in recievership by a court, effectively laying-off the entire staff of over 800 employees, who were told the company will idle for six weeks while it tries to find a buyer. Rumors are swirling about a class action lawsuit from the factory’s suppliers.

The company, which manufactured the popular Roadtrek class B RV, has been embroiled in a financial scandal that allegedly involves embezzlement from top executives at the company. A buyout by Thor Industries of the global Erwin Hymer Group excluded the North America operation at the last minute due to the investigation into the mismanagement, leaving the company to fend for itself.

RV Miles has been receiving reports over the last couple of weeks that dealers across the country are not honoring Roadtrek warranties because they were not getting paid. Roadtrek has long offered some of the best warranties in the industry, and now it’s not clear what the future holds for current Roadtrek owners. The company may still be sold, but with a mass-layoff, it seems likely that bankruptcy looms. The brand name and patents may be picked up by someone, perhaps still Thor Industries, now the world’s largest RV conglomerate. The factory facilities are leased, lending reduced leverage for a potential sale.

About author

Jason Epperson

Jason travels the country full-time with his wife Abigail, and three children in a converted school bus.

Comments
  • Aaron#1

    February 16, 2019

    Yep, we are currently having trouble getting a warranty issue resolved ourselves. Will see how it pans out I guess.

    Reply
  • Mark#2

    February 16, 2019

    Well, I’m certainly disappointed to hear this news because I never imagined that purchasing a Roadtrek, a company that started in 1974 and went through a few company aquistions would be essentially dead leaving all of us with an orphaned product. I have a 2012 model so it’s clearly out of warranty and not really affecting my situation, but, the people who purchased a brand new Roadtrek based on the 6 year warranty are really out of luck with that unless a major company purchases the brand and stands behind the warranty… ?

    I understand that in the last couple of years Roadtrek really accelerated their operations and produced a lot of lower end models. Maybe they expanded too quickly and had quality control issues. A few months ago in November
    I had a conversation with someone who was working at Roadtrek and I asked them just how rare is my vehicle and he told me that less than 300 RS Adventurous models were converted in late 2011 as 2012 models. He said that they were for the most part built to order.

    Later, they started ramping up the lower models for sale at Camping World locations…. A model like the Carrado or Sunlight was completed in 6 hours while the RS, CS and E-Trek all took 2 to 3 weeks for each unit.

    We’ve had issues, it’s a used vehicle, but, overall, it’s been a pretty good vehicle…more drama with the Mercedes Benz than the RV portion…..

    Reply
  • Tim Shannon#3

    February 16, 2019

    Being one of those owners, I believe a class action law suit is in order. 6 year warranty is one of the reasons we spend large chunks of cash on Roadtrek products.

    Ben Swindled

    Reply
    • Mark#4

      February 17, 2019

      Tim, which model did you purchase?

      And, have you had any issues with your coach? Because we have an older model, I expected some problems….we experienced a cracked sewer hose, macerator failure and plugged up toilet ( my RV shop found some plastic in the sewer line…( could have been from the first owner)? I understand that the normal lifespan of a macerator and possibly sewer line is about 8 years…… while I really appreciate the convenience of having a permanently attached sewer hose…it’s a little more expensive than hooking up a gravity line with a bayonet mount.

      Normal stuff like needing a new propane sensor, new batteries, tires, some generator repairs ( lack of use, also from previous owners) and shocks on an 8 year old vehicle…

      Looks like these things have a 7 or 8 years cycle for coach maintenance and repairs……

      I don’t think I can really blame Roadtrek for this…. wouldn’t you agree???

      I really can’t worry or do anything about depreciation…it happens… just use and enjoy the coach…

      As for being an orphan RV… well… there’s two ways to view this….you have a rarer product…not many of them are made and if Roadtrek is really out of business… there won’t be any new ones… Don’t worry about parts…the aftermarket parts are going to be around….. remember…the company started originally in 1974…and a lot of the parts are other people’s things…. heater, A/C, plumbing, inverter, etc.

      –MARK

      Reply
    • GBaker#5

      February 18, 2019

      As a 2016 RT Agile owner needing warrantee work now, class action seems the way to go. I still have years on the promised warrantee. The history of Roadtrek was one reason I invested so heavily in this RV.
      The potential loss of equity plus the loss of warrantee will add up to a lot of money.
      Frustrated and angry.

      Reply
  • Mark#6

    February 17, 2019

    Tim, one further thing to share with you……to the best of my knowledge….all the things I mentioned in my previous post … replacement of these items… they were all original equipment…so…. they lasted more than six years….

    When our unit was originally sold in 2011… marketed as a 2012 RS ..it only had a four year warranty….

    Again, I’m sorry to hear that you and many other people are out of luck with the six years warranty…..

    Believe me…I had thought about getting a new coach for this warranty….we looked at an E-TREK last year…

    The six years warranty sounded very appealing especially after I had to get those items repaired…. but, in the end I decided I’d rather take my chances…..

    Good luck….. Mark

    Reply
  • Steve Shaw#7

    February 17, 2019

    Tim I can understand your frustration and wanting to sue. The reality is that they have $300 million in liabilities. There won’t be any money left to pay if you did win the class action suit.

    The court filing for the receivership can be found by doing a Google search for the following:

    Alvarez and Marsal Insolvency Canada Erwin Hymer Group

    It’s a 69 page document that outlines the inability of the company to operate and requesting time to find a buyer. If they don’t find a buyer, the next step would be bankruptcy.

    Reply
  • Colleen Lang#8

    February 19, 2019

    Yep, we bought a brand new Roadtrek SS Agile and the Lithium Ion battery is shot. Roadtrek is not shipping parts and will give me no answers. It’s been 5 weeks since I’ve taken the RV in to get the warranty work completed. I’m in for the class action lawsuit!

