INDUSTRY NEWS
January 1998

 

Crean Retires from Fleetwood;
Kummer Named Chairman and CEO

John C. Crean, founder of Fleetwood Enterprises,Inc. (NYSE: FLE), is retiring as chairman of the board and chief executive officer. The company has agreed to purchase the 72-year old Crean's current shareholdings at $34 per share, which is an eight percent discount to the closing market price of $36.9375 on January 12, 1998.

As a part of the company's orderly management succession plans, Fleetwood also announced the appointment of Glenn F. Kummer as the new chairman and chief executive officer. Kummer has been the company's president and chief operating officer since 1982. Nelson W. Potter has been named to replace Kummer as president and chief operating officer, and has been appointed a member of the board of directors. Potter was previously the company's executive vice president - operations.

At press time, the company was in the process of pursuing appropriate financing arrangements to purchase Crean's 5.2 million shares, which represent approximately 14 percent of the company's currently outstanding common stock. It is expected that the purchase transaction will be completed within 30 days.

The purchase of Crean's shares represents a continuation of the company's long-term plan of share repurchases, which is intended to enhance shareholder value. In 1996, the company successfully completed a Dutch Auction tender offer for the purchase of 7.7 million shares of common stock, and also purchased 2.4 million common shares from Crean, then representing 30 percent of his holdings.

Crean, who founded the company in 1950, will become chairman emeritus and is also expected to continue to consult with the company in the area of RV product development.

Rexhall Agrees to Settlement in Class Action Suit

Rexhall Industries Inc. (Nasdaq:REXL) has reached a settlement, subject to court approval, in the class action suit pending against the company in California (Masterjohn vs. Rexhall Industries, et al.).

Under the agreement, Rexhall would pay $825,000 in cash, and issue one coupon per vehicle owned by members of the class for $1,250 toward purchase of a new Rexhall vehicle or $200 toward service, parts and labor. Coupons would be redeemable at Rexhall's two service centers in Indiana and California, as well as three other dealerships geographically dispersed.

Purchasers of Indiana-manufactured vehicles will be added as members of the settlement class. The total number of vehicles owned by class members is estimated at approximately 5,000.

The company felt that the settlement was in the best interest of its shareholders.

RV Shipments Near 20-year High in 1997

Spurred by strong sales of towable products, the RV industry expects to post a healthy in-crease in 1997 shipments to RV dealers, closing out its best five-year period in 20 years and ringing in an equally robust new year. A new record for retail sales dollar volume is also anticipated.

Based on deliveries through October 1997, industry analysts project that shipments of recreation vehicles -- motorhomes, travel trailers, fifth wheel trailers, truck campers and folding camping trailers -- will total 255,000 to 260,000 units in 1997. This will be the highest or second highest number of RV shipments since 1978, surpassing last year's total of 247,500 shipments by 3 to 5 percent.

The retail value of shipments in these product categories in 1997 is expected to reach $6.8 billion, the highest total in industry history. Combined with conversion vans and sport utility and pickup truck conversions, which are sold through automotive rather than RV dealers, total RV and conversion vehicle industry dollar volume is expected to reach $13 billion for 1997, breaking the previous record of $12.4 billion set in 1996.

Among the various RV types, towable RVs are expected to finish 1997 4.7 percent ahead of last year, with fifth wheel trailers and travel trailers showing the largest percentage gains. Fifth wheel shipments are projected to top 53,000 units, surpassing 1996's total of 48,500, while travel trailers should hit 79,500, eclipsing last year's mark of 75,400. This growth reflects the popularity of trailers equipped with slide-out rooms and the tremendous rise in sales of pickup trucks and sport utility vehicles.

Shipments of folding camping trailers also are climbing at a pace slightly ahead of 1996, indicating a continued influx of first-time buyers into the market. One of the factors contributing to this growth is the RV industry's first-ever national advertising campaign, a $15 million commitment over three years that began in February 1997.

Launched by the Go RVing Coalition of RV manufacturers, suppliers, dealers and campgrounds, the ads focus on the joys and benefits of RVing and include a toll-free number (1 -888-GO-RVing) consumers can call for an introductory video and list of RV dealers and campgrounds. More than 50,000 calls were received from potential customers in the first six months of the ad campaign.

