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Cummins’ Engine Business “Dramatically Improved”

January 29, 2003 by · Leave a Comment 

Cummins Inc., the primary supplier of diesel engines to the motorhome sector, reports its engine business “dramatically improved” in 2002 despite a fourth-quarter loss. However, the company, also a supplier of Onan generators, reports its power generation business unit incurred a loss of $27 million before interest expenses and income taxes during 2002. Cummins’ power generation business earned $81 million before interest and taxes in 2001. Power generation lost money because of “a severe... Read more

Fed. Leaves Interest Rates Unchanged

January 29, 2003 by · Leave a Comment 

Despite worries that the economy is sliding back into recession, the Federal Reserve Board decided today (Jan. 29) to leave interest rates unchanged. Consequently, the prime rate, to which many RV dealers’ inventory finance loans are pegged, remains at 4.25%, its lowest level since 1958. Only two years ago, the prime rate was 8.5%. While some economists believe the Fed. should cut rates again to avoid a recession, others worry that federal deficits resulting from the war on terrorism and possible... Read more

RVers Taking Safe Driving Seriously

January 28, 2003 by · Leave a Comment 

Attendance at the Good Sam VIP RV Safety Rally this week in Palm Springs, Calif., seems to indicate RVers take safe driving seriously . The first safety rally session began Sunday (Jan. 26) and concludes Wednesday (Jan. 29). The second session will begin Wednesday and conclude on Saturday (Feb. 1). It still is possible to register for the second session. The training is being hosted by Affinity Group Inc. (AGI), parent of the Good Sam Club, along with GMAC Insurance. Good Sam VIP is a full-coverage... Read more

Monaco Sales/Earnings Soar Higher

January 28, 2003 by · Leave a Comment 

Maybe investors will take a different look at Monaco Coach Corp. stock in light of the sharply higher earnings report the New York Stock Exchange-listed company issued today (Jan. 28)? The price of Monaco stock fell to new 52-week lows late last week and on Monday (Jan. 27), but the company reported today that its net earnings increased 59% during the fourth quarter and 79% for all of 2002. Monaco earned $12.1 million during the three months ended Dec. 28, compared with $7.6 million earned a year... Read more

Monaco Lays Off Workers in Oregon

January 28, 2003 by · Leave a Comment 

Although Monaco Coach Corp. shipped 18% more motorhomes and towable RVs in 2002 than it did in 2001, the Coburg, Ore. company recently announced a layoff of 115 workers from jobs at its plant in Bend, Ore. The plant, located about 115 miles east of Coburg, produces the Beaver brand of highline motorhomes. Workers were building 10 units a week in Bend, but output has been lowered to six units a week to better reflect consumer demand, according to Kay Toolson, chairman and CEO. In 2002, Monaco “worked... Read more

Monaco Leads RV Stock Price Rebound

January 28, 2003 by · Leave a Comment 

A strong earnings report issued by Monaco Coach Corp. today (Jan. 28) contributed to strong stock price gains by Monaco and several other RV manufacturers. Monaco’s stock fell to a new 52-week low on Monday (Jan. 27) but, today, Monaco shares gained $2.19, or 18%, to close at $14.27 a share. However, Monaco’s stock remains well below its 52-week high of $30.70 a share. Meanwhile, shares of Winnebago Industries Inc. and Thor Industries Inc., until recently the RV industry’s two high fliers,... Read more

RVIA Wants Exemption for Smaller Firms

January 27, 2003 by · Leave a Comment 

Recreation Vehicle Industry Association (RVIA) officials are hopeful the National Highway Traffic Safety Administration (NHTSA) will exempt smaller manufacturers from a wave of new mandated paperwork requiring the reporting of safety-related statistics. The new rules go into effect Aug. 1. “It is still a major issue for companies,” said Bruce Hopkins, RVIA vice president of standards and education. “I am feeling better that some of the smaller companies aren’t going to have to get into this... Read more

Fleetwood Restructures Its Credit Line

January 27, 2003 by · Leave a Comment 

Fleetwood Enterprises Inc. has successfully restructured its revolving line of credit, thus eliminating the need for it to pay a $1.9 million fee on Sunday, and lowering the amount of its required cash reserve by $20 million. Fleetwood’s line of credit is with a syndicate of banks led by Bank of America. The banks agreed to reduce Fleetwood’s borrowing power to $110 million from $190 million, but Fleetwood executives reported today (Jan. 27) that $110 million more closely matches the value of... Read more

Blue Bird Pushes Its Wanderlodge M380

January 27, 2003 by · Leave a Comment 

Luxury motorhome manufacturer Blue Bird Corp., Macon, Ga., is participating at more consumer RV shows this winter to support its Wanderlodge M380, a more mainstream motorhome positioned at the lower-end of the highline motorcoach price range. The Wanderlodge M380 is a 38-foot diesel pusher Blue Bird started shipping to an expanded dealer base in September. With a base retail price of $350,000, it represents Blue Bird’s effort to become more competitive in the highline segment of the conventional... Read more

Small Dealers Leaving New RV Sales?

January 27, 2003 by · Leave a Comment 

At least one small dealer has discontinued stocking new RV units because the manufacturers wanted him to carry larger inventories than what he felt he could afford, according to the Standard-Examiner of Ogden, Utah. Roy Mendoza, owner of Roy’s Cars & RVs in Ogden, told the Standard-Examiner he now stocks only used RVs, along with cars and trucks. RV manufacturers “forced numbers on us and we didn’t want to carry $2 million to $3 million in inventory because the interest (expense) ate us... Read more

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