What happens to warranties and recalls when a company goes bankrupt?

Transport Canada issued a recall on several Erwin Hymer North America motor homes in November 2018.

The recalls were put into effect just months before the RV manufacturer went into insolvency, laying off hundreds of employees at local Roadtrek plants.

Now, buyers and dealers are left with the cost of the fix.

Several motorhomes were recalled due to problems that could possibly damage the electrical system, leading to overcharging batteries and spillage of battery acid. The motorhomes with this problem were last year’s models.

Another model could have damage to rear brake lines due to bolts that secure the sofa. That could cause a brake fluid leak and ultimately reduce the brakes’ effectiveness.

Something like that can be inspected by dealers and brake lines or bolts could be replaced.

“We could certainly address the issue and see if it’s something we can, in turn, resolve for the consumer, or whether it would have to be forwarded to the garage,” explains Margaret Dahmer, owner of Campers World.

She says that her business is trying to honour warranties on Erwin Hymer vehicles.