Dr. Richard Curtin, director of the University of Michigan Survey Research Center, says a shift in RV ownership patterns toward the enormous baby boom population is another strong growth indicator for the RV industry. Over the next decade, the baby boom generation will reach the highest RV ownership age categories. Already, the number of RV owners in the 35-to-54 age range has increased more than 13 percent, according to University of Michigan research.

RVIA & RPTIA To Discuss New Louisville Park Trailer Trade Show Issues

RVIA's board of directors has responded to the Recreational Park Trailer Industry Association's (RPTIA) board's request to schedule a meeting between RVIA's Show Committee and officials from RPTIA. This meeting was scheduled to be held in January. A number of issues were to be addressed concerning RPTIA's Louisville Park Trailer trade show which is scheduled for December 1999 at Louisville's downtown Commonwealth Convention Center.

According to Bill Garpow, RPTIA executive director, among the issues to be discussed were the right that each association has to exhibit only those products covered by that association's bylaws. Garpow said, "In addition, the possibility of mutual badging and registration, marshaling, transportation and other issues might come to the table."

The Commonwealth Convention Center is currently a 100,000 square foot exhibit hall which is undergoing a 150,000 square foot expansion with completion scheduled for March of 1999.

Thor Agrees to Acquire Bus Manufacturer; Sells Henschen for Cash

Thor Industries, Inc. (NYSE: THO) has agreed to acquire the operations of Champion Motor Coach, Inc., a subsidiary of Champion Enterprises Inc. (NYSE: CHB) for approximately $11 million cash. The acquisition is subject to government approvals and other usual conditions. Champion Motor Coach, Inc. of Imlay City, MI is the third-largest manufacturer of small and mid-size buses and has sales of approximately $60 million.

Wade F. B. Thompson, Thor chairman, said. "Acquisition of Champion Motor Coach, which is profitable, will give Thor over $200 million annually in bus sales and is expected to add to Thor earnings this fiscal year. The purchase of Champion Motor Coach represents a major expansion in bus, our fastest growth segment. The plan is for Champion Motor Coach to be managed by its current management team as a separate subsidiary of Thor.''

In a separate transaction, Thor sold its Henschen Industrial axle manufacturing operation, which has sales of $6 million, to QDS Components Inc., Winchester, TN for about $3.5 million cash. The sale will result in a one-time gain after tax of about $933,000 or 11 cents per share.

"These important transactions demonstrate Thor's continuing emphasis on its two core businesses, buses and RVs. Henschen was a minor part of Thor," Thompson added.

Record Number of Park Trailer Seals and Shipments Reported in '97

Record numbers of the Recreational Park Trailer Industry Association's (RPTIA) seals have been ordered by members in the past several months, according to Bill Garpow, RPTIA executive director. He said, " An all time high of 1,000 was recorded in October, with November purchases continuing the ground-swell with 692 units. Collectively, seal purchases have achieved an all time record through November with 6,698 cumulative seals purchased this year. This beats our 1996 January through November total of 5,768 by a substantial 930 seals almost a 17% increase over last years performance.

"Shipment reports also reflect our industry's significant growth for 1997 with 615 additional shipments being reported from January through October of this year. Park Trailer sales are outperforming the RV industry shipment figures by a good margin. RV sales through October were posted as being down 5.7% when compared with 1996 cumulative numbers. Park Trailer shipments for the same period were up 10.5%. While the trend is exciting, we can only hope that the expansion continues," said Garpow.

Rexhall Halts RV Manufacturing in Indiana

Rexhall Industries said that in furtherance of its overall restructuring plan, it has ceased manufacturing operations at its Indiana facility. This move was made in conjunction with the recently completed expansion of the California facility to accommodate the expected rise in production at that facility as a result of the Indiana facility's closure.

Rexhall has expanded the size of the service and warranty center by 500 percent at the Indiana facility and plans to retain a strong presence in the area. This expansion in the service and warranty commitment should significantly support the sales effort throughout the Eastern and Southern regions.

Bill Rex, president, said, "The enhanced simplicity of the centralized single manufacturing facility together with the reduction of costs due to the Indiana closure should well position the company for smoother increased production and greater profits for the future.''

The new addition to the California plant has significantly increased the company's production capability so that is no longer necessary to maintain the two manufacturing facility structures.

