Autocruise Bought out By Swift.

[Rayjsj]

Just read about this in the latest Which Motorcaravan, am I the only one who thinks that Swift Group are a bit Mean spirited in not honouring the Warranties on any Autocruise motorcaravans purchased before they took over ?? After all, Autocruise are at the peak of their popularity,have a lot of loyal owners, (NOT an ailing 'has been' that needed bailing out !) AND a Bulging order book. So why loose so much good will on such a penny pinching gesture ? I hope it comes back to 'Bite them in the Bum' >:-)

[Sinners]

Just spent a week with friends who where on their first trip in a new Autocruise. They didn't know anything about the buy-out. They must have got the new 'van from the old regime as it was exchanged for their three month old one that had so many problems they took it back!!!

 

No mention on the Autocruise website but, Swift have a bit on their news page.

[Mel E]

Ray,

 

Sorry, but on this occasion, you've got it totally wrong. The full story was on a thread about 2 to 3 weeks' ago.

 

Autocruise were in administration (i.e., bust) and they did need bailing out. They had been bought ought by a Private Equity Fund just about a year ago for some £10million, and a former Swift MD was appointed MD. But they never really got it together, and went into administration at the beginning of October.

 

Swift bought it from the adminstrators - no doubt at a good price - but what they bought were the assets of the business and not the liabilities, which normally, in these situations, stay with the receiver. Unfortunately, the warranties count as a liability - why should Swift saddle themselves with the cost involved unless the administrators are willing to accept a lower price for the business - and of course, they cannot legally do that as they are obliged to get the maximum value for the creditors (who are often, in these situations, quite small businesses that cannot afford to write off large sums of money - indeed, some will also go bust as a result).

 

So Swift are certainly NOT villains in this case. In fact they are probably the only company that would come to a rescue.

 

So to summarise:

 

- Yes, Autocruise was an ailed 'has been' which could no longer trade.

 

- Any fool can have a bulging order book - but there's little point unless you can deliver it profitably and clearly Autocruise couldn't.

 

- Swift have said they will keep Autocruise as an entirely separate entity - especially as it has a new factory with excellent facilities. What better gesture of goodwill could you have?

 

- And any refusal to honour warranties that died with the old company is simply good business sense - they are not funded and supporting them will merely mean new Autocruises have to cost more to provide the funding - or are you suggesting that Swift turn their business into a charity?

 

Mel E

====

[BGD]

Mel - Exellent post!

 

Accurate, and real-world.

 

The saga illustrates once again that private enterprise companies are simply actually in business to make profit and return-on-capital; if you forget that you will very shortly have no business.

[Don Madge]

Have a look at this thread on MHF http://www.motorhomefacts.com/ftopic-34415-days0-orderasc-45.html Peter Smith MD of Swift has spoken.

 

Don

[Rayjsj]

Mel E - 2007-11-10 11:04 AM

 

Ray,

 

Sorry, but on this occasion, you've got it totally wrong. The full story was on a thread about 2 to 3 weeks' ago.

 

Autocruise were in administration (i.e., bust) and they did need bailing out. They had been bought ought by a Private Equity Fund just about a year ago for some £10million, and a former Swift MD was appointed MD. But they never really got it together, and went into administration at the beginning of October.

 

Swift bought it from the adminstrators - no doubt at a good price - but what they bought were the assets of the business and not the liabilities, which normally, in these situations, stay with the receiver. Unfortunately, the warranties count as a liability - why should Swift saddle themselves with the cost involved unless the administrators are willing to accept a lower price for the business - and of course, they cannot legally do that as they are obliged to get the maximum value for the creditors (who are often, in these situations, quite small businesses that cannot afford to write off large sums of money - indeed, some will also go bust as a result).

 

So Swift are certainly NOT villains in this case. In fact they are probably the only company that would come to a rescue.

 

So to summarise:

 

- Yes, Autocruise was an ailed 'has been' which could no longer trade.

 

- Any fool can have a bulging order book - but there's little point unless you can deliver it profitably and clearly Autocruise couldn't.

 

- Swift have said they will keep Autocruise as an entirely separate entity - especially as it has a new factory with excellent facilities. What better gesture of goodwill could you have?

 

- And any refusal to honour warranties that died with the old company is simply good business sense - they are not funded and supporting them will merely mean new Autocruises have to cost more to provide the funding - or are you suggesting that Swift turn their business into a charity?

 

Mel E

====

 

Mel,

I wasn't aware that Autocruise were in Administration ? the articles that i had read were in MMM saying (as you say) that they had been Bought by a 'Management Group' (didn't realise they were a private equity fund,who ONLY know how to make money, not manufacture).

It obviously puts this into a different light, Had the move to their new premises 'Pushed them over the edge' ??

I speak purely as Layman with no 'insider knowledge' of the motorhome industry. The fact that Autocruise 'were in trouble' was NOT well known

by the average potential motorhome purchaser,and it is them, the ones

who bought a new Autocruise before the 'Rescue' that i feel sorry for. I still think that it wouldn't have cost Swift a fortune to honour the existing warranties. Autocruise were and still are,a well made product.

I don't wish Swift any ill will,and hope that we still see Autocruise motorhomes (still distinctivley 'Autocruise' and not Swift 'Clones' )

for a long time to come. (?)