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Montague Outlines Thor’s Redwood RV Plan

Posted By RVBusiness On November 8, 2010 @ 9:27 am In Breaking News | No Comments

Tom Montague

Tom Montague

Tom Montague has a big responsibility and a tiny office in Syracuse, Ind. The two situations seem to be a good fit.

Montague, the national sales manager for the newly formed Redwood RV, only needs a desk, a cell phone, a chair and two wall-sized whiteboards to do his job. Anything more right now would be a waste as he is rarely in his office, The Goshen News reported.

This past week Montague returned from a two-week tour of the country to sell Redwood’s new residential fifth-wheel unit. Much of that time was spent in Florida, where he visited seven of the top 10 RV dealers.

“When they saw the product, they could not believe the look and feel of the product,” Montague said.

Fifteen of the 17 dealers Montague and his crew visited, ordered the new fifth-wheel from Thor Industries Inc.’s newest company.

Creating a new company

Thor is an ever-growing force in the RV industry, but usually expands by acquiring existing companies. But that did not happen for the residential fifth-wheel niche, so Redwood was formed.

Thor made Redwood a division of Crossroads RV in Topeka, Ind., and has attracted experienced talent from across established RV manufacturers. Redwood’s president, Don Emahiser, moved over from leading Carriage Inc. Montague came over from another Thor company, Keystone RV co. Since then they, and other managers of the company, have been assembling a team to build Thor’s first residential fifth-wheel and market it to dealers.

Tom Montague, left, watches as Keith Ballard and Daryle Bontrager

Tom Montague, (left) watches construction of a Redwood RV fifth-wheel. Photo courtesy of The Goshen News.

The unit will be made in lengths from 35 feet to 39 feet long and be priced from $65,000 and up. There are three current floorplans. Five floorplans will be available in January. By spring, Montague plans to have eight floorplans in the Redwood stable.

So, why is Thor starting a new fifth-wheel company? To fill a segment of the RV market the company has not entered previously.

“Thor has spent millions of dollars to gain and then retain customers from the ‘stick and tin’ all the way up to the Montana (a Keystone RV fifth-wheel). And they do a phenomenal job of that. One in every four coaches, I think, is a Thor product, maybe even more. At the end of that cycle we let that customer go to buy something like a DRV.”

But with Redwood coming online this fall, Thor loyalists will be able to step up to a residential fifth-wheel about $10,000 more than the top line towable.

Furnished like home

With the whine of screwguns and hand drills in the background, Montague walked through a Redwood prototype on the factory floor. He pointed out the unit’s residential furniture. He picked up the mattress in the bedroom to show off the European-style slatted box springs beneath it. And he pointed out that the closet’s clothes rack extends the full width of the trailer.

These finishing touches have been worked out over the past few months. The details are listed on those white boards in his office. On those wall-covering boards are categories for appliances, carpeting, lighting, etc. Options for each are neatly printed in black marker ink.

But there are hundreds of RV models in the marketplace and even more floorplans for each. So how does a sales director decide what to go with in an initial offering? Feelings.

Photo courtesy of The Goshen News

Photo courtesy of The Goshen News

“When you go in, you want it to feel like home. Our goal was, when you walk in we wanted it to be warm,” Montague said.

That’s why the residential furniture was chosen, so the comfort and tactile feel is the same found in a residence. After all, it’s likely someone will sell their home to take to the road long-term in an RV like the Redwood.

The chassis and interior will sit on Lippert Components’ top-of-the-line Falcon Integrated Technology frame system. Redwood RVs will have a two-year bumper to bumper protection plan and a five-year structural warranty.

Montague has a goal for Redwood — it’s to sell 1,100 of the fifth-wheels during the company’s first year. Last week there were 11 units under construction in the 105,000-square-foot plant. Fourteen more are on order and in line for production. If the expected growth occurs, then up to 80 people will be making Redwood fifth-wheels within a year.

About that sales goal for the first year, Montague said, “That would be a phenomenal start.”

The first public showing of Redwood’s products will be made at the National RV Trade Show for dealers in Louisville, Ky. beginning Nov. 30.

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