Global Caravan Technologies Inc. (GCT) has learned that a lawsuit was recently filed in Marion County (Indiana) court by Charles Hoefer,a founder of the company and its former CEO, against several individuals and entities connected to the company. Although GCT was not named in the lawsuit, many of the allegations challenge legitimate corporate actions. Specifically, in late April 2014, the GCT board addressed numerous self-serving demands of Hoefer that threatened the viability of the company. To protect the shareholders who invested millions of dollars in GCT, the board made the difficult decision to remove Hoefer as an officer and director and to terminate his employment. This decision was necessary and in the very best interests of the company and its shareholders.
The lawsuit will not affect the operations of the business. GCT is moving forward with plans for commercializing its valuable technology under the leadership of its board and an executive team led by Harrison Ding, chairman and president, and C.H. Douglas, interim CEO.
Hoefer’s lawsuit does not properly challenge the board’s actions and is subject to dismissal. Hoefer is using the court system to disparage the leadership of GCT and to undermine GCT’s opportunity for success. Hoefer’s claims that he is the rightful majority owner of GCT and that the company’s assets are being stolen from him are patently false. Hoefer never made any cash investment in the company. While Hoefer remains a minority shareholder, his attempts to claim GCT as his own at the expense of other shareholders is just wrong. In fact, his lawsuit, which reads as sensationalistic, defamatory, and error-ridden, demonstrates the same emotional, irrational and dangerous behavior that led to his necessary separation from the company.
The company would have preferred to address Hoefer’s concerns privately, but now will be compelled to address the lawsuit. The company stands by the actions of the Board of Directors and will vigorously fight to protect the shareholders’ assets from Hoefer’s spurious claims of ownership and control.
Ding, Douglas and other representatives of GCT will have no further comment at this time concerning Mr. Hoefer’s claims or the litigation.
Speedway, Ind.-based Global Caravan Technologies Inc. (GCT), a luxury RV and specialty vehicle innovator, has released the first interior photos of its new CR-1 Carbon travel trailer.
According to a news release, the CR-1 Carbon interior features a custom leather wrapped ceiling, with private jet-type leather soft-touch walls and residential furnishings that are at the “top end of luxury” in the RV industry. “We sought the most stringent requirements for designs and materials to compliment the incredible carbon fiber structure,” said CEO and Chief Product Architect Charles Hoefer.
Designed with a range of uses in mind, GCT’s first floorplan can comfortably seat eight in the rear entertainment lounge. Modular solid surface tables with mobile marine pedestals allow for multiple dining, entertainment, and workstation configurations, or outdoor entertaining. GCT’s custom leather 88-inch sofa and 82-inch-by-59-inch L-shape create a relaxing atmosphere with a beautiful end table and styled overhead cabinets. The CR-1 Carbon’s custom lounges transforms the rear into a theater for tailgating or entertaining.
The CR-1 Carbon’s interiors walls are made of carbon fiber, and certain carbon fiber design elements are exposed throughout the unit. In the kitchen, the split configuration allows for expansive countertop space and an optional wine rack. Designer Kohler sinks and faucets are used throughout, as are premium tile selections. All cabinetry in the CR-1 Carbon utilizes premium residential hardware with soft-closing doors and drawers.
“In the bath suite, we wanted to take designs even further, and GCT’s CR-1 Carbon feels more like a luxury New York apartment than an RV,” remarked Hoefer. A full walk-through master bath suite divides the kitchen from the master bedroom. A private latrine is enclosed by a residential door features a porcelain stool and large linen cabinet. The 36-inch custom shower beautifully blends solid surface, designer tile, and carbon fiber. A stackable washer and dryer are also available, or can be substituted for added closet and storage space.
The double-slide 35-foot, 3-inch floorplan, which is SUV-towable, integrates smart technology via a “device neutral” power management system. Hoefer explains, “With phone or laptop and any operating system, you can access and control nearly every feature on the CR-1 Carbon.”
A master bedroom suite includes two dressers and three wardrobes, along with optional glass ceiling. The bedroom is appointed with designer residential carpeting and is surrounded by handcrafted leather upholstering, with multiple reading lights and a carbon fiber bed frame.
GCT’s partners include Dallara, the world’s largest race car builder, and GCT has recruited a veteran team of IndyCar and aerospace technicians to build its state-of-the-art products.
The CR-1 Carbon was first revealed on March 6 during a private gala at the Dallara IndyCar Factory in Speedway next to GCT’s R&D headquarters.
