INDUSTRY NEWS
May 1997

 

RVDA Reacts to Affinity-Camping World Deal
Suspends Top Quality Dealer Award

The Recreation Vehicle Dealers Association (RVDA) board of directors has voted to suspend the Top Quality Dealer Award for one year, following the Affinity Group’s announcement that it was acquiring Camping World.

The award had been a joint presentation by RVDA and the Affinity Group’s RV Business magazine. RVDA President Mike Molino said, "Suspending the award for one year will give RVDA members time to reassess how it should be presented and what organizations should be involved in the selection process,".

Affinity Group, Inc., the parent company of T.L. Enterprises which publishes RV Business recently announced plans to acquire Camping World, a company that sells RV - Aftermarket products and, in some locations, services RVs. Since RV dealers also sell Aftermarket products and service RVs and these functions are criteria in selecting the award winner, RVDA became concerned about continuing the award in its current format.

Elden Smith to Retire

Fleetwood Announces Management Changes After almost three decades of service with Fleetwood, Elden Smith, senior vice president - RV Group, has announced his intention to retire. Under Smith’s guidance, Fleetwood became the number-one recreational vehicle producer in America.

Smith has also been a major participant in the growth and influence of the RVIA, where he distinguished himself as chairman and a member of the executive committee, and served as an active member of the board of directors for over twenty years.

Following Smith’s announced retirement Fleetwood promoted Dick Parks vice president - motor homes, to senior vice president - RV Group. Dick joined Fleetwood in 1983 and has held a number of management positions at manufacturing plants and the division level. Parks will be succeeding Elden at the end of July 1997.

MHS Supply to Merge With Northwest

Darryl Searer, president of MHS Supply in Elkhart, IN, has informed RV News that he has signed a letter of intent to merge MHS with Northwest Trailer Parts. Searer, owner of MHS, says he is extremely pleased and excited about the merger. He said, "Northwest Trailer Parts and MHS make a great winning team. This will certainly enhance the opportunities for a national supplier to provide world-class products and services, beyond the normal means of distribution."

Hadley Gear, vice president of sales and marketing for Northwest said, "We are extremely excited about this opportunity."

Searer plans to remain at MHS and manage the Elkhart operation.

Washington State Considering Putting House Portion of RV Under Lemon Law

Washington State is attempting to place the box portion of motor homes under its lemon law. Two bills, House Bill 2150 and Senate Bill 5641, would add such a provision.

Currently, only the chassis portion of motor homes and all RV trailers are excluded from Washington’s lemon law. Both bills have been reported to the Labor Committee in their respective chambers.

RVDA Selects Three Keynoters For RV Dealers International Convention/Expo

The Recreation Vehicle Dealers Association (RVDA) has selected three leaders, well-known throughout the RV industry, as keynoters for the 1997 RV Dealers International Convention/Expo, Sept. 28 - Oct. 1, at the Reno Hilton in Reno, NV.

Noted sales trainer Joe Girard will open the Convention on Sept. 29. Girard is the author of four best-selling books including How to Sell Anything to Anyone and How to Sell Yourself. He is also listed in the Guinness Book of World Records as the world’s #1 retail salesperson. Girard’s appearance is sponsored by Airstream.

On Sept. 29, Holiday Rambler President Jim Sheldon, will give convention attendees his views on the future of the RV industry. Sheldon is chairman of the Go RVing Coalition’s Committee on Excellence, a panel made up of representatives from all sectors of the RV business which is dedicated to providing RV travelers with a world-class experience.

James Egan, Jr., president and CEO of The CIT Group/Sales Financing, Inc., will report on RV financing and sales trends during his address on Sept. 30. The CIT Group publishes an annual "Recreation Vehicle Outlook" and Egan will provide convention-goers with an interesting and useful statistical overview of the RV marketplace.

RVDA Convention/Expo Committee Chair-man Ron Barrows said, "This is a powerful lineup of speakers that will give RV retailers a comprehensive look at factors affecting our business today. When you combine these excellent key-noters with 30 workshop speakers focused on all aspects of dealer operations, the 1997 Conven-tion/ Expo is shaping up to be one of the best ever."

For more information contact RVDA at (703) 591-7130.

 

Northwest Trailer Parts Presents Open-House Exhibitor Awards

Hadley Gear, V.P. sales & marketing for Northwest Trailer Parts says the company’s 15th annual Dealer/Supplier open house was successful. The "Mardi Gras Weekend" theme was attended by over 1350 dealer personnel and supported by 225 supplier product lines. The event included seminars as well as supplier booth awards. Awards were presented to Draw-Tite (Best of Show), Valterra Products (Most Creative Use of Products) and Marlene Sine & Assoc. (Best Use of Show Theme).

