INDUSTRY NEWS
October 1998

 

General Motors Confirms Pending Sale of P-Chassis Business

As RV News reported last month, the rumors of a pending sale of General Motors' chassis business has been confirmed by GM. The company that will acquire this portion of the GM chassis business is 100-year-old Union City Body Co. (UCBC) of Union City, IN, a company that builds delivery trucks for companies such as UPS, Federal Express and Frito-Lay.

In September GM announced to employees and key stakeholders that it will discontinue the manufacture of its motorhome and commercial chassis (P-chassis) products. GM has signed a letter of intent with UCBC, to sell all related P-chassis assets. GM plans to cease chassis production at its Detroit Assembly Plant by the end of 1998. Chassis production at the Detroit plant will not be consolidated to GM's Flint, MI, truck assembly p1ant as previously announced.

Upon closing of the transaction UCBC will acquire all P-chassis assets. UCBC will produce its own versions of motorhome and commercial chassis products. The transaction is expected to be completed in the fourth quarter of 1998 with production to begin by UCBC in the first quarter of 1999.

 

RVIA Rejects WDA Proposal for Merger But Leaves Door Open for Further Discussions

WDA -- the RV Aftermarket Association's proposal for a merger with RVIA was turned down by the RVIA board of directors at its meeting in September. WDA had submitted a multi-point proposal for the merger to RVIA and the first item was that RVIA establish a new board seat specifically for warehouse distributors. According to Mac Bryan, RVIA vice president, administration, that turned out to be the "deal buster" and the other points were not discussed in detail.

Bryan told RV News, "The board felt as if maybe discussing a board seat was getting the cart before the horse. The discussion by the board was very positive; however, before committing to a board seat, RVIA feels that it needs to make sure that it can effectively represent warehouse distributors and better understand the needs of distributors."

He also noted that traditionally it takes a while before RVIA designates a board seat for any industry segment that RVIA represents. He said that RVIA represented van conversion manufacturers for a period of time before a board seat was established for van converters.

Bryan said that RVIA's board has left the door open for further discussions and offered a counter proposal to establish a committee to continue dialog with distributors.

Other items in the WDA proposal included a special dues structure for distributors, transferring administrative responsibility to RVIA for WDA's annual executive conference and summer educational conference, a moritorium on initiation fees for current WDA members who join RVIA and establishing a definition of a distributor to be exerpted from WDA's current by-laws.

At presstime, RV News was unable to reach WDA president Stan Sunshine for comment on RVIA's action.

Jayco's Bontrager Elected RVIA Chairman

Wilbur Bontrager, CEO of Jayco, Inc., was elected chairman of the Recreation Vehicle Industry Association (RVIA) at the board meeting held in September. Bontrager succeeds Kelly Rose, president of Starcraft Automotive, who has served for the past two years. Bontrager's term is for two years and he took office on October 1.

Other offices elected include Walter Bennett, Thor Industries, Inc., who was elected first vice chairman; Claire Skinner, CEO of Coachmen Industries, Inc., was elected second vice chairman. Carl Pfalzgraf, Atwood Mobile Products, was elected to the position of treasurer and Bruce Hertzke, CEO of Winnebago Industries, Inc., is secretary.

The officers make up the RVIA executive committee that also includes Rose, as immediate past chairman.

In the election results for board of directors all incumbents were re-elected and two vacant seats were filled. Greg Fore, Dicor, was elected to a supplier seat, and Dick Parks, senior vice president of the RV Group at Fleetwood, was elected to an "at large" vacancy.

Jim Sheldon Named President of Monaco

James V. Sheldon has been named president of Monaco Coach Corporation (Nasdaq: MCCO). Sheldon was formerly the company's chief operating officer in Indiana and president of the Holiday Rambler Division. With over 27 years of industry experience, Sheldon is well prepared for his new assignment, according to Kay Toolson, chairman and chief executive officer. As a result of this change, the office of Holiday Rambler Division president has been discontinued.

