Heartland RV Revives Titanium Technology

Elkhart, Ind.-based Heartland Recreational Vehicles LLC has revived the exclusive Titanium cab-over front cap fashioned by now-defunct Canadian builder Glendale International Corp., incorporating the distinctive, aerodynamic design into three of its top-selling fifth-wheel lines, according to a news release.

Heartland reported that it had acquired the Titanium’s intellectual property from Glendale last summer, including patents, trademarks and industrial design rights. Oakville, Ontario-based Glendale, which filed for bankruptcy in January 2010, dominated the Canadian fifth-wheel marketplace with its Titanium lineup.

“We acquired all the patents, so we will be the only company offering this highly innovative design,” said Coley Brady, vice president of sales for Heartland. “Everyone familiar with the industry – trade and consumer – recognizes the Titanium cabover cap as one of those engineering advances that really impacts the market. We will be offering the Titanium front cap in our luxury Bighorn fifth-wheel brand along with the Road Warrior and Cyclone toy hauler lines.”

“Essentially, a 32-foot trailer offers the same living area as a 37-footer because the nose of the trailer can accommodate a bedroom and wardrobe,” Brady said. “And because there is approximately 15% less trailer to tow, it significantly cuts down on sway while improving gas mileage for the tow vehicle.”

Heartland is going into full production this month with the Bighorn Ti32, Road Warrior 30C and Cyclone 300C, all providing 37 feet of living space in a 32 ½-foot towing length, along with the Cyclone 370C offering 42 feet of living area in a 38-foot length. The two toy hauler lines will be equipped with Heartland’s Superslide, which affords 7 ½ feet of headroom, and the Bighorn model will be available with a standard royal maple wood grain or optional antique, hand-rubbed glazed pecan.

Brady said the new lines debuted to strong dealer response from Heartland’s dealer body at the recently completed National RV Trade Show in Louisville, Ky.

“We made the decision to incorporate the technology into existing lines versus coming out with a completely new brand,” Brady said. “Our dealers recognized that the Titanium models add tremendous franchise value, offering a sought-after, salable feature in brands that are already strong performers.”

Brady noted that consumers were also excited about the reprised Titanium front cap, including Tony Lane, owner of the online-based Titanium RV Owners Group. Lane, who resides in Tillonsburg, Ontario, noted that the Heartland design successfully “carries on the Glendale Titanium tradition.”

“The Heartland model will be my eighth since 2002,” Lane said. “The Titanium is the most stable trailer that I have ever towed, which is important because I put a lot of miles on my RV. The one thing I really notice is that you never get sucked in when you pass a semi. It also has a very comfortable, spacious living space.”

Heartland’s MPG in HGTV Special Spotlight

Heartland Recreational Vehicle LLC’s retro-styled MPG ultra-lightweight travel trailer will be showcased as part of a one-hour TV special on HGTV filmed during last September’s Pennsylvania RV and Camping Show in Hershey, Pa.

The eco-friendly MPG, sporting aluminum-and-fiberglass construction and an aerodynamic teardrop design, caught the eye of host HGTV Chi-Lan Lieu who toured the annual consumer event searching for the hottest trends in today’s RV market, according to a news release.

The special is set to air Jan. 1 at 4 p.m. EST on the popular cable channel.

“One of the things that stands out with the MPG is its true teardrop shape,” said Ryan Wiese, sales representative for the Elkhart, Ind.-based builder. “It gives the trailer a very unique look and offers a lot more headroom than the competition because the rear end is rounded versus slanting down. But what really struck a note with HGTV is that we are bringing a full-featured, competitively priced laminated trailer to market that can be towed by most crossover vehicles and mini-vans.”

With a dry weight under 3,000 pounds, the aluminum-and-fiberglass MPG is available in eight 19-foot floorplans, six featuring a single slideroom and two offering a hybrid design with tent extensions. Originally targeted to attract a younger, more active buyer, Wiese said the demographic had broadened since the brand’s debut at the 2009 Louisville Show.