Holiday RV Superstores Announces Stock Repurchase

Holiday RV Superstores, Inc., has begun to repurchase up to $1 million dollars of its common stock in the open market. Newton C. Kindlund, president said, " Our board of directors has felt for sometime that the market value reflected in the price of the company's stock did not reflect the intrinsic value of the company and offers an exceptional opportunity to increase shareholder value through the repurchase of our shares.

"Currently our stock is selling significantly below our book value of $2.12 per share and at an eight times price earnings ratio that is well below industry valuations of public companies in our industry sector.

"When referencing our current stock price to our company's 24 month historical high of $3.75 per share, our board simply felt current share pricing is a bargain and our company's repurchase strategically fits with our mission to increase shareholder value."

The open market repurchase will be handled exclusively through Prudential Securities, Inc.

Nearly 1,200 RV Dealers Registered as Go RVing Dealers

According to RVDA, nearly 1,200 RV dealers across the U.S. are already signed up as Go RVing dealers in 1998. Just as in the 1997 pr

ogram, Go RVing Dealers receive a free listing in the promotional materials sent to consumers calling the toll-free number that appear in "Recreation Vehicles: Wherever You Go, You're Always at Home" national ads. There is no charge to be a Go RVing dealer.

Mike Molino, president of RVDA, said, "If the dealership is already signed up as a Go RVing Dealer, it's automatically signed up for the 1998 program. There's no need to sign up again, but Go RVing Dealers do need to fax RVDA any address or phone number changes that have taken place over the last year.

"A recent RVDA-conducted survey of Go RVing Dealers confirmed that dealers who bought the optional promotional package (The price for the package is $125.) last spring liked getting the consumer leads generated from the national ad campaign's toll-free hotline.

"With this in mind, the enhanced 1998 Go RVing Dealer Program makes distributing leads to participating dealers a top priority in the spring of 1998. Dealers asked for a quicker turnaround time on leads and will get it this year."

For more information on the 1998 Go RVing Dealer program, call RVDA at (703) 691-7130 (ext. 113).

Fleetwood's Rialto Plant Produces its 75,000th Travel Trailer

Fleetwood RV marked a milestone recently as its travel trailer plant in Rialto, which opened in 1972, produced its 75,000th travel trailer. It celebrated the landmark occasion with more than 300 of its associates and its top dealer on hand.

Frank DeGelas, general manager of Mike Thompson's RV Superstores was presented the keys to the milestone RV, a Wilderness 25 L5X. Others attending the celebration included Carl Betcher, vice president, Fleetwood's Towable Group; Bill Toy, Rialto plant general manager; and Bob Burns, Rialto plant general sales manager.

Fleetwood's Rialto plant is one of the leading producers among the company's nine travel trailer plants nationwide, manufacturing nearly 3,000 units annually and employing more than 360 associates. Sales are on an upswing, as towable RV products experience continued growth, reflected most recently by a more than 10 percent increase in unit volume.

IMHA/RVIC Presents Annual Awards

The Indiana Manufactured Housing Association/Recreation Vehicle Indiana Council (IMHA/ RVIC) recently recognized two of its outstanding members in Indianapolis.

The President's Award is presented to a board member who has performed above and beyond the call of duty. This year's award was presented by president Harry Scott to Ed Gnott, of LaSalle Bristol. Gnott currently serves as the immediate past president on the board of governors. He was elected to the board in 1994 and served as president in 1996. Gnott has also been very active in the Suppliers Division and has been instrumental in organizing the annual Lowell Lerner Golf outing.

Scott presented the Citizen of the Year Award to his wife, Rose Scott. He cited Mrs. Scott for providing him with overwhelming support and advice during his presidency.

Winnebago Reports Stock Repurchase

The officers and board of directors of Winnebago Industries, Inc., authorized and directed the repurchase of outstanding shares of the company's common stock for an aggregate purchase price of up to $36.5 million.

Of this purchase price, $19.5 million may be used by Winnebago to make open-market purchases of the company's common stock from time to time over the next 18 month. In addition, $17 million will be applied to the purchase of common stock from the estate of John K. Hanson at a per share price equal to three percent below the average of the high and low New York Stock Exchange prices of Winnebago Industries' common stock on December 29, 1997.