“GCT brings transformation to an industry we Hoosiers are already proud of,” Indiana Lt. Gov. Sue Ellspermann said during the preview gala. “We’re very pleased to support this innovative company as it continues to grow.”
GCT plans to market its products globally, making them available to markets in North America, Europe, Australia, and China. The CR-1 is GCT’s first towable model, which is targeted for availability in multiple trim levels and luxury price points. The CR-1 Carbon is one of the more premium editions planned for the GCT lineup. Company plans include a range of travel trailers and fifth-wheels, including custom models, and ultimately a range of revolutionary motorhomes.
For the latest information, visit www.gctrv.com.
Global Caravan Technologies Inc. (GCT), Speedway, Ind., announced today (Dec. 11) the release of artist’s concepts for the CR-Series and upcoming launch of the CR-1 Carbon. According to a press release, the CR-1 Carbon RV is the world’s first RV to feature extensive carbon-fiber-reinforced polymer (CFRP) technology , and is designed with global collaborations.
The artist’s renderings paved the framework for CR-Series design and engineering programs in the early summer of 2013. GCT’s technology partnerships have allowed much of the design to remain intact, including the concept for a “flush and integrated body.”
GCT’s CEO and Chief Product Architect Charles Hoefer said that the CR-Series intentionally features “a tall and slippery exterior design,” adding, “We approached the development of the CR-Series with an absolute premium on interior space. We have really pushed the envelope in taking a new design to market, which features a modern exterior, yet brilliantly spacious interior.”
The CR-Series achieves excellent aerodynamics through new technologies that reduce drag, lower exterior height, and lower center of gravity. Fuel economy is further aided by reductions in weight through GCT’s Rapid Composites Manufacturing (RCM) technology, giving the CR-Series a construction blueprint more akin to aircraft or supercars than conventional RVs.
GCT’s first product launch, the CR-1 Carbon travel trailer, features an industry-first floorplan with tall ceilings and loads of new technology for luxury RVers, at an overall length of 35 feet, 3 inches.
Harrison Ding, chairman and president for GCT, noted that the CR-1 Carbon’s design has been a truly global undertaking. “We are proud to say that we engaged designers from Asia to the heart of the US auto industry in Detroit,” he said. “In the mix were luxury RV enthusiasts, who helped point us in the right direction regarding new features and content.”
Important technology revisions have caused GCT to move the CR-1 Carbon unveiling to the first quarter of 2014. GCT plans to release further product details leading up to the launch. For the latest information, visit www.gctrv.com/unveil.
Editor’s Note: The following piece published by theIndianapolis Business Journal offers a followup to Charles Hoefer’s announcement of a new manufacturing company that will build high luxury, high-tech RVs. RVBusiness obtained permission from the publication to reprint the article.
A member of one of the recreational vehicle industry’s elite families hopes to get a fresh start in Indianapolis by launching a manufacturer of super-high-end RVs.
Charles Hoefer had to close the last RV company he led earlier this year, in Marion, Ind., leaving a trail of unpaid bills and angry city officials.
“What we’re doing here doesn’t even share a footprint with what we were doing in Marion,” said Hoefer, 28. “What I will say, what took place in Marion did give me the advantage to see where all the challenges were with trying to move forward.”
Hoefer, son of Elkhart-area RV icon David Hoefer Sr., and business partner Harrison Ding plan to begin production at Global Caravan Technologies Inc. by mid-2014 in Speedway.
The company has about 15 contract engineers and production workers designing an RV that the owners believe will redefine a rattled industry. The company expects to grow to 300 people over five years.
First, Hoefer and Ding need investors to back their product.
They describe their concept as a “futuristic green super-luxury RV” that will target corporate executives, celebrities and others who have a whole lot of money to enjoy lavishness—and camping. The price tags will run from $160,000 to $500,000.
Hoefer and Ding, who left a job overseeing global supply chains for IBM, devised an assembly process that “will not look like any process that’s ever been done before.”
Hoefer would not share the specifics of the process nor how much the company plans to invest. He said those are part of the trade secrets that will make Global Caravan succeed where his Marion company, which focused on traditional RV business models, failed.
Hoefer’s last job was CEO of Earthbound RV in Marion. His father moved the company there in 2010 after starting it a year earlier near Elkhart. The city backed a $2 million bank loan to lure the business.
But the company failed and officially shut down in January. The city had to pay off almost all the debt.
“We were working with them up until the last days,” said Marion Mayor Wayne Seybold. “Now they’re in Indianapolis starting new, and they’ve left a trail behind in Marion.”
Ding, in a phone interview from an RV fair in China, compared Global Caravan to electric car maker Tesla Motors and how it shrugged off old-school manufacturing practices and used a technology-industry approach to its business model.
