Van's Aircraft - internal business issues - Chapter 11

[A2022]

message from Dick Vangrunsven

https://www.vansaircraft.com/2023/10/bu ... ngrunsven/

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Seems to be typical trouble from a growing company. New product development, current production quality issues, increased staff, raised supply chain costs. I see a significant price increase on the horizon. I think the market can bear a modest cost increase. Nice to hear he is bringing in some advisors to assess the overall situation. I think it is needed. Especially, how the LCP issue was handled.

The question is: is my RV-9A now worth twice as much as it was last week or half as much?

[rockwoodrv9a]

This is going to be hard for a lot of people. Those with deposits for propellers, engines, and the kits are not in a good position. Small businesses cant take the quickbuild primer corrosion problem and the laser cut problem and survive in tact.

I believe the kits will be purchased by someone and still be produced. They are too good of a design to just fade away. The deposits or missing part - good luck to all involved. And to the Vans employees - sorry for the hard times.

[A2022]

yep, folks may lose a deposit, but it shouldn't be that way. the deposit money should not have been touched to fund the business. the trouble is, if the money is not there anymore, how to get it back?

I am rooting for Van's, and I think I will order some spare parts that I don't currently need in order to give them a small amount.

Van maybe thinking, I am too old for this stuff. just sell the company to the highest bidder and get out. I believe his mistake was the people he believed could manage the business, could not.

[rockwoodrv9a]

Good idea on ordering a few things that Im sure I will need in the future. Im willing to take a risk to help out.

[A2022]

hey, my order shipped within a couple days. even a part that was listed as backordered shipped. wow! perhaps they like the folks at RivetBangers?

[A2022]

I saw a YouTube video last night about Van's Aircraft declaring Chapter 11 bankruptcy.

https://youtu.be/D4rWWokdchQ?si=VcQH-SmzKHYmE7zh

It's a heck of a way to spend your retirement years but at heart I think Van is a businessman and can deal with it. I believe Van's ultimate mistake was believing the people he put in charge could actually manage the business. He was proved wrong. I believe their poor decision-making stems from not really understanding aircraft and what it takes to build a reliable product. The rubber flapper carb heat hinge is poor design and was a clue they were going off track, glue to RV10 hor stab corners, continuing with the laser cut parts issue and there are probably more that I am unaware of. When you combine poor engineering understanding with poor decision making it will unwind quickly. When Van's new pricing structure comes out, it may get ugly with people that have made deposits. What to do, move on and cut your losses, or invest more to receive the product?

[Jask]

I already got my engine but if I was involved with this mess, I would not be happy at all. From past posts by vans, the engine prices were dictated by lycoming. You gave Vans a deposit to get in line. When your engine was ready to ship from Lycoming, you paid the remainder to vans and Lycoming shipped it. If you didn't pay for it, Lycoming would not ship it. Who has the liability for price? It's not vans.

In one case, a poster on vans air foroce posted that vans wanted another $13K to ship and converted his order to an M1B. That is absurd. It would be cheaper to just forget the deposit and order a Superior from Spruce.

[A2022]

what's amazing is how quickly the company became unwound after these changes....

MANAGEMENT CHANGES
AURORA, OREGON – June 18, 2021 – Van’s Aircraft today announced changes to its management and organizational structure designed to enable the company and its employees to advance and meet opportunities created by significant growth in customer demand.

Over the past 24 months, orders for Van’s RV aircraft kits have increased nearly 250% as new builders take advantage of the latest technology and designs. To fulfill this substantial, ongoing growth in orders – while simultaneously designing the next model RV aircraft – company leadership determined it was the right time to adjust the focus and priorities of the management team.

Rian Johnson has assumed the role of President and Chief Technology Officer. Rian has worked at Van’s Aircraft for more than 20 years, most recently in his previous role of Vice President and Chief Engineer. He will lead the company as a whole from the engineering and design perspective that has made Van’s a successful company for nearly 50 years.

Greg Hughes has assumed the role of Vice President and Chief Operations Officer. He maintains responsibility for marketing and community relations while his role expands to a broader operational focus. Greg joined Van’s Aircraft in 2018.

Mitch Lock has shifted from his prior role as president of the company to the newly-created role of Chief Financial Officer, bringing greater focus to the critical work of managing the company’s financial operations and investments into the future.

[A2022]

I already got my engine but if I was involved with this mess, I would not be happy at all. From past posts by vans, the engine prices were dictated by lycoming. You gave Vans a deposit to get in line. When your engine was ready to ship from Lycoming, you paid the remainder to vans and Lycoming shipped it. If you didn't pay for it, Lycoming would not ship it. Who has the liability for price? It's not vans.

In one case, a poster on vans air foroce posted that vans wanted another $13K to ship and converted his order to an M1B. That is absurd. It would be cheaper to just forget the deposit and order a Superior from Spruce.

yeah.... it may get ugly after Van's communicates the price increases. I think a lot of people budgeted their money to be able to afford a kit and an engine. this could raise the stress level in some households. the question is, do you cut your losses and move on, or swallow the price increase?

Van’s Customers Must Accept Higher Prices Or Risk Losing Deposits
https://www.avweb.com/aviation-news/van ... 3773501H4Y

[A2022]

I really feel for the guy with a family that has budgeted, made a deposit, and worked to build an RV. I don't believe it was reasonable for a business to continue to accept deposits up to the point of filing for Chapter 11. I am hoping new management will be able to correct the situation, but I believe it will take a long time to work thru the LCP issue and that will be costly.

Their previous management was a SHIT SHOW.

[A2022]

received a claim letter. I don't have any claims. my aircraft has been great. with all the claim options listed it makes me think that Van is going to sell the business in a free and clear claim free condition. hey, 50 years was a good run. he may also ask for the company name to be changed to completely disassociate.





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I am monitoring my only aircraft crack. it hasn't moved in the last 800 hours.