Winnebago Industries' president and chief operating officer Bruce Hertke said, "Due to the strong financial position of the company and management's confidence in our outstanding product line, the board of directors feels the stock is an excellent value in today's market,"

RPTIA Considers Proposal For Park Trailer Loft Safety Standards

One of the key issues being considered by the Recreational Park Trailer Industry Association's (RPTIA) board is a Standards Subcommittee proposal addressing the industry position to revise the A119.5 Standard regarding Park Trailer Lofts. The proposal focuses on construction load requirements with minimums also being set for handrails, stairwells, steps, ladders and egress requirements. Electrical and smoke or fire detection requirements along with light and ventilation minimums are also part of the new proposal.

PleasureLand RV Center Opens Additional Facility

PleasureLand RV Center, Inc., St. Cloud, MN, opened an additional facility located in Anoka, MN, during Jan-uary. This facility will operate under the name PleasureLand RV Center, Inc. - North Metro.

According to Plea-sureLand president Dan Pearson, the new outlet will feature the complete line of Winnebago mini motorhomes and motor-homes; Wilderness 5th wheels and travel trailers; Mallard travel trailers and 5th wheels; and the Snowbird line of 5th wheel trailers.

In addition to new and pre-owned recreation vehicle sales, this facility will offer a complete selection of RV parts and accessories along with complete RV coach repair.

Fleetwood RV Honors Top Dealers
Lazy Days Takes Top Dealer and Top Motorhome Dealer Awards

Fleetwood RV recently honored its top dealers nationally. Lazy Days RV Supercenter in Florida was the number one dealer of Fleetwood RV products in the nation.

During the 1997 model year, Lazy Days led nationwide sales in recreational vehicles. With the full lineup of Fleetwood motorhomes available at its dealership, Lazy Days also ranked number one in motor home sales. Lofty sales of the American Coach line helped Lazy Days become the top seller of Fleetwood's luxury line of motor homes for the second year in a row.

With a 92 percent customer satisfaction rating in 1997, Lazy Days focused on providing a positive experience for the customer at the dealership. Don Wallace, president of Lazy Days, said,"The driving force behind increasing motorhome sales have been baby boomers seeking to simplify their stressful lives by taking more leisurely trips."

Also, Fleetwood RV honored Earnhardt's RV in Arizona as the top dealer of Fleetwood travel trailers in the nation.

Based on 1997 model year sales, Earnhardt's RV - which provides a full line of Fleetwood recreational vehicles - led the nation in Fleet-wood-brand travel trailers. Much of Earnhardt's success is attributed to its continuous high marks in customer satisfaction ratings which, in 1997, reached an all-time high of 96 percent.

The top Coleman Folding Trailers dealer was Ketelsen Campers of Colorado, based on 1997 model year sales. This marks Ketelsen's eleventh consecutive year as Fleetwood's top seller of folding trailers.

Customer service played a big role in Ketelsen's success with a customer satisfaction rating of 99 percent.

Morgan Group Declares Quarterly Dividend

The board of directors of The Morgan Group, Inc. (AMEX:MG), declared a quarterly cash dividend today of $.02 per share of Class A common stock and $.01 per share of Class B common stock. The dividend is payable on January 19, 1998 to shareholders of record on January 5, 1998.

Transamerica Distribution Finance Finalizes Acquisition of Whirlpool Financial Corporation's Consumer Finance Division

Transamerica Distribution Finance Corpora-tion (TDF) has completed the acquisition of Whirlpool Finance Corporation's (WFC) Consumer Finance Division and Whirlpool Financial National Bank (WFNB) effective January 1, 1998. TDF previously completed the acquisition of WFC's Inventory Finance Division, Latin American Finance Group, European Division and associated corporate staff in fourth quarter 1997.

The sale closing follows the definitive agreement reached by TDF and WFC in September 1997 to acquire the certain assets of WFC and the formation of a 10-year strategic alliance with Transamerica Corporation and Whirlpool Corpor-ation.

USA Today Founder to Keynote RVIA Annual Meeting

RVIA's 1998 Annual Meeting, scheduled for March 4-8 at the Ritz-Carlton Rancho Mirage in Palm Springs, CA, will feature Al Neuharth, the man who founded USA Today.

