INDUSTRY NEWS
June 1999

Fleetwood Motorhome Sales Top $1 Billion for Fiscal 1999, an RV Industry First

The motor home division of Fleetwood Enterprises, Inc., surpassed $1 billion in product sales during the fiscal year, ended April 25, 1999.

"Fleetwood RV was the first to reach this industry milestone with help from strong products, a healthy economy, high consumer confidence and favorable demographic factors,'' Dick Parks, senior vice president/RV group, said. "The RV industry had its best year in 20 years during calendar 1998. Given our commanding lead in the industry, we believe our record $1 billion in motorhome sales is unlikely to be matched by another RV manufacturer for at least another decade.''

1,000th RV Service Tech Certified Through RVDA/RVIA Program

The RV industry's work to create a national network of professional, qualified RV service personnel surpassed a major milestone when the 1,000th service technician was certified through the Recreation Vehicle Dealers Association/Recreation Vehicle Industry Association Certified RV Technician Program.

Since 1993, 1,012 technicians have been certified under the Certified RV Technician Program, which recognizes technicians possessing well-rounded RV repair, diagnostic and component part replacement skills.

Oklahoma Tornadoes Spare RV Companies

According to Gary Motley, executive director of the Central Oklahoma RV Dealers Association, most RV dealers in the central Oklahoma area during the May 3, force-five tornadoes with winds in excess of 300 miles per hour, escaped with only minor damage. Motley told RV News a lot of RVs were damaged along with the many homes that were totally destroyed, but he hasn't heard of any serious injury to RV company employees or major damage to any of the area's dealerships.

Lee's RV City, with three locations in Central Oklahoma, may have been the worst hit. RV News talked to Reagan Beaver, sales manager at Lee's Midwest City location, and he reports that one of Lee's sales lots in Moore, OK, probably received the worst of it. Moore was in the direct path of the huge twister and much of the damage reported nationally was from this location.

According to Beaver, the RVs at that location didn't take a direct hit by the tornadoes, but many were damaged by flying debris. Beaver said, "This is mostly a consignment lot where Lee's has high-end motorhomes and fifth-wheels. Assessing the damage has not be completed, yet; but we are hearing estimates in excess of $1 million."

Beaver added, "It was real scary here for a few hours, but we are truly blessed that our losses were nothing more than a little property damage."

RPTIA Drops Plan For Separate Louisville Park Trailer Show

The Recreational Park Trailer Industry Association (RPTIA) board decided at its April meeting to eliminate any immediate plans for a separate Park Trailer Show in Louisville, KY, with dates that coincided with the RVIA show. The decision was announced after RVIA entered into a contractual agreement that barred the State Fair Board from accepting dates at any of the facilities under its control,

According to Bill Garpow, executive director of RPTIA; the board also directed that correspondence be sent to RVIA advising them that RPTIA has stopped its efforts on the separate Park Trailer Show. Garpow said, "That correspondence will also remind RVIA that our primary objective has always been to remain exhibitors in RVIA's Louisville Show. We remain firm however, that our status as exhibitors should be equal to the rights and privileges given to RVIA's members."

Currently, all Park Trailer exhibitors are limited to 1,000 square feet of exhibit space whenever the demand for pre-drawing space assignments exceeds the total space available for assignments. RVIA's members are also limited when the demand exceeds the supply of space available and must also accept a reduced space allocation, but the reduction is minimal compared to the impact on the Park Trailer exhibitors, according to Garpow.

Fleetwood Test Markets TV Ad in Portland

In a bid to increase brand awareness and build local dealer traffic, Fleetwood RV is testing a television ad in the Portland, OR market that could, if successful, lead to the first-ever national television advertising campaign by an RV manufacturer. The ad, entitled "The Fleetwood Life" will run through the middle of this month.

David McKnight, advertising and public relations manager for Fleetwood RV, said, "RV sales are hotter than ever due in part to a rise in the RV purchases by baby boomers. Having just completed one of our best sales years ever, Fleetwood is in the unique position of having the resources necessary to break into television advertising, at a time when the potential RV market is large enough to justify the test."

The ad is running on four network affiliated stations, plus selected cable networks.

Retired Coachmen CEO Corson Honored

Thomas H. Corson, co-founder and retired CEO of Coachmen Industries, Inc., was recently inducted into the Junior Achievement Michiana Business Hall of Fame for his many contributions to his company and to the community. Corson and three others were chosen for the award by a committee of Michiana business and educational leaders for their corporate savvy and positive impact on youth.

