EarthCruiser Closing Doors

[Don_TLR]

Im sad to hear this since I just flew up to Bend and drove #84 EXP home the first week of April. There are so many nice and knowledgable people there and hope they can continue in some form There were a few builds mid stage going on, maybe they were able to finish those.
I freaking love this vehicle, the last few years after all the price increases I thought I'd never get a newer model but happily was able to jump on this one.

 

[martinf]

Oh so you're the lucky new owner! I called them as soon as I saw the price drop on it but it was already sold.

 

[Victorian]

I wonder if Total Composites, et al., contributed. You can get a 8x14 box from TC and have Bear Adventure Vehicles or someone kit it out to the max (if you can't do it yourself) for a LOT less than $600K, including the chassis. Maybe it wouldn't be quite as good, but it would be close.

Not sure if you are aware: Earthcruisres Core division was working with us serving the DIY market. There was certainly an understanding that both brands would and could benefit from each other. We always had huge admiration and respect for the EC brand, products and staff.

You may be right about the price/affordability comment. We made it easier for people to own an expedition truck. But it you can’t forget that not everyone has the time or skill to build their own camper. For them the Earthcruisers are fantastic offerings to start travelling and enjoying their time.

In any case, instead of pointing fingers or digging into the possible causes, we as the overland community should show our support And see how we can help. After all, some very good people and talented craftsman are now without a job.

 

[AbleGuy]

here’s an article about this from their hometown news:

Bend off-road overland vehicle-maker EarthCruiser shuts down, cites 'changing market dynamics,' economic issues

BEND, Ore. (KTVZ) - EarthCruiser USA, LLC, a leading manufacturer of off-road expedition vehicles, announced Wednesday that it has ceased operations "after 16 years of innovation in the overland travel industry" and said Thursday will be its last day of operations at its facility on American...

ktvz.com

 

[ReluctantTraveler]

here’s an article about this from their hometown news:

Bend off-road overland vehicle-maker EarthCruiser shuts down, cites 'changing market dynamics,' economic issues

BEND, Ore. (KTVZ) - EarthCruiser USA, LLC, a leading manufacturer of off-road expedition vehicles, announced Wednesday that it has ceased operations "after 16 years of innovation in the overland travel industry" and said Thursday will be its last day of operations at its facility on American...

ktvz.com

Oh god I made the mistake of reading the comments!

 

[ben_j_c]

Oh god I made the mistake of reading the comments!

Yeh, wow, what a dumpster fire!

It will be interesting to see if EC can restructure or not.

 

[DirtWhiskey]

Bummer. Lack of cash flow and a tapped customer base. Their pricing (and everybody else's) was simply out of control. Costs are up about 30% across the board in most industries. Not 250%. Interest rates are somewhere near natural for consumers. But absolutely wild for business cash flow. It's not the 7 or 8% you're seeing bandied about. SBA 7a, a government backed program, is humming along at a tidy 12-13%! The 504 program is at 8.5% to 9% with underlying real estate included. Private capital is worse! Sadly we will likely see these problems trickle down to millions of small businesses. If I was one of the people with money down I'd be organizing and getting ready to submit as an unsecured creditor class in BK. Buckle up. It won't be the last.

 

[Don_TLR]

Oh so you're the lucky new owner! I called them as soon as I saw the price drop on it but it was already sold.

I had been working with sales previously so emails were sent out prior to listing it on the website. Its like new and couldn't be happier except for this news but hopefully someone can step in a keep the company producing great vehicles.

 

[montechie]

In any case, instead of pointing fingers or digging into the possible causes, we as the overland community should show our support And see how we can help. After all, some very good people and talented craftsman are now without a job.

Definitely second this, as a small business owner with low overhead (on purpose) I HIGHLY respect anyone who builds a high overhead business like EC (kudos to Total Composites as well). It's tough, you can be super successful for a decade and then some factor changes that forces you to adapt and relearn how to succeed again. There's so many factors to get right in running a business, you don't even have to do a "bad" job to fail.

I'm not an owner, but my wife and I were considering an EC if we hit the road full-time. The sales people at EC were great IMO. I thoroughly hate going through 1-1 sales channels usually, but the EC sales team were knowledgeable and respectful. We could see the EC design and quality, but for us personally couldn't see the 3x value benefit over other options (Rossmonster, Endura, or a built combo Supertramp/OEV/Aterra + truck).

 

[jk6661]

Not sure if you are aware: Earthcruisres Core division was working with us serving the DIY market. There was certainly an understanding that both brands would and could benefit from each other. We always had huge admiration and respect for the EC brand, products and staff.

You may be right about the price/affordability comment. We made it easier for people to own an expedition truck. But it you can’t forget that not everyone has the time or skill to build their own camper. For them the Earthcruisers are fantastic offerings to start travelling and enjoying their time.

In any case, instead of pointing fingers or digging into the possible causes, we as the overland community should show our support And see how we can help. After all, some very good people and talented craftsman are now without a job.

Not pointing fingers, just pointing out competition and market dynamics, which I think are relevant to this discussion. As I said, even if you hire someone else to build out a TC box to a high level, the camper plus whatever truck you put it on won't approach $600K.

 

[Steve_382]

Back in 2018 I was quoted $255k for a base FX without any options. Today 6 years later they start at $595k. So yeah at that price points with the current interest rates and the new competition, although it's one of the best rig on the market (IMO) they are just not approachable.

I think the overall market for these type vehicles may have priced themselves out of business. The early TerraNova was the EXD and was introduced at $100k plus the truck. The latest TerraNova prices were starting at $350k. I was thinking about buying a new StoryTeller Beast mode this week, but by the time I paid 7% sales tax it was over $250,000. Just doesn't feel right paying that much for an Amazon delivery van with fancy lights and tires.

 

[ReluctantTraveler]

Not pointing fingers, just pointing out competition and market dynamics, which I think are relevant to this discussion. As I said, even if you hire someone else to build out a TC box to a high level, the camper plus whatever truck you put it on won't approach $600K.

This! I don't think (most) folks here are blaming anyone. But I also think it's very natural to wonder how such a big name in the space could go under seemingly overnight.

Curiosity, not malice.

 

[ReluctantTraveler]

I think the overall market for these type vehicles may have priced themselves out of business. The early TerraNova was the EXD and was introduced at $100k plus the truck. The latest TerraNova prices were starting at $350k. I was thinking about buying a new StoryTeller Beast mode this week, but by the time I paid 7% sales tax it was over $250,000. Just doesn't feel right paying that much for an Amazon delivery van with fancy lights and tires.

View attachment 831780

This. So much this.

 

[Sixinarow]

I'm guessing their CORE division is affected by this as well? They're not separate entities?

 

[rruff]

Bummer. Lack of cash flow and a tapped customer base. Their pricing (and everybody else's) was simply out of control. Costs are up about 30% across the board in most industries. Not 250%.

The "changing market dynamics" are that we are coming off the best time in history to be a luxury offroad RV builder... so I don't see how this could be because of financial issues. Rather it's a great exit point for taking the $$$ and running.