RV Weekly

The one positive thing about a down-turn in our industry is that it forces creativity. Innovate or die. Although sad to see, a shake out may not necessarily be a bad thing for our industry and the companies who weather the storm.

Freshly returning from Winnebago’s dealer days in Las Vegas, I heard a number of ideas and product innovations leading me to believe the company will continue to hold its own in the motorized category with its 2009 Itasca and Winnebago brands. This being recently-appointed Bob Olson’s first dealer days as Winnebago’s Chairman of the Board and CEO, it appears that Bruce Hertzke has left the company on very solid ground. The company has its facilities paid for, has no debt and reportedly has plenty of money in the bank for innovation in coming years.

Winnebago announced that it has decided to “hold the line” on pricing for diesel models on the 2009 lineup. This means dealers will offer the company’s brand new models (with upgraded features) for last year’s model prices — a strong selling point in what will surely be a competitive market this year.

When it comes to product upgrades, some models will feature Winnebago’s all-new global positioning system (GPS) called the GPgo. The unit includes a removable Alpine GPS unit for use outside the RV with an in-unit docking station for the driver while traveling. The touch screen can be viewed and operated by both drivers and passengers heading down the road. The GPgo has been added to the Winnebago Journey, Tour and Vectra models and the Itasca Suncruiser, Latitude and Meridian.

Other Winnebago innovations include a new body–conforming mattress, an expanded offering of the company’s RestEasy theater seating module and the Dream Dinette that has been popular of late with various manufacturers.

Foretravel President Lyle Reed has his own ideas for weathering the storm. In a letter recently posted on the company’s website, he announced a new “Freedom to Drive” program for any new 2009 Nimbus or Phenix units ordered or purchased from May 15 to June 30. The program reimburses consumers for some fuel costs during the warranty period as well as pays for normally scheduled maintenance and service on coaches. To sweeten the offer, the company has lengthened the warranty periods for some of its models.

Offering creative pricing, new gadgets and free gas are only a few of the ways companies are pushing through this year’s challenges. Fleetwood Enterprises recently sold both its corporate headquarters and folding camper division to raise $100 million for an up-coming bond redemption. While those moves may appear to be signs of desperation, in 2007 the company was the market leader for Class A motorhomes and has a number of options available to push through the slower season.

Coachmen Industries is taking an entirely different approach. The company is borrowing against the value of its own employees’ life insurance policies. Reportedly, Coachmen tapped roughly 50 percent of the value of those policies according to filings with the Securities and Exchange Commission.

Those are merely a few of the different ways manufacturers are addressing present economic conditions. I’d love to hear your thought on these and any other ways companies are changing the way they do business to do what it takes in 2008. As Winnebago’s Olson said at the dealer meeting this year, it is important for dealers to align themselves with strong business partners to ensure they are not left holding the bag when a manufacturer goes belly up.

Thanks for participating in this week’s blog.

This entry was posted on Thursday, May 15th, 2008 at 10:46 am and is filed under Previous Blogs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.