Online Event Launches RV Maintenance Program

Steve Anderson, editor of Workamper News, termed last week’s launch of  the RV Maintenance 10-Month Program called the Gold Star Club “a huge success.”

The program opened with an online live event on Feb. 4 called “Buying & Selling It Right,” hosted by Terry Cooper of Mobile RV Academy. Cooper’s expert guests were two guests from PPL Motor Homes in Houston, Texas, Rob Henderson, director of marketing and sales, and James “Shorty” Eleckel, sales manager. PPL Motor Homes is considered the largest RV consignment dealer in the U.S., selling between 1,200 and 1,300 consigned RVs each year, according to a news release.

“One of the many bonus features of being a member of the Gold Star Club is having the opportunity to sit in on an online ‘Live Event’ each month to obtain valuable information about certain RV related topics,” Cooper said. “What better way to start out a large program like this than by teaching people how to buy and sell an RV and do it right? We want to show people that they can sidestep the pitfalls that are out there if they just take the time to become educated about how it all works.”

During the 10-month program, members will be learning RV maintenance via online webinars that have been recorded and placed in a library for each member to access at their own pace. Cooper will be providing his “Ask the Professor” Internet show as a way to provide one-on-one interaction to provide more in-depth learning.

Anderson wants to encourage those who are interested in the program to go ahead and sign up.

“Even though we have had the ‘official Opening’ of the Gold Star Club, anyone can still sign up for this outstanding program,” he said. “We have purposely designed it for anyone who wants to become educated about RV Maintenance to enter at any time and have full advantage of all that the program has to offer.”

To learn more about the RV Maintenance – Gold Star Club Program visit: www.workamper.com/rvprofessor/goldstarclub.pdf. To learn more about the Individual RV Maintenance Course, visit www.workamper.com/rvprofessor/takehometech/

Spartan Motors: No Sticky Gas Pedals From Us

The continuing revelations and deepening problems from Toyota over its sticky gas pedals have managers at chassis maker and truck manufacturer Spartan Motors asking the question: Could these accelerator pedals be on Spartan products?

After taking a quick look, company engineers were able to tell the managers to relax, said Joe Nowicki, CFO at Spartan. The pedals on the chassis and trucks use commercial-grade parts and, consequently, are completely different, according to The Elkhart (Ind.) Truth.

Based in Charlotte, Mich., Spartan is a supplier to several vehicle manufacturers, including the recreational vehicle industry in Elkhart County. It also recently acquired Utilimaster, maker of walk-in vans and commercial truck bodies, in Wakarusa.

Toyota has recalled millions of vehicles in the United States, Europe and China because of gas pedals that can become stuck, causing the vehicles to suddenly accelerate. The situation has hurt the automaker’s reputation for quality but Nowicki does not believe consumer doubts will bleed over to RV, commercial truck and other vehicle manufacturers. Most of the problems and questions seem to be centered around Toyota, he said.

Customers of Spartan have not called the company with concerns over the pedals, Nowicki said. Neither are leading motorhome makers or other chassis manufacturers fielding any calls.

Only a few have called Hino Trucks, but the chassis manufacturer still sent out an e-mail to all its dealers and is planning to make a global statement this coming week to quell any anxiety about its products. Hino is part of Toyota and is trying to expand into the RV, shuttle bus and ambulance markets.

Hino trucks are not tied to the accelerator problems because it uses a different supplier — Denso — and a different assembly, said Glenn Ellis, Hino spokesman.

“I think it’s a concern that everybody has from a safety standpoint,” Ellis said. “We just want to be proactive and tell everyone that it does not affect our trucks.”

McCormick Motors in Nappanee, Ind., is becoming a Hino dealer since the dealership’s long-time supplier, General Motors, has exited the chassis business. At a recent meeting with officials from the dealership, local manufacturers mostly lamented the demise of their favorite GM chassis and did not question if the Toyota problems could affect their industries, according to Gordon Moore, vice president of McCormick.