Toolson continued, "Jim Sheldon has a vast knowledge of the RV industry and has played an important part in our company's recent success. We're confident that Monaco Coach Corporation will benefit as a result of his new role as company president."

In other management changes at Monaco, Page Robertson will enter partial retirement, stepping down from his position as Monaco Coach Division president. He will continue to work as a special assistant to Kay Toolson, and will lend his extensive industry experience to the company's McKenzie Towables Division. Additionally, Monaco Coach Corporation senior vice president Ray Mehaffey will join Robertson in partial retirement, also working as a special assistant to Kay Toolson.

Toolson said, "Both Page Robertson and Ray Mehaffey have been an essential part of the growth and success of our company. Even after stepping back from day to day involvement, they will continue to lend their expertise to our organization and will participate on several projects on an ongoing basis."

Market Outperforms RVIA Forecast On Pace to Reach 287,000 Units in 1998

The current booming RV business is better than RVIA's economic consultant John W. DeWolf predicted in his earlier forecast this year. He said, "In the last issue of RV Roadsigns (DeWolf's quarterly newsletter for RVIA members), we said we can't expect shipments to continue at the first quarter's annual rate of 285,000 units. But they did in the 2nd quarter, and it now looks like they will be above 285,000 in both the 3rd and 4th quarters. At 287,000 units, 1998 would be the best year since 1978."

In his latest forecast DeWolf sees modest gains continuing for several years, with a gain of nearly 8,000 units in 1999, and even bigger gains the following year.

According to DeWolf, towables will account for well over half the gain in shipments in 1998. He said, "We now see shipment of towables gaining almost 14% for the year, to 227,100. Conventional travel trailers, up nearly 21%, will surpass all other RV types in their gain. Motorhomes will be up 8%, with Type A up 6.6% and Type C up better than 15%. Looking ahead to 1999, towables should continue to gain nearly 4%, while motorhomes gain at a slower rate."

Fleetwood Enterprises Increases Buyback

Fleetwood Enterprises, Inc., said in September that its board of directors has approved an increase in its stock buyback plan by two million shares.

The authorization is in addition to 1.5 million shares remaining under an existing buyback plan which the company reactivated at the end of August.

RV America Reaches New Milestone in Internet Visitors

In August 1998, RV America On Line® went over the 125,000 visitors per month mark, setting a new high for this RV industry web hosting service company. RV America On Line® is a service of Web Site Management, Inc. (WSM) and counts hits as unique individuals who visit the site one or more times during a month. Dan Holt, CEO of WSM said, "RV America continues to attract ever-larger numbers of people interested in the RV lifestyle and our promotion efforts are paying off for our clients."

Holt also pointed out that these hits only reflect hits recorded on the RV America site, which is a hub for more than 60 other domain name sites that WSM hosts. He said, "If we added the hits by these other sites, the number is well over 200,000. For example, SMC Corporation recorded 8,227 hits in August and Holiday RV Superstores had 10,024 hits.

Keller RV and Marine Prepares for
40th Annual Dealer Show

Keller RV and Marine will hold its 40th annual dealer show October 27 - 28, 1998, at the Radison Penn Harris Inn and Convention Center in Camp Hill, PA.

The show will feature an all-day seminar on Generac generators the first day, along with dealer specials and door prizes for all that attend, according to Jonas Lantz, marketing director for Keller RV and Marine.

Keller was the first distributor, in either the marine or RV industries, to hold a dealer show. The show has increased in size from three manufacturer-suppliers exhibiting at the first show to more than 200 expected this year.

Lazy Days RV SuperCenter Sets Single-Day Delivery Record Exceeding 5.6 Million Dollars

Lazy Days RV SuperCenter continues it's unprecedented growth by setting new industry sales and delivery records. On Friday, July 31, Lazy Days delivered 89 recreational vehicles for a single-day sales total exceeding 5.6 million dollars.

Don Wallace, president of Lazy Days RV SuperCenter, said, "This amazing accomplishment is a testimonial to each and every Lazy Days employee who is dedicated to our Customer for Life philosophy.

