Mulit-location West Coast dealership Guaranty RV is preparing for a retail market upturn by expanding and re-allocating its inventory.

Guaranty will move on to the 7-acre sales lot in Coburg, Ore., that became available in Decmeber after the Destinations RV dealership was foreclosed by its floorplan lender.

Guaranty plans to move all of its Fleetwood and Holiday Rambler motorhomes on to the former Destinations property, according to the Register-Guard newspaper of Eugene, Ore.

Moving the Fleetwood and Holiday Rambler motorized product to Coburg will allow Guaranty to double the amount of space available for towable RVs at its Junction City, Ore., location, according to Bill DeGroot, marketing director.

The move also will allow Guaranty to better separate its diesel Monaco, Country Coach and Safari motorhomes from the gas engine Monaco, Itasca, Safari and Rexhall units that it stocks, DeGroot told the Register-Guard.

Guaranty also has plans for its California operation. It will close its Scotts Valley sales lot and move to a 6-acre location in Gilroy, about 25 miles south of San Jose.

The Gilroy location is next to a large truck repair facility where diesel motorhome owners could get engine repair and maintenance work completed, DeGroot told the newspaper.

The dealership might open a service center for non-engine repair work at Gilroy, DeGroot added.

The Gilroy location is expected to become operational by March 1.

Guaranty’s sales revenue, including auto and truck sales, increased 6.5% in 2000 to $275 million, DeGroot told the Register-Guard.

“Even though sales might have been dismal in the RV industry in general, this is a good opportunity for us,” DeGroot told the newspaper. “The best time to expand is when things are at their lowest.

“This is just part of the normal business cycle,” he continued. “I think we’re past the trough in this industry, so we might see an upswing fairly soon.”

Brisk sales at retail shows in Salem, Ore., and Tacoma, Wash., encouraged DeGroot to believe the retail market will pick up beginning in April.