Nexus RVs to Use Factory-Direct Biz Model

October 20, 2010 by · 2 Comments 

Claude Donati and Dave Middleton played Little League together, attended Penn High School together, and this summer co-founded an RV manufacturing company together.

The company, called Nexus RVs LLC, on Tuesday (Oct. 19) announced plans to invest more than $2.8 million to lease and equip the former Prodesign plant complex on Reedy Drive at Elkhart County Road 13 on the north side of Elkhart, Ind., for their motorhome production venture, the South Bend Tribune reported.

For the past few months, Donati and Middleton have been operating their company headquarters from the University of Notre Dame’s Innovation Park in South Bend. They may retain offices at Innovation Park, even after production commences in Elkhart.

Nexus RVs initially expects to hire about 25 employees by late January, and another 25 people by summer 2011 to produce and sell Class B-plus-style and Class C motorhomes. These employees will work in separate 86,000-square-foot manufacturing and 22,000-square-foot buildings located adjacent to the Indiana Toll Road.

By 2013, Nexus expects to employ up to 90 people. Donati anticipates his company could be producing Class A motorhomes over time as well, using a factory-direct business model that the founders believe will distinguish their company from many of its competitors.

“As opposed to visiting a local dealership where five or six companies might display their products, we’re cutting out the second tier of the process. It will be like buying your car directly from Ford or Toyota,” said Donati, Nexus RVs president.

“Only we’re a house on wheels, so it’s actually more like meeting directly with your homebuilder, and we also have the ability to customize,” he said. “Over the last few years as the recession hit and the economy ground to a halt, it opened an opportunity for us to change the business paradigm.”

Nexus RVs will produce 23- to 32-foot motorhomes that will cost around $55,000 to $60,000. Donati expects the first prototypes to be ready for some RV shows at the end of January 2011, and the price point to resonate with consumers as the national economy rebounds from the recession.

“Banks are still not loaning money and consumers are still not able to afford to spend $150,000 on a Class A motorhome,” said Donati, a more than 15-year veteran of the RV industry. He most recently served as vice president of the motorized division at Gulf Stream Coach Inc. in Nappanee.

Middleton, Nexus RVs vice president, served in various management positions in the Gulfstream motorized division.

Startups like this are a sign of the industry’s strength and resilience, said Kevin Broom, director of media relations for the Recreation Vehicle Industry Association (RVIA).

“The industry is bouncing back because the desire for the RV lifestyle remains strong. Consumer demand for RVs never dropped during the recession. What changed was the ability of consumers to purchase RVs,” Broom said.

“As credit markets have normalized, that pent-up demand for RVs is being released,” he added.

Nexus RVs recently received a property tax abatement from the city of Elkhart, as well as up to $725,000 in performance-based tax credits and up to $50,000 in training grants based on job creation plans from the Indiana Economic Development Corp.

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Nexus RVs Choosing Elkhart, Ind., Location

October 19, 2010 by · Comments Off on Nexus RVs Choosing Elkhart, Ind., Location 

Claude Donati

Claude Donati

Nexus RVS LLC, a startup manufacturer of recreational vehicles, announced today (Oct. 19) that it will establish its production operations in Elkhart, Ind., creating up to 90 new jobs by 2013.

The company, which manufactures Class B and Class C motorhomes, will invest more than $2.8 million to lease and equip an existing 109,000- square-foot manufacturing facility adjacent to the Indiana Toll Road, according to a news release.

“As confidence in the recreational vehicle industry re-emerges, Indiana is seeing increased opportunities from new and existing manufacturers alike,” said Mitch Roob, secretary of commerce and CEO of the Indiana Economic Development Corp. (IEDC). “This new business will provide welcomed jobs for workers in North Central Indiana.”

Nexus, currently headquartered at Notre Dame’s Innovation Park, plans to begin hiring production, supervisory and support associates at the Elkhart facility by the end of the year.

“We have selected Elkhart, Ind., because of the enormous knowledge base of both the individual workers and the vast supplier base. It will be our goal to elevate the importance of Elkhart to the retail customer as we are going to sell motorized products directly to the end user,” said Claude Donati, president of Nexus RVS.

Nexus RVS was founded earlier this summer by Donati, a more than 15-year veteran of the industry. He most recently served at Gulfstream Coach Inc. in Nappanee, Ind., as the vice president of the manufacturer’s motorized division.

“We are excited to be helping customers enjoy the RV lifestyle,” said Dave Middleton, vice president and co-founder of Nexus RVS. “Over the last 15 years we have designed, manufactured and sold many of the best Class C and Class B-plus-style product in the industry. It will bring great excitement to earn the business of many RVers.”

The IEDC offered Nexus RVS LLC up to $725,000 in performance-based tax credits and up to $50,000 in training grants based on the company’s job creation plans. The city of Elkhart will provide additional property tax abatement at the request of the Economic Development Corp. of Elkhart County.

“Elkhart’s resilience is proven time and time again as entrepreneurs demonstrate their confidence in the future of our economic growth. We are excited that Claude Donati and his team at Nexus RVS will be investing in and joining our community,” said Mayor Dick Moore. “Small businesses are the backbone of our economy and we recognize the importance of the small business community.”

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