American Champion Rumors

[speedbirdcfi]

I'm hoping that this isn't going to happen but is there any truth to the rumors that American Champion may be filing for bankruptcy in the next few months? Heard this from a friend who knows one of the dealers (can't remember which one) who says they may not be doing so well? Jerry any light on this?

 

[robins]

Can we please be careful with this kind of speculation.

1: Most small manufacturers of discretionary big-ticket items requring financing are on life support. Others has failed outright. To not have a standby re-org plan in the closet would be irresponsible. While I certainly do not not know of any such planning at ACA, I hope they have at least studied the topic.

2: In ACA's type of business, with two-step distribution, one of the first things to be cut or eliminated ( after payroll is trimemd ot the bone) typically are holdbacks, or what amonts to special factory backed commision-like payments to dealers. Again, I don't know that ACA has done this, but I'd be shocked if they haven't, and that could account for rumor mongering among disgruntled dealers.

3: As to No. 1, I personally hope that ACA has given at least some thought to a re-org, in case things get any worse. A carefully crafted, structured re-org usually results in a stronger, nimbler, albeit smaller, entity.

I love my plane. I like the people at ACA. This is a tough time for any manufacturer, especially any manufacturer of a discretionary item like a plane, boat, RV, snowmobile, etc. Let's not make their plight tougher with unsubstantiated posts that, in the end, create nothing but anxiety in the supplier and customer base.

Respectfully,
Jim Robins
N87VF

 

[jerrymjr]

Does this mean I can go home now?

Meh, times are tough, but we press on. Its just a lean ship for a while. We do things like work 4 days a week except for reception, engineering, and parts; who do all 5. We took on a pair of rebuild projects too. Lots of options to keep the ball moving.

I made the joke yesteday "American Champion is hiring!!" as I need a good technical writer. Likely I will look to the nearby universities for an intern (read: cheap), but if anyone out there has a lead that is competitive; I might be interested. Need to redo most of our legacy style manuals up to modern FAA standards.

 

[mrich]

Maybe one should look at this situation in another light. There are so many pilots passionate about flying. A great number do not have a need or utilize the capabilities of a very sophisticated cross-country travelling plane. These planes are very expensive to own/maintain. I might argue that for most typical fun flying missions that there may be no better choice than an American Champion product. An excellant balance between cost/fun/utility and a good pilot choice in a tough economy.

 

[djpacro]

Just got back from the Avalon Airshow - many manufacturers are in the same or worse predicament. Hope that things start looking up soon.
Aussie dollar is so bad that importing aeroplanes has become ridiculously expensive compared to a year ago. On the plus side, a lot cheaper for US companies to get engineering work done in Australia.