Corson was honored at a dinner in South Bend, IN, and presented a Val Saint Lambert Crystal Eagle, symbolizing free enterprise.

Corson received the award from Debra Daniel, news anchor from South Bend TV station WSBT.

Colorado Drops State RV Standards Program

A bill eliminating Colorado's RV codes and standards program has passed the state legislature and has been signed into law by Gov. Bill Owens. It requires RVs sold in the state to comply with the ANSI A119.2 RV Standard and eliminates state plan approvals, inspections and seals.

RVIA and the Colorado RV Dealers Association attended legislative meetings and testified in favor of a Legislative Audit Committee report, which recommended dissolution of the state's RV standards program.

"This bill saves money for consumers, taxpayers and the RV industry, without compromising safety, by eliminating the duplicative vehicle inspections that had been conducted by the state and RVIA, "Dave Humphreys, RVIA president said.

Arizona, Kentucky, Missouri, Nebraska, Oregon, Tennessee and Washington are the remaining RV code states.

Missouri Length & Width Law

In other state news, the Missouri legislature sent a bill to Gov. Mel Carnahan for approval that increases the maximum allowable length of a motorhome from 40 feet to 45 feet. It does not require operators to have a "special" or "commercial" drivers license.

This bill, introduced at the request of RVIA and the Missouri RVDA, will become effective Aug. 28, 1999.

The bill also permits all RVs to exceed the 102"-width restriction if the appurtenances extend no further than the rearview mirrors and the rearview mirrors extend no further than the distance necessary to provide the required field of view before the appurtenances were attached.

"This is a significant achievement in that it is RVIA's first 45-foot length bill in a state without a significant number of bus-style motorhome manufacturers," Humphreys said. "Additionally, Missouri limits straight trucks to 40 feet and requires a commercial driver's license to drive a 40-foot truck."

Lazy Days RV SuperCenter Sets New Daily, Monthly and Quarterly Sales Records

Lazy Days RV SuperCenter continues it's growth by setting new industry sales and delivery records for the first quarter of 1999. Lazy Days started off the new year by delivering 741 new and pre-owned RVs during its annual January SuperSale and RV Show, a 39% increase over the same period in 1998.

Lazy Days also set a new sales and delivery record on January 29, 1999, with total daily sales exceeding $9,500,000 and by delivering over 150 units during the day. This record-breaking month was followed in February by 640 delivered units or a 45% increase in deliveries over the February '98 posting. To finish off the first quarter with another new record in 1999, Lazy Days recorded delivery of 749 units in March, a 40% increase over last years March performance.

This brings the first quarter Lazy Days delivery total to 2,130 vehicles

CTPA Elects Officers at Annual Convention

Ron Medenwald, superintendent of the Santee Lakes Regional Park and Campground, was recently elected president of the California Travel Parks Association at the 24th Annual CTPA Convention & Trade Show. Ron has been employed by the Padre Dam Municipal Water District, owner of Santee Lakes, since 1984 and has been superintendent of the park since 1996.

Other officers elected included: first vice president, Charles Amian, Pismo Coast Village RV Resort, Pismo Beach; 2nd vice president, Hank Robzion, Pismo Sands RV Park; secretary; Tweet Brumaghini, Circle RV Ranch; and treasurer, Duane Roominich, Roemmich Accountancy, Walnut Creek, CA.

Speedway Officials Unveil The Fleetwood RV Camping Resort At Charlotte

Recognizing the important role RVing plays in the NASCAR lifestyle at the track, Fleetwood RV supports NASCAR through a variety of activities including sponsorship of Dale Jarrett and the Robert Yates Racing Team.

National RV Plans Expansion After Acquisition of 20 Acres

National RV Holdings, Inc., (NYSE: NVH) acquired 20 acres of land across the street from its current production facility in Perris, CA. The property is intended to enable the company to both expand its current operations and provide for additional service and production capabilities. Wayne Mertes, National's president and CEO said, "Our plans call for the expansion of the current facility and construction of a new 120,000 square foot facility by the end of the year 2000. Upon its completion, one of the principal features of this new site will be the inclusion of a 30-bay service area that will include 4 bays to be used for the servicing of Country Coach product. In addition, 90,000 square feet of this property will be used for production of all fifth-wheel products and any new innovative products the company introduces in the future.''

