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Old 02-08-2007, 01:51 AM   #1
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Monaco Coach Corporation Signs Definitive Agreement with International Truck and Engine Corporation for Chassis Manufacturing Joint Venture

COBURG, Ore., Jan. 25, 2007 -- Monaco Coach Corporation , one of the nation's leading manufacturers of recreational vehicles, today announced it has signed a definitive agreement to form a joint venture with International Truck and Engine Corporation to manufacture rear engine diesel chassis.

Under the joint venture agreement, Monaco Coach Corporation and International will own 49 percent and 51 percent, respectively, of the newly formed company called Custom Chassis Products, LLC. Initial plans call for the joint venture to manufacture more than 5,000 diesel chassis in the first year.

"The opportunity to team up our best-in-class chassis with the resources of International Truck and Engine will allow Monaco Coach to fine tune what we are already building and grow our business with additional one-of-a-kind chassis designs," said Kay Toolson, Chairman and CEO of Monaco Coach Corporation.

Tom Cellitti, Vice President and General Manager of Medium Vehicle Center for International Truck and Engine, stated, "This exciting development further strengthens International's commitment and capabilities within the RV market. The acquisition of Workhorse in late 2005, coupled with this announcement, positions the company as a true full line supplier of chassis to the RV market."

The transaction, which will be subject to customary closing conditions, is expected to close in February, and will be immediately accretive to Monaco Coach Corporation. The joint venture will begin production in February, and Monaco Coach Corporation will lease its 210,000 square foot Roadmaster chassis plant, located in Elkhart, Ind. to the joint venture.

About International Truck and Engine Corporation
International Truck and Engine Corporation produces IC brand school buses, school bus chassis, mid-range diesel engines, International brand medium and heavy trucks, and severe service vehicles. International also provides parts and service sold under the International(R) brand. International is a subsidiary of Navistar International Corporation . For additional information call Roy Wiley 630-753-2627.

About Monaco Coach Corporation
Dedicated to quality and service, Monaco Coach Corporation is one of the nation's leading manufacturers of motorized and towable recreational vehicles. Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach employs approximately 6,000 people. The Company offers entry-level priced towable RVs up to custom made luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, R-Vision and Dodge brand names. Monaco Coach maintains RV service centers in Harrisburg, Ore., Elkhart, Ind., and Wildwood, Fla.

Ranked as the number one manufacturer of diesel powered motorhomes, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests. Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC," and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit Monaco Online.com or [www.trail-lite.com]Trail Lite.com[/url].

The statements above regarding Monaco Coach Corporation's expectations with regard to the joint venture, including the anticipated closing and commencement of production, production expectations, and the immediate accretive nature of the transaction to Monaco Coach Corporation, are forward- looking statements subject to various risks and uncertainties that could cause actual results to differ materially from these statements, including failure of the joint venture to achieve anticipated production volumes and/or cost savings and failure of the parties to satisfy one or more closing conditions and to close the transaction.
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Old 02-08-2007, 01:51 AM   #2
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Monaco Coach Corporation Signs Definitive Agreement with International Truck and Engine Corporation for Chassis Manufacturing Joint Venture

COBURG, Ore., Jan. 25, 2007 -- Monaco Coach Corporation , one of the nation's leading manufacturers of recreational vehicles, today announced it has signed a definitive agreement to form a joint venture with International Truck and Engine Corporation to manufacture rear engine diesel chassis.

Under the joint venture agreement, Monaco Coach Corporation and International will own 49 percent and 51 percent, respectively, of the newly formed company called Custom Chassis Products, LLC. Initial plans call for the joint venture to manufacture more than 5,000 diesel chassis in the first year.

"The opportunity to team up our best-in-class chassis with the resources of International Truck and Engine will allow Monaco Coach to fine tune what we are already building and grow our business with additional one-of-a-kind chassis designs," said Kay Toolson, Chairman and CEO of Monaco Coach Corporation.

Tom Cellitti, Vice President and General Manager of Medium Vehicle Center for International Truck and Engine, stated, "This exciting development further strengthens International's commitment and capabilities within the RV market. The acquisition of Workhorse in late 2005, coupled with this announcement, positions the company as a true full line supplier of chassis to the RV market."

The transaction, which will be subject to customary closing conditions, is expected to close in February, and will be immediately accretive to Monaco Coach Corporation. The joint venture will begin production in February, and Monaco Coach Corporation will lease its 210,000 square foot Roadmaster chassis plant, located in Elkhart, Ind. to the joint venture.

About International Truck and Engine Corporation
International Truck and Engine Corporation produces IC brand school buses, school bus chassis, mid-range diesel engines, International brand medium and heavy trucks, and severe service vehicles. International also provides parts and service sold under the International(R) brand. International is a subsidiary of Navistar International Corporation . For additional information call Roy Wiley 630-753-2627.

About Monaco Coach Corporation
Dedicated to quality and service, Monaco Coach Corporation is one of the nation's leading manufacturers of motorized and towable recreational vehicles. Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach employs approximately 6,000 people. The Company offers entry-level priced towable RVs up to custom made luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, R-Vision and Dodge brand names. Monaco Coach maintains RV service centers in Harrisburg, Ore., Elkhart, Ind., and Wildwood, Fla.

Ranked as the number one manufacturer of diesel powered motorhomes, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests. Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC," and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit Monaco Online.com or [www.trail-lite.com]Trail Lite.com[/url].