    Reply
    • GL Lindig#9

      February 22, 2019

      me too. I cannot tell yout the problem i have had w/ my etrek any Lawyers out there?

      Reply
    • Pamela Branch#10

      May 17, 2019

      I have a 2017 SS Agil….August will be 2 years into it. The volt start has been nothing but issues since a few months after purchase. (Alternator has been replaced twice and had numerous belts break). While driving down the interstate a few days ago 1 of the 2 batteries that is mounted under the van (in the back under bench seat) FELL out from under the van. The battery was hung up and was dragged by the wiring while I pulled over. The van had to be jacked up in order to get the fallen battery out from under the van.

      After calling the dealer that we purchased our Class B from we were informed that they were not allowed to work on any Roadtrek because of warranty issues as a result of some bad business practices by Roadtrek.

      So now I have over $100K invested into a RV that I can not use! It will not work even when plugged into shore power. WHAT DO I DO NOW!!!! This is just so wrong on so many levels!!

      I did purchase the extended warranty from Good Sam and also have the Forever Warranty. I am praying that one of them will cover this issue.

      Any advice would be appreciated!!!

      Reply
  • radiocycle#11

    February 19, 2019

    Well, we recently bought a 2017 Hymer Aktiv, in part because of the great warranty and on our first trip out, the Li battery system completely went dead. Everything looks good and we tried all of the ‘easy’ fixes but with no good result. We went to a meet up with 27 other Aktivs and 4 of those rigs had the same problem that we were experiencing. Of course none of the dealers would do any warranty work and that was several weeks ago now. I saw a dealer selling a BRAND NEW Aktiv for a price that was 5K less than we paid for our rig. I thought Roadtrek/Hymer were solid names in the industry… Boy was I wrong.

    Reply
  • marie#12

    February 21, 2019

    a class action lawsuit sounds very good for customers suppliers and employees……does anyone know if the Hymer Family could be sued as they owned Roadtrek at the time….they walked away from all this with billions of dollars and left everyone else up the creek…..its sickening

    Reply
  • Bill Verrochi#13

    February 22, 2019

    as a warranty administrator I suggest you look to the appliance book that came with your road trek some of the appliances have a one year warranty but many have more, contact the appliance companies for some information and mabe you can get some good will from them good luck BillV.

    Reply
  • Glamper#14

    February 24, 2019

    For those looking to buy after receivership. Keep in mind chassis has a solid warranty from MB or Dodge. Other than proprietary EcoTrek lithium most of the parts are OEM including UHG, heater, awning, Fridge etc. extended warranty does not cover cabinetry, upholstery and much more. We just purchased Hymer Aktiv at a 25K price reduction as compared to price before the debacle. We will just pay to play. No point paying 6K for concurrent coverage. We also have roadside assistance AAA and Mopar (Dodge)

    Reply
    • Courtney#15

      April 11, 2019

      I was just turned on to they Hymer AKTIV LOFT RPAD-LOFT and quickly found out about the chapter 13 after asking about why the reduced prices. As you made your decision to buy, what were your biggest concerns given the situation? My initial reaction is concern around sourcing parts that are unique to this van. Anything else you considered?

      Reply
  • michiganpleinair#16

    March 5, 2019

    Class action lawsuit really won’t yield much if the company is liquidated. Even if the assets are purchased by another manufacturer any class action lawsuit would have been vacated prior to the purchase or acquisition.

    Reply
  • john meacham#17

    March 19, 2019

    We bought a Sunlight V1 2017. It was in CW service bay more months than at our house due to warranty items. CW techs burned up the electrical harness and inverter switch trying to “fix” the electrical problems.
    Ran great last two months – now reset switch will not bring on panel.

    Reply
  • Robert Semple#18

    April 3, 2019

    I took my 2016 RS Adventurous back to La Mesa in Port St Lucie on January 16, 2019 for some warranty work After nearly 5 weeks of waiting for parts I was informed Roadtrek went bellyup and was hit with a $ 700 involve for parts and labor. After some tense discussion We settled $425….not a “Happy Camper” Bob & Mary Ann

    Reply
    • kumar#19

      April 23, 2019

      Similar experince with my 2018 Hymer BANFF at La Mesa in Port St Lucie, FL.

      Reply
  • Patrick#20

    April 26, 2019

    2014/2015 SS_Agile purchased used 2 yrs back. Solar, Onan, 2.1 4 cyl has been an excellent experience. These are not for the mechanically challenged. List of updates, new 5.5k AC, plumbing vents, suspension and some other little things. Most important, besides an understanding of Mercedes electronics, a good quality OBD2 scanner.

    Reply
  • Pamela Branch#21

    May 17, 2019

    I have a 2017 SS Agil….August will be 2 years into it. The volt start has been nothing but issues since a few months after purchase. (Alternator has been replaced twice and had numerous belts break). While driving down the interstate a few days ago 1 of the 2 batteries that is mounted under the van (in the back under bench seat) FELL out from under the van. The battery was hung up and was dragged by the wiring while I pulled over. The van had to be jacked up in order to get the fallen battery out from under the van.

    After calling the dealer that we purchased our Class B from we were informed that they were not allowed to work on any Roadtrek because of warranty issues as a result of some bad business practices by Roadtrek.

    So now I have over $100K invested into a RV that I can not use! It will not work even when plugged into shore power. WHAT DO I DO NOW!!!! This is just so wrong on so many levels!!

    I did purchase the extended warranty from Good Sam and also have the Forever Warranty. I am praying that one of them will cover this issue.

    Any advice would be appreciated!!!

    Reply

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