RV News On Line

INDUSTRY NEWS
April 2000

                                                                       

Coast Names Executive VP of Strategic Planning

The Coast Distribution System, Inc. has named Stephen Bartolotta to the post of executive vice president of strategic planning, according to Tim McGuire, chairman and CEO of Coast. Bartolotta was previously a senior manager with Andersen Consulting's Strategic Services Division specializing in supply chain management.

McGuire said, "Our business has changed significantly in recent years requiring us to pursue new approaches for servicing our customer base and managing our costs. We were looking for someone with a perspective of 'best-in-class' operations, deep logistic skills, customer service expertise and an infusion of new ideas for evaluating our overall business model. I am confident in Steve's ability to create value for our shareholders."

RVIA's Board Actions at March Meeting

The RVIA board resolved that in order to increase the allowable motorhome length in California from 40 feet to 45 feet, RVIA agrees to support a bill in California that requires an endorsement to the class C operator's license (a car license) to operate motorhomes over 40 feet in length and that also limits such vehicles to the national network of highways. The driver's license endorsement would require the operator to pass a written test and a skills test, as well as fill out a self-certified, medical questionnaire.

The board also approved revisions to the RVIA trailer weight label program
requirements and declared the new weight label is available for use immediately with a mandatory compliance date of September 1, 2000. The Standards Steering Committee was instructed to investigate the feasibility of membership weight label program for truck campers.

In addition the board moved that exhibit space for RV chassis suppliers at the National RV Trade Show be assigned in the same manner as space for RV manufacturers so that chassis exhibits are distributed throughout the exhibit hall and not confined to one specific area. Also, the RVIA member chassis exhibit space rate will match the non-discount exhibit space rate charged to member RV manufacturers.

And finally, the board approved the projected budgets for the National RV Trade Show and California RV Show with a three percent increase in the exhibit space rates at the California RV Show.

Holiday RV Superstores Continues Acquisition Strategy

Holiday RV Superstores, Inc., operating under the trade name Recreation USA (NASDAQ: RVEE), announced last month that it has acquired Little Valley Auto & RV Sales, Inc., a $13 million dealership located in Prosperity, WV. Terms of the transaction were $3.4 million in a combination of common stock and cash.

In addition to selling RVs, Little Valley Auto & RV also sells boats, motorcycles and all-terrain vehicles. Ernie and Lori Davis, who have been involved in the business since its inception in 1984, sold 100% of the company's shares to Recreation USA.

Marketing Study Released On New England RV Shows

Contributing editor Bob Zagami has released the first independent market research study sponsored by his IMAGAZ by ZAGAMI business services and consulting company. Zagami has surveyed the five largest RV shows held in New England during the early months of 2000. The studies catalog every towable and motorized unit on display, by manufacturer and model. The reports also include list pricing and show pricing when displayed by the dealer.
The study compares gas vs. diesel motorized units and slideout vs. non-slideout towables and motorized units. Studies were conducted at the Boston and Springfield, MA shows; Hartford, CT; Providence, RI and Concord, NH.
Each show is priced separately (Boston, Springfield and Hartford at $50 each and Providence and Concord at $25 each) or can be purchased as a complete set for only $100. This special complete set pricing (50% off) is valid through June 30, 2000 and is offered as a first year promotion to showcase the landmark studies.
Manufacturers will be able to compare dealer activity and pricing on various models displayed to the public. Dealers will be able to compare their units and pricing with competitors showing the same or comparable product lines. At this time, a decision has not been made on whether the study will be made available to the consumer.
For additional information and brochure contact Bob Zagami at 978-461-2143 or via e-mail at zagami@tiac.net.

RV Dealers Convention/Expo to Feature Disney-style Customer Service Workshop

RV dealers at this year's RVDA Convention/Expo will have the opportunity to learn the strategies behind "Customer Service -- Disney Style" by attending a special workshop during the 2000 RV Dealers International Convention/Expo in Orlando, FL, September 25-28, 2000.

