RV Industry Distress - not just WRV

[Dale777]

Check out these links below, before jumping from an Alpine Coach to some other brand. ALL the RV manufacturers are in distress. Until the current shakeout is over, I personally would not want to switch to any other brand; that could be "jumping from the frying pan into the fire."

If anyone knows for sure which manufacturer is financially sound, with deep pockets for the long haul, let me know. I'm interested to know.

Comments?

RVIA shipment info up through 2006:
http://www.rvia.org/AM/Template.cfm?...torical_Glance

RVIA shipment info for 1st quarter of 2008:
http://www.rvia.org/Content/NavigationMenu/MarketDataTr.../Page3-March2008.pdf

Stock prices (awful) for Coachmen, Winnebago, and Fleetwood:
http://moneycentral.msn.com/investor/charts/chartdl.asp...ACOA&nocookie=1&SZ=0

National RV official bankruptcy response (at least they tell their customers something!):
http://www.nationalrv.com/chapter_11_faq.html#2

Travel Supreme assets acquired by Jayco:
http://www.rvtravel.com/blog/rvnow/2008/04/new-rv-compa...s-from-ashes-of.html

Jayco responds to Travel Supreme owner requests (no warranty work, no formal support, etc):
http://escapees.infopop.cc/eve/forum...1/m/1311005803

Alpha Leisure closes its doors:
http://www.rvtradedigest.com/web/online/Industry-Busine...-Closes-Doors/1$3603
http://www.rvnewsservice.com/alfa-le...alls-it-quits/

Thor America closes Middleburg plant:
http://www.highbeam.com/doc/1G1-131599558.html

Remember the 1970s RV downturn:
"RV production fell by about 70 percent in the 1970s, and nearly half of all manufacturers closed, according to the January 9, 1991, Los Angeles Times."

[ClarkBowen]

Good point about jumping ship. Seldom a wise idea in a bad market. This is when dealers will try to steal them (so would I if I hadn't already bought one) for the eventual turnaround.
As for financial soundness, check the publicly owned RV manufacturers. Their bond rating and actual bond selling prices will give you an example of their strength. Look for possible downgrades, negative "creditwatch" or bonds that are trading at a much greater discount than their rating and maturity warrant. Not foolproof, but it does give you an idea what the pros think.

Clark Bowen

[Renipladlo]

And much earlier this year, Country Coach laid off workers, and recently all workers were reduced in pay 10 percent, and management took a 25% pay reduction. Our government leaders are unable to buck big oil, and solve this problem with high prices, and it is going to ruin the economy for years to come. Watch the airline industry go out of business, AA announced the first bag is now going to cost 25 dollars, and has reduced flights, laid of personnel, etc. We don't eat out as much, keep the motorhome full, and the car, prices change daily. Fridays close on oil was 132.xx a barrel.

[Rick M]

Originally posted by Dale Dowdy:

If anyone knows for sure which manufacturer is financially sound, with deep pockets for the long haul, let me know. I'm interested to know.

Comments?

Dale

I would like to know also. Monaco (MNC) is still producing lots of RVs when I was there a week ago. They have 4-5 times long term debt to cash - if sales continue to fall that debt will 'eat them up'.
If Speculators continue to drive up oil to $200 - then all bets are off. So far at least 4 airlines have gone under but if trucking goes under = we will be in BIG Trouble.
If the USA allowed serious building of our own reserves (drilling & refining) - the speculators would lose big time and gas would fall under $3 gal.. But environmentalists won't allow that.

[EngineerMike]

Winnebago to shutter class-C factory in Charles City, Iowa due to slow sales.

[EngineerMike]

Dan Gamel's 6 RV outlets in northern California to shutter according to Sacramento Bee article.

[Renipladlo]

Monaco has announced a layoff today which could be as high as 40% of the current workforce. Those layoffs will take place on the 9th of July. Employees are being contacted now concerning if they need to report or not to their job.

The woes continue, and if things don't stop going up, my prediction is a very deepppppppp recession, or mild depression starting now. The price of oil topped 143 a barrel today before falling back to a little over 140. The DOW has lost 1200 points in the last month. Banks are indicating that the second half of the year won't be any better than the last half, GM, Ford and Chrysler have reported terrible sales, and todays closing price for: F=4.70; GM=11.75. Toyota is also going to report a loss of sales, Honda is the only car company expected to report an increase, albeit a small one.

My guess is we will also lose at least one more RV manufacturer, if not a couple of more, because business is just not happening for them. As previous post have said many RV dealerships will/are scaling back, and or closing for good.

Glad I don't have kids or grandkids, because their might not be anything for them.

My soluision is to not purchase anything made in China, let their economy tank, oh well. As it stands now if it's made in the Good ole US of A, that is where I'm spending my money. If RV business moves to mexico, again, I'm keeping my greenbacks for companies who keep their business here and build here. A new Toad might be my only exception, a Honda CR-V, and Japan is one of our strongest allies so that is good for both of our countries.

[Dale777]

Fleetwood and Coachman appear to be very weak RV makers at this point. There are a number of business articles in which this point is made most recently by the WSJ:

"Fleetwood and Coachman Industries Inc., an RV competitor, are facing serious cash crunches and taking drastic measures to ease the strain. While Coachman is borrowing against the value of life insurance policies held on employees and retirees, Fleetwood sold its California corporate campus in an effort to raise $100 million to finance a looming bond redemption."
Reference: http://online.wsj.com/article/SB1214...googlenews_wsj

Although Fleetwood posted positive net earnings in the most recent quarter, those earnings were only after adding in the gain from sale of their corporate real estate. Otherwise they would have posted a loss. The $100 million bond redemption is due at the end of this year.

See this article:
http://www.rvinews.com/News/tabid/16941/articleType/Art...ous-cash-crunch.aspx

[takepride]

Now Newmar, too.

[Barbaraok]

Tiffin also laid off about 100 employees last week.

Sign of the times.

Barb

[MonacoMama]

Originally posted by Renipladlo: Monaco has announced a layoff today which could be as high as 40% of the current workforce. *Those layoffs will take place on the 9th of July. *Employees are being contacted now concerning if they need to report or not to their job.

Renipladlo...I have searched high and low yesterday and today looking for this news release...and I can't find a thing. Can you please tell me where you found this information? I am one who likes to read things thoroughly. *Please share your secret source! MM

[Dale777]

See this link for the latest news about the pending closure of Country Coach and the distress of Monaco:

RV Industry News

Sorry, for the redundancy, but I had trouble with the URL.

[Dale777]

See the link ( Country Coach news ) for the latest news on Country Coach. They have been sued by Wells Fargo for payment of an $8 million debt, and they have asked that a recevier be appointed for the company.

[bigfish]

Excerpt from a AP report

By TOM COYNE , 02.02.09, 05:32 PM EST

Elkhart County, already saddled with Indiana's highest unemployment rate of 15.3 percent in December because of layoffs in the recreational vehicle industry, got more bad news Monday when two RV makers announced another 600 workers will lose their jobs.

(edited for copyright requirements)

BTF
05 40FDQS