Friday, July 04, 2008

 

CATERPILLAR NOT MAKING ENGINES FOR HIGHWAY TRUCKS OR RV'S AFTER 2010

Cat And Navistar To Focus On Global Truck Business And Cooperate On Engine Technologies
Caterpillar Inc. (NYSE: CAT) and Navistar International Corporation (Other OTC: NAVZ) have signed a Memorandum of Understanding (MOU) to pursue global on-highway truck business opportunities and cooperate on a variety of engine platforms. The two companies intend to focus on global truck opportunities, including North American severe service construction trucks, as well as technology development for engines worldwide.
"We are pleased to be matching the formidable talents and technology leadership of two industry leaders to serve an expanding base of engine, truck and equipment customers worldwide," said Jim Owens, Caterpillar Chairman and Chief Executive Officer. "As the world leader in construction equipment and diesel engines, Caterpillar is now positioning itself for growth in the on-highway truck market. This is an important step for Caterpillar and we look forward to working with Navistar for the continued benefit of our customers."
"This relationship is a perfect example of Navistar's strategy of growth through leveraging our own assets and those that others have built," said Daniel C. Ustian, Navistar Chairman, President and CEO. "In partnership with Caterpillar we intend to extend our leading-edge product focus that we have in North America into the rest of the world."
Through this alliance, Caterpillar plans to target a 2010 introduction of a North American Cat branded heavy-duty truck for severe service applications, such as road construction, large infrastructure projects and oil and petroleum development. Concurrent with this new strategic direction, Caterpillar has determined independently that it will not supply EPA 2010 compliant engines to truck and other on-highway original equipment manufacturers (OEMs).
"Caterpillar and our dealers will continue to provide product support and service beyond 2010 for all Caterpillar on-highway engines regardless of truck brand," said Douglas R. Oberhelman, Caterpillar Group President. "This new truck—targeted for 2010—will incorporate the legendary quality of Caterpillar's construction and mining machines and provide construction customers a one-stop solution. In addition, with nearly 90 percent of our engine business being off-highway, we'll continue to concentrate on our substantial and growing opportunities to supply engines in the petroleum, marine, electric power generation and industrial markets—as well as produce engines for our own construction and mining equipment."
The companies have commissioned teams to focus on the truck and engine opportunities. The initiatives contemplated by the MOU are subject to completion of due diligence, execution of definitive agreements and regulatory approvals.
Global Truck Collaboration
The companies intend to work together to develop, manufacture and distribute commercial trucks in select regions outside of North America. The product offering would include a full line of medium and heavy-duty trucks in both conventional and cab over designs.
"The combination of Navistar's truck design, development and manufacturing expertise and Caterpillar's unparalleled worldwide distribution creates a significant advantage for global customers through the ability to offer the right vehicle for the right application through more than 4,700 points of distribution around the world," said Dee Kapur, President, Navistar Truck Group. "The North American Caterpillar distribution system provides expanded reach for severe service trucks with big bore power, a segment where Navistar has traditionally not been as focused."
"This is a natural extension of Caterpillar's more than 40 years serving on-highway customers with proven, award winning technology—combined with unsurpassed global distribution and product support," said George Taylor, Director of Caterpillar On-Highway Engines.
In addition to the United States and Canada, Navistar has a substantial distribution network in Mexico and Latin America. Caterpillar currently sells on-highway truck engines in Australia and New Zealand, Mexico and throughout Latin America, as well as in the United Kingdom, Belgium, Russia, China and South Africa.
Engine Technology
Under the alliance, Caterpillar and Navistar plan to cooperate on engine development, incorporating "best in class" technologies from both companies. Caterpillar and Navistar intend to work together on development of mid-range engines for diesel applications, such as school buses and utility trucks. This engine development would support each company's stated path not to utilize urea-based Selective Catalytic Reduction (SCR) technology.
"There are many opportunities for technology sharing and development that would result in the ability to better meet the worldwide demand for diesel engines in both on and off-highway applications," said Jack Allen, President, Navistar Engine Group.
"In the past 15 years, Cat has become significantly less dependent on the sale of on-highway truck engines in the total contribution of our global engine profitability," said Oberhelman. "Our global power systems business has grown significantly—in fact we supply approximately 400,000 diesel engines annually outside of the on-highway truck market. We intend to remain the world leader in clean diesel engines, and this collaboration is a key enabler."