RVDA Convention/Expo committee chairman Jeff Pastore of Hartville RV Center in Hartville, OH, said, '"Customer Service -- Disney Style"' will give attendeesinformation they can use to develop a consistent, measurable service program that exceeds their customers' expectations. Areas that will be covered in the workshop include: establishing goals and objectives of a customer-focused service approach; promoting accountability among employees for good customer service; and integrating service systems that ensure a seamless customer experience." The workshop will be conducted by the Disney Institute and is sponsored by Fleetwood RV.
"This workshop is ideal for dealers and managers who want to learn proven methods for providing world-class customer care. The Disney Institute is a recognized leader in providing service that keeps guests coming back. Many of the strategies Disney uses have useful applications in the RV business."
The workshop is only one of more than 65 workshops scheduled for the 2000 RVDA convention.

Recreation USA Acquires Assets of Luke Potter Winnebago

Holiday RV Superstores, Inc. operating under the trade name Recreation USA (NASDAQ: RVEE), announced in March that the company acquired the inventory and operating assets and facility lease of Luke Potter Winnebago in Winter Garden, FL.

Luke Potter Winnebago is a full-line Winnebago dealership with revenues of approximately $9 million in 1999. The 16,500-square-foot Winter Garden dealership is on five-plus acres of land. The service area of over 12,000 square feet can hold up to 15 units and includes an EPA approved paint area.

Keystone Rolls Out Of 3,000th Montana Fifth-Wheel

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The Montana fifth-wheel management team at Keystone RV Co., Goshen, IN, paused for a moment of pride in March for the roll-out of the 3000th Montana unit in less than two years. (l-r) Doug Rheinheimer, assistant vice-president, manufacturing; Neal Stafford, Montana plant manager; Ron Fenech, Keystone Indiana general manager; and Barney Hostetler, Montana purchasing manager.

Keystone RV Company's Montana fifth-wheel line was first created in late summer of 1998, and in March the company rolled unit number 3,000 off the line.

According to Ron Fenech, Keystone's general manager, the RV industry's December 1999 statistical survey shows that the Montana is among the top ten best-selling fifth wheel units, (of any price category) in the nation . It is also the Number One best-selling all-aluminum fifth wheel in the nation, according to the same survey.

Fenech said, "Ever since Montana was born, there has been a special atmosphere of quality and beauty about it - - among those who created it, those who build and market it, and most of all, among the hundreds of happy campers across America and in Canada who own a Montana."

Automatic Equipment Initiates Voluntary Recall

Automatic Equipment Manufacturing Co. is voluntarily recalling its Blue Ox RangeFinder III tow bar, model BX4335.

The company has determined the product may develop cracks in the mounting brackets and, after time, the failure of these brackets could cause separation of the towed vehicle and the towing vehicle. The units involved in this recall were produced between June 1997 and October 1999.

Automatic Equipment will replace the BX4335 tow bar with its Acclaim tow bar, model BX4330, at no charge to the customer. All tow bars must be returned to Automatic Equipment Manufacturing Co. for evaluation and disposal.

Customers should contact the Automatic Equipment Manufacturing Co. sales and service department toll-free at 1-800-336-4336 for a Return Product Authorization number and further information.

The National Highway Traffic Safety Administration recall number is OOE-001; the Automatic Equipment Manufacturing Co. recall number is AE00-01.

National RV Announces Winners in First NRV Lottery

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National RV regional sales manager Rich Fisher (right) awards
First Place Winner Paul Rosener with a 2000 VW New Beetle.

In February National RV announced the winners in the first NRV Lottery. Paul Roesener, a sales associate at Indian Valley Camping Center in Souderton, PA, won a new 2000 Volkswagen New Beetle.

During the fourth quarter of 1999, National RV held the "NRV Lotto," an incentive program for salespeople who sold National RV gasoline-powered products during the program's period. Any salesperson who sold a National RV gas product earned a chance to win one of many great prizes courtesy of National RV.

Other winners: Second Prize, a 60" Mitsubishi TV, was awarded to Steve Luce from Recreation World in Annapolis, MD. Third Prize, a Mitsubishi Home Theater Receiver and Six Speaker System, was awarded to Joe Richer from Executive Travelers in Wauseon, OH. Ken Oskey from RV's of Merritt in Cathedral City, CA won the Panasonic Digital Camcorder and Meredith Staton from Edinburgh RV Sales in Edinburgh, IN won the Panasonic Digital Camera.