Utah Franchise Legislation Update

Last year, Utah passed amendments to the state’s Motor Vehicle Dealer Franchise Act. This resulted in a lawsuit being filed by several national trade associations enjoining the state from enforcing the new law. This year, in an effort to resolve the situation, the Utah legislature has again introduced a similar bill H312, which in its initial version included all Park Trailers and retained many of the objectionable sections of the previous law. The Recreational Park Trailer Industry Association (RPTIA) wrote the bill’s sponsor to request relief for the Park Trailer industry based primarily upon the small size of both the manufacturer and the dealer, and the fact that such a buy-back could create an unrecoverable situation for manufacturers, causing them to bypass Utah as a market. The bill has since been amended, taking a more reasonable stance. However, according to RPTIA, many issues remain unclear and could be subject to an interpretation from the Utah Attorney General or the courts. The bill is now before the Governor awaiting his signature.

Selling Used Vehicles on the Internet...Texas Now Requires Licensing

Texas last month began licensing used vehicle Internet marketers as used car dealers. The effort is targeted towards all used vehicle referral services.

The Texas Motor Vehicle Division said it will enforce licensing on a spot basis by contacting used vehicle marketers through media and through the Internet. Businesses, including national offices doing business in Texas, can face penalties as high as $1,000 a day for noncompliance.

Licensees are required to operate during regular business hours, have an office. a phone, and a dealer bond of $25,000. The first license fee is $500, for subsequent years, $200.

Brett Bray, director of the Texas Motor Vehicle Division, said, "These services are matching buyers and sellers" just like a used vehicle dealer which requires a state license."

Andy Flues Passes Away

Andy Flues, 69, a long-time friend of the camping industry, died Sunday, March 23. Flues was associated many years with Apache folding camping trailers in sales and design. He and wife, Marilyn, founded Anderson’s Campground Directory in 1976.

Flues graduated from Yale University in 1951 and was a captain in Air Force intelligence from 1951 to 1954, specializing in gathering Soviet intelligence in Austria and Alaska. He was with the Air Technical Intelligence Center at Wright-Patterson Air Force Base and a principal investigator for Project Blue Book, which investigated and analyzed reports of unidentified flying objects.

After managing a family business in Chicago, he moved to Northern Virginia in 1965 and designed and marketed recreation vehicles. In 1976, he and his wife founded Campground Directories Inc. He wrote and published the annual Anderson’s Campground Directory. After he sold Campground Directories in 1991, he continued as a consultant in the industry and as president of Recreational Services, Inc.

Maine Introduces Warranty Reimbursement Legislation

According to RVDA, dealers in Maine are campaigning for legislation to impose "equitable reimbursement for parts and labor costs" spent doing required warranty work.

According to the bill introduced in the Maine Legislature, reimbursement for labor may not be less than the retail rate customarily charged by that dealer for the same labor when not performed to satisfy a warranty. To be entitled to reimbursement. a dealer must post the rate for labor not performed to satisfy a warranty in a place conspicuous to service customers.

RVDA stated that it supports fair and reasonable written sales agreements between dealers and manufacturers as the best means of assuring appropriate warranty reimbursement.

RV/MH Heritage Foundation Elects Board

The 1997 board of directors of the RV/MH Heritage Foundation was announced recently. Those elected to the executive committee included: chairman, Gene Stout, Coachmen Industries; vice chairman, Dennis Richey, Patriot Homes; secretary, Dave Cagley, Twin Mills Resort; Treasurer, Jerry Pickrell, LaSalle Bristol; and past chairman, Virgil Miller, Newmar Corp.

Other board members included: Dick Aker, Hart City RV Sales; Pete Callander, South Side Trailer Sales; Sherman Goldenberg, TL Enterprises; Jim Morgan, Owens Corning Fiberglass; Steve Purdy, R-Anell Homes; Bill Riblet, Lippert Components; Larry Ryan, Park Lawn Estates; Darryl Searer, Northwest Trailer Parts; Ron Shrum, Shrum’s Home Sweet Homes; Maggie Stephenson, Red Bud Estates; Guy Veni, The CIT Group; Director Emeritus: Carl Edwards, Verne Sailor.

Thieves in a Jamboree Motorhome Lead California Police on a Spirited Chase

Southern California commuters have seen their share of wild police pursuits, but the recent March 20 chase brought a new twist to the familiar plot — a band of motorhome thieves enjoying all the comforts of home while attempting to elude pursuing patrol cars along the highway as well as a little off-roading.