Thursday, July 03, 2008

 

CDC FIINDS SOURCE OF FORMALDEHYDE IN FEMA TRAILERS

RV Business
Thursday, July 3, 2008

Particleboard appears to be one of the main sources of potentially harmful fumes in government-issued travel trailers that have housed thousands of Gulf Coast storm victims, according to a study released Wednesday (July 2).

The report issued by the U.S. Centers for Disease Control and Prevention (CDC) in Atlanta recommends using different building materials to produce emergency housing for the Federal Emergency Management Agency (FEMA).

According to the Associated Press, better ventilation in the units also could make them safer, the CDC said. The tests looked at formaldehyde emissions in the walls, floors, ceilings, tables and cabinets in four FEMA trailers that weren't occupied by hurricane victims.

Formaldehyde, a preservative commonly used in construction materials, can cause breathing problems.

Scientists speculate that formaldehyde levels in FEMA travel trailers were higher than in mobile homes because the former contain more composite wood products, such as particleboard, in a smaller space with poorer ventilation.

In a previous study, CDC scientists tested air quality inside hundreds of FEMA trailers and mobile homes occupied by victims of Hurricane Katrina in 2005, and detected higher levels of formaldehyde in many units that may affect people more susceptible to the fumes.

The latest tests were performed by California's Lawrence Berkeley National Laboratories to narrow down which components were emitting fumes.

Michael McGeehin, director of the CDC's division of environmental health hazards, said the report's findings only apply to FEMA trailers that sheltered Gulf Coast storm victims.

"They do not apply to other trailers in use elsewhere in the country," he said in a statement.

The amount of formaldehyde emitted by each trailer part didn't exceed limits set by the U.S. Department of Housing and Urban and Development (HUD), the CDC said. However, McGeehin said those HUD standards were meant to be applied to larger mobile homes.

The CDC studied four trailers made by different Indiana companies: Gulf Stream Coach Inc., Nappanee; Thor Industries Inc., Jackson Center, Ohio; and Coachmen Industries Inc. and Pilgrim International Inc. of Middlebury.

The companies are slated to appear before the House Committee On Oversight and Government Reform on July 9.

Wednesday, July 02, 2008

 

CAMPING WORLD ACQUIRES MOTURIS RV RENTALS

RV TRADE DIGEST
(July 2, 2008) -- Largest RV and outdoor retailer acquires third-largest RV rental company.
Camping World/FreedomRoads, the largest RV and outdoor retailer, announces its acquisition of Moturis RV Rentals. This comes on the heels of Camping World/FreedomRoads recent decision to enter the RV rental market. Moturis will officially change its name to Camping World RV Rental in the United States but will continue to operate as Moturis RV Rentals and Camping World in the international market.

Moturis RV Rentals will maintain its international sales and marketing office in Switzerland, its U.S. staff and its procedures and products. Moturis will move its operations in Denver and Los Angeles immediately to larger locations.

The opportunity with Camping World’s resources will renew Moturis' fleet quicker, extend the number of rental locations, grow the overall number of rental vehicles and add some features for 2009. The program, prices and conditions for summer 2009 will become available by mid-August 2008.

Information on updated transfer lists and directions to new locations will be posted at www.momomi.com.

 

COACHMAN LAYS OFF SOME SALARIED STAFF

By Greg Gerber @ 2:05 PM :: :: 0 Comments :: :: Manufacturing News
MIDDLEBURY, Ind. -- Coachmen Industries laid off a number of workers Tuesday, including several long-term sales representatives, RV Industry News has learned.

Thomas Gehl, corporate secretary and director of investor relations, said that less than a dozen salaried employees were laid off in recent days as part of a companywide consolidation plan to improve efficiency.

However, starting Thursday, the entire company will be shut down for two weeks instead of the one-week closure the firm usually announces in conjunction with the Independence Day holiday. Several salaried employees who provide support services to the manufacturing plants will also be impacted by the two-week shutdown.

Sources contacting RV Industry News said a "considerable" number of salaried workers including sales managers and sales staff had been terminated. One source close to the company who knew people that were terminated said the lay offs affected several long-term veterans within the company.

But, Gehl said he spoke with Mike Terlep, president of Coachmen RV Company, who assured him that less than a dozen positions were eliminated.

"It appears the company is going back to the sales structure it had in place in the 1980s," one source said. "Each remaining sales rep will now handle all three brands -- Coachmen, Sportscoach and Georgie Boy."