Five Industry Leaders to Join
RVDA Education Foundation Boar

Five well-known RV industry leaders have agreed to serve on the RVDA Education Foundation Board of Directors.

The new Foundation board members are (in alphabetical order): John Delaney, vice chairman, The Dometic Corporation, Elkhart, IN; Tom Faludy, president, Carefree of Colorado, Broomfield, CO; Tom Hallman, president & CEO, The CIT Group Consumer Finance Division, Livingston, NJ; Bruce Hertzke, president & CEO, Winnebago Industries, Forest City, IA; and Newt Kindlund, founder of Holiday RV Superstores, Winter Park, FL. Lee FitzGerald, a former owner of Venture Out, Palo Alto, CA, was reappointed to another term on the Foundation board.

RVDA Education Foundation chairman Rick Horsey, Parkview RV Center in Smyrna, DE, said, "The Foundation board is fortunate to have these industry visionaries join the board as we strive to increase educational opportunities for RV dealers and their employees. Their expertise and experience will be a valuable resource for the Foundation as it moves forward with new educational programs that help dealers serve customers better. We plan to invite other industry leaders to participate in our educational efforts in the future."

Retiring from the board after serving since the Foundation was formed in 1991 are Bill Thomas, Bill Thomas Camper Sales, Bridgeton, MO, and Randy Thompson, Crystal Valley RV, Crystal Lake, IL. In addition to chairman Rick Horsey, continuing on the Foundation Board are: Randy Biles, Pikes Peak Traveland, Colorado Springs, CO; Lee FitzGerald, Venture Out, Palo Alto, CA; Jim Fogdall, Ace Fogdall, Inc., Cedar Falls, IA; Ernie Friesen, All Seasons RV, Yuba City, CA; Cammy Pierson, Curtis Trailers, Inc., Portland, OR; Jerry Greer, Jerry Greer RV, Columbus, OH; Craig Jensen, Blaine Jensen RV Center, Kaysville, UT, Lou Luttrell, Avalon RV - Marine, Medina, OH; Loma Milligan, Paul Everts RV Country, Inc., Fresno, CA; Dan Pearson, PleasureLand RV Center, Inc., St. Cloud, MN; Joe Range, Range Vehicle Center, Inc., Hesperia, CA; and Tom Stinnett, Tom Stinnett RV Center, Louisville, KY.

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Model Maker Unveils Scale Model of Shasta's 1958 Shasta Airflyte 

The small "building on wheels" that stole Americans' hearts in the 1940s is on a pace for a repeat performance in the new millennium. This time, however, the RV's availability will be on a much smaller scale - 1/43 scale to be precise.

Brooklin Models, producer of hand-built model vehicles, recently announced the release of its latest addition, the 1958 Shasta Airflyte. The Airflyte joins the elite ranks of only three other travel trailers produced by the company based in Bath, England.

Like other Brooklin models, the Shasta Airflyte will be available in limited quantities.

Shasta Industries, founded in 1941, is America's oldest continuous manufacturer of recreational vehicles. For more information about the Shasta Airflyte model, contact Paul Bender at Brasilia Press at (219) 262-9700.

RVDA Education Foundation Launches College Scholarship
Funded by the Kindlund Family

The RVDA Education Foundation has announced the launch of the Kindlund Family Scholarship Program that will award $2,500 scholarships to deserving college-bound high school seniors or college undergraduate students interested in majoring in business, finance, economics, or accounting.

RVDA Education Foundation chairman Rick Horsey, Parkview RV Center in Smyrna, DE, said, "The scholarship program is made possible through the generosity of the Newt and Joanne Kindlund Family."

The Kindlunds are the founders of Holiday RV Superstores -- now Holiday RV Superstores/Recreation USA. The Kindlunds, who sold the company to Atlas Holdings Recreational Holdings, Inc. in 1999, remain active in the business as consultants. The Kindlund Family, to date, has contributed $100,000 and pledged an additional $170,000 to the Foundation's scholarship endowment.

Newt Kindlund said, "We are very pleased to be able to give something back to a business that has been very good to us. This scholarship will help young people who demonstrate outstanding initiative, but need some financial assistance to reach their educational goals."