The motorhome speeding down the highway and maneuvering through tough terrain was a Fleetwood Jamboree Searcher. Newscasters reporting live during the chase commented on the motorhome’s impressive maneuverability and acceleration performance.

Andy Klein of Fleetwood RV Marketing said, "Apparently, newscasters were not the only people impressed by the Jamboree’s performance. Immediately after the chase, we’ve received a call from a prospective customer who also appreciated its pick-up and responsiveness."

Dave Wilbert, Motor Home Division Marketing Manager for Fleetwood RV, said, "No one likes to see dangerous police pursuits, but we were impressed with the Jamboree’s performance and speed on that kind of terrain. We’ve never quite put our motor homes to that kind of test, and recommend our customers not try it at home."

Coachmen Abandons Talks to Buy New England Homes

Coachmen Industries, Inc., says that discussions to buy New England Homes were being abandoned because a definitive agreement between the companies could not be reached.

Last month, Coachmen had said it reached an agreement in principle to buy New England Homes, a Greenland, NH-based modular home builder.

Winnebago Industries Reports $3.7 Million Loss in Second Quarter

Winnebago Industries, Inc., reported results for the second quarter and first six months of fiscal 1997. Revenues for the quarter ended March 1, 1997 were $105.7 million, with a net loss $3.7 million, or 15 cents a share. This compares to revenues of $106.2 million and net income of $2.2 million, or nine cents a share, for the same period last year.

For the first six month period of fiscal 1997, the Company reported revenues of $219.6 million with net income of $15.5 million, or 61 cents a share. This includes income of $16.5 million, or 65 cents per share, from the recent sale of the Company’s Cycle-Sat, Inc. subsidiary. In comparison, the Company had revenues of $219.9 million and net income of $5.2 million, or 21 cents a share, for the first six months of fiscal 1996.

At the board meeting held Thursday, March 20, 1997, the second of the Company’s semi-annual cash dividends for fiscal 1997 was de-clared. A cash dividend of ten cents a share will be paid to shareholders of record as of June 6, 1997 for payment on July 7, 1997.

The company also announced the addition of Bruce D. Hertzke and Richard C. Scott to Winne-bago Industries’ board of directors. The company’s Bylaws were amended at the meeting to increase the size of the board to ten members.

Connecticut Removes Travel Trailers From Lemon Law Bill

In its original form, Connecticut Senate Bill 606 included trailers under the types of vehicles subject to the state’s lemon laws. Recently, however, an amendment was offered which successfully excluded towables from the bill. Currently, no state includes RV trailers under its lemon laws. Connecticut became the first state to place motor homes under such law in 1982.

RV America Among Sponosrs of Johnson Racing Team

 

The 1997 Johnson Racing Team will campaign a UMP-AMRA Dirt Track Modified race car that will compete at numerous tracks in the Ohio -Kentucky-Indiana area, concentrating efforts at Eldora Speedway, Rossburg, OH.

When Eldora is not running, the team will race at Lawrenceburg Speedway, Lawrenceburg, IN; Florence Speedway, Florence, KY; K C Speed-way, Chillicothe, OH; Portsmouth Raceway Park, Portsmouth, OH; Muskingum County Speedway, Zanesville, OH; and Lima Land Speedway, Lima, OH.

The Johnson Racing Team includes driver, Ron Johnson; crew chief, Tony Mescher, and crew member Bob Buck, Bud Schloss, and Vaughn Pfeiffer of Norcold.

The Johnson Racing sponsors for 1997 include Atwood Mobile Products, Don Knasel Collision, Ed Weisz Racing, Ft. Loramie Engine Rebuilders, Generac Corp., Grieves Stump Re-moval, Hi Grade Oil Co., Hobart Brothers, Keller Marine & R V, Kamper Products, Mid West Products, Minster Supply Co., Norcold, Out West Drive Thru, Pro-Tec Tree Service, Protect-All, Inc., Reese Products, R V America On Line, Rose’s Amoco & Towing, Six Shooter Farm, Suburban Mfg. Co., and Three T’s RV Products.

Montana May Eliminate RV Code Program

Montana may become the latest state to drop state inspection standards, according to RVDA. Legislation to eliminate the state’s code program is under consideration in the Montana Legis-lature. If enacted, RV manufacturers who ship units to Montana would be required to build them according to standards set forth by the American National Standards Institute (ANSI).