“Experienced RVers are seeing the MPG as a getaway or everyday unit to complement their larger trailer,” he said. “They also recognize the brand’s overall craftsmanship and styling. The MPG really has opened up a new market for our dealer body because its appeal has proven to be across-the-board.”

Equipped with a one-piece, seamless fiberglass roof, the MPG is available with an optional high-gloss, platinum fiberglass package that creates a distinctive, contemporary look enhanced by a choice of four colorful exterior graphics. Floorplans are designed to be versatile and maximize interior space with a spacious kitchen pantry and two models featuring fold-up bunk beds and a larger baggage door.

The MPG is also packaged with a host of standard amenities normally representative of higher-priced trailers such as A/C, microwave, two-burner cooktop and an AM/FM CD/DVD player equipped with an iPod connection and compatible with discs from digital cameras. Other key set-apart features include retro-style aluminum wheels, optional TV, 15-inch tires and rear bumper with a hitch receiver and built-in sewer hose storage.

“In just one year, the MPG has proven to be one of the hottest sellers in one of the hottest segments of the travel trailer market,” said Brian Linn, brand manager. “I think it was MPG’s striking design – a unique blend of contemporary and retro – that attracted HGTV for its upcoming special. But ultimately it’s Heartland’s ability to offer affordability without sacrificing structural integrity or those sought-after features that has made the MPG a big hit with consumers, and a tremendous value for our dealer body.”

Heartland Debuts Full-Time Landmark Fiver

Designed with the structural integrity and discerning features to accommodate a full-time RVing lifestyle, Heartland Recreational Vehicles LLC introduces the new generation of Landmark luxury fifth-wheels.

The redesigned Landmark, which will be on display at this month’s National RV Trade Show in Louisville, Ky., is built with an integrated system of laminated fiberglass sidewalls, flooring and roof to increase durability while reducing overall weight, according to a news release.

“The construction is tailored to meet the demands of all-weather conditions and the rigors of full-time use,” said Kary Katzenberger, brand manager for the Elkhart, Ind.-based builder’s Landmark and Bighorn fifth-wheel lines. “In addition to achieving increased strength and a lighter weight, fiberglass affords superior thermal insulation and noise reduction over wood-framed products. To back that up, we offer a warranty for full-time living on the entire Landmark line that gives the consumer peace of mind.”

Katzenberger reported that the Landmark has already been building a backlog and will begin shipping to dealers by the end of the month, including Lazydays. “The entire organization of Lazydays is very excited to get the Landmark in their line-up of high-end luxury RVs,” said Ken Stumpe, sales manager for the Seffner, Fla.-based retailer.

Katzenberger noted that a pivotal piece in the redesign was to combine the Landmark’s robust exterior construction with an attention to residential-style interior features that address both convenience and comfort. Initially available in four floorplans ranging in lengths from 38 to 41 feet, the Landmark series sports new high-end decors and layouts that provide versatile seating arrangements and optimal storage for full-time living.

“The Landmark is loaded with industry-first amenities, including a residential, eco-friendly ‘body spa’ shower head from Oxygenics that significantly cuts down on water usage,” he said. “We also wanted to create an attractive environment that is functional and maximizes living space, which is vital to the full-time consumer.”

Units are equipped with three to four sliderooms, including a deeper bedroom slideout that offers the “biggest bedroom in the industry,” according to Katzenberger. The Landmark also boasts Heartland’s new “Mega Shower” that is 90% larger than the industry standard and outdates the neo-angle shower used in most fifth-wheels today.

Katzenberger added, “Our goal, as with all our products, was to supply our dealer body with the best value in the full-time fifth-wheel market. Landmark hits key price points with better quality and more features than the competition.” MSRP’s for the redesigned Landmark start at $68,000 with GVWR’s ranging from 16,000 pounds to 16,550 pounds.