The Kindlund Family Scholarship will be awarded to RV-related company employees or their dependents based on financial need. Dealer principals and their dependents are not eligible. Students must have a 2.8 or better grade point average and a 1050 minimum SAT score.

Annual Hitch-Pro Meeting Held

Draw-Tite hosted its annual Hitch-Pro meeting in Detroit, MI, for Draw-Tite dealers from all over the country. They met for two days of plant tours and seminars covering new products and programs, to increase profits and productivity.

Tom Benson, president of Draw-Tite, welcomed the dealers or "Hitch-Pros" to the meeting. He focused on having a vision, widening the value gap and increasing profits. With an outline of goals and ways to achieve them, Benson assured the dealers that Draw-Tite expected to have the right products at the right place and at the right time.

Two seminars were held throughout the day covering new product reviews and virtual showroom designs. The new 2000 version of the electronic catalog and dealer locator was unveiled along with future web site improvements. The afternoon was ended with a general session that reviewed the new towbars and an accessories discussion followed by a question and answer session that proved useful to both the Hitch-Pro's and Draw-Tite.

Applicants must also complete an essay on their goals and objectives for attending college and demonstrate the ability to fund a portion of their educational expenses on their own.

Horsey said, "Newt and Joanne Kindlund are true visionaries in RV retailing. Together, they built what became the nation's only publicly-held, multi-point RV dealership. The Foundation is honored to begin this scholarship program that will serve as a lasting legacy to the Kindlund Family's tremendous contribution to the RV industry."

Anyone interested in more information can find a scholarship application at www.rvda.org/kindlund or send a fax to The Kindlund Family Scholarship Program in care
of The RVDA Education Foundation at (703) 591-0734.

Kwikee Receives Award of Merit

Kwikee Products Company, Inc., Cottage Grove, OR, was presented the Regional Award of Merit for Economic Enhancement from the Eugene/Springfield Metro Partnership.

Joining past recipient companies like Sony
Disc Manufacturing and Hyundai, Kwikee was selected for its economic and civic contribution to the community. Kwikee-supported projects include the Lions, Rotary, Kiwanis, Cottage Theater, Cottage Grove Community Hospital, Cottage Grove schools, Western Oregon Exposition, Community Sharing, Senior Wheels, South Lane Wheels, Boy Scouts, Special Olympics, United Way, March of Dimes, and the Muscular Dystrophy Association.

With the help of the Metro Partnership, Kwikee relocated to Cottage Grove in 1995 and has since grown from 65 to 102 employees and charted double digit growth every year. Manufacturers of electric steps, leveling systems, slide out room systems, trays, slide assemblies and a host of accessories for the RV industry, Kwikee annually instills more than $3 million in payroll and vendor businesses into the community.

Stat Surveys Releases Manufactured Housing Retail Sales

Statistical Surveys, Inc. released manufactured housing retail unit sales data and rankings for calendar year 1999. Thomas Walworth, president and CEO announced that the manufactured housing segment of the housing industry retailed 315,662 new homes in the United States for the full year of 1999. This represents a decline of 6.4% from 1998; however, manufactured homes still represented approximately 20% of all new single-family homes built and sold in the U.S.

Multi-section homes were 60.6% of the manufactured home total and single section homes were 39.4%.

Fleetwood Enterprises, Inc. was the industry leader for 12 years in a row, with 19.4% national market share. The top 20 companies represented over 90% of all new homes sold at retail for 1999. This percentage is approximately the same as in 1998. The top eight companies are publicly held, and nine of the top ten companies are vertically integrated with retail stores and manufacturing operations. Patriot Homes moved into the top ten during 1999 replacing Southern Energy Homes on the industry list.

Rank

Company Market Share Rank Company

Market Share

1. Fleetwood Enterprises Inc. 19.4%   6. Skyline Corp. 4.3%
2. Champion Enterprises Inc. 18.8%   7. Palm Harbor Inc. 4.2%
3. Oakwood Homes Corp. 9.8%   8. American Home Star Corp. 3.0%
4. Clayton Homes Inc. 8.4%   9. Horton Homes 2.4%
5. Cavalier Homes Inc. 6.4% 10. Patriot Homes 2.2%

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