Mohawks failed attempt at a "Green" carpet tile backing has now cost the company in excess of 10 million dollars. The problems associated with Mohawks new Encycle Tile have continued to plague the company's Commercial products division. Stability issues with the backing did not become evident until the product was installed.
The problem reached a boiling point last week when Bill Little, the Director of Production in charge of Mohawk's Greensboro Tile plant, was terminated.
Estimates for initial losses due to this failed backing exceed 100 million US$ and do not include future lost sales due to the failure.
Product lines affected by this manufacturing disaster include Mohawk Commercial, Bigelow and Lees carpet tile, along with Lees broadloom, which attempted to use a rolled version of the same product.
Mohawk plans to return to its' PVC backing format once current Encycle stocks are sold.
Scroll back and read your post Tuan. You said:
Isn't this going to be very expensive to change everything back to the old way of making tile?
Changing back didn't cost squat. They never quit the former backing.
You are right on costs to the company in claims, which is what I SAID all along. And noone can tell you how many sales will be lost.
Check the Rep's commission checks. That will tell you.
When I read your post, I thought the same thing the other guy did. You were referencing change over costs ONLY.
And I bet claims top 200 million. EASILY. I've seen 2 million plus myself. And I'm nobody. They are pulling in claims help from all over Mohawk to quell the tide.
It looks like you were right. Big Al K-Bust has taken it in the wallet long enough. All the claims finally slapped him awake.
I wonder if "IShawMyFoot in my mouth" will be man enough to admit he was wrong......
I work for Mohawk in the Claims & Technical Service Dept -- I have no idea where you even think about getting your information. We do not have any claim figures that even remotely are as high as what you have been advising nor have we even been advised of numberous calls regarding issues with installation issues on the Encycle products to our Technical Service number. Before you post you need to get your facts!!!!
Just a few years ago a bunch of Mohawk & Lee's people were cutting on the Beaulieu Commercial carpet tile at Neocon. These bullies were trying to cast doubt on the product (Beaulieu seems to be their favorite target) . I just hate negative sellers so it's rather ironic the ones throwing rocks are experiencing bolders falling from the sky on their heads.
Beaulieu's problems seem to be behind them and Lee's seem to be up to their eyeballs. How deserving of those who go negative. Similar to a few years ago when, before Lee's was acquired and MHK had no PVC they mailed Blue Vinyl Videos to a lot of design firms....a year later....selling PVC tile.
I am sure they will fix these problems but they are taking some major hits on the bow of the ship.....be interesting to see who has to walk the plank. Credibility is tough to build and very easy to lose.
Here's what is really odd. It also borders on fraud.
The quarterly report that just came out MADE NO MENTION OF THIS!! You are the 3rd or 4th poster that has knowledge of this issue, and it was PURPOSELY HIDDEN from the investor's in the last report.
The strange reversal in the Put/Call ratio for May may yet have an explanation.....
You're not going to sell anything running your mouth on the internet at 9:40 a.m.!! LMAO Too funny.
All that from a guy that was fired selling Hummers and is now throwing stones from the Daewoo dealership.