Things were going well before the recession for the RV Corral, which bills itself as the largest recreational vehicle dealer in Eugene, Ore.
The Register Guard reported that across from its main dealership on Eugene’s Highway 99N, it had opened a budget lot selling RVs for $10,000 or less. It set up a branch selling high-end luxury motorhomes in Coburg.
Then came the recession, which battered the RV industry nationwide. 2008 “was when things kind of hit the dumps,” said Jerry McCall, who with childhood friends Rick Neet and Steve Christofferson founded the RV Corral in 1988. “We kind of contracted, brought the reins in for a couple of years.”
The company consolidated operations at its base and it sold its Coburg property.
While sales fell, the service side of the business, which the partners started a few years ago, picked up, helping the company to weather the economic storm, McCall said.
Now, RV Corral is back in expansion mode. It has acquired a neighboring 3.5-acre lot at 3690 Dove Lane from Dorsey Ventures for $750,000, increasing RV Corral’s acreage by about 70 percent. And it is fitting out more service bays on part of the new property, previously used as storage for Bethel School District buses. In the not-too-distant future, McCall said, RV Corral will expand its sales area.
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Alex and Jan Alexander were in the 17th week of a tour of the West Coast in their 2006 Country Coach when they pulled into the gates of the Deschutes County Fair and Expo Center in Redmond, Ore., for the Family Motor Coach Association’s (FMCA) 84th International Convention Aug. 11-14. One of more than 2,000 motorhome families to attend the mid-week event in central Oregon, the young couple from St. James City, Fla., intended to spend the four days soaking up information.
“We’re here for several reasons,” Alex noted after exiting the Tiffin Motor Homes manufacturer’s display. “We wanted to see what’s going on in the industry — but, most importantly from an educational standpoint, to visit the displays and see the latest in engines and electronics … it (Redmond) has a little bit of everything.” And, while the first-time visitors to the convention hadn’t considered upgrading their luxury coach prior to the event, Alex did note that “we may change our minds. Right now, we’re looking at an Allegro bus.”
According to Jerry Yeatts, FMCA event director, the Alexanders’ upbeat attitude personified the 84th convention, which also was highlighted by the public debut of the new Vesta motorhome from Monaco RV LLC and the West Coast introduction of the Insignia from Jayco’s Entegra Coach division.
“We had a little over 2,000 families there, and about 200 coaches on display,” he said. “Compared to the last time we were here, it was probably comparable, numbers-wise — but as far as attitude and enthusiasm, it was amazing. The members were probably in their best mood we’ve seen in quite a while. Seems like sales were up, spirits were up, and overall it was a great convention.”
It also apparently was quite successful for a number of exhibitors. “One OEM said that the higher-end coaches they brought were sold,” Yeatts said. “Another dealer who brought in 11 coaches sold six.”
Shannon Nill, general manager of Guaranty RV, Junction City, Ore., echoed Yeatts’ assessment on the overall atmosphere of the program. “We sold 18 RVs at the Redmond rally, about evenly distributed between new and used,” Nill noted, out of about 75 units the dealership supplied to several displays including Monaco, Newmar Corp. and Roadtrek Motorhomes Inc. “Beyond the sales, however, one huge point was that the mood of the customer was really strong compared to last year’s rally. People were eager to RV. The gatherings of this kind after a slowdown are even more important than normal.”
This year marked the fourth time FMCA has held a convention at the Redmond fairgrounds, but was the first time the association kicked off the event with a Wednesday “preview” day. Gates opened at 5 p.m. on “hump day” for touring outdoor manufacturer displays, followed by access only to indoor exhibits Thursday morning. All displays became accessible at noon and thereafter.
“We really didn’t receive any comments concerning shifting the pattern,” Yeatts said. “The gate on Wednesday was greater than normal, but we don’t know if that’s attributable to starting later in the week, or later in the day.”
The Vesta, introduced to dealers two weeks prior to the Redmond convention, immediately attracted quite a bit of attention from rally attendees due to its unique aerodynamic styling.
“We’ve had a lot of customers come up to us that hadn’t really considered a Class A before just because of the size,” said Ryan Lee, marketing director for the Coburg, Ore., manufacturer. “They take a look at this, with the sleek design, and see that it’s really easy from an ergonomic standpoint to sit up there in the driver’s seat and drive that coach.”
Built on a proprietary 26,000-pound GVWR Monaco Roadmaster chassis and designed in conjunction with wind-tunnel testing, the single-slide 32-foot Vesta (a 35-foot floorplan also is planned) features a sloping front fascia, low center of gravity and tapered rear section. MSRP for the 32-foot coach is $195,000-$200,000.
“It’s pretty striking,” Lee said of the styling. “One of the things that we’re trying to do at Monaco is that, when a coach rolls down the road we want people to know it’s a Monaco; we want people to know it’s a Holiday Rambler (Monaco’s sister division). And this type of styling is going to get us there.”
