After nine years of selling motorhomes in Coburg, Ore., Guaranty RV has closed its dealership along Interstate 5, according to The Register-Guard, Eugene, Ore.
“We’re moving the Coburg operation to Junction City and putting all our eggs in one basket,” Shannon Nill, general manager of Guaranty RV, said Wednesday (Nov. 11). “We’re doing that because of the market challenges that are quite evident if you’ve left your home in the past year.”
Nill called the decision to consolidate the Coburg store with its main dealership in Junction City “an efficiency move.”
“The more efficient a business can be, the more likely it will be around for the long run,” he said.
The Coburg store specialized in selling high-end, diesel-powered motorhomes that cost hundreds of thousands of dollars, the segment of the industry most hurt by the economic downturn.
“From a price point, folks are setting their sights a little lower,” Nill said. “They’re still loving RVs, but the high-end category has been affected the most.”
The vehicles and the personnel at Coburg have been transferred to Guaranty’s Junction City’s operations, Nill said.
Guaranty was leasing the 10-acre property at 90855 Roberts Road, which is owned by MBM Group LLC of Veneta, according to Lane County property records. Founded in 1966, Guaranty is one of the nation’s largest RV dealers.
At one time, Coburg, with its proximity to Interstate 5, was an epicenter for RV dealers, including La Mesa, Destinations RV, Ingraham R, and RV Corral. Just as Burger King wants to be on the same block as McDonald’s, RV dealers like to be near one another, Nill said.
“Out of all the players out there, we were the last ones standing,” he said.
Nill said he’s feeling optimistic about the direction the economy, and the RV industry, is taking.
“Last month was the best month at our family motorcoach lot in four years,” he said, as his sales staff sold about 75 units.
“That tells me there’s a lot of pent-up demand,” he said. “We’re feeling good about 2010.”