Highlights for the new line include:

• A “Suites” bedroom/bathroom arrangement, featuring a large linen closet with room for a stackable washer/dryer; 30% larger walk-in front wardrobe; a 30% larger dresser with six larger drawer and overhead cabinets.
• Option packages offering an auto-leveling system, back-up camera with wireless monitor and a “Yeti Extreme Cold Weather Package” that includes heated holding tank pads, radiant technology insulation in the front and rear caps with an R-38 equivalent rating, and a heated main water line with a low-volt polymer heating cable.
• All-new exterior graphics and three elegant, residential-style interior decors set off by glazed pecan cabinetry.
• Kitchens equipped with a large, stainless-steel sink, solid-surface stove covers and an optional Dometic Elite 4-door refrigerator.
• Dexter axles, frameless exterior windows and Goodyear tires are standard.

RVs’ Return May Indicate Consumer Recovery

Sales  for Thor Industries Inc. are on the road to recovery after being slammed by high gas prices, scarce credit and recession-racked consumers, Businessweek reported. U.S. consumers are favoring less expensive and more fuel-efficient models, analysts and industry experts say.

Americans’ willingness to spend, if not splurge, on so-called second homes on wheels could in turn provide a clue to positive trends in the broader economy.

“The RV industry is a great leading indicator for the overall health of the economy,” says Kathryn I. Thompson, founder of Thompson Research Group in Nashville, Tenn. Over the last decade, manufacturers have produced an average of 309,000 RVs a year, according to the Recreation Vehicle Industry Association (RVIA).

On Sept. 28, Thor, the largest U.S. maker of recreational vehicles, reported a 51% jump in last quarter’s sales from a year ago. Profit rose 64%, with net income exceeding by 16% the estimates of analysts surveyed by Bloomberg.

The recession took its toll on the industry. In March 2009, two of the largest RV makers — Monaco Coach and Fleetwood Enterprises — filed for bankruptcy protection.

LOOSER CREDIT, NOT GREATER DEMAND

On Sept. 24, the RVIA released August data showing that the 177,300 RVs shipped to dealers so far in 2010 had exceeded levels at this point in 2009 by 70%. In 2009, the number of RVs shipped to dealers was 58% below the 390,500 RVs shipped in the peak year of 2006, according to the RVIA.

A key factor in the RV recovery has been credit, says Robert M. “Mac” Bryan, vice president of the RVIA. Because of the credit crisis, neither consumers nor dealers could borrow to buy RVs, which in the case of motorized homes can cost at least $200,000. Much of the improvement in 2010 does not reflect a “change in demand, but an improvement in financing in vehicles,” Bryan says, as the financial crisis has eased and banks have reentered the RV financing market.

So far in 2010, the rebound in actual retail demand has been “fairly modest,” says Bret Jordan, an analyst at Nashville-based investment firm Avondale Partners. “The retail consumer never really came back in a big way,” says Jordan, who is based in the firm’s Boston office.

There are, however, signs that this could be changing. “After a tenuous summer, the season ended well,” Robert W. Baird analyst Craig Kennison wrote on Sept. 29 while unveiling the results of a survey of 104 RV dealers.

Baird’s survey showed that some parts of the RV industry are doing better than others. Sales of motorhomes rose 8% to 10% in the third quarter of 2010. Towable RVs, meanwhile, jumped 16% to 18%.

TRADING DOWN TO TOWABLE RVS

Consumers are deciding on towable RVs partly because of cost, but also because extra features have made them competitive with motorhomes, Jordan says. A “high-end towable vehicle” can cost $60,000 while a high-end motorhome with a diesel engine can be $200,000. Many new towable trailers now feature  ”slide-outs” — portions of the trailer that can be expanded when parked to increase living space. “You’re getting comparable living space” to motorhomes, he says, adding: “There is a lot of utility in towables for the cost.”

In 2006, pricier motorhomes made up 14.3% of all recreational vehicles produced. So far in 2010, that share has fallen to less than 10%.