Neuharth will deliver the keynote address on March 7. He is credited with single-handedly reinventing the newspaper business with the launch of the national daily in the early 1980s. He is now head of the Freedom Forum and one of the nation's leading conservative voices.

The keynote is part of RVIA's Annual Membership Meeting, which also includes RVIA chairman Kelly Rose's "state of the association" address and an update from RVIA president Dave Humphreys on RVIA activities. There will be a report on the Go RVing Coalition's national advertising campaign and RVIA's public relations program. RVIA will also bestow its annual awards, including the Distinguished Service to the RV Industry Award.

Other speakers include Dr. Lowell Catlett, who will examine futuristic planning in "Future World -- Future Minds" to assist members in identifying emerging new markets, structures and changes. Next, Dr. Arthur Laffer will provide an economic forecast and the impact on the RV industry. Now head of his own economic and financial consulting firm, Laffer was a member of President Reagan's Economic Policy Advisory Board.

James Hennig, Ph.D., will conclude the seminar presentations with "Win Win Negotiations -- Progotiations." Hennig's session will help attendees improve negotiation skills.

Statpower Technologies and Trace Engineering Announce Merger Plans

Statpower Technologies Corp., Burnaby, British Columbia, Canada, and Trace Engineering Corp., Arlington, WA, have signed a letter of intent to merge their two businesses. The merger is expected to be completed in the first quarter of 1998.

The two companies will continue to operate independently until the merger is complete

Trace Engineering and Statpower Technologies develop and manufacture electric power inverters, battery chargers and other power conversion products for a variety of markets including the recreational vehicle, marine, truck, mobile office, backup power and renewable energy markets.

Cruise America Reports Higher Second Quarter Revenues and Earnings

Cruise America, Inc. (AMEX: RVR), reported operating results for the second quarter and first six months of its 1998 fiscal year.

During the three-month period ended October 31, 1997 the company's revenues increased 29% to approximately $43.2 million, compared with $33.6 million in the second quarter of the previous fiscal year. Earnings before income taxes, and prior to the establishment of a non-recurring litigation accrual (discussed below) involving a contested lawsuit, totaled $5,543,000, compared with $5,339,000 in the prior-year period.

A net loss of $3,037,000 ($0.51 per share) was posted in the most recent quarter, versus year-earlier net income of $3,681,000 ($0.62 per share). The company's net loss in the second quarter of FY 1998 was due to a non-recurring charge in the amount of $10,000,000 to establish an accrual for damages awarded against the company in a contested lawsuit. The company believes the jury verdict is unjust and that the damages awarded are inappropriate and excessive. Cruise America intends to vigorously pursue a reversal of the jury decision or the elimination of the damages awarded through the California Court of Appeal.

The increase in total revenues during the second quarter of FY 1998 included a 7% gain in rental revenues, which approximated $23.6 million (vs. $22.1 million) and a 71% increase in new and used vehicle sales ($19.6 million vs. $11.5 million).

For the six months ended October 31, 1997, Cruise America, Inc. reported an 8% improvement in pretax earnings from operations, before establishment of the abovementioned litigation accrual, on record revenues of approximately $76.2 million (vs. $64.6 million in the prior-year period). Pretax earnings for the first half of FY 1998 reached $15,468,000 (before abovementioned litigation accrual), compared with $14,385,000 in the corresponding period of the previous fiscal year. Net income totaled $3,315,000 ($0.56 per share) during the first six months of FY 1998 compared with net income of $9,917,000 ($1.67 per share), in the first half of FY 11997.

Surge in Operating Income Seen in Winnebago First Quarter

Revenues of $125.9 million were reported by Winnebago Industries, Inc., for the first quarter of fiscal 1998 ended November 29, 1997, an increase of 10.5% when compared to revenues of $113.9 million for the first quarter last year. Income from continuing operations for the first quarter of fiscal 1998 was $5.3 million, or 21 cents per share, an increase of 97% when compared to $2.7 million, or 11 cents per share, for the first quarter last year. The sale of the company's Cycle-Sat, Inc., subsidiary resulted in a gain of $16.5 million, or 65 cents per share, in the first quarter of fiscal 1997. Including this gain, net income was $19.2 million, or 76 cents per share, for the quarter ended November 30, 1996.

