- Mar 14, 2005
- 18,435
- 3,720
- 50,935
Whilst Hymer did buy Elddis only a few weeks after Thor Industries of the USA bought out the entire Hymer group. If you look into the history of Thor their record of investment and customer satisfaction into businesses they own is not rosy, and it is my suspicion the purse strings were drawn in.Anyway, just had our caravan serviced by the local mobile guy & his most common problems are with Elddis’s. He reckons they’ve got worse since Hymer took over, which I find strange.
I also find the timing of Hymers aquasition of Explorer Group, and their absorption into Thor was too close to be a coincidence, and I suspect this was a planned approach to give Thor a foothold in both the EU and the post Brexit UK in one bite.
On a slightly different angle, the COVID pandemic severely distorted the UK caravan market. As many commentators suggested the pandemic over inflated the demand for both new and second hand caravans. The problems with parts supplies prevented manufacturers from meeting the demand for new caravans, which added even more pressure onto the secondhand market. Prices rocketed, and even vans with faults were selling.
The upshot is now coming back to haunt dealers. Warranty claims for secondhand caravans are having to be feilded by the dealers with no support from the manufacturers.
In addition where new caravans were involve, the parts supply issues the industry had during COVID and the aftermath, means many of those caravans may not have been properly finished, or may have used poorer quality components which are failing prematurely. Again the Dealers are picking up a lot of extra costs associated with trying to handle manufacturers warranty claims.
Post COVID has also seen a lot of caravan purchases made during COVID now hitting the secondhand market, driving retail values down. All the financial pressures are predominantly pressing on dealerships.
Now we have additional taxes and energy costs imposed by government.
I am not surprised that dealers are closing.
Unlike a similar but not so severe financial crisis in the 1990's there are where Dealers fought back by amalgamating into larger groups, there is less financial incentive to combine.
Sadly I suspect we will see more dealerships close.
I don't think you can point to a single failure as the cause for this state of affairs, BUT lack of product quality has to be a significant factor, along with the intransigence of caravan manufacturers failing to put customer satisfaction closer to the top of their business goals