Still, as Moore goes to local shuttle bus, RV and ambulance makers to promote the Hino chassis, he said he will be talking more about the product’s fuel efficiency rather than Toyota’s hallmark for safety.

“I think Hino will be just fine in the market,” Moore said. “It will stand on its reputation. Will there be some questions? Probably.”

Fleetwood RV Inc. Adds Southwest Dealerships

Fleetwood RV Inc.today (Feb. 8) announced that it added Holiday World of Houston, located in Katy and League City, Texas, and Sunland RV, located in Las Cruces, N.M., to its dealer network.

Holiday World of Houston and Sunland RV will be full-line Fleetwood RV dealers – carrying all brands from Tioga up to Revolution LE – as well as an authorized Fleetwood RV service center, according to a news release.

“Holiday World of Houston has been a well-respected dealer in the RV industry since 1996, and we are very pleased to add them to the Fleetwood RV dealer network,” said John Draheim, president and COO of Fleetwood RV, Inc. “The professionalism of their service organization and their world-class facilities will certainly serve our customers well for many years to come.”

“We are very excited about our new partnership with Fleetwood RV,” said Michael Peay owner of Holiday World of Houston and Sunland RV. “Fleetwood’s line of motor homes offers something for every RVer; backed by a strong warranty. Combine this with the experience of their sales and service teams, we are confident that Fleetwood RV is the right manufacturer to help us grow our business.”

Jamaica’s First RV Built on Peterbilt Truck, Man

Jamaicans are not big on recreational vehicles; but Nadine Hamilton has made a million-dollar bet that a market is out there just waiting for the supply, according to The Gleaner, Jamaica, West Indies.

Though it sounds counter-intuitive, Hamilton has designed and outfitted Jamaica’s first RV – a mobile luxury home that cost $90,000 (in U.S. dollars) and started out being makeshift moving quarters for scrap-metal collectors.

The outside, though beautifully designed in Jamaican colors, is not all that special, but step inside that trailer, and a new world of travelling luxury opens up.

Hamilton, CEO of Hamilton Demolition and Scrap Traders Limited, said that since rolling out her “luxury mobile home” concept in early December, she has been fielding calls from film companies and tour operators interested in her 40-foot rolling living quarters.

Housed in Vineyard Town in St Andrew and sitting atop a 2001 Peterbilt truck, Hamilton’s luxury ride started out with an initial $6,700 investment.

“It’s a ranch,” she boasts.

The unit is registered in the name Jamaica’s First RV (JFRV).

The air-conditioned mobile, which rents for US$2,500 per day, comes with chauffeur, canine or armed security, and features bunk beds for eight, a kitchen equipped with stainless-steel appliances, and what the craft’s designer refers to as a state-of-the-art bathroom.

Each bunk is equipped with a flat-screen television and DVD and CD players. The truck has its own water supply and generator as well.

The luxury rental Hamilton started out as a mobile home for the scrap collector’s staff of 10 who needed accommodation while on their job, which takes them islandwide.

It is now being marketed to those who want to tour Jamaica in five-star luxury without the hassle of booking hotel rooms in different locations.

But owning a mobile luxury apartment has its downsides.

The biggest challenge so far, said Hamilton, was getting insurance, which took her six months to secure after being turned down by 14 local companies.

The rolling home is now insured with Advantage General in a double policy which provides both motor and home coverage – after all, it is both.

JFRV’s parent company, the three-year-old Hamilton Demolition and Scrap Traders, collects and exports industrial scrap for companies in the construction and bauxite sectors, but Hamilton also names some of Jamaica’s large industrial companies as her clients.

She recounts the beginnings of the ambitious project as a matter of necessity, having come under pressure to solve the issue of accommodation for her staff, whose jobs are arduous and often hazardous.

