Spartan Addresses Future of RV Chassis Group

[Cruzer]

Just read the following on the RVbusiness.com website. I hope I'm not reading anything between the lines here that ain't there.



RV Business
Tuesday, October 14, 2008

Although Spartan Chassis Inc. employees were applauded by the U.S. military Tuesday (Oct. 14) for their work on the Mine Resistant Ambush Protected (MRAP) Joint Program, officials for the Charlotte, Mich.-based company also acknowledged that its motorhome chassis business was challenged.

WILX, Lansing, reported that John Sztykiel, president and CEO of Spartan Motors, noted, "There have been some temporary layoffs and there will probably be some full-time. It's been extremely difficult for us."

Spartan Chassis, a subsidiary of Spartan Motors Inc., is the North American leader in MRAP vehicle production and it supplies more than 20 different, threat-specific MRAPs for the military.

While that's been profitable, other divisions aren't doing as well.

"Our RV division, on the other hand, is a challenge," explained Sztykiel. "If it's big, people are reluctant to buy it or drive it."

Though the future of Spartan Motors is unclear, the company said there will always be a need for its emergency response vehicles.

"Once every 1.4 seconds, there is a call for help so, I tell you, emergency rescue – that business is great," Sztykiel says. "And it will continue to be great."

And despite dark economic times, Sztykiel says Spartan's future is still bright.

"The vehicles will change, or will go to other countries, but all that you see here is not going to stop," he says. "We're going to produce something else."

Sztykiel says Spartan has defense contracts in the works, and that the company is doing all it can to survive.

[Cruzer]

Just read the following on the RVbusiness.com website. I hope I'm not reading anything between the lines here that ain't there.



RV Business
Tuesday, October 14, 2008

Although Spartan Chassis Inc. employees were applauded by the U.S. military Tuesday (Oct. 14) for their work on the Mine Resistant Ambush Protected (MRAP) Joint Program, officials for the Charlotte, Mich.-based company also acknowledged that its motorhome chassis business was challenged.

WILX, Lansing, reported that John Sztykiel, president and CEO of Spartan Motors, noted, "There have been some temporary layoffs and there will probably be some full-time. It's been extremely difficult for us."

Spartan Chassis, a subsidiary of Spartan Motors Inc., is the North American leader in MRAP vehicle production and it supplies more than 20 different, threat-specific MRAPs for the military.

While that's been profitable, other divisions aren't doing as well.

"Our RV division, on the other hand, is a challenge," explained Sztykiel. "If it's big, people are reluctant to buy it or drive it."

Though the future of Spartan Motors is unclear, the company said there will always be a need for its emergency response vehicles.

"Once every 1.4 seconds, there is a call for help so, I tell you, emergency rescue – that business is great," Sztykiel says. "And it will continue to be great."

And despite dark economic times, Sztykiel says Spartan's future is still bright.

"The vehicles will change, or will go to other countries, but all that you see here is not going to stop," he says. "We're going to produce something else."

Sztykiel says Spartan has defense contracts in the works, and that the company is doing all it can to survive.

[Route 66]

I recall reading somewhere recently that Spartan did not get a current defense contract renewed.

[bcbounders]

Let's hope the motorhome industry manages to stay afloat and keep buying chassis (how the heck do you pluralize the word "chassis"?!?! ). It would be a shame to see them leave the market!!! Anyone know if there's anything (other than rumor) about whether or not Spartan will continue to produce MH chassis?

[Cruzer]

Their president only said that things will change. He didn't say how or what. I certainly hope they keeping cranking them out. I sure love my Spartan chassis and their ain't no way I'm ever going back to a Freightliner again.

[bcbounders]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Cruzer:
Their president only said that things will change. He didn't say how or what. I certainly hope they keeping cranking them out. I sure love my Spartan chassis and their ain't no way I'm ever going back to a Freightliner again. </div></BLOCKQUOTE>
I'm right with ya, Cruzer. After our last (Freightliner-chassis'ed) coach, I'd never go back. LOVE, LOVE, LOVE my Spartan chassis!

Let's hope that Spartan is reading this forum!

[moisheh]

One can hardly blame Spartan for doing some navel gazing. MH sales are down about 60%. I assume that chassis sales mimic the MH sales. How do you justify keeping the chassis division running? Unit costs must be higher due to slower production. There is also the problem of getting paid by the MH mfrs. What would Spartan do if one of their major MH mfrs. went under? That occurence is very likely. Some tough decisions for Spartan.

[bcbounders]

Moisheh,

I certainly don't blame Spartan for considering the market and trying to determine whether or not it makes financial sense for them to continue. So far, Spartan has lost Travel Supreme, which made 7 models on Spartan chassis (although Entegra Coach, the new Jayco division that bought TS's assets, is using the Spartan chassis for one of the two models they are producing) and Tiffin has begun producing their own chassis (the PowerGlide chassis which appears to be an intriguing blend of the Spartan and Western RV/Alpine Coach chassis). Adding that to the industry-wide slow-down, and I'm sure the Motorhome division at Spartan is looking painfully red.

I'm just hoping that, through all of this, Spartan finds a way to continue making the product... especially since Fleetwood (Revolution LE), American Coach (all 4 models on Spartan), Tiffin (5 models offered on Spartan), Entegra Coach (1 model on Spartan), and Newmar (all 7 DP models on Spartan) are relying on them to do so. Forcing these manufacturers to re-tool and shift to the Freightliner chassis could be the final nail in one of their coffins, too.