RV Products Breaks Ground for Expansion

RV Products held its previously announced groundbreaking for its new 53,000-square-foot facility in Wichita, KS. The new building will be next door to RV Products' existing manufacturing site.

The original groundbreaking ceremony set for February was postponed because of inclement weather, but the contractors and their bulldozers began work on schedule.

Mel Adams, president and CEO of Airxcel, said, "We are pushing the capacity of our current building to the limits. We had to expand to keep up. The new building will ease the strain and provide for two new assembly lines."

The building is scheduled to be finished and the new lines up and running by September I of this year.

Stagparkway Introduces Virtual Sales Rep

Stag Parkway, Inc. a distributor to the RV aftermarket, unveiled a new marketing program this month designed to assist RV retailers in growing their parts and accessories business, according Mike McKay, vice president of sales and marketing for Stagparkway,

McKay said, "The new program called Virtual Sales Rep™ or VSR™ is a self-contained, interactive desk top kiosk with ten different audio and video presentations, each two to three minutes long, on key aftermarket products available at the touch of a button." He continued, "The program is a continuation of our efforts to enable retailers to increase the volume of accessories they sell at the time of a new coach sale and during subsequent visits to the dealership.

"We are not sure which method will be most effective, at the F & I desk, where presentations through the VSR™ can be delivered seamlessly and flawlessly at the time of a coach sale, or at the store, where product presentations can be made by store personnel or it can run unattended."

Major accessories supplier company presentations will be available as individual product selections through easy to use buttons with the presentation itself displayed on a five inch color screen.

Initial presentations on the program will include Carefree of Colorado, Reese Products, Automatic Equipment/Blue Ox, Tekonsha Towing Systems, Demco, Kwikee Products and Ultra Fab Products.

RPTIA Opposes RVIA's Legislative Expansion of Fifth-Wheels, Travel Trailers & Park Trailers

The Recreational Park Trailer Industry Association (RPTIA) board of directors took a position of opposition to an RVIA board resolution calling for lobbying efforts to revise the federal manufactured housing law. This resolution would eliminate HUD's involvement and/or jurisdiction with any recreational units that are 8.5-ft in the highway travel mode. Should this effort succeed, all travel trailer, fifth wheel travel trailer and Recreational Park Trailer manufacturers of units 8.5' or less would be able to offer the consumer products exceeding the 400-square-foot limitations imposed by HUD.

Under the proposed revision, size limits would be governed by state highway department limitations. According to Bill Garpow, executive director of RPTIA, many states allow individuals with a conventional driver's license to tow units with a maximum combination towing length of up to 65 feet. Beyond these limits, special highway movement permits could be obtained allowing even longer units to be transported by commercial carrier.

Garpow said, "Given these possibilities, units with slide outs or full slides could easily bring products into the RV market with as much as 500 to 700 square feet of living space. RPTIA determined that such large units would bring massive confusion into the RV parks and lifestyle. Such large units could easily be misused as primary dwellings and thus would cause government at all levels to rethink the current non-residential privileged status granted to RVs and Park Trailers. Thus, RPTIA urges the RVIA Board to reconsider its resolution for the good of the entire industry."

Go RVing Begins Planning for 2000 As Phase I Campaign Finishes Strong Run

RVIA has begun collecting the $44 per unit assessment that will fund the dynamic new Go RVing advertising campaign being developed by the Go RVing Coalition to debut in January 2000.

The Phase II campaign, featuring the theme "Go RVing. Life's A Trip." will be budgeted at approximately $38 million over three years (2000-2002) to provide a significant increase in reach, frequency and duration over the initial effort.

Eisner and Associates and Coalition staff are preparing for a busy summer of producing the new ads, selecting new media outlets and updating the fulfillment package.

Airxcel Escapes Deadly Storm in Kansas

Mel Adams, CEO, Airxcel, Wichita, KS, told RV News that last months' horrific tornadoes that swept through the nation's heartland spared Airxcel. The same storm system that spawned the Oklahoma tornadoes was also responsible for tornadoes in the Wichita area. Adams reports that the storm missed the Airxcel complex by about 10 miles and his home by 15 miles.

Adams said, "Overall, we were all pretty fortunate. Except for three employees whose homes were totally destroyed, we had no loss of life or serious injury to our people or their families."

Adams is no stranger to tornadoes and the damage they bring. During the 1960s Adam's home was hit by a tornado.