Rapidly expanding MVP RV Inc. has announced the signing of Banning RV Discount Centers as its newest Vortex toy hauler dealer.
Camp America RV Inc., dba Banning RV Discount Centers, is a locally owned and operated RV dealership. Serving southern California for over 12 years, Banning RV Discount Center provides a large selection of both new and used towable RVs.
“We are a high volume dealer focused on selling quality products at a low discounted price,” Jeff Zemp, Banning RV general manager, stated in a news release. “We are extremely excited to bring on Vortex as our exclusive toy hauler trailer. MVP builds an affordable product with a high-end look and high-end standard features. Plus, we don’t have to be concerned about competing with any other Vortex sister products in our market.”
Scott Richgruber, Vortex product manager, said that Banning RV Discount will be taking the all-new 2011 Vortex into the upcoming California RVIA show in Pomona. “We could not be happier with our choice of Banning RV Discount as our newest Vortex dealer. They only sell towable products, have a veteran sales team, and are just great people to work with. We truly value our relationship with them and look forward to a long partnership,” he said.
For more information about Banning RV Discount, visit www.discountrvs.com. For more information regarding the all new 2011 Vortex, contact Scott Richgruber at (951) 208-7235 or firstname.lastname@example.org.
When Gary and Dottie Williams ordered their MVP RV Inc. trailer in April 2009, complete with nameplates attached to the bunk beds for their grandsons, they expected to get it a month later.
They planned a cross-country road trip, but stayed in hotels instead.
When they took a vacation to the lake, they rented a trailer.
In between April 2009 and April 2010, the Moreno Valley company that was building their trailer shut down its factory like several other RV makers had done, according to The Press-Enterprise, Riverside, Calif.
While the company looked for investors and tried diversifying its business by going into the electric vehicle industry, salespeople at Giant RV showed Gary Williams other trailers. He said he couldn’t find anything comparable.
He didn’t need to. Gary and Dottie Williams picked up their finished MVP RV trailer at the Giant RV dealership in Montclair this month.
MVP RV, the Moreno Valley maker of their trailer, didn’t get the funds they needed to build electric vehicles but they found an overseas investor willing to back their RV factory.
“It’s such a great feeling to come back,” said Brad Williams recently in his Moreno Valley office. “We survived.”
Manufacturers and RV dealers are beginning to climb out of the wreckage wrought by the recession much like the industry has done early on during past business cycles when the worst appears at an end.
Would-be campers are hardly stampeding to RV dealers to purchase high-end Class A diesel motorhomes, Class C RVs or even pop-up tent trailers but they are looking, and some are even buying.
“We’re first to get hurt, and the first to recover,” said Tom Powell, CEO of Riverside-based travel trailer maker Pacific Coachworks.
In 1979, preceding the 1980 recession that lasted from January to July, RV shipments fell a staggering 48.9% to 199,200 vehicles sent to dealers.
Wholesale shipments fell another 46.2% in 1980 to 107,200 RVs. By 1981, the number picked up 24.6% to 133,600 units. Despite a recession that stretched from July 1981 into November 1982, shipments increased another 5.2% to 140,600.
With the exception of a dip in shipments in 1985, RV production increased nearly eight straight years until 1989. The recession started July 1990 lasting until March 1991. RV shipments picked up 24.6% by 1992.
With the exception of another dip in 1995, RV production grew again year over year for nearly eight straight years until 2000 when it dropped 6.6%. A recession began in March 2001, ending November. That year RV shipments dropped another 14.4%. But by 2002, it was up 21.1%
The most recent recession started December 2007.
Two popular Inland recreational vehicle makers, Weekend Warrior Inc. and National RV Inc., bowed out early on before the economy started to exhibit true signs of stress.
Fleetwood Enterprises Inc., a longtime RV industry icon based in Riverside since 1963, had managed to navigate recessions before usually emerging a stronger company after other competitors blew a tire. This time though, saddled with too much debt, the company filed for Chapter 11 bankruptcy in March 2009 selling off the motorhome division to an equity group out of New York that moved all of the company’s operations to Indiana.
Before, Southern California dealers could pick up the RVs they ordered in Riverside. Now some say they pay extra for shipping.
Elsewhere, Monaco Coach Corp. filed for bankruptcy in March 2009. Country Coach Holding Inc. was liquidated late last year.
In 2007, RV makers shipped 9.5% fewer vehicles. The number dropped another 32.9% in 2008, and continued to cascade another 30.1% in 2009 until there were just 165,000 shipped to dealers, the lowest level since 1991.
First to recover
The Recreation Vehicle Industry Association (RVIA) is expecting shipments to jump 30% this year to 215,900 vehicles.
“When things go down, the RV industry takes it in the gut,” said Joe Laing, director of marketing for El Monte RV which rents ands sells trailers. But it also seems to be one of the first to recover, he said.
Laing said El Monte RV staff noticed year-over-year sales growth since January.
“We don’t know that it means anything,” he said, hesitant to herald economic recovery based on their business. “We’re pretty optimistic that it looks like we’ve come through the worst of it.”
Frank DeGelas, owner of Mike Thompson’s RV Super Stores including locations in Colton and Cathedral City, said he dumped older inventory at a loss to clear out his dealerships for new models being released by the manufacturers who remained.
Usually the recovery after a recession is strong and fast. This one, though, is taking its time.
He sold 11 Coleman folding camping trailers in three weeks, a sign that family buyers are looking for an affordable alternative, as well as Class B motorhomes and the larger Class A diesel RVs.
“I think I’ve been helped by my competitors failing,” he said. The pie may not be any bigger, he said of the RV selling market, but he gets a bigger slice now, he said.