Gehl said he didn't have any information about the consolidation within the RV division's sales structure.

RV INDUSTRY NEWS

 

DUTCHMAN TRIMMING WORKFORCE

RV Business
Wednesday, July 2, 2008

Goshen, Ind.-based towable builder Dutchmen Manufacturing Inc. has joined the list of Elkhart County RV firms extending down times and cutting back its work force.

According to Fox 28, Elkhart, the Thor Industries Inc. subsidiary laid off over 75 people from their plants across Indiana last week and they are not sure when or if it will be calling those employees back to work.

Dutchmen is also taking a two-and-a-half week shut down this year instead of a normal one-week shutdown.

A spokesperson for the company told Fox 28 that the cutbacks are due to the poor economy and high gas prices that led to lower sales.

The news comes on the heels of a cutback at Newmar Corp., which could affect around 40% of the work force.

According to a report in the Goshen News, Newmar currently employs 780 people. Keith Weirich, director of human resources, said that most of the lost jobs will come from the production lines.

The cuts are "related to the slowdown in the economy, and the lack of demand for RV products," Weirich said. Newmar builds Class A motorhomes and fifth-wheel trailers at its factility in Nappanee.

Although the layoffs are unfortunate, they are not surprising, said Nappanee Mayor Larry Thompson.

"With the current times and high prices of fuel," he guessed it was "probably going to happen," but that it's "not necessarily a long-term thing.

"I think all of Elkhart County is being affected pretty heavily with this. Hopefully by the end of the summer, the politicians can get their heads together and resolve this."

Newmar is one of Nappanee's largest employers, Thompson said, so it's a big deal anytime the company make layoffs.

"It's not unusual for this time of year for some of these plants to close for a week or two weeks," he said, but "a layoff is defintely unfortunate."

Keeping the current situation in perspective is important, Thompson said.

"I think you have to look at it over a 10-year span, and life's been pretty good," he said. "From time to time, over a span of years, undoubtedly it's going to happen. Hopefully we can weather the storm."

 

RECALL: ATWOOD WATER HEATERS (2008 MODELS): LEAKING GAS VALVES

Make / Models : Model/Build Years:
ATWOOD / 94180 9999
ATWOOD / 94186 9999
ATWOOD / 96110 9999
ATWOOD / 96117 9999
ATWOOD / 96202 9999
Manufacturer : ATWOOD MOBILE PRODUCTS Mfr's Report Date : JUN 16, 2008
NHTSA CAMPAIGN ID Number : 08E040000 NHTSA Action Number: N/A
Component: EQUIPMENT
Potential Number Of Units Affected : 1731
Summary:
ATWOOD IS RECALLING 1,731 WATER HEATERS, MODELS 96202, 96117, 96110, 94186, AND 94180, MANUFACTURED BETWEEN MAY 20 AND JUNE 9, 2008, INSTALLED AS ORIGINAL EQUIPMENT IN VARIOUS RECREATIONAL VEHICLES AND SOLD AS AFTERMARKET OR REPLACEMENT EQUIPMENT. THE WATER HEATERS WERE PRODUCED WITH GAS VALES THAT CAN LEAK INTERNALLY.
Consequence:
A GAS LEAK IN THE GAS VALVE COULD CAUSE A FIRE IN THE PRESENCE OF AN IGNITION SOURCE. ADDITIONALLY, IF CONDITIONS WERE SUCH THAT LEAKING PROPANE COULD BUILD, TRAPPED IN THE ENCLOSURE OR FIND ITS WAY INTO THE CABIN, ANY IGNITION SOURCE COULD CAUSE AN EXPLOSION.
Remedy:
ATWOOD IS WORKING WITH THE VEHICLE MANUFACTURERS TO NOTIFY OWNERS. THE REMEDY IS TO REPLACE THE COMPLETE WATER HEATER OR IN THOSE INSTANCES WHERE THE WATER HEATER IS INSTALLED IN A RECREATIONAL VEHICLE, THE VALVE WILL BE REPLACED FREE OF CHARGE. EACH VEHICLE MANUFACTURER WILL SUBMIT A DEFECT REPORT AND FILE A REMEDY PLAN. THE RECALL IS EXPECTED TO BEGIN DURING JUNE 2008. OWNERS SHOULD CONTACT THEIR VEHICLE MANUFACTURER FOR MORE INFORMATION. IF YOU HAVE PURCHASED A WATER HEATER AS REPLACEMENT EQUIPMENT, YOU SHOULD CONTACT ATWOOD AT 1-574-266-4826.
Notes:
CUSTOMERS MAY CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY: 1-800-424-9153); OR GO TO HTTP://WWW.SAFERCAR.GOV.