“You are seeing the trade-down effect,” Thompson says. “People aren’t necessarily giving up the RV lifestyle but they’re choosing less-expensive products.” RVs priced below $150,000 are “doing OK,” she says, while “anything below $100,000 is doing the best.”

According to Thompson, such trends could hurt Winnebago Industries Inc., the motorhome maker headquartered in Forest City, Iowa. They could favor Thor, for which towable RVs made up 70% of sales last quarter, she says. A maker of RVs under the Airstream, Dutchmen, Komfort, CrossRoads, and other brand names based in Jackson Center, Ohio, Thor announced on Sept. 17 the acquisition of Heartland Recreational Vehicles LLC, another specialist in towable RVs, for $100 million in cash and 4.3 million shares of Thor stock — or a total value of $247 million based on the recent share price. On Oct. 1, Thor said it would boost its quarterly dividend, from 7¢ to 10¢ per share.

BIG EXTRA: ADDITIONAL FLAT-SCREEN TV

Winnebago shares are down 14% so far in 2010, while Thor shares are up 9%.

To make cheaper RVs more attractive to consumers, manufacturers have piled on extra “bells and whistles,” Jordan says, like including three flat-screen televisions, instead of just two.

In response to the volatility of gas prices in recent years, RV manufacturers have made their products more fuel-efficient. “We’re seeing a great deal of attention [paid] to the greening of the RV,” Bryan says. RVs are being made of lighter materials and the efficiency of furnaces, air conditioners, water heaters, and other appliances has been improved, he says.

There are further recent indications of returning retail demand. The Pennsylvania RV and Camping Show, an annual event held in Hershey, Pa., bills itself as “America’s largest RV show.” The exhibition, from Sept. 13-19, saw record attendance that was up 9% from last year and the number of RV units on display rose 43%.

Tiffin Motorhomes, a privately held RV company based in Red Bay, Ala., told show organizers that sales were 44% higher than last year.

“People had been holding back on purchases and now they were ready to buy,” says Heather Leach, marketing and education director at the Pennsylvania RV and Camping Association (PRVCA).

RV DEALER: CUSTOMERS REMAIN “LEERY”

Exposure to the U.S. consumer is just one factor that makes the RV industry a good economic barometer, Thompson says. The industry is also affected by important credit trends, including the availability of short-term credit for dealers buying inventory and of long-term credit for customers buying RVs. The industry is also a good window into factors that affect U.S. manufacturing, such as raw material and labor costs.

The economic environment continues to concern the industry. Consumer spending rose 0.4% in August, according to data released Oct. 1 by the U.S. Commerce Dept. According to an unidentified RV dealer quoted in a Sept. 7 survey by Thompson Research Group: “Customers [remain] leery, kind of careful about everything.”

Nonetheless, industry participants say they are confident about the RV’s long-term appeal, especially as Baby Boomers retire and younger Americans seek affordable vacations. “Assuming gas prices remain reasonably affordable, it’s a cheap way to have a vacation,” Jordan says. “It’s cheaper than a second home.”

Park campgrounds are as busy as ever, Bryan says, a fact that underscores the appeal to Americans of the RV lifestyle. According to the National Park Service, the number of RV campers at National Parks rose 6.8% from 2008 to 2009. “Recreational vehicles have a very bright future,” Bryan says.

Heartland RV Unveils Cutting-Edge Website

Heartland Recreational Vehicles LLC announced it has introduced an all-new website.

The website features a modern Web 2.0 look and feel utilizing cutting-edge programming technology to deliver product and company information, photography and video in a user-friendly and organized manner, according to a news release from the Elkhart, Ind.-based company.

The new product selector and buyers guide puts the power of the web into the hands of shoppers to virtually take them by the hand through hundreds of available RVs directly to those models that fit their personal criteria. Once there, shoppers receive all the information and tools necessary to finalize their buying decision. Then they can find a dealer near them and go to the dealership educated about and ready to buy Heartland products.