According to Winnebago Industries chairman and chief executive officer Fred G. Dohrmann, "We are extremely pleased with the results of our first quarter and feel it is testimony to the company's strategic direction to focus on the manufacturing of RVs. Following the softness of the RV market in fiscal 1997, we have seen replenishment of dealer inventory in the first quarter. Dealer inventory rose over 10 percent in the first quarter versus the fourth quarter of fiscal 1997."

Camping World Launches Camping World RV Institute

Camping World has established Camping World RV Institute, a vocational education program designed to train qualified RV service technicians. The school, located in Bowling Green, KY, is licensed by the state of Kentucky.

Students receive training in a realistic environment, including both lecture and lab work. L.D. Gresham coordinates all instruction and helps students qualify for industry and product certificates.

The training prepares students to take the nationally-recognized RVIA/RVDA industry exam. The school teaches students the best and safest practices to maintain and service RVs for high performance, encourages students to stay abreast of current trends and standards in the industry and teaches them skills required to provide exceptional customer service

Course length is eight weeks with sessions from 8 a.m. to 5 p.m. on weekdays. Two class sessions are scheduled for July 13 through Sep-tember 4 and September 29 through November 20.

"Awards of Excellence" Will Honor Top RV Parks & Campgrounds

The National Association of RV Parks & Campgrounds (ARVC) has announced the 1998 competition for its "Awards of Excellence." Open to ARVC members, the awards honor individual and group achievement in more than a dozen categories. The winners will be named during a special awards luncheon to be held during ARVC's 32nd Annual Convention and Expo in Orlando, FL.

More than 3,200 ARVC member RV parks and campgrounds are eligible to compete in the following categories:

• Supplier Of The Year
• Best Brochure
• Best Direct-Mail Promotion
• Best Promotional Video
• Operator of The Year
• Community Service Award
• Educator of The Year
• Best State Association Directory
• Greatest Increase In Membership
• Greatest Percentage Increase In Membership
• Best State Association Newsletter
• Most Improved Association Newsletter
• State President of The Year
• RV Parks of The Year:
• Small Park - 100 sites or less
• Medium Park - 101 to 250 sites;
• Large Park - 251 to 500
• Mega Park - 500-plus
• Stan Martin Memorial Award

Transamerica Raffles Laptop Computer

Transamerica Distribution Finance Corporation (TDF) held a raffle for a laptop computer at this year's RVIA Show, and Elaine and Terry Masters, owners of Masters RV Center, Inc. of Greenwood, SC, were the winners. From left to right: Transamerica business development manager, Donnie Champion, presents the winning raffle prize to Dana Rodgers, Elaine Masters and Terry Masters of Masters RV Center.

 

 

Plans Taking Shape For Great Outdoors Week '98

Great Outdoors Week '98 will be staged in Washington from June 8 to 12. Joining to showcase recreation trends and policy issues will be key federal agencies, RVIA, the National Ski Areas Association, the Sporting Goods Manufacturers Association and dozens of additional organizations, representing nearly every facet of the $400 billion per year recreation community. The Week will include the fourth Partners Outdoors Fair, highlighting public/pri

vate alliances serving visitors and protecting our natural resources, and the presentation of the tenth Sheldon Coleman Great Outdoors Award. This years recipient will be selected through balloting by nearly 200 recreation community leaders. Derrick Crandall, president of the American Recreation Coalition, said, "The importance of recreation and the needs of Americans who cherish time in the Great Outdoors will be told in hundreds of ways during the course of the Week. And we expect the week to yield tangible results that will endure."

Missouri Dealers Election Results

Election of new officers and two directors was conducted at the recent Missouri RV Dealers Association (MRVDA) general membership meeting. Joining Steve Francis, District 1 Director, and John Handley, District 2 Director, on the board are:

• President -- Jerry Schwab, Capetown RV Sales, Cape Girardeau.
• Vice-President -- Harold Scott, Scott's Holiday Corral, Lowry City
• Secretary/Treasurer -- Bill Abernethy, Bill's Camper Sales, St. Joseph
• District 3 Director - Bill Harrison, Bourbon RV Center, Bourbon
• District 4 Director -- Doug Lown, Coachlight RV Sales, Carthage
• Bill Thomas will serve on the board as past president.

