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RV manufacturers are not offering much in the way of discounts and rebates now because the retail market is so strong.
An exception to that was National RV Holdings Inc., which increased the amount it spent on discounts and rebates during the first quarter in order to move Country Coach Lexa highline diesel pushers through the pipeline, said Brad Albrechtsen, president and CEO.
During the fourth quarter of last year, National RV Holdings, parent of Country Coach, spent 1.6% of its $99.1 million in sales revenue on discounts and rebates, Albrechtsen said during a conference call with investment analysts last week. That computes to $1.6 million.
But during the first three months of this year, National RV Holdings’ spending on discounts and rebates grew to 2% of its sales of $110.4 million, or around $2.2 million.
Albrechtsen said the first-quarter discounts and rebates were “targeted on a few, very high-priced Country Coach units” which he later identified as the Lexa. “It (the discounting) is not across-the-board by any means.”
The Lexa was built in the same plant in Oregon where Country Coach builds its Magna and Affinity highline diesels, which were revamped for model year 2005 and introduced during the Family Motor Coach Association (FMCA) convention in Albuquerque, N.M., in March.
“We were very pleased with the acceptance of the highline 2005 products we introduced at the New Mexico FMCA show,” Albrechtsen said. “Admittedly, I’ve yet to hear a manufacturer launch a new product and not claim that everyone was very excited about it. However, I must say the buzz heard over the new Country Coach Magna and Affinity products was more of a roar than a buzz.
“We will continue the roll out of new 2005 products from both divisions (National RV and Country Coach) over the next several months,” he said.
Concerning the Lexa, Albrechtsen said, “That’s a current product that were not building today because the Magna and Affinity demand is so strong. That product (the Lexa) needs some work before we build it (again).
“The (Lexa) product is still out there and it’s supported and there are plans to revisit it,” he said.
National RV Holdings’ spending on discounts and rebates will be less than 2% of its second quarter sales because the demand for all of its other models is strong, Albrechtsen added.