Along with the Vesta, Monaco also brought several models with fresh 2011 floorplans to Redmond. “We’re showing our first 2011 Dynasty and Camalot here at the show,” noted Mike Snell, senior vice president of sales and product development for Monaco. “The Dynasty has a 500hp engine, and we’ve changed the paint scheme and have really upgraded the interiors. On the Camelot, we did the same: changed the front facia, the backsplash, put in a ceiling insert in the living room — we really dressed up the inside. We also have our slide-in-a-slide Diplomat here. We had the slide-in-a-slide in the Dynasty, and we added it to the Diplomat, which is a 43-footer.”
The Entegra Insignia, which debuted almost simultaneously at Affinity Group’s The Rally, July 22-25, at Louisville’s Kentucky Exposition Center and Redmond, is the Jayco division’s “entry-level” coach for the high-end Entegra line. Built on a 32,400-pound GVWR Freightliner XCR chassis powered by a 360-hp Cummins ISB diesel engine, the $265,000 MSRP Insignia features heated-and-enclosed holding tanks, frameless flush-mounted slideout rooms, gel goat fiberglass sidewalls and a steel-reinforced front cap and windshield frame plus interiors sporting glazed maple hardwood cabinets and leather hide-a-bed sofas.
Yet another new unit drawing a crowd was the 2011 model from Newell Coach Corp. Upgrades to the 2011 welded-steel-and-aluminum Newell motorcoaches — the first since the 2006 model year — include upgraded front caps with bright-white “string-of-pearl” LED running lights that outline the outer edges of the headlights, plus rear-body trim and redesigned side moldings. Interiors feature wood windowsill trim bordered with seamed leather, carbon-fiber instrument panels and automated air conditioning and heating.
The upbeat atmosphere at Redmond was, in the view of many dealers staffing the manufacturer exhibits, a reflection of a more optimistic viewpoint already noted at their respective dealerships.
Brian Kehoe, a sales consultant for Sandy, Ore.-based Johnson RV Sales who was manning the Entegra display, noted that the dealership “has experienced four months consecutive of record sales for the company. It’s been fantastic. All the way through, from the B class, C class, Class A gas and diesel units.” The dealership, site of the former Fred’s RV, opened under the Johnson RV Sales umbrella last year and features 12 service bays and three buildings — including an indoor showroom — on seven acres.
At the Tiffin exhibit, Rick Neat, a salesman from RV Corral, Eugene, Ore., one of three dealerships providing coaches for the display, called August “the best month in two years.
“There’s more business out there,” following the shuttering of dealers and OEMs alike during the recession, he said, adding that consumer credit is likewise on an uptick. “On the big money, it’s starting to ease up a bit. A lot of people are going to credit unions now, which are getting a lot more flexible than they were in the past.”
Mike Alverez, with All Seasons RV, Bend, Ore., concurred. “Our banks have loosened up,” he said at the Winnebago Industries Inc. exhibit. “They’ve changed on how they are financing. They are looking at people in a better light, where before it was tough to get financing accomplished. The other thing, too, is that GE, our flooring company, has backed off; they are letting us get product in here, and we’re making the turns we need to make to keep it going.”
Along with new coach designs and features, Redmond also was one of the first consumer shows to feature motorhomes fitted with new 2010 EPA emissions-compliant engines, and several exhibitors — including Gaffney, S.C.-based Freightliner Custom Chassis Corp. and Spartan Chassis, Charlotte, Mich. — fielded questions from consumers and dealership personnel somewhat confused about the technical merits of the two competing drive systems developed to meet the EPA criteria. Cummins Inc. utilizes an aftermarket treatment system, while Navistar’s new MaxxForce engines employ Advanced EGR technology.
One of Oregon’s hardest hit industries last year is hoping to bounce back in 2010.
In the last month, the RV industry has started rehiring, a major reason dealers are betting on a big year, according to KEZI-TV, Eugene, Ore.
RV Corral in Eugene is hoping to sit more people down for business, then seat them in the drivers seat this year, after 2009 national sales plummeted 30-40%.
“We feel we’re going to get all of that back this year. We see a big comeback,” sales manager Lenny Mellin said.
The sales manager says many manufactures are back in business, and hiring back people like Ed Morgan. Many from his factory were laid off when Country Coach went under.
“They were a major customer there,” Morgan said.
Mellin says Winnebago Industries Inc. is putting 300-400 people back to work this month alone, Airstream Inc. is also boosting its work force. And Mellin said he’s been flooded with calls from consumers interested in his show and in buying.
“As long as we stay in our budget and what we’re comfortable spending,” Virginia and Bruce Stennett said.
Mellin predicts a 100% recovery this year, but University of Oregon economist Tim Duy said the recovery won’t be complete. He predicts people will go after lower-end towable RVs, but leave higher-end motorhomes idle. So while sales may rise from 2009, overall profits may not.
“The 25-foot trailer is about as big as we want to go,” Bruce Stennett said.
RV Corral hopes to sell 400-500 units this year, which would be a jump from last year’s low of 250.