“Our focus throughout the development process was to enhance our viewers’ experience through ease-of-use, performance, brand awareness and product education,” said Steve Lidy, director of marketing.

Heartland’s 17 brands and 210 RV models, along with more than 2,000 product images and 127 pages of company and product information — plus dozens of virtual tours — all reside on a dedicated server ready to deliver a robust RV Internet experience to Heartland customers.

For more information visit the website at www.heartlandrvs.com.

Thor Files SEC 8-K on Heartland RV Purchase

Thor Industries Inc. filed on Wednesday (Sept. 22) its 8-K registration statement with the Securities and Exchange Commission (SEC)on its purchase of Heartland Recreational Vehicles LLC.

Among the highlights:

• The consideration paid by Thor consisted of $100 million in cash (less the amount of Heartland’s capital lease obligations of approximately $438,000) and 4.3 million shares of the company’s stock. Though not stated in the filing, the purchase price has been estimated at about $209 million.
• The cash portion of the consideration was funded entirely from the Thor’s cash on hand.
• As part of the transaction, senior management of Heartland entered into non-competition agreements with the company and its subsidiaries.

To view the 8-K filing, click here.

Baird: Top Five OEMs Expand Market Share

Editor’s Note: Robert W. Baird & Co. issued a client newsletter following release of the July towable sales by Statistical Surveys Inc. Excerpts of the Baird newsletter follow.

Action

Towable registrations increased 5% in July. Dealer sales of towable units increased in July, but growth continued to moderate. Total U.S. towable retail increased 5% (travel trailers up 8%; fifth-wheels down 4%). Slower growth is consistent with weaker consumer trends that persisted through the summer. Looking to the back half of 2010, we expect wholesale growth to slow as dealers manage inventory and order in line with retail sales.

Summary

Towable retail up 5%. Towable demand improved in July, but growth is moderating – providing further evidence of a flatter RV recovery. Travel trailer registrations grew 8% while fifth-wheel demand fell 4%.

Leaders gaining share. Thor continues to take share with retail registrations up 11% in the month. We also note that Heartland RV (No.4 market share and acquired by Thor last week) saw registrations increase 33% in July. Altogether the top five manufacturers have seen retail grow 19% YTD versus 6% YTD industry growth.

Inventory. Towable shipments have exceeded retail sales by roughly 10K units YTD. We believe that dealer inventory is fairly balanced at current levels and future shipments should track in line with retail demand.

Retail SAAR. We calculate a seasonally adjusted rate of retail registrations. The SAAR of towable demand increased to 150.1K units in July from 144.2K units in June.

To subscribe to this or other Baird newsletters, contact Craig Kennison, CFA, at (414) 765-3870.

Heartland CEO Brady’s in for the Long Haul

Upon seeing the news this morning (Sept. 17) of the $200 million acquisition of Heartland Recreational Vehicles LLC by Thor Industries Inc., industry insiders have been speculating as to whether Heartland President and CEO Brian Brady will stick around for the long haul.

You know, they speculate, why should he?

A veteran of Coachmen Industries Inc., Holiday Rambler Corp., Damon Corp. and Heartland, Brady’s been through the business wars – and economic cycles – for years. He’s cashed out well from his latest venture, a company that’s been generating sales of about $400 million a year.

Besides, he’s now being called upon to operate Heartland as a unit of a company with which he and Heartland’s 1,000 employees had intensely competed in the towable RV arena.

But Brian Brady isn’t going anywhere. Nor, for the record, does he mind doing business with a company that until recently was viewed as a formidable rival.

“We have always viewed Keystone as the class of the industry – you know, Thor in general terms and Keystone being the crown jewel in their portfolio,” Brady told RVBUSINESS.com. “We at Heartland have had an immense respect for the Keystone team, and in many respects we admired their significant accomplishments.

