RVIA Applauds MVP RV Deal with Chinese
The Recreation Vehicle Industry Association (RVIA) applauded the announcement that MVP RV and China-based Winston Global Energy Ltd. will partner to promote motorhome exports to China as a significant step in the association’s work toward the development of the RV industry in China.
Under the agreement, Winston Global Energy Ltd. will provide $310 million in capital to MVP RV to promote motorhome exports to China. Additional capital will also be provided for the development of all-electric RVs and fast-charging electrical systems. It is expected that MVP RV will export more than 10,000 Class A motorhomes and 20,000 Class C motorhomes, valued at approximately $5 billion, to China over the next three to four years.
The joint venture will also push the number of jobs at MVP RV, based in Riverside, Calif., from 130 jobs to over 1,400 jobs.
Details of the deal were revealed Wednesday (Jan. 19) during a joint press conference involving President Barack Obama and Chinese President Hu Jintao.
“This is an exciting development for our company and the RV industry,” said Brad Williams, MVP RV president and CEO. “The work being done by RVIA to help promote American involvement in the Chinese RV industry helped set the stage for this to happen.”
“This agreement illustrates the potential of the Chinese RV market for U.S. manufacturers and suppliers,” said RVIA President Richard Coon. “It creates jobs here in America to build state-of-the-art RVs that will be exported to China to meet the growing demand for U.S.-manufactured RV products.”
There is strong support for a more focused development of the fledgling RV industry within China as China-based companies are seeking partnerships with American RV companies to build products for Chinese consumers who have more disposable income, more leisure time and a growing interest in RV travel and camping.
With the tremendous potential represented by this new market, RVIA has been working for several years to help association members gain a foothold. The association has organized a trade mission to China, hosted Chinese trade groups at the National RV Trade Show and worked with business leaders, organizations and government contacts in China to discuss industry standards and other regulatory issues.
An official signing ceremony for the MVP RV and Winston Global Energy Ltd. agreement as well as for several other U.S.–China commercial partnerships will take place in Chicago on Friday at a trade event hosted by the Chicago Council on Global Affairs. The event will be attended by Winston Chung, founder of Winston Global Energy Ltd., Williams and Coon.