“If Tesla was started by somebody within the automotive industry, probably, there would be no Tesla today,” Ding said. Silicon Valley billionaire Elon Musk founded Tesla.
Global Caravan, which operates on Main Street in Speedway, has hired IndyCar maker Dallara as an engineering consultant.
Based on details Global Caravan has released, the RVs would incorporate structural designs akin to supercars, or high-priced sports cars such as Lamborghinis or Porsches. The debut product, dubbed the CR-1, would also be the first to use carbon fiber rather than something more common such as aluminum. A lighter weight is supposed to cut fuel consumption in half.
Among other luxuries: master bathrooms with oversized showers, full-height closets, and washers and dryers. Hoefer compared the interiors to the inside of a luxury yacht.
Global Caravan hopes half its business will be standard stock models, with the other half being more lucrative custom jobs—for instance, an RV converted into a mobile office companies use when they send staff on road trips.
Hoefer describes himself as a lifelong member of the RV industry.
“Frankly, from early grade school, I was working in sales and developing products and you name it, ever since before I had a driver’s license,” he said.
His father, David Hoefer Sr., helped launch major RV brands such as Dutchmen and Four Winds. He was running Pilgrim International in Middlebury, near the RV hotbed of Elkhart, when the slumping economy forced the company to close its doors in 2008.
The elder Hoefer turned around and, with his wife, Mary, began Earthbound RV the next year. He opened a 92,000-square-foot Marion factory in February 2010 with $900,000 in performance-based tax credits from the Indiana Economic Development Corp. and a $2 million bank loan backed by the city of Marion.
Charles Hoefer had just earned a master’s degree at Babson College, an exclusive private school near Boston that specializes in entrepreneurship, when his father offered him a job as Earthbound’s CEO.
What he found, he says, was a company with a good idea but costs far ahead of sales. Vehicles sold for $50,000 each when they should have been $100,000, he said.
He shut down operations in 2011 and shifted the strategy from selling basic, fuel-efficient models to “boutique” style RVs that cost about $85,000.
That didn’t work, either. The production process was too geared toward making midpriced RVs at large volumes to profitably shift to the low-volume, high-profit model for luxury RVs.
“The challenges were so great that, frankly, I didn’t know what could be done,” he said. “But I was able to keep it running for two years.”
When Earthbound defaulted on its bank loan, the city of Marion was responsible for the $2 million.
The company never filed for bankruptcy, but the city of Marion, in attempt to recollect on the debt, in January seized the factory and several of David Hoefer’s assets, including two houses, said Don Gallaway, an attorney for the city.
Charles Hoefer said he is the only member of his family associated with the new business.
Not the same
Hoefer is adamant that the Indianapolis business will not repeat the mistakes from Marion.
Ding, 43, has had a large role in setting up the secret system that he and Hoefer believe will make Global Caravan a success.
He has more than a decade of experience managing supply chains and global operations for tech giants IBM and Cisco Systems Inc. His education includes a degree in energy and thermophysics engineering from Zheijang University in China, an MBA from the University of Wisconsin, and a certificate in integrated supply chain management from the Massachusetts Institute of Technology.
A lot of the global strategy that Ding will oversee hinges on Global Caravan’s ability to tap markets that don’t exist today.
China will be key because of its aging population and growing wealth, Ding said.
The Chinese “have plenty of money in their hands at their disposal,” he said. “But they also have plenty of time. The lifestyle in China is rapidly changing.”
The company hired Robert Wiegand, a longtime RV sales consultant, to steer business development and sales.
Wiegand has been collecting feedback from dealers to target new demographics—mainly, people with enough money to afford a six-figure luxury camper who did not find previous offerings nice enough.
Global Caravan might have to work hard to win over some U.S. dealers.
“I would never do business with them again,” said Bill Mirrielees, general manager of Howard RV Center in Wilmington, N.C.
The dealership was an Earthbound customer. Earthbound owes Howard RV $25,000 in warranty claims.
“It’s really a sad thing that the company failed and they didn’t live up to what the agreement was,” Mirrielees said, adding he “felt bad about it,” especially because he knew David Hoefer for several years.
Al Paschen, president of Camp Land RV in Burns Harbor, is more optimistic about Global Caravan.
“They tried their best to take care of everything,” Paschen said about Earthbound. “They tried their best to treat their dealers right.”
When Earthbound turned to high-end RVs, they sold “quite well,” he said.
“They were eye-catching. They just had the feel of a luxury [model] inside. People liked it. We liked it.”