“We were getting a lot of work (but) we needed money to find accommodation for staff. It was often a bad experience, with rats and pit toilets,” she said.

“I decided to get a 40-foot container with generator, fridge, stove and bunk beds. The projected cost was $600,000.”But other ideas started flowing. After black tanks and a movable generator came cooking and showering amenities. Now, there is hot and cold water and full air conditioning, surveillance cameras and the trappings of luxury.

“We take everything into consideration. The tanks were the only thing custom-built from overseas. Everything else is locally made,” said Hamilton.

Now testing the waters in terms of rental and sale viability of her RV, Hamilton said by March this year, another model would be complete, with Jacuzzi and balcony for watching events.

“You won’t have to leave it for the shows at all. There will be family-size facilities with queen-size beds.”

The entrepreneur is also con-sidering importing low-cost mobile homes for building contractors on the move to house their staff.

“They have asked us to build smaller versions.”

But for the one already on the road, Hamilton expects increased interest from visitors.

“Movie-production people and entertainers, they are all calling. We are in negotiations. We are in serious dialogue,” she said.

Heartland RV Makes Mark in Early Show Circuit

Consistent with its outlook for a market turnaround this year, Heartland Recreational Vehicles LLC is reporting solid sales and a rebound in consumer interest during the early round of consumer shows, according to a news release.

“It started at the Tampa Show (Florida RV SuperShow) where we saw very steady traffic and more actual buyers than last year,” said Coley Brady, director of fifth-wheel sales for the Elkhart, Ind.-based manufacturer. “Our dealers have been moving our product, and they are reporting that our lines are resonating with consumers. We continue to be very encouraged about Heartland’s prospects in 2010.”

Brady said that shows in San Antonio, Texas,  and Kansas City, Mo., were particularly strong, eclipsing last year’s totals and further padding the company’s order backlog with its dealer body.

“The Tampa Super Show event was really successful,” Brady said. “We were up significantly from last year and our dealers were very enthused with the show results.

“Overall, we are pleased with the early battery of shows. That said, it is still a very competitive environment, which makes it even more important that we stay ahead of the curve with innovative features and design, along with pricing that fits into peoples’ budgets.”

Heartland rolled out five new brands at last year’s National RV Trade Show in Louisville, Ky., including several new travel trailer offerings to complement its full line of fifth-wheels. Brad Whitehead, director of travel trailer sales, said the new brands were a hit with consumers and the company is anticipating market share growth in the travel trailer sector this year.

“Our new travel trailer models are filling gaps in our lineup with products that target some of the fastest-growing sectors in the marketplace,” Whitehead said. “Judging from the early shows, we are carving out our niche in these very competitive areas of the market.”

Tim Hoffman, vice president of sales, feels that the success in the early shows leaves Heartland well positioned for the upcoming spring selling season and on through the end of the year.

“We have a flexible assembly model so that we will keep step with demand,” said Hoffman. “Our long-term plan has always been to grow in a thoughtful, disciplined manner so that our dealers will always be taken care of. That plan is still very much in place as we move through what will be our best year ever.”

Baird Raises Rating for Winnebago Industries

News Update: Winnebago Industries Inc. stock, which had lost 31% of its value since hitting a year high of $16.44 in October, added 87 cents, or 7.7%, to $12.20 in trading after release earlier today of the following report.

Editor’s Note: Robert W. Baird & Co. issued this client recommendation on the stock of Winnebago Industries Inc.

With the stock approaching our $11 target price, we are raising our rating to Neutral (from underperform). We remain concerned that profitability may remain elusive given breakeven levels near 3x F2009 volume, but note the robust wholesale recovery, strong backlog, and signs of better retail demand.

Summary

Robust recovery, but skinny profits. Our fundamental outlook for Winnebago is unchanged. We see a robust wholesale recovery – but meaningful profits may lag. Indeed, our model assumes 20% retail growth, share expansion, and 142% shipment growth – but Winnebago likely will lose money in F2010 and earn just $0.56 ($0.36 tax-affected) per share in F2011.

