Rexhall Industries Inc. will begin offering rebates ranging from $2,000 to $7,500 to the retail customers who buy one of the company’s Class A motorhomes from a participating dealer, according to Bill Rex, CEO.
The consumer rebate program will become available Thursday (Nov. 1), Rex said.
Rexhall, based in Lancaster, Calif., laid-off half of its workforce, or 200 people, at the end of September because dealer orders “dried up” following the Sept. 11 terrorist attacks, Rex said.
However, incentives to encourage dealers to order more Rexhall product cleared out almost all of Rexhall’s unsold factory inventory and Rex also said its dealer inventories currently are low.
Rex said he decided to offer the sizable rebates to retail buyers to encourage dealers to order more units so he could begin recalling the laid-off workers.
Consequently, in order to participate in the consumer rebate program, a dealer must agree to order one new unit from Rexhall for each unit sold with a rebate.
Because the rebate program is just now being launched, Rex did not know how many of Rexhall’s 100 dealers will agree to participate.
Rexhall is a public company with its stock traded on the Nasdaq Stock Market, but Rex is hopeful that the consumer rebate program will improve the company’s profit outlook. He hopes the rebate program will stimulate wholesale demand to the point where the company’s factory will operate more efficiently by taking better advantage of economies of scale.
A rebate of $2,000 will be given to the buyer of the smallest gas engine Rexhall unit while a $7,500 rebate will go to the buyer of the company’s largest diesel pusher model, Rex added.