RVIA Board Refuses Parity for Park Trailer Exhibitors

The Recreational Park Trailer Industry Association (RPTIA) once again took up the issue of show rules with RVIA’s board of directors. RPTIA asked if the RVIA’s National RV Trade Show, would allow the Park Trailer segment parity with the RVIA member manufacturers in the show space drawing procedure. All Park Trailer manufacturers are required to select space for their Park Trailers in the final drawing. RVIA’s board opted to not revise the current rules and procedures, and RPTIA’s request for parity was passed over.

RPTIA members hoped that the RVIA board would consider that the Park Trailer firms were, and have been exhibitors, and were RVIA members and contributors for many years before RVIA withdrew all rights of membership from the Park Trailer segment.

Old Timers Reunion

In March the RV/MH Old Timers Annual Reunion was held at Tampa, FL. Forty six veterans of the RV and MH industries came together to reminisce and enjoy a day together. Fifty-year veteran awards were presented to Harold Young, Forest Bourn, Paul Tweedy, and Gordon Collins.

Manufacturers Fight to Exempt Pomona Show From California Law

RV manufacturers are campaigning to exempt RVIA’s annual Pomona show from a new show rule put into place by dealers. The statutory restriction forbids dealers from participating in a show more than 50 miles from their dealership unless 10 or more dealers participate in the show. Cal RVDA, a dealer organization, fought and won legislation for show restrictions to help remedy the roving RV show problem in Califor-nia, have agreed not to oppose the bill but are monitoring it closely.

Rexhall Reports $64-million Fiscal 96 Sales

Rexhall Industries, Inc., announced that for the fiscal year ended Dec. 31, 1996, the company recorded revenues of $64,959,000, compared with fiscal 1995 revenues of $60,709,000, representing a 7 percent increase.

Net income for fiscal 1996 was $1,284,000, or 47 cents per share, compared with net income of $2,034,000, or 74 cents per share, for fiscal 1995.

Although Rexhall is encouraged by the overall increase in sales, adjustments to all finished goods and work in process, along with additional accruals for sales rebates, workers’ compensation, legal expense and warranties, led to a fourth-quarter loss of 18 cents per share.

Atlantic Mobilehome and RV Awards Trip to Disney World

Goofy (center) greets Ed (Randy’s RV, Raleigh, NC) and Janice Silvia who won the airfare for a trip to Walt Disney World in Orlando during a sales seminar hosted by Atlantic Mobilehome and RV Suppliers, Greensboro, NC. The two-day seminar was held in Myrtle Beach, SC, and was attended by RV dealers from North Carolina, South Carolina and Virginia.

Excel Industries Wins Toyota Award

Excel Industries, Inc. (NYSE:EXC) said its automotive systems business unit earned a certificate of achievement from Toyota Motor Manufacturing North America, Inc.

The recognition came at the automaker’s supplier business meeting and awards ceremony at Erlanger, KY in March. Awards are given annually for quality, on-time delivery and value improvement.

CTPA Elects Officers

Vince Huss, general manager of Camanche Recreation Area in Ione, CA, has been elected president of the California Travel Parks Associa-tion (CTPA).

Other officers elected include: first vice president, Bob MacKinnon, Disney’s Vacationland, Anaheim; second vice president, Sharan Wendel, Benbow Valley Resort, Garberville; secretary-treasurer, Duane Roemmich, Roemmich Accountancy, Walnut Creek; and past president, Scott Adams, Bodega Bay RV Park, Bodega Bay, CA.

JTJ Laminating Acquired by Euramax

JTJ Laminating, Inc., headquartered in Elkhart, IN, has been acquired by Norcross, GA based Euramax International plc.

JTJ is a supplier of laminated fiberglass products sold to the RV industry and employs approximately 100 people. JTJ was established ten years ago by Jerry Collins who will remain with the company as its vice president and general manager.

Euramax International pIc was established in 1996 through a $245-million management buy out of certain Alumax Inc. fabricated products businesses. With 30 facilities in the United States and Western Europe, Euramax provides fabricated aluminum, steel, vinyl and fiberglass products to a variety of customers, including RV manufacturers, home centers, distributors, producers of manufactured housing and rural building contractors.

Deutsche Financial Services Acquire Ganis

Deutsche Financial Services has reached agreement with BankBoston to acquire Ganis Credit Corporation (Ganis). Ganis is a provider of retail financing to the RV industry.

WDA Plans Summer Conference in Tennessee

WDA - The RV Aftermarket Association’s 6th Annual Summer Education Conference will be held at the Holiday Inn Nashville-Brentwood in Brentwood, TN, June 4 - 7. The meeting will include a New Product Showcase on June 5.