Better news flow. Thor recently reported strong results, driven by improving demand for towables and a large rental order. Meanwhile, our checks suggest faint signs of better retail demand at some pre-season shows, supporting the optimistic viewpoint – but towables are performing better than motorhomes. Still, given the crowded short position in Winnebago shares and positive bias to news flow – and with the stock near our $11 price target – we believe Neutral is the appropriate rating.

Reports March 18. Winnebago is scheduled to report Q2 results March 18. Our estimate is below consensus. We note that supply constraints may limit shipments, but fuel a larger backlog. In recent quarters, the stock has been more sensitive to the backlog trends than profitability.

Newell Coach Adds Fresh Look to 2011 Model

Oklahoma-based Newell Coach Corp. is ”freshening” the look of it’s 2011 ultra high-end custom-made motorcoach for the first time since the 2006 model year with upgrades to the Newell’s front caps, rear-body trim, taillights and interior decor.

”It’s a refinement, an update,” said President Karl Blade. ”We wanted to bring a fresh product to the marketplace for those people who follow big coaches. The changes are distinctive, but not radical.”

The 2011 modifications include bright-white ‘’string-of-pearl” LED running lights that outline the outer edges of the headlights and redesigned side moldings. Interiors feature wood windowsill trim bordered with seamed-leather, carbon-fiber instrument panels and automated air conditioning and heating.

The first 2011 Newell came off the production line in mid-January and debuts Feb. 12-13 during the grand opening of Signature Resorts’ new Naples (Fla.) Motorcoach Resort.

A legendary brand in the motorhome business, Newell was founded in 1967 by L.K. Newell who purchased the motorhome division of California-based Streamline Trailer Co. and moved it to Oklahoma. Blade purchased the company in 1979.

”Mr. Newell’s innovation at the time was radical,” Blade said. ”We take it for granted now, but he built the first rear-engine motorhome in 1969 and the first diesel-powered motorhome in 1970. He also designed the first basement storage. It took years for the rest of the industry to adopt those things.”

Newell currently employs 150 people at a 150,00-square-foot factory that includes 40,000 square feet of service area manned by 20 technicians.

Newell motorcoaches usually retail upward of $1.4 million factory-direct sales from the company’s headquarters in Miami, Okla.

Along with the rest of the American economy, the e niche Newell occupies appears to be exiting the economic maelstrom that has enveloped the RV industry for the last two years.

”The market definitely is coming back,” Blade said. Interestingly, from what we’ve seen, the biggest change in recent months has been our late-model pre-owned (coach buyers) filling the void left by others (manufacturers) that have exited.”

Among the casualties of the recession were Coachworks Holdings Inc., converter of the high-end Blue Bird motorcoach, and Country Coach Holdings Inc., Junction City, Ore.

”There have been big changes in the conversion industry,” Blade said.

Newell entered the recession with little inventory, and all of its 2009 and 2010 coaches have been sold. ”That is allowing us to put fresh 2011 product out there that no other (consumer) has,” Blade said.

Typically, Newell will take a two- or three-year-old Newell in trade and refurbish it for resale. ”It’s very similar to the way we sell a new coach,” Blade said. ”It’s not custom, but we’ll make modifications, depending on financial factors. ”We might add closets or entertainment centers or pull a desk out and change it to a sofa. It’s limited by the fact that if you get very deep into it, it gets expensive.”

While Newell builds motorcoches in 38- to 45-foot lengths on its own custom-built 63,300-pound GVWR diesel-pusher chassis powered by a 650-hp Cummins ISX engine, most customers order 45-footers. All coaches are custom-designed and can take up to nine months to build.

”Ninety percent of our product is 45-footers,” he said. ”The price savings aren’t significant if you build a smaller coach. And people won’t buy small stuff unless they can save a lot of money.”