"With the tremendous sales growth experienced during the first seven months of the year and the anticipated future market expansion, Lazy Days is initiating a $12 million expansion program designed to enhance the entire sales, service, and delivery process for our customers."

Duncan's Motor and Trailer Sales Wins National Customer Satisfaction Award

Duncan's Motor and Trailer Sales Inc. in Akron, OH, was recently awarded first place honors nationwide for outstanding customer service by Coachmen Recreational Vehicle Company.

Mike Turlip, president of Coachmen RV, said, "This award is prestigious since it is determined solely by the results of three surveys sent to customers at intervals after they have purchased and used their RVs. It is a reflection of how well a dealer does business on a day-to-day basis."

Located in Akron for over 43 years, Duncan's is family owned and operated. The company has carried a full line of Coachmen products for 30 years and is the third oldest Coachmen dealership in the United States.

Winnebago to Open Cabinet Component Plant

Winnebago Industries, Inc., has decided to open a 50,000 square foot facility in Charles City, IA to manufacture cabinet components.

The company said plans call for the building and equipment to be in place and operational by January 1, 1999 with more than 100 employees at the facility within a year.

Winnebago said the decision was due to high demand for its motorhomes and a tight labor market. Charles City is about 60 miles from its Forest City headquarters and has a slightly higher unemployment rate. The company said it has also purchased the assets of the Charles City location of North East Machine and Tool Co., doing business as North East Valve.

Joan McKinnon Retires from Tekonsha

Joan McKinnonJoan McKinnon (right), general manager of Tekonsha Engineering, has retired. McKinnon, who has been with Tekonsha for more than 23 years will continue to work until early October.

Bob Lewis, formerly a division and group controller at Tekonsha's former parent company Echlin, Inc., will become Tekosha's new general manager.

In addition, RV News has learned that Vern Freeze, special accounts manager for Tekonsha, has also retired.

Coast to Assume Exclusive Marketing Responsibilities for Faulkner® Awnings

The Coast Distribution System has entered into a joint agreement with the RV Products Division of AIRXCEL, Inc., and JIL Industries to exclusively market Faulkner® brand awnings and accessories.

Under terms of the agreement, Coast will purchase Faulkner awning products from JIL Industries, which, in turn, has acquired the assets of AIRXCEL's Maiden, MA, Faulkner manufacturing facility.

Mel Adams, president & CEO, AIRXCEL, Inc., said, "The awning market has continued to change for a number of years with the majority of our sales turning to the aftermarket through Coast Distribution. As a result of these market changes, we decided to deliver control of the brand to Coast -- a joint move that makes the most sense for everyone involved."

JIL Industries, which had been purchasing awnings from Faulkner and had utilized a significant portion of RV Products' awning production, was willing to take over the Massachusetts facility to continue producing their brand of awnings for the residential market, as well as the Faulkner brand of RV awnings for Coast.

Tim McGuire, chairman & CEO, Coast Distribution System, said "Although we've enjoyed an excellent relationship with AIRXCEL, the exclusive rights to market the Faulkner brand product on a direct basis was an attractive arrangement. We're confident that JIL Industries will carry on the high production standards set by a proven-quality manufacturing team."

Ford Builds 100,00th Super Duty F-series Class A Motorhome Chassis

Ford Motor Company produced its 100,000 Super Duty F-Series Class A Motorhome Chassis on July 30. The unit, a 20,500-pound GVWR/208-inch wheelbase chassis, was ordered by Holiday Rambler Corporation.

Ford began production of the Super Duty F-Series Class A motorhome chassis in May 1989. Since that time, the chassis has undergone two major product enhancements, including the introduction of the 1999 Super Duty chassis in January of this year

The Super Duty F-Series chassis has been the best-selling Class A motorhome chassis since the 1996 calendar year. In 1997, it achieved 40.5% share of the Class A chassis segment. With the introduction of the 1999-model chassis, Ford's share has further increased.

Production of the Ford Super Duty chassis has been at record levels in each of the last three quarters, starting with the fourth quarter of 1997. Calendar year production in 1998 is expected to exceed 21,000 units - more than 3,000 units (17%) above the previous record set in 1996.