Tuesday, July 01, 2008

 

DREW INDUSTRIES ACQUIRES ANOTHER COMPANY

WHITE PLAINS, N.Y., July 1 /PRNewswire-FirstCall/ -- Drew Industries Incorporated (NYSE: DW - News) today reported that its wholly owned subsidiary, Lippert Components, Inc. ("LCI"), completed the previously announced acquisition of the assets and business of Goshen, Indiana-based Seating Technology, Inc. and its affiliated companies ("Seating Technology"). The purchase price of $28.4 million was funded from available cash.

Seating Technology manufactures a wide variety of products primarily for towable RVs, including folding sofas for toy hauler RVs, a full line of upholstered furniture, mattresses, decorative pillows, wood-backed valences and quilted soft good products. This acquisition adds an entirely new product line for Drew.

Seating Technology's sales for 2007 were approximately $40 million, reflecting significant growth from its $11 million in sales in 2003. "We look to Seating Technology to continue to gain market share, despite the difficult conditions in the RV industry," said Leigh J. Abrams, Drew's CEO. Drew expects the acquisition of Seating Technology to be immediately accretive to earnings.

Rick Finnigan, majority owner of the Seating Technology companies, entered into a three-year consulting contract, while Joel DeVries, Vice President of Seating Technology entered into a three-year employment contract. DeVries will be responsible for Seating Technology's day-to-day operations, and will report to Jason Lippert, LCI's President and CEO.

"With these new product lines, we expect to leverage our extensive marketing and distribution capabilities to our existing customers, many of whom Seating Technology does not presently sell to," said Jason Lippert. "Seating Technology currently operates from five factories, which LCI has leased, and is currently solely a Midwest supplier to the towable RV industry. LCI will determine the viability of using its nationwide factory network to expand the territorial reach of Seating Technology's manufacturing and marketing capabilities. In addition, we also plan to explore other markets, such as RV motorhomes, and the manufactured housing and marine industries, in which Seating Technology products may have a potential market."

Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes, including windows, doors, chassis, chassis parts, bath and shower units, axles, and upholstered furniture. In addition, Drew manufactures slide-out mechanisms for RVs, and trailers primarily for hauling boats.

 

REDUCTIONS AT CARRIAGE

By Greg Gerber @ 11:57 AM :: :: 0 Comments :: :: Manufacturing News
MILLERSBURG, Ind. -- Carriage, Inc., will consolidate production lines in September as the company takes advantages of new efficiencies built into its main production building, the company confirmed today.

In light of news that Newmar would lay off a significant portion of its production staff, RV Industry News had received a tip that Carriage would be laying off staff as well.

That's true to a point, said Don Emahiser, vice president of sales and marketing. "It's all part of our big master plan," he explained. "It's been our objective all along to build everything in our main production building because it is, by far, our most efficient production center."

When the building opened almost 18 months ago, the company could only build six units a day in the facility. Yet, company officials believed the capacity to be around 12 units per day. Over time, production managers have been able to increase production to eight units per day, but could not add the Domani line to the product mix due to its complexity, Emahiser said.

So, for model year 2009, the company dropped its full-size Carriage product in order to replace it with the Domani. Once production of the Domani is transferred to the main production building in September, the original Domani line will be closed with may result in some layoffs.

"Yes, we will be laying off some workers, but it's not quite for the same reasons other companies in the industry are laying off staff," said Emahiser. "We just completed our 11th record month in a row and retail sales are at a record high for us as well."

SOURCE: RV Industry News

Monday, June 30, 2008

 