Selling expensive motorcoachs requires a personal approach to marketing and that’s among the reasons Blade is spending the winter at Motorcoach Country Club in Indio, Calif.

”I spend three months every winter in Indio to show the product and cultivate relationships with our existing customer base,” Blade said.

With dealer inventories of other high-end motorhomes limited by the current economic situation, Newell is seeing new customers who might not have considered buying a coach factory-direct.

”Too often, prospects would go to their nearest local dealer and look at a new high-end Class A and that’s what they’d buy,” Blade said. ”We never saw them. Today you don’t see many new or used high-end Class A’s on dealers’ lots in California. It’s expanding the market dramatically for us. We are almost out of pre-owned.”

More Responses to SBA Floorplan Conference

Editor’s Note: Participants at the Feb. 5 Dealer Floor Plan Financing Conference in Elkhart, Ind., organized by U.S. Rep, Joe Donnelly, D-Ind., shared these additional thoughts following the conference. Among the speakers was Peter Lannon, president of Motorsports & Recreational Vehicle Group, Commercial Distribution Finance, GE Capital Solutions, which is the leading player in the RV finance sector. He told RVBUSINESS.com ”We are committed to this industry, and we believe in its future success.”

Congressman Donnelly: “I think it was terrific because it brought together dealers, manufacturers, banks and the SBA. And what we’re all trying to do is figure out how do we make it so that consumers that should be getting a loan can get a loan, and the same for floorplan financing. So, we’re trying to find out what problems are being faced and then figure out how to fix those problems.”

(RVBUSINESS asked, Is the message in general,  that, while things are clearly improving economically, that the recession is still lingering? “Right, we’re making progress, but we’ve got a long way to go. It’s one of those three yards-and-a-cloud-of-dust-type situations. And I think we’re going to continue to make progress every month. And if we can get this financing situation to work smoother, it will help us get out of it even quicker.”

Peter K. Lannon, president, Motorsports & Recreational Vehicle Group, Commercial Distribution Finance, GE Capital Solutions: “The SBA’s trying to retool its program. They haven’t had a great deal of success. And the banks, as we’ve heard today, are struggling to get their arms around it. The program needs probably some adjustment if it’s going to be effective, going forward. And I’m thankful that they had the meeting because additional liquidity in the industry’s always going to be helpful. Nobody can take all customers. Having multiple participants is healthy for the industry.”

GE’s view of the RV market as it climbs out of the recession? “We’re very optimistic right now. We believe the dealer base stabilized. Dealers are focused on turning the product. Manufacturers are also focused on that very same issue – not just shipping into the dealers, but making sure the dealers, in turn, are selling it to a retail customer. And that’s a very healthy foundation for this industry to be on. So, we are growing right now, and we are committed to this industry, and we believe in its future success.”

Bill Fenech

Bill Fenech, president of Thor Motorized: “I think Joe Donnelly has a grasp of what our needs are. Unfortunately, I don’t think there’s a connection between what the banks need to do SBA loans for floorplan financing. And basically, my takeaway is that it’s either too cumbersome or there’s something wrong with the process that makes them not want to do it (make SBA-backed loans). I know dealers that have tried and the banks just basically walked away. So, I think Joe gets it. He’s asking good questions. I don’t think we have the answers yet.”

Does SBA get it? “No,” adds Fenech, “not for the level we need it to be.”

Monaco RV LLC Chief Legal Counsel Richard Bond: Bond submitted the following comments in a follow-up e-mail.

1. Local Banks. It is evident that for the “local banks” who claim to lack the infrastructure to service wholesale floor plan financing, the current SBA program incentives are insufficient to get them to enter the game, even with possible increases to a $5M limit and 90% guaranty. Notable was the comment by First Source Bank (a northern Indiana bank based in South Bend) that in its presently constituted format of a pilot program expiring toward the end of 2010, the SBA program does not offer sufficient incentive for the banks to justify investing in the infrastructure because they need a longer payback period. First Source commented that a minimum program term commitment of perhaps 5 years could possibly be adequate to change the equation. However, before Congressman Donnelly runs with that idea in Washington, I think that (he) would want to do some further talking with the banks in order to get a higher comfort level that, in fact, such a longer program term would convince them to enter into wholesale floorplan financing for RV and marine dealers.

