Kay Toolson, chairman and CEO of Monaco Coach Corp., sent a generally upbeat message at the annual stockholders meeting Wednesday (May 18) held in the company’s Wakarusa, Ind., offices.
According to a report in the Elkhart Truth, Toolson said prospects for Monaco remain good as long-term demographics continue to bode well for the RV industry. Monaco’s core age market is 55 to 65, a segment that, according to census estimates, is expected to grow by 65% between 2000 and 2010.
Monaco achieved record sales of $1.4 billion in 2004 and earned a spot on the Fortune 1000 list. Toolson noted the company’s strength in the diesel-powered motorhome market, which accounted for 78% of Monaco’s total revenue last year.
But Toolson also acknowledged the challenges in the motorized sector, created by the industry’s excessive capacity and competitive pricing strategies which surfaced late in 2004 and continue today.
He said Monaco will not, as some manufacturers have done recently, “give away product” to increase market share at the expense of profitability.
Part of Monaco’s strategic plan to increase market share and profitability will revolve around its “Franchise of the Future” program with the company’s dealer network that will be rolled out next month at the annual dealer meeting.
The company also will seek to gain market share in lower-priced towables and its new toy haulers, which Toolson said have been well-received on the West Coast.