RECALL: COACHMAN: DOMETIC REFRIGERATORS

Make / Models : Model/Build Years:
COACHMEN / ADRENALINE 2007-2008
COACHMEN / AURORA 2004-2007
COACHMEN / CAPRI 2004-2007
COACHMEN / CAPRI MICRO 2007
COACHMEN / CAPTIVA 2004-2007
COACHMEN / CASCADE 2004-2006
COACHMEN / CATALINA 2004-2005
COACHMEN / CHAPARRAL 2004-2007
COACHMEN / CHEYENNE 2004
COACHMEN / CONCORD 2004-2007
COACHMEN / CROSS COUNTRY 2004-2007
COACHMEN / EPIC 2006-2007
COACHMEN / FREEDOM 2004-2008
COACHMEN / FREELANDER 2004-2008
COACHMEN / GRAND HAVEN 2007
COACHMEN / LEPRECHAUN-MM 2004-2007
COACHMEN / MIRADA 2004-2007
COACHMEN / MIRADA LIBERTY EDITION 2004
COACHMEN / OASIS 2004
COACHMEN / RENDEZVOUS 2004
COACHMEN / REVERE 2004
COACHMEN / ROADMASTER-MM 2004
COACHMEN / SOMERSET DREAMCATCHER 2003-2004
COACHMEN / SPORTCOACH ENCORE 2005-2007
COACHMEN / SPORTSCOACH LEGEND 2004-2005
COACHMEN / SPORTSCOACH PATHFINDER 2007
COACHMEN / VELOCITY 2006
COACHMEN / WYOMING 2007
GEORGIE BOY / BELLAGIO MH 2005
GEORGIE BOY / CRUISE AIR XL 2005-2006
GEORGIE BOY / CRUISE MASTER 2005-2006
GEORGIE BOY / LANDAU 2005-2007
GEORGIE BOY / MAVERICK 2006-2008
GEORGIE BOY / PURSUIT 2005-2007
GEORGIE BOY / PURSUIT-MH 2006
Manufacturer : COACHMEN RV COMPANY, LLC Mfr's Report Date : JUN 23, 2008
NHTSA CAMPAIGN ID Number : 08V279000 NHTSA Action Number: N/A
Component: EQUIPMENT:RECREATIONAL VEHICLE
Potential Number Of Units Affected : 37293
Summary:
COACHMEN IS RECALLING 37,293 MOTORHOMES AND FIFTH WHEEL TRAVEL TRAILERS EQUIPPED WITH A TWO-DOOR REFRIGERATOR MANUFACTURED BY THE DOMETIC CORPORATION. THE REFRIGERATOR MAY HAVE A DEFECT IN THE BOILER TUBE. PRESSURIZED COOLANT SOLUTION COULD BE RELEASED INTO AN AREA WHERE AN IGNITION SOURCE (GAS FLAME) IS PRESENT.
Consequence:
EXTENDED OPERATION OF A LEAKING COOLING UNIT COULD LEAD TO A FIRE FROM GAS WHICH MIGHT ESCAPE.
Remedy:
COACHMEN IS WORKING WITH DOMETIC IN ORDER TO REPAIR THESE REFRIGERATORS (PLEASE SEE 06E076). DOMETIC WILL REPAIR THESE REFRIGERATORS BY INSTALLING A SECONDARY BURN HOUSING, A THERMAL FUSE, AND A MELT FUSE FREE OF CHARGE. DOMETIC HAS RETAINED STERICYCLE INC. TO MANAGE THIS CAMPAIGN. STERICYCLE WILL ASSIST THE OWNER IN LOCATING DEALERSHIPS OR SERVICE CENTERS AND WILL PROVIDE ASSISTANCE WITH SCHEDULING OF APPOINTMENTS. OWNERS MAY CONTACT DOMETIC/STERICYCLE AT 1-888-446-5157 OR COACHMEN AT 574-825-5821.
Notes:
CUSTOMERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV.

 

RECALL: 2008/2009 HOLIDAY RAMBLER TRAILERS (TIRE INFLATION TAG)

