Thor buys Jayco

[mikelm48]

https://rv-pro.com/news/thor-acquires-jayco-576-million

[Gordon Dewald]

Another thread about the same topic. Some audible gasps heard.

http://www.irv2.com/forums/f278/ente...ml#post3141074

[slabman]

Not a good day for Entegra OR the Industry. Newmar will be big winners, of course, but the Industry, which Entegra was pushing forward, will be the losers. This will kill off that advancement, since Thor will seek to cut costs at all levels, trying to max out their returns...ALWAYS happens!

Look for a LOT of the devoted Entegra fans to show up on this board. I feel for them, and welcome them here.

[Deek]

Originally Posted by slabman

Not a good day for Entegra OR the Industry. Newmar will be big winners, of course, but the Industry, which Entegra was pushing forward, will be the losers. This will kill off that advancement, since Thor will seek to cut costs at all levels, trying to max out their returns...ALWAYS happens!

Look for a LOT of the devoted Entegra fans to show up on this board. I feel for them, and welcome them here.

2X!

Plenty of activity on the Entegra Owners Forum. And you are absolutely correct, Slabman. One of the biggest things to note in this picture is the changing of the impetus for better design, new ideas and more competitive pricing that comes with two strong players in the mix. Entregra certainly provided that vis-a-vis Newmar and both companies' offerings reflected the benefits of that healthy competition. The comments about Thor that appear in several places suggest that the strength of Entegra will suffer in this acquisition and that's bad for all of us.

Deek

[Ann n Gene]

There is hope for Entegra moving forward. Look at Air Strem and Mobile Suites, both are flourishing and improving under the Thor banner. Too early to make firm judgements but I choose to stay optimistic. All JMHO


2016 44 B Topaz Cornerstone
2014 MKT towed

[rvbusguy]

I am one of the few that thinks this is a great move for everyone.

Floorplans have always been a weakness for Entegra Coach. It takes an "Act from Congress," to get them to change anything. With the design team of Thor, floorplans and inproving on them should not be an issue anymore

If you take a look at the Tuscany's, quality might be one thing, but their floorplans are all very progressive.

Looking forward.

[Entropy]

Thor is turning into the Borg.


2008 Newmar All Star 4156

[patch-y]

I had a THOR Palazzo. THOR was quick an willing to repair the simple stuff.

ThOR was unwilling and unavailable to fix the difficult stuff.

The THOR service centers I experienced were not helpful and the service techs complained about THOR. The Palazzo thread was filled with dissatisfied customer experiences and "lack-of-quality" complaints (at least during the period I owned my THOR). After a year we traded out our new Palazzo for a new 2015 Ventana-----(several Newmar dealers told me they didn't really want my THOR and gave me trade values that reflected that).

I ended up repairing or having repaired, at my own cost, the issues we found during our ownership period even though we were under warranty----it was just easier than fighting.

THOR demonstrated a culture of no care or concern for quality or customer satisfaction. (I suppose it is possible THOR has changed since my last dealing with them in late 2014).

There is little to no chance I would ever buy a product from THOR motor coach.

I bought my THOR from RVONE in Orlando. Once the unit was off the lot they were of no use. They would tell me service appointments for warranty work were three months out....on at least two occasions when I drove in for a scheduled appointment the cancelled it on the spot because they were prepping a new unit they just sold and had to deliver. Unbelievable.......

Will they ruin Entegra? Who knows......

[Gordon Dewald]

They say the existing management team will remain in place.

I expect as long as the parent company is happy with the return on their investment things will remain much as they are now. If the return is not what they expect I guess they will advise Jayco management of the need to increase profit. The current managers will either achieve the goal or be replaced with new managers who will do their best to please the shareholders.

If you can believe folks on other threads talking about the same topic Jayco is very profitable so common sense says there should be little change in management and thus little change in product.

[Capt. Bill]

I was very saddened to hear about this buyout. Having been a Senior Executive of a $600mm company that was bought by a $5 billion public corporation, let me tell you what Jayco is in for.

Thors 'Bean Counters' will begin 'rationalizing' the headcount by cutting financial, IT, AP, AR personnel followed by engineering, production, purchasing & operations positions. HR will be left in place for at least the first year to preside over this blood letting. Several top management people as well as many upper 15% rated, will leave Jayco, taking a tremendous amount of 'Tribal knowledge' and long term vision with them. AP will stretch out payables to 90-120 days thereby alienating Jaycos trusted & long standing quality vendors. 'Strategic Sourcing' will be implemented to procure materials & supplies at lower & lower costs year after year. Inventories- RM, WIP & FG will be reduced to ridiculously low levels to achieve 16- 20 turns/year on inventory. Quality will be readily sacrificed for lower cost. LCC (Low Cost Countries) procurement will be implemented for parts & sub-assemblies to again reduce costs- can you spell China, Vietnam or Bangladesh??? Have to get that cash flow & EBITADA up to pay for the acquisition you know!

I feel Entegra was building a great coach & pushing the industry forward. I don't think the same can be said about Thor.
From my first hand experience, it will probably take between 3-5 years to morph Jayco into a mere shadow of its present and former self. Newmar stands to be the big winner in this transaction as they stand to gain 25-35% of Entegras business in 4-5 years. This is a great opportunity for them to gain market share.

The old saying in the public corporate world is soooo-so true-" Big fish have to continually eat smaller fish to survive." This axiom continues to play out in the public corporate world despite the fact that the smaller fish ,are generally killed in the process and in 60-70% of acquisitions cause severe indigestion

Good luck to Jayco & Jayco employees- you're going to need it!

[3xbear]

Hello Newmar owners,
I believe by now all of you are aware of the news surrounding the Thor takeover. I debated long and hard before I purchased my Cornerstone, and have to say, I am very pleased. These new developments, however, have made me rethink where I want to be in 4-5 years, when my wife and I wanted to upgrade anyway. My thought was going to a brand new cornerstone then, but now I'm not sure.
So, for those of you long term owners of King Aires, how do you feel you compare to say, a Foretravel Realm or IH? I'm thinking about reliability, warranty, service, overall finish, innovation. My wife's other concern is that, for what a King Aire would cost, she would expect a certain degree of personalized attention, something you would get from Foretravel, but maybe not from Newmar, given it is a much larger company?
Any information you guys can provide would be useful.
Thanks for your time.
Fred

[MRUSA14]

Fred, with your time horizon, you have the luxury of being able to see how things develop. By the 2022 model year, Newmar, Foretravel and Entegra will all likely have made big changes. How can you evaluate that now? And the results of Thor's ownership should be very clear by then. It could be positive or negative, but why speculate now when you can see for yourself as the future plays out?

[3xbear]

You are totally right. I am just bummed about the whole thing, but I will sit tight.
Thanks!