Associates RV Finance Launches New Program

Associates RV Finance has introduced a new, comprehensive service contract program for motorhomes and towable units, including travel trailers and campers. The new plan, RV TravelGuard, offers higher cash benefits and more comprehensive coverage than many other plans and is now available in nearly every state.

RVIA Board of Directors Actions

RVIA's board of directors voted in December to amend association By-Laws to make it clear that board members can serve three consecutive three-year terms in addition to time served in assuming a vacated board seat. Before the revision, it was unclear whether members could serve a partial term in addition to three consecutive terms or nine consecutive years.

In other actions, the board agreed that the National Show Committee will meet with the Recreational Park Trailer Industry Association (RPTIA) to discuss RPTIA's plan to hold a trade show at the Commonwealth Convention Center concurrently with the RVIA's National RV Trade Show.

The board also moved to educate manufacturers on how addressing the "4 T's" -- territory, transferability, termination and warranty -- in dealer agreements could improve manufacturer/dealer relations.

KODA Enterprises Group Continues Expansion into RV Industry with Acquisition of Pro Air

On the heels of acquiring Suburban Manufacturing, KODA Enterprises Group has now announced that they have purchased the assets of Pro Air, Inc., of Elkhart, IN and Pro Air West, Inc., of Ontario, CA. The new operation, Pro Air, LLC will continue to manufacture and market air conditioning and heating systems primarily to the van conversion and specialty vehicle industries nationwide.

The previous owners, Dennis Haeck and Dennis Mitchell will continue to run the business as officers of the new corporation.

Trailer Boats Names Ford Club Wagon 6.8 V-10 "1998 Tow Vehicle of the Year"

In what may be the last chance to test big gasoline engines against turbo diesels in big vans, the Trailer Boats staff pitted the gasoline powered Ford Club Wagon 6.8 V-10 against the Ford Club Wagon 7.3 V-8 Diesel, GMC Savannah 6.5 V-8 Diesel and the Chevrolet Express 7.4 gasoline V-8. As Trailer Boats readers will learn in the February issue, on newsstands January 22, Ford's Club Wagon 6.8 V-10 won the prestigious Trailer Boats 1998 Tow Vehicle of the Year Award.

The large vans were rated by Trailer Boats publisher Wiley Poole, editor Jim Hendricks, towing editor Bob Kovacik, managing editor Mike Blake, technical editor Jim Barron and assistant editor Stuart Bourdon on ten towing and five non-towing categories including tongue weight, visibility, flatland towing, mountain towing, engine performance, transmission, launch ramp, fuel economy, ride/control, braking, significance, price, performance/handling, and comfort/layout.

The Ford Club Wagon 6.8 V-10 was the overall points leader in both towing and non-towing, winning seven individual towing and four individual non-towing categories.

"What is most important to Trailer Boats magazine is that this truck is an exceptional tow vehicle," Kovacik writes. "Furthermore, it is comfortable and easy to drive when not towing."

Excel Industries Increases Commitment to South American Market

Excel Industries (NYSE:EXC) has increased its global commitment to its automotive customers. Dura/Excel do Brazil, Ltda., a 50/50 joint venture of Excel and Dura Automotive Systems (Nasdaq/NM:DRRA), exercised a debt to equity conversion option to increase its ownership of Pollone S.A., a Brazilian auto prts supplier, from 25.% to 51%.

James O. Futterknecht, Jr., chief executive of Excel, said: "We made our initial investment in Pollone in late 1996. We knew then it was a turnaround situation but we also knew the Brazilian auto market had strong long-term growth opportunities. In spite of the recent temporary market softness, we have made considerable progress in the operational turnaround in the last year. Having the joint venture owning controlling interest in the company shoud accelerate the progress, and we expect 1999 to be breakeven and 2000 to add slightly to corporate earnings."

Pollone S.A., located near Sao Paulo, Brazil, is operated by Dura/Excel do Brazil and expects this quarter to receive QS9000 certification - one of the first Brazilian suppliers to receive this international recognition. Pollone manufacturers parts for both Excel and Dura core product lines. Sales for 1998 are anticipated to be approximately $35 million and should rise to $60 million by 2000.

Serving customers since 1928, Excel Industries, Inc. is a technically innovative tier-one supplier to the automotive, heavy truck, recreational vehicle and bus industries. It produces window, door and seating systems, RV appliances, and complex injection-molded parts.