The statements above regarding Monaco Coach Corporation's expectations with regard to the joint venture, including the anticipated closing and commencement of production, production expectations, and the immediate accretive nature of the transaction to Monaco Coach Corporation, are forward- looking statements subject to various risks and uncertainties that could cause actual results to differ materially from these statements, including failure of the joint venture to achieve anticipated production volumes and/or cost savings and failure of the parties to satisfy one or more closing conditions and to close the transaction.
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Old 02-08-2007, 04:17 AM   #3
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Seems to me that this will have long term ramifications for the RV industry. Will probably begin to see Roadmaster-like chassis under coaches other than the Monaco family and maybe International or Navistar engines in some Monaco coaches. Maybe some technology sharing with Workhorse too. Should be good news all around, with more/better chassis choices.
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Old 02-08-2007, 07:31 AM   #4
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It seems to me the biggy's are positioning themselves to increase profits from the ever growing RV industry. Hopefully it will drive the chassis builders towards better design and reliabilty, and better service on the road.
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Old 02-19-2007, 06:00 PM   #5
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Jestme13:
It seems to me the biggy's are positioning themselves to increase profits from the ever growing RV industry. Hopefully it will drive the chassis builders towards better design and reliabilty, and better service on the road. </div></BLOCKQUOTE>

You are probably right about their positioning for profits, but I don't hold out much hope for your second statement. These types of ventures are generally orchestrated by the bean counters and they don't give much thought to reliability and service.
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Old 02-20-2007, 02:37 AM   #6
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I think you guys are forgetting one thing and are selling yourselves short. What happened to some body building a better mouse trap? Doesn't that have any meaning any more?

Before contemplating an ulterior motive, would not this new venture deserve the benefit of the doubt or innocent until proven guilty?

The Workhorse R-Series design is a good one and it's something that a great number of people have come to appreciate. Powered by the C7 and Allison World 3000 transmission, CCP products will compete well within their GVW range.

The International Truck and Engine service infrastructure can provide more than adequate service for the product. The rub if you will is allocating dedicated space in service centers to service motorhomes. We do not drive trucks and as such they have to be sensitive to that.

Give it a half of a chance to succeed and I'm sure you will see how well it does. They're talking in the PR about 5,000 units per year - that's going to be a lot of these things on the road and soon.
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Old 02-20-2007, 09:23 AM   #7
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">What happened to some body building a better mouse trap? Doesn't that have any meaning any more? </div></BLOCKQUOTE>

Yes, but....

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Before contemplating an ulterior motive, would not this new venture deserve the benefit of the doubt or innocent until proven guilty? </div></BLOCKQUOTE>

...the motive for joint ventures, mergers, strategic alliances, etc..etc..has always been and will always be profits. Now that doesn't mean we don't get a better product or service, but don't be hoodwinked into believing they are doing it for our benefit.
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Old 02-20-2007, 04:10 PM   #8
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Right on Teach. Another synic like me
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Old 02-27-2007, 04:07 PM   #9
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[QUOTE]Originally posted by DriVer:
The Workhorse R-Series design is a good one and it's something that a great number of people have come to appreciate. Powered by the C7 and Allison World 3000 transmission, CCP products will compete well within their GVW range.

I did not know that the Workhorse R-series was powered by a C7 Cat
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Old 02-27-2007, 05:14 PM   #10
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by sixpk2g0:
I did not know that the Workhorse R-series was powered by a C7 Cat </div></BLOCKQUOTE>See the Press Release I posted quite some time ago.
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Old 02-28-2007, 05:18 PM   #11
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Press releases are all nice and flowery, but lets have the sales numbers. Who is selling Class A MHs on a Workhorse R chassis and how many are they selling and what portion of the total market does that represent?

Winnie used it in 2004 and dropped it. I haven't seen too many more since then.

We might also see the Roadmaster chassis or a variation thereon marketed by WCC.
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Old 03-01-2007, 10:28 AM   #12
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by dleslie125: </div></BLOCKQUOTE>Don, I don't have any idea about flowers but the release said that the plant is committed to building 5,000 units in the first year. Some of that allocation will go to WCC and the others will be used by Monaco & HR.
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Old 03-01-2007, 02:31 PM   #13
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by DriVer:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by dleslie125: </div></BLOCKQUOTE>Don, I don't have any idea about flowers but the release said that the plant is committed to building 5,000 units in the first year. Some of that allocation will go to WCC and the others will be used by Monaco & HR. </div></BLOCKQUOTE>

Clearly, you missed my point. My comment related to your enthusiasm for the WCC R Chassis. Where does it say that the joint effort will be producing 5,000 of the R chassis? I'd not be at all surprised to find that these 5000 are the curreent RM chassis models with normal year to year enhancements (and who knows - maybe some International diesel engines in the future).

My comments related to the R chassis that has, IMO (as I've said to you at least twice over the past couple of years) been a business failure for WCC (I know that in the rating you hold up two cards - one with a 6 and the other a 0 for technical merit

Again, how many manufacturers are using the R chassis and what is the volume? When Winnie used it in 2004, the end result was a fire sale by most dealers to get rid of them.

Do I think this marriage might produce some interesting products up the road? Yes.

Don
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Old 03-01-2007, 04:02 PM   #14
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by dleslie125:
Do I think this marriage might produce some interesting products up the road? Yes. </div></BLOCKQUOTE>Don, I think you got something there. I'm going to try to find out more info about the new CCP chassis. It was my understanding that the R-Series would be the the choice for a chassis. I'm still thinking that the R has all the right stuff and it could be the chassis that they are going to build on.

Gulfstream Crescendo is currently using the R-Series and I have also seen a number of R-Series Presidio at RV shows. I am not privileged to sales figures so I can't answer that question.
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