Make / Models : Model/Build Years:
HOLIDAY RAMBLER / ALUMASCAPE 2009
HOLIDAY RAMBLER / PRESIDENTIAL 2009
Manufacturer : MONACO COACH CORPORATION Mfr's Report Date : JUN 19, 2008
NHTSA CAMPAIGN ID Number : 08V273000 NHTSA Action Number: N/A
Component: EQUIPMENT:OTHER:LABELS
Potential Number Of Units Affected : 22
Summary:
MONACO IS RECALLING 22 MY 2009 ALUMASCAPE FIFTH WHEEL, ALUMASCAPE SUITE AND PRESIDENTIAL TRAVEL TRAILERS. THESE TRAILERS FAIL TO COMPLY WITH THE REQUIREMENTS OF FEDERAL MOTOR VEHICLE SAFETY STANDARD NO. 120, "TIRE SELECTION AND RIMS FOR MOTOR VEHICLES OTHER THAN PASSENGER CARS." WHEN TIRES WERE CHANGED ON THESE VEHICLES, THE FEDERAL IDENTIFICATION LABEL WAS PRINTED WITH INCORRECT INFORMATION. THE TIRE INFLATION IS LISTED AS 80 PSI WHEN THE CORRECT PRESSURE SHOULD BE 65 PSI.
Consequence:
OVER INFLATED TIRES COULD CAUSE OR CONTRIBUTE TO PREMATURE TIRE FAILURE; POSSIBLY RESULTING IN A SUDDEN BLOWOUT OR OTHER FAILURE WHICH COULD RESULT IN A LOSS OF CONTROL OF THE UNIT INCREASING THE RISK OF A CRASH.
Remedy:
DEALERS WILL MAIL CONSUMERS THE CORRECTED LABELS ALONG WITH INSTRUCTIONS. CUSTOMERS WILL HAVE THE OPTION FOR DEALERS TO INSTALL THE LABEL FREE OF CHARGE. THE RECALL IS EXPECTED TO BEGIN DURING JUNE 2008. OWNERS MAY CONTACT MONACO AT 1-800-685-6545.
Notes:
CUSTOMERS MAY ALSO CONTACT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION'S VEHICLE SAFETY HOTLINE AT 1-888-327-4236 (TTY 1-800-424-9153), OR GO TO HTTP://WWW.SAFERCAR.GOV.

 

TIFFIN PLANNING LAYOFFS

RV Business
Monday, June 30, 2008

Red Bay, Ala.-based Tiffin Motor Homes Inc., a major player in an industry that has been battered by rising gasoline prices, has told state officials it plans to lay off nearly 100 workers.

The Birmingham News reported that General Manager Tim Tiffin on Friday (June 27) confirmed a filing the company made with the Alabama Department of Economic and Community Affairs that said it plans to reduce its work force by 99 positions.

"It's been a rough six months," he said of the company founded in 1972 by his father, Bob.

Tiffin Motor Homes has 800 employees, Tim Tiffin said. "We've had to make some adjustments," he said, declining to comment further on the issue.

The company will be hosting its national dealer meeting July 21-23 in Branson, Mo. Tiffin produces luxury gas- and diesel-powered Class A motorhomes under the brand names Allegro, Allegro Bay, Phaeton, Allegro Bus and Zephyr.

Tiffin's planned layoffs come at a time when soaring gasoline prices have caused sales of motorhomes to plunge. Gasoline prices have risen 27% over the past year, averaging nearly $4.07 a gallon nationally Friday vs. $2.98 a year ago, according to AAA.

While Tiffin adjusts to the challenges facing the motorized sector, an Alabama dealer told the Birmingham News that trailers are still selling.

Burton Campers Sales Manager Mickey Price, which sells and services RVs in Calera, said his company has seen steady sales because it deals mostly in small trailers and campers that drivers can hitch on the back of their truck or SUV.

"Our motorhome sales are off a little bit, but over the last six months our sales are up 27% over last year as people turn to the smaller models," he said.

Price said the RV industry will survive. Certain segments will continue to shell out big bucks for the luxury of RVs.

"For many people, camping is a way of life," he said. "They may not go as far or stay as long, but people wanting to save money from hotels or enjoy nature will always buy RVs."

Jan Giangrosso of Cruise America in Gardendale, which rents large RVs, said her company's business has dropped in recent months as gasoline approached $4 a gallon.

"Rentals are a little slow for both RVs and our Penske trucks," she said. "It's all gas-driven. That wasn't a concern back in 1994 when we opened and gas was so much cheaper."

 

NEWMAR LAYING OFF EMPLOYEES AGAIN

RV Business
Monday, June 30, 2008

Nappanee, Ind.-based Class A motorhome and fifth-wheel builder Newmar Corp. has instituted its second round of layoffs this year in response to a depressed retail market.

“We’re laying off some people trying to right size our work force according to the available business,” Dick Parks, CEO and chairman of the family-owned firm, told RVBusiness. “Right now we’re in the process of making plans for the future based on what the market dictates.”

In February, Newmar laid off around 13% of its 905 workers. Parks did not specify a number but confirmed that the latest cut would impact around 40% of the company’s current employees.

The news correlates with the May shipment report from the Recreation Vehicle Industry Association (RVIA).

It showed a 58.6% drop in May Class A deliveries from a year go while the sector was down 39.5% for the first five months. Fifth-wheel shipments fell 15.5% for the month and declined 10% year-to-date.

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