During the conference, registrants will have the opportunity to visit Saturn’s 4.3 million-square-foot manufacturing and assembly complex. In addition to seeing how Saturn makes its cars, Saturn will present programs to attendees such as how to understand as many of the supportive elements in the before, during and after processes, customer approach, cultural change/ empowerment, leadership development, just-in-time inventory, training, team-building methods, human resources and self-managed teams.

WDA cautions that space is limited. Regis-tration will be handled on a first-come, first-served basis. The Summer Conference cost is $475 per member and $1,180 per non-member.

For more information on registering for the Summer Education Conference or exhibiting at the New Product Showcase, please contact WDA at 312/553-0300 Fax: 312/201-0214

Draw-tite Launches Ambitious Retail Merchandising Program

Draw-Tite, Inc., has launched an ambitious retail merchandising program aimed at helping traditional trailer hitch dealers capture a more significant portion of the nearly $1 billion towing systems market and offering new opportunities for auto parts, hardware and sporting goods retailers.

Roger L. Wilson, vice president sales and marketing, said "Trailer hitch dealers and installers have traditionally missed a major part of a sale by not actively offering towing accessories to those customers who are already in their shops, having hitches installed on their vehicles. We have to let consumers know that the things they need are available right then, right there.

"Accessories now account for 53 percent of the towing systems dollar sales. As things now stand, dealers and installers sell only a small share of towing accessories. We’re in the process of turning that around. It makes sense to sell and install hitches and towing accessories at the same place and time."

Point of sale merchandising aids is one of the services Draw-Tite offers its customers.

Rich Tupper of Layton Truck Equipment, Colorado Springs, CO, a Draw-Tite customer said, "We doubled our towing accessories business immediately because of our display. This is good, cheap advertising, and it shows our customers what’s already in the back, that we can install right on the spot."

Morgan Group Posts 1996 Financial Results

The Morgan Group, Inc., announced results for its year ended December 31, 1996 including special charges taken in connection with the closing of unprofitable operations, and the authorization by its board to buy back an additional 100,000 shares of Class "A" Common Stock in the open market.

For the year ended December 31, 1996, operating revenues rose 8.1% to $132.2 million, up from $122.3 million last year. Sales in the Manufactured Housing Group increased 15%, outpacing 1996 national production growth of 9% and Driver Outsourcing divisional revenues grew by a satisfactory 16%. Partially offsetting this performance, however, was a decline of 11% in the Truckaway line of business which moves automotive and recreational products on company-owned trailers. This cyclical and capital intensive business, which is part of the Specialized Delivery segment, sustained operating losses of approximately $1.8 million pretax in 1996.

Foremost Announces Impact of Litigation Developments on 1996 Results

Foremost Corp. of America announced the establishment of a reserve affecting the company’s 1996 results. The accrual reduces 1996 net income from $2.65 per share, as announced on February 4, 1997, to $2.39 per share. The re-serve was established following a recent ruling by the Supreme Court of Alabama and as a result of the expected settlement of more than 30 Alabama lawsuits against the company.

Both the Alabama Supreme Court ruling and the settlements, which resulted in the inclusion of the reserve in the 1996 financial statements, were developments which occurred prior to finalization of the company’s 1996 financial statements, but after preliminary release of its 1996 results on February 4, 1997.

Monaco Files For Follow-On Public Offering

Monaco Coach Corp announced the filing of a Registration Statement with the Securities and Exchange Commission relating to a proposed public offering of 2,100,000 shares of Common Stock. Of the 2,100,000 shares, 800,000 shares are being offered by the company and 1,300,000 shares are being offered by certain stockholders. Net proceeds to the company from the offering will be used for repayment of debt, working capital, general corporate purposes and potential acquisitions. The offering is being underwritten by Smith Barney Inc., William Blair & Co., L.L.C. and A.G. Edwards & Sons, Inc.

Proposed Restrictions At Shows in Texas Exempts RVs

Texas is looking to impose restrictions on show sales for motor vehicles other than motorhomes and towables. According to the bill, a licensee may, not sell or offer for sale a new motor vehicle at a show. however, this "does not prohibit the sale of a towable RV or motor home at a show if the show or exhibition is approved by the Commission."

New York Re-Introduces MSRP Sticker Bill

Similar to last year’s bill, both Assemblv Bill 4104 and Senate Bill 2551 would require new RVs to display the manufacturer’s suggested retail price (MSRP) sticker. The bill was introduced at the request of a dealer in 1996. The bill, however, never made it out of committee due to the lack of support.

American RV & Marine No. 58 in New Mexico Private 100

American RV & Marine moved up one notch over last year to the 58th position in the New Mexico Business Journal’s "The New Mexico Private 100" listings, a ranking of the top private companies with annual earnings above $5 million and employing 25 or more.

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