“You know, with that said, I think we were able to demonstrate that we could compete effectively with them, and we did. And I would imagine, with the way Thor manages, that we’re going to continue to compete with Keystone. But, you know, for me personally and the other initial investors in Heartland, we’re essentially owners of Thor now. So whether Heartland wins or Dutchmen wins or Keystone wins, we all win.”

As for his own personal career moves, again, Brady says he’s staying put rather than fleeing the day-to-day stress of the business world. “Yes, I am staying for the foreseeable future,” he said. “I have no plans at this point to disengage from Heartland and Thor. And I’ve made that commitment to Ron Fenech and Peter Orthwein.

“To be honest with you,” he added, “I feel really reinvigorated. I’m looking forward to getting this week behind us and going back to work on Monday.”

Fact is, Brady still enjoys the game.

“I do, and I enjoy the game because of the people with whom I work. We’ve really got such terrific people at Heartland. You know, Heartland is no different than any other successful enterprise in any industry. At the end of the day, it comes down to the team – the men and women around whom you build your business.”

Baird: Heartland Buy to Boost Thor’s EPS 10%

Editor’s Note: Robert W. Baird & Co. issued a client newsletter following today’s announcement that Thor Industries Inc. had purchased Heartland Recreational Vehicles LLC. Excerpts of that newsletter follow. To subscribe to this and other Baird reports, contact Craig R. Kennison, CFA, at ckennison@rwbaird.com or call him at (414)765-3870.

Action

Thor acquired Heartland RV, the fourth largest towable manufacturer. We expect the deal to add $0.21 to F2011 EPS, a 10% boost. Heartland is among the fastest growing RV manufacturers with comparable margins to Thor. We like the deal and believe shares discount a weak economic recovery – but we remain cautious on RV fundamentals as the economic recovery stalls.

Summary

Acquires Heartland RV. Thor has acquired Heartland RV in a cash/stock deal valued near $209 million (including $100 million in cash and 4.3 million Thor shares valued at $109 million based on the Thursday close). Heartland generated $400 million in revenue in the last 12 months.

Fastest growing RV company. Heartland is the fourth largest towable company in the U.S. with 6.7% of the market, bringing Thor’s combined share to 46.6%. So far this year, Thor has added nearly 3 percentage points (pp) to its share, and Heartland has added near 2pp – consistent with our dealer surveys in which Heartland was listed as the most likely towable manufacturer to gain share in the next six months.

Accretive to EPS. Management expects the deal to be accretive. We see the deal adding $0.21 to EPS in F2011 ($0.24 on an annualized basis), based on our view that Heartland operates with a similar margin profile to Thor’s RV business.

Outlook. Thor is executing well and the Heartland deal makes sense, in our view. However, we maintain a cautious outlook for the RV sector as consumer confidence falls, unemployment festers, consumers reduce debt, and tax policy targets discretionary wealth. We believe shares discount this cautious outlook and may benefit from political change brought about by the election cycle or a change in tax policy, supporting our Outperform rating despite our cautious outlook.

Details

Market share. Thor controls nearly 40% of the towable market, and has gained nearly 3pp so far in 2010. Heartland has quickly risen to become the fourth largest towable manufacturer with nearly 7% of the market, adding nearly 2pp so far in 2010 (see chart below).

Heartland share gains. Heartland outpaced the industry through the downturn and continues to gain share. Dealers expect this trend to continue. According to our most recent RV survey, dealers expect Heartland to gain more share in towables than any other manufacturer over the next 12 months.

Heartland News Heating Up ‘Two-Horse Race’

The pursuit of sales leadership in the RV industry has often been referred to in recent years as a “two-horse race” between Jackson Center, Ohio-based Thor Industries Inc. and Elkhart, Ind.-based Forest River Inc., both of which specialize in the manufacture of towable recreational vehicles.

And the stakes in that ongoing race were raised today (Sept. 17) with the surprise announcement that Thor Industries Inc. has purchased competitor Heartland Recreational Vehicles LLC for $100 million in cash and 4.3 million shares of Thor stock. The purchase was valued at approximately $209 million, based on Thor’s closing price on Thursday.