2. KeyBank. Unlike most of the others banks in attendance, KeyBank has had the infrastructure in place and has engaged in wholesale floor planning, but it now seems to have made the firm decision to exit this business line. It didn’t sound to me like any revisions to the SBA program are likely to change that decision.

3. GE. GE’s Peter Lannon, in the course of confirming that GE is actively financing RV and marine dealers across the country today, made a statement to the effect that the possibility of obtaining a 75% (or presumably even a 90%) guaranty from the SBA does not enter into GE’s loan analysis determination. Perhaps it is because GE is not interested in becoming involved in the “red tape” that compliance with the SBA program requires of the lender. It was also interesting to hear Mr. Lannon’s comment that for their RV and marine business, increasing the current SBA $2M limit to $5M is not a critical factor.

4. 504 Loans. The comment by Coachmen RV’s Mike Terlep on this topic was insightful. While efforts to make the SBA floorplan financing program successful should be continued, perhaps some emphasis should also be made on the availability of SBA 504 loans given the announcement being made today that they will now be available for the mortgage refinancing of owner-occupied commercial real estate. Such loans could help dealers improve their liquidity and allow them to appear more attractive to the national floor planners or perhaps even finance their used inventory with cash.

Family Wins Lawsuit Over RV Rental Dispute

Renting a motorhome for one Bakersfield, Calif., family started out so good, but it ended up so bad, according to the Bakersfield Californian.

The customer service Todd Brendlin received from a Montclair business ranged from “fantastic” to “almost zero,” he said. It led to him winning a nearly $5,300 judgment this week against the business, Open Road RV and its owner, Jeff Collins.

Brendlin, 43, the head of the organic farm division of Grimmway, said he was very pleased in the beginning. On July 15, an employee of the business, Juan, delivered a 34-foot motorhome to his home in Bakersfield for a long-planned family trip to Yellowstone National Park, he said.

Juan went over everything and made sure everything worked. The next day Brendlin, his wife, Erin, 39, and their two children, Trevor, 12, and Keely, 9, set out for their adventure. Though it was hot outside, the air conditioning kept the motorhome comfortable.

That is until somewhere between Barstow and Baker, where the air conditioning started blowing out nothing but hot air, he said. It was 113 degrees outside and perhaps another 10 degrees hotter inside the motorhome, he said.

He said he called Collins, who suggested possible fixes, but nothing worked. Collins asked the family to continue to Las Vegas, still about three hours away, and if they still had a problem to call him to work something out, according to Brendlin.

The heat was sweltering, like a sauna, Brendlin said. His children stripped down to their underwear. HIs wife got sick. They all had symptoms of heat exhaustion, he said.

They pulled into a motel to cool off that evening.

The next morning, Brendlin said, he called Collins. “His exact words to me were to ‘deal with it and get a life,’” Brendlin said. The customer said he would expect a full refund and Collins replied, “Absolutely not,” according to Brendlin.

A reporter called Open Road RV several times during business hours last week. A recording described the business hours and asked callers to leave a message. None of the messages were returned.

Brendlin paid for an inspection and found out that the compressor locked up with an estimated replacement cost of $3,700 on parts that had to be ordered. He faxed the work order to Collins and told him he would leave the motorhome safely at a dealership for him to pick up.

The family rented another motorhome at El Monte RV of Las Vegas, whose manager was so sorry about how they were treated that he gave them a night free on the rental, Brendlin said.

The manager, Roger Brewer, said in a telephone interview Friday that they swap out RVs all the time for mechanical breakdowns and what happened to Brendlin “is not something we would have done.”

