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Several managers suspended, investigation underway at Cambridge manufacturer
Several managers at Erwin Hymer Group North America (EHG NA) have been suspended, according to a press release issued Monday morning.
The Cambridge-based motorhome manufacturer says an initial investigation has shown irregularities in the company’s reporting and that an audit by an outside firm has been started.
The unnamed managers have been suspended pending the outcome of the investigation, according to the release.
“As an immediate measure Erwin Hymer Group deployed management to support the ongoing operations of EHG NA and the external investigation. EHG NA’s focus on its products, business partners and customers remains unchanged.”
A separate letter, issued to employees Monday, states the company is “fully aware that this news generates unease and raises concerns.” It goes on to say, “We expect to have a full assessment of the situation in the coming weeks.”
Monday’s development comes after several workers told CTV Kitchener that roughly 100 employees were laid off at three locations in Waterloo Region last week.
In another internal memo, the company told employees the layoffs were due to an economic downturn.
Several workers who spoke to CTV Kitchener say they’re worried more layoffs could be coming.
Thor Industries, an American company, announced a plan to buy Erwin Hymer Group for US $2.4 billion last year. Monday’s press release says Thor Industries expects the purchase to be complete by the end of April 2019.
Now, however, Thor Industries and EHG’s selling shareholders are finalizing discussions to exclude EHG's North American operations from the purchase, due to the ongoing investigation.
Erwin Hymer Group owns a number of motorhome and caravan brands including Kitchener-based Roadtrek.