It was news in which Wall Street took great interest, as Thor stock rose sharply at today’s opening and was $2.20 higher at $27.65 in early-afternoon trading. When this story was posted, Thor’s stock had climbed to over a one-month high and had also recrossed its 50-day moving average, the RTT Service noted. Thor stock rose 9.9% by day’s end, closing at $27.95 per share, the fifth highest percentage gainer of the day, on volume of 1.32 million shares.

“Heartland’s strong growth has been driven by a culture of innovation, competitive products, and attention to the retail customer,” said Peter B. Orthwein, chairman, CEO and president of Thor, which posted $2.3 billion in revenues ($1.85 billion in RVs) for the fiscal year, ended July 31. “Thor’s new relationship with Heartland will bring many operational synergies to all Thor companies including purchasing and lean production processes, among others.”

Thor’s purchase of Heartland, the No. 3 builder of fifth-wheels and No. 6 assembler of travel trailers, creates some daylight between Thor and Forest River, which had been closing rapidly on Thor’s once-thought insurmountable lead in the RV market – at least for now.

Heartland produced in excess of $400 million in sales over the last 12 months. Its year-to-date unit production through June 30 was 5,003 units, according to Statistical Surveys Inc. (SSI).

When the Heartland numbers are factored in with Thor’s, the combined company sold 32,123 towable and motorized units through the first half of the year for a 35.1% market share compared to Forest River’s 26,144 units, or 28.6%.

Without the Heartland acquisition, Thor’s year-to-date lead over Forest River was a marginal 876 units.

Looking strictly at towables, the gap widens further. With Heartland, Thor’s towable sales total 30,343 units vs. Forest River’s 20,233. The Forest River numbers in all circumstances include its Coachmen and Prime Time divisions.

“We’ve been No. 1, and this kind of extends our lead,” Ron Fenech, Thor’s RV group president, told RVBUSINESS.com today following his publicly held company’s blockbuster announcement. “But, really, for me, I like being No. 1. But I just want to be great. The numbers will take care of themselves.”

“Over the past five years, Heartland has been a tough competitor,” Fenech continued. “They’re very innovative in their designs, and I’m excited to have them as part of our team.”

RVBUSINESS.com pointed out that no company has absorbed as much market share as Thor now does, certainly since the heyday in the 1980s and ‘90s of California-based Fleetwood Enterprises Inc. But Fenech, for his part, drew a distinction between Thor and Fleetwood of old.

“Fleetwood over the years had very large market share when they were in their prime,” he said. “How Thor is different from Fleetwood is that Fleetwood was a very centralized organization and I think over time they lost touch with the customer because they became so centralized in their thinking that they couldn’t respond to what was going on in the marketplace.

“With Thor, our market share is broken up into many different companies, each doing their own designs, each having their own culture, each finding their way in the marketplace. Our goal is to be very responsive while still benefiting from some of the purchasing advantages you have by buying the quantities of material that we do.”

Thor, according to Fenech, plans to continue that same kind of a management approach. “Very much so,” he said. “Heartland’s going to remain independent, just like our other companies, and the entire management team is being held in play.”

By the same token, Fenech noted,  Heartland’s culture will meld well with Thor’s, despite several years of intense competition.

“Well, there’s always a transition that takes place, and what made Heartland great is what makes all good companies great, and that’s that feeling of ownership, that feeling that ‘we control our own destiny,’ and that very much fits with the culture within Thor,” he said. “You know, Keystone tripled in size after its acquisition by Thor, and we were allowed to run our own game, and that’s very much a philosophy that we’ve had within Thor and that Heartland will operate under.”

Heartland has been the fastest growing RV manufacturer in recent years, percentagewise. Its brands include Bighorn, Sundance, Cyclone, North Country, and North Trail, sold through a nationwide network of dealers.

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