The collapse of yet another major caravan manufacturer will once again raise questions about the health of the industry in this country … and the level of protection afforded to those buying RVs.
After more than 25 years of designing and manufacturing Australian-made off-road campers and caravans, Sunshine Coast-based Australian Off Road (AOR) has gone into administration.
At its peak, the company employed around 100 people and, just ast year, reported building approximately 250 caravans.
On its website, AOR said it had experienced significant price pressure from increasingly sophisticated Chinese imports, which it said had made it increasingly difficult for a premium Australian manufacturer to compete on price at the same time as maintaining Australian manufacturing, employment and quality standards.
Another caravan manufacturer has gone into administration. PIC: RDNE Stock
The company said it had also faced growing competition from manufacturers operating in lower-cost parts of Australia, particularly southern states where lower wage and property rental costs can provide a significant structural cost advantage over manufacturing on Queensland’s Sunshine Coast.
Founder Steve Budden said the company was immensely proud of what it had achieved.
“Unfortunately, the manufacturing environment has changed dramatically,” he said. “Competing against imported products on price, while also facing competitors with substantially lower manufacturing overheads, has made it increasingly difficult to sustain the business in its existing form.”
AOR said it acknowledged the disappointment and uncertainty facing employees, customers, suppliers, and dealers.
“The administration process will determine the future of the company’s assets, outstanding obligations and any potential continuation or sale of the business,” it said.
Sadly, several other Australian caravan firms have run into trouble in recent years.
Back in June, Network RV – which owns Vancraft, Nextgen, and Victory brands, as well as three Fair Dinkum Caravan dealerships – went into administration.
Last year, Queensland-based Zone RV went into administration, with many customers losing significant amounts of money. However, the brand – which specialises in luxury off-road caravans – was eventually bought by Essential Caravans and is still in production.
Other recent examples of RV firms going to the wall include:
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