Workhorse Buys Monaco Coach!

[Explore America]

As has been reported earlier today, a unit of Navistar International has signed a "definitive" deal to purchase all brands, intellectual property, inventories, equipment, and factories in Oregon and Indiana relating to Monaco’s recreational vehicle operations for $52 million. Not surprisingly, the unit that bought those assets was Workhorse International Holding Co. See article here.

It will be interesting to see how Workhorse will integrate the two chassis manufacturers into Monaco's brand lineup. Will we now see more of Workhorse's FRED in Monacos, and possibly other MaxxForce diesels in Roadmaster Chassis? So far, the MaxxForce is the only diesel powerplant which apparently will not require a separate Urea tank and added DEF (Diesel Exhaust Fluid) chemicals in order to comply with the stricter 2010 diesel emission requirements. Both Cummins and Mercedes/Detroit Diesel will. It would also appear that Workhorse has a "built-in" customer for their gas chassis lineups, including quite possibly the return of the UFO chassis in Monacos? I guess we will just have to wait and see!


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[BigSkyBob]

Excellent news for us "orphans".
UPDATE: Navistar buys Monaco for $52 million, will keep brand active > RVeNEWS

[Fred and Bonnie]

I read the article and Monaco's CEO, Kay Toolson, gives the impression the new company will continue to produce Monaco Motorhomes.

The current Monaco stockholders are SOL.

Sure would be nice to be a "Fly on the wall" in Navistar meetings and really know what the plans are.

[Full-Timers]

Workhorse Buys Monaco Coach!
Ha, you had me going there for a minute. I thought you were serious.
Navistar, who also owns Workhorse, Buys Monaco. Monaco and Workhorse are still two completely different companies.

[EngineerMike]

Doesn't say anything about unsecured creditors holding warranty claims. Acquisition of brands, inventory, intellectual property... sounds like a straight asset sale, not per se sale of the company which would include liabilities also.

[Explore America]

Quote:

Originally Posted by Full-Timers Workhorse Buys Monaco Coach! Ha, you had me going there for a minute. I thought you were serious. Navistar, who also owns Workhorse, Buys Monaco. Monaco and Workhorse are still two completely different companies.

O.K. Maybe a little play on words. And yes, to my knowledge, Workhorse Custom Chassis and Workhorse International Holding Corporation are separate companies. For that matter, Monaco's purchase agreement is actually not directly with Navistar either. But, in any case, both are ultimately subsidiaries of Navistar.

Notwithstanding, just as Navistar has integrated its corporate subsidary's components and technology into Workhorse Chassis(that is WCC), such as MaxxForce diesel powerplants, not to mention numerous components of the UFO chassis which were apparently taken directly from International Trucks, so too it wouldn't surprise me that some of these same technologies if you will, will make their way into Monaco coaches. In fact, Jack Allen, president of Navistar’s North American Truck Group, was quoted not too long ago in RV Business, “If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse Custom Chassis business.” Again, I guess we will have to wait and see.

Hopefully, I didn't manage to confuse too many people?

[jurzbill]

This is the key sentence for share holders.
Monaco cautions that it presently appears there will be no proceeds ultimately available to the company from this transaction and other potential asset sales sufficient, after payments to creditors, to result in any distribution to the shareholders of Monaco.
Current share holders will be out of luck. Unfortunately, the share holders are the last ones to get any piece of the pie.
Once all debt is taken care of, nomally, the share holder gets nothing.
Been there with several companies.

[Rocky 2]

Quote:

Originally Posted by jurzbill This is the key sentence for share holders. Current share holders will be out of luck. Unfortunately, the share holders are the last ones to get any piece of the pie. Once all debt is taken care of, nomally, the share holder gets nothing. Been there with several companies.

Isn't that the way it is supposed to work? Shareholders are owners of the company and are responsible for the debts of the company.

[DriVer]

Quote:

Originally Posted by Explore America .... not to mention numerous components of the UFO chassis which were apparently taken directly from International Trucks

Explore America, The information that you are bringing to the table is interesting however the UFO was on the market before Navistar bought WCC and it was in development for several years prior to the release of the product. If you look at a Spartan Chassis or a FRED you can see similar components however neither FCCC or Spartan have a position with Navistar or ITE.

What is in common among the 3 OEs are Hendrickson components and I believe that's where the similarities stop. The RV business is indeed small and several OEs share technology resources and suppliers. I was surpised and not aware that ITE was providing numerous components other than engines to WCC.

Navistar does indeed have outstanding IT (CAD/CAM, etc.) resources and I expect those are being shared.

I would like to know which components are you aware of that were given to WCC by ITE that contribute to the UFO platform?

[TandW]

B-I-L is now looking to sell his "orphan" "HR".

[abarkl]

I'm getting more and more concerned regarding the resale value of my gasser when I'm ready to upgrade to a DP. Not only is it a WH, but it's also a HR!

[DriVer]

Quote:

Originally Posted by abarkl Not only is it a WH, but it's also a HR!

abarkl, As of right now using the NADA for the following vehicles .....

2005, Holiday Rambler, Admiral SE M37PBD-37 w/ 25,000 miles
Average Retail:

Ford: 63,808
Workhorse: $66,033

Comparing apples to apples, the value of your Workhorse is more than the competitive chassis.

Now that said, the value for any used motorhome at this point is going to be very fluid and variable depending on the deal, dealer, and physical location.

[Explore America]

Quote:

Originally Posted by DriVer Explore America, The information that you are bringing to the table is interesting however the UFO was on the market before Navistar bought WCC and it was in development for several years prior to the release of the product. If you look at a Spartan Chassis or a FRED you can see similar components however neither FCCC or Spartan have a position with Navistar or ITE. What is in common among the 3 OEs are Hendrickson components and I believe that's where the similarities stop. The RV business is indeed small and several OEs share technology resources and suppliers. I was surpised and not aware that ITE was providing numerous components other than engines to WCC. Navistar does indeed have outstanding IT (CAD/CAM, etc.) resources and I expect those are being shared. I would like to know which components are you aware of that were given to WCC by ITE that contribute to the UFO platform?

Driver, actually the acquisition of Workhorse Custom Chassis by International Truck and Engine Corp, was completed in July 2005(see press release). The UFO chassis was still under development, and it was not until the Summer of 2006 that the first prototype UFO built coach, the Forest River Georgetown 359 UFO made its' debut. I believe both you and I drove that specific UFO coach for the first time at the PA RV Show in the fall of 2006, and I was among that very first group.

I was told directly by a WCC factory rep. at a subsequent FMCA convention, and I'm sure you would either know or have met him, that the design of the UFO's suspension and braking setup, as well as, the Torque-Box was taken directly from International Trucks. Granted, the components are not all exclusive to International Trucks and that is not actually what I was referring to in the post. As you know, many companies will use the same component parts, but their design applications can be quite unique.

I've spoken to many coach builders and chassis makers about the design and engineering aspect of their products, especially when issues appear among owners in various forums. I've actually found them to be more than willing to discuss these issues. Maybe it has to do with a natural curiosity of how things work, or more likely that my background was originally as an AE engineer. In any case, I can only go by what I'm told is accurate. As they say, it comes directly for the horse's mouth, in this case Workhorse!
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[-Gramps-]

I love it when things move in the right direction! We are getting closer to having a one shop manufacturer folks.