Brewer said he gave the family a free night because they already lost a day on the trip. “We always try to make it good,” he said.

The family continued to the Tetons, Yellowstone and Jackson Hole, Wyo., for a “great trip,” Brendlin said.

What did he learn from the experience? To call the Better Business Bureau before dealing with an unknown business, he said. That would have saved him from this experience, he said.

He sued Open Road RV in small claims court in Kern County for the price of the Open Road rental, the repair inspection, a night’s lodging and the cost of rental vehicles to get from Las Vegas to Bakersfield.

He and a friend served a secretary at the business with lawsuit papers about a month ago. Collins didn’t show up for the hearing, so he won by default, court records show.

Orangewood RV Opens Store in Tucson Area

There are exceptions to the grim rules of today’s bleak economy, and two of them are on the same northwest corner of I-10 and South Palo Verde Road in Tucson, Ariz., according to the Arizona Daily Star.

There, in a city full of vacant commercial real estate, an agent was able to lease out a purpose-built retail facility and huge lot just two weeks after it was vacated.

And the incoming tenant is a new RV center, from an industry that has been hurting from the 1-2-3 punch of high gas prices, a tough recession and tight money.

Mark Treacy, owner of Orangewood RV Center, of Surprise, plans to open a new Tucson full-service RV dealership around March 1 on the property occupied by Arizona Honda until just two weeks ago.

The center will sell new fifth-wheel RVs, travel trailers and toy haulers.

Treacy said the dealership will carry new products by Keystone RV Co., including the Montana, Mountaineer, Big Sky, Raptor, Fuzion, Outback, Hornet, Hideout, Sidney, Cougar, High Country and Bullet lines; Heartland Recreational Vehicles LLC’s Sundance, North Trail, Edge and Graystone lines; and Eclipse’s Attitude toy hauler.

Treacy said he signed a deal with RV manufacturer Keystone to give Orangewood exclusive rights to sell new Keystone products in southern Arizona.

The current local authorized dealer for most Keystone lines, Beaudry RV,will no longer carry Keystone, confirmed Beaudry’s vice president for operations, Dundee Kelbel.

Kelbel said Beaudry has signed on to carry the Forest River Inc. line of RV products, including Class A, B and C motorcoach lines, but will continue to sell remaining Keystone inventory.

Beaudry RV, like many RV dealerships nationwide, has gone through bankruptcy and dropped some product lines. Beaudry emerged from bankruptcy protection last summer and has since reported some gains in parts of its business, which includes sales, parts, service and a large RV guest park.

Treacy said Orangewood will also sell used RVs and offer consignment sales of all types and makes of RVs, as well as offering service, parts and detailing.

In six months to a year, Treacy said, he plans to open a collision center to repair damaged RVs. That may be built on adjacent land or at a separate location.

Treacy said Orangewood RV Center, founded in 2004, has grown conservatively in the Surprise and Sun City area northwest of Phoenix, allowing it to make this move. The company is owned by Treacy and his wife, Cynthia.

“We’ve structured our overhead in a way that allows us to maintain profitability,” Treacy said. He said financing on RVs just “a year ago was impossible, but it’s a little better.”

He said the company would open with 12 employees in Tucson, and plans to expand the work force here to 40.

The 28,500-square-foot facility Orangewood is leasing on an 8.3-acre lot at the northwest corner of South Palo Verde Road and Interstate 10 was custom built in 2004 for Arizona Honda by Tucson commercial real estate development and leasing firm Larsen Baker.

Arizona Honda closed last month after a two-year downturn in sales.

“In these days of gloom and doom, look how quickly this got leased,” said Andy Seleznov, of Larsen Baker.

But Seleznov said the deal didn’t happen quite as miraculously as it may appear. He said Larsen Baker had some warning the property might become vacant and had done some scouting for possible tenants.

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