DeGelas credits manufacturers who spent their downtime during the downturn designing new features.
“I’ve been doing this for a long time, over 30 years, and I have never seen the amount of innovation,” he said of new models from manufacturers like Fleetwood RV Inc., now under new ownership. The Encounter, Fleetwood’s latest model, features a bunk bed that converts into a dinette.
“It’s almost like a ‘Transformer’ motorhome,” he said.
Pacific Coachworks Inc., which survived the lean times after having shut down production in the first half of 2009, developed a trailer with a slide-out outdoor kitchen and in another trailer, a slide-out queen bed.
“When things are going extraordinarily well, there’s not as much impetus to be innovative,” said Tom Powell, CEO of Pacific Coachworks.
The company has 100 employees, about half of the staff compared to its height in 2007.
Powell described new orders as solid, “but it’s not sensational” especially compared to stratospherically successful years in 2005 and 2006.
Powell said he wished more Inland RV manufacturers had survived the recession, that way suppliers would take root in the area too. As companies closed, though, so did suppliers and the cost of doing business for those who remained rose.
His company and others are now building based on orders rather than making RVs with the hope someone will eventually order it.
“I think we all learned to be a little more cautious,” he said.
A company that will turn out electric vehicles from a Moreno Valley, Calif., factory could ultimately employ as many as 2,000 people if the firm’s products prove as popular as its executives hope.
For now, the venture with South Korean-based CT&T United will hire about 120 workers. The battery-powered vehicles, which are not legal for freeways and can’t go as fast as the speed limits on most major surface streets, will roll off the assembly line by the first part of next year.
CT&T signed a deal Thursday (Sept. 10) to make the electric cars with Moreno Valley-based recreational vehicle company MVP RV. One of two factories MVP owns near March Air Reserve Base will be converted to make electric vehicles by a new company called MVP-EV, according to the Riverside Press-Enterprise.
MVP will continue to manufacture recreational vehicles in the second factory, said Pablo Carmona, vice president of manufacturing for MVP-EV.
The first electric cars are expected to roll out of the new factory in January following several months of refurbishing, Carmona said. It will be the Korean carmaker’s only manufacturing center on the West Coast, as well as its regional sales and service hub.
If the demand is strong enough, the plant could turn out 10,000 vehicles a year by 2011, he said.
Carmona, who started out at this factory on the assembly line in 1996 when it made RVs for Thor of California and worked his way to a management position, said MVP officials expect to start looking for workers in about a month. Some could be people who formerly built RVs at one of several Inland companies that have closed, such as Fleetwood Enterprises Inc., National RV Holdings Inc. and Weekend Warrior Inc., he said.
“People that used to make RVs would be comfortable making these cars,” Carmona said.
CT&T has been making electric vehicles in South Korea and China since it was founded in 2002. The company announced plans to open operations in the United States about two months ago.
Two models, the c-Zone, which resembles a golf cart with a fifth seat in the rear, and the e-Zone, which is reminiscent of the French-built Smart Car, were on display for the signing ceremony at the Riverside Convention Center. It was part of an event called the Riverside County Day of Transformation, which brought leaders together to discuss ways to generate jobs and revitalize the economy.
One of those strategies involves jobs based on renewable energy concepts, and in that regard MVP-EV fits. While it currently costs as much as $60 to fill the tank of a sport utility vehicle, maintenance costs for these models run between $5 and $10 a month.
The vehicles are priced between $7,000 and $17,000, and CT&T has more models on the drawing board, including a battery-powered bus, said Brad Williams, CEO of MVP-EV.
But the top speed for the models displayed Thursday is only about 35 mph. People with errands in their neighborhoods and senior citizens are among the likely marketing targets, and the company calls the cars “neighborhood electrical vehicles.”
The cost and the size of the models are drawbacks for consumers, said Mike Caudill, who writes for NADAGuides.com, a publication of the National Automobile Dealers Association.
“I don’t think the demand is going to be as high as this company hopes it will be,” he said of MVP-EV.
“People don’t have that discretionary income to buy a vehicle to take down to the grocery store,” Caudill said
Caudill also is president of Driven Communications in Temecula which represents an electric motorcycle manufacturer and a Singapore firm that is developing a system to convert standard cars into electric ones. He said price will ultimately determine the popularity of a car that may not exceed speeds of 35 mph.
David Stewart, dean of A. Gary Anderson Graduate School of Management at the University of California’s Riverside campus, said there’s risk with every startup, but MVP-EV will be marketed all over the West and has minimal competition.
“It won’t replace the internal combustion automobile, but for someone who is retired or for a stay-at-home spouse it could be a good alternative,” Stewart said. “Also, we’re at a stage where we’re receptive to alternative-energy cars.”
The cars could also be popular with government agencies, including police departments and code enforcement personnel, Williams said.
Tom Freeman, spokesman for the Riverside County Economic Development Agency, said a delegation from CT&T, including its founder, Young Gi Lee, visited Gov. Arnold Schwarzenegger in March seeking sites for its factory. State, county and city officials helped the company zero in on Moreno Valley.
“This is one of those leads that happened in quick-time,” Freeman said. “In economic development, that doesn’t happen very often.”
Riverside County’s unemployment rate of 14.7% in July is one of the highest of any urbanized counties in the state, and areas such as Moreno Valley and Perris, hit hard by foreclosures, have struggled more than most. That is why the news pleased officials from Moreno Valley. Bonnie Flickinger, mayor pro-tem, vowed to purchase the first vehicle that comes off the MVP-EV line.