The Super Duty F-Series chassis is built at the IMMSA plant in Monterrey, Mexico.

Coho '98 Celebrates 30th Anniversary in Traverse City, Michigan

Coho '98, one of the most unique events in the RV and manufactured housing industries, celebrated it's 30th anniversary in September. What started out as a way for Barker Manufacturing and Stromberg Carlson to say thank you to eight of their best customers by inviting them for a Coho salmon fishing trip in 1968 has turned into tradition.

Jack Budrow, vice president of Barker, and Mike Walters, general manager, were the only two who were also was at the first event. Over the years the outing has evolved to more of golfers than fishermen, although invited guests can still fish on chartered fishing boats if they desire.

Despite the recent Northwest Airlines strike that played havoc with people's travel plans, 130 guests traveled from across the U.S and Canada to Traverse City for this milestone event.

Coho is sponsored by Barker Manufacturing, H&H Braund, Stromberg-Carlson, Tekonsha Engineering, Bargman, Marshall Brass, Marshall Gas Controls and Thetford/Norcold.

RVDA to Present Sales Seminar at Louisville

Well-known automotive sales consultant, Gary Tilkin, will present "Communication and Credibility: Selling to Today's RV Buyer", on Monday, November 30 from 3-6pm at the Executive West Hotel in Louisville, KY. The seminar will be held the day before the National RV Trade Show in Louisville, which begins the first of December.

Sponsored by the RVDA Education Foundation, this three-hour seminar, designed especially for RV dealers and their managers, will detail proven sales strategies that focus on customer needs and take the emphasis off price -- leading to higher grosses and happier customers.

Tilkin is founder of Gary Tilkin and Associates, providing on-site customized training programs and consulting services in the areas of sales, management, leasing and F&I. Tilkin also was an associate director for a large multi-dealer group.

The seminar begins at 3 pm. Members can register in advance for $55 ($80 on-site). Nonmember registration fees are $80 advance ($125 on-site). For complete registration information call the RVDA at 703-591-7130.

SilverLeaf Electronics Develops Digital Display Support for Cummins Engines

SilverLeaf Electronics, manufacturer of VMSII MultiCenterelectronic dash display has unveiled its latest version which supports electronic engines built by Cummins Engine Co. SilverLeaf previously introduced the electronic dash display for Caterpillar engines.

Martin Perlot, president of SilverLeaf Elec-tronics said, "Virtually every new diesel pusher now has an electronic engine, and we have developed the only product that supports both Cat and Cummins, and the only product designed specifically for RVers."

Perlot, who started SilverLeaf Electronics more than a year ago, believes this new product puts the company in a great position for growth in the RV market.



Eight Inducted into RV-MH Hall of Fame

p35a.gif (71006 bytes)RV-MH Hall of Fame Inductees, Class of 1998 ­ (l-r) Derrick Crandall, president and CEO of American Recreation Coalition (ARC); Virgil Miller representing Mahlon A. Miller, Newmar; John R. "Bob" Riblet, Riblet Products; Ralph Scoular, Iseman Corp. Richard "Dick" Matz, Norcold,; Myron Curtis, Curtis Trailers ; John Wick, Wick Building Systems

The RV and manufactured housing industries turned out in droves recently to honor the Class of 1998 inductees into the RV-MH Heritage Foundation's Hall of Fame. RV/MH chairman Gene Stout, Coachmen Indus-tries, welcomed the more than 350 guests who came from all across the country for the ceremony. He said, "We are honored that you have joined us this evening to celebrate the induction of this year's class into the Hall Of Fame ­ the twenty-sixth anniversary celebration. From a small beginning, over a quarter of a century ago, the RV/MH Heritage Foundation has grown to a national organization representing members from all over the country. We are proud of the museum and the library and our nearly two hundred members of the Hall Of Fame. The support of the Manufactured Housing Insti-tute, the Recreational Vehicle Industry Association, the Recreational Vehicle Dealers Association along with many company and individual sponsors, gives us a solid foundation for the Heritage Foundation."

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