Class A motorhome manufacturer Rexhall Industries Inc. announced today (Nov. 1) that it has recalled 80 of the 200 employees that it laid-off at the end of September.
“While the industry hasn’t fully recovered from the events of Sept. 11, we have been able to move enough inventory that we can increase production,” said Bill Rex, CEO. “Of course, we had to offer steep discounts in order to accomplish this, but it’s better to get our employees back to work.”
The wholesale and retail price discounts recently offered by Rexhall were the first by the Lancaster, Calif.-based company since the motorhome sector’s slowdown began 18 months ago, according to Rex.
“Our cash position is very strong and we haven’t come close to drawing on our line of credit, which we have never drawn on in our history,” Rex added.
August had been Rexhall’s best month so far this year in terms of wholesale shipments. But the company had to layoff half of its workforce, or 200 people, because dealer orders dwindled after the Sept. 11 terrorist attacks to the point where it shipped only one-third as many motorhomes as it would have during an average September, said Mike Bourne, COO.
“However, we shipped more units in October than we did in August,” clearing out the company’s factory inventory, Bourne said.
Rexhall also launched a consumer rebate program today. It provides rebates ranging from $2,000 to $7,500 to retail buyers purchasing from participating Rexhall dealers.
In order to participate, a dealer must agree to order a new unit from Rexhall for each unit sold under the terms of the consumer rebate program.
Enough of Rexhall’s 100 dealers have signed up for the consumer rebate program that Bourne said, “We are optimistic that we will be able to return to more optimal production levels within a few weeks.”
Rexhall had been building between three and four units per day prior to the layoff in late September. It built between one and two units a day during October.