The Country Coach subsidiary of National RV Holdings Inc. will stop converting Prevost bus shells into luxury motorhomes, National RV CFO Mark Andersen confirmed.
Employees at the Country Coach facility in Junction City, Ore., will not be able to finish the Prevost bus shells in the company’s inventory until sometime in August, Andersen said. However, Country Coach will not order any more bus shells from Prevost Car of Ste. Claire, Quebec, he said.
The sharp increase in the price of Prevost bus shells imposed in 1999 greatly reduced the retail demand for bus conversions, making it uneconomical for Country Coach to continue in the segment, Andersen told RVBUSINESS.COM.
Instead, Country Coach plans to eventually build more mainstream luxury-level Class A motorhomes, he said. Specifically, County Coach plans to build more “entry-level” luxury Class A’s retailing for around $200,000, Country Coach President Don Fults told The Business Press of Ontario, Calif.
Prior to the Prevost bus shell price increase, Country Coach’s bus conversions retailed for $700,000 to $800,000, Fults told The Business Press. Now, its bus conversions retail for $1.3 million to $1.5 million, he said.
Sales of Country Coach bus conversions have declined 50% since the price increase, despite retail price decreases, enacted by Country Coach and other bus converters, which eroded manufacturer profitability in the bus conversion segment, he said.