INDUSTRY NEWS
May 1999

RVIA's Plan to Lift the 400-Square-Foot Ceiling on Travel Trailers and Fifth Wheels Draws Industry Interest

Following last year's success in getting legislation to eliminate the square footage limitation on motorhomes, RVIA is now pursuing lifting the 400-square-foot limitation from fifth-wheels and travel trailers as well. At their March board meeting, RVIA authorized hiring a lobbyist to pursue this new legislation.

The latest move was inspired by several fifth-wheel manufacturers that raised concerns about removing the 400-square-foot limitation only for motorhomes saying the action put fifth-wheel manufacturers at a competitive disadvantage.

In the meantime, RVIA's RV Size and Weight Subcommittee of the Standards Steering Committee (SSC) raised concerns that pursuing bigger RV travel trailers could reinvent the park trailer within the industry. Some suggest that this could cause RVIA to once again be defending the industry against the risk of structural standards being imposed by certain jurisdictions. In addition, the Recreation Park Trailer Industry Association (RPTIA) has expressed concerns of its own because of the potential impact the decision to remove the 400-square-foot limitation could have on the park trailer industry. RPTIA has indicated initial support of removing the square-footage limitation for fifth-wheels only.

RVIA is now considering these issues and concerns and may be leaning toward working only to eliminate the square-footage limitation for fifth-wheels leaving travel trailers at their current maximum size of 320 square feet.

Coachmen's CEO Claire Skinner and CNN Business Analyst Stuart Varney to Keynote Opening Session of 1999 RV Dealers International Convention/Expo

Varney

Skinner

The Recreation Vehicle Dealers Association (RVDA) is busy preparing this year's International Convention/Expo, which will be held at the Riviera Hotel & Casino in Las Vegas, NV, from September 27 through 30. RVDA has announced two of the featured speakers at this year's event - Coachmen Industries, Inc., Chairperson and CEO Claire Skinner and CNN's Stuart Varney will deliver keynote addresses on the first and second day of the event.

Award-winning broadcast journalist Stuart Varney will keynote the opening session of the 1999 RV Dealers International Convention/Expo on Sept. 27. Varney is a founding member of CNN's business team and a former host of the network's Business Day program. He is a business commentator who will give RVDA members new insights into the trends affecting the RV business and leisure travel.

Claire Skinner will keynote the second day of the convention. Skinner has held several executive positions at the Coachmen Companies since 1983. From 1987 to 1997, she served as president of Coachmen RV. She assumed her current duties at Coachmen Industries in August 1997. Coachmen RV received RVDA's Quality Circle Award which recognizes RV manufacturers who receive the highest ratings in the association's annual Dealer Satisfaction Index (DSI).

Coach Net Launches Global Positioning Road-side Assistance

A state-of-the-art RV and auto global positioning computer system was activated by Coach Net in March, allowing the company to pinpoint its customers' location and dispatch roadside service anywhere in North America.

Kerry Gray, information systems manager for Coach Net, said, "The system was more than two years in development It dramatically increases the accuracy of locating a stranded RV owner. It also takes less than 20% of the time normally required to dispatch assistance."

The high speed graphics system is networked to 63 computers and allows Coach Net's employees to pinpoint everything from an RV or chassis service center to a specialized mobile service for their customers.

Jerry Aldridge, president and CEO of Coach Net, said, "We dispatched our first call to a stranded member in February using the new computer system and the member was amazed. He gave us his GPS coordinates on a remote stretch of highway in California and the service truck was on its way.

"We are very pleased with the application of this new technology. It positions us to deliver the highest quality roadside assistance possible today, and as we move into the next century."

Draw-Tite Introduces New Electronic Catalog and Locator

Draw-Tite plans to introduce an electronic catalog and a Computer Aided Technical Service (CATS) system for its dealers, according to Roger L. Wilson, vice president of sales and marketing.

The electronic catalog enables dealers to quickly look up hitches by vehicle model and year. The catalog also will simplify price quotes, contain all necessary parts and accessories and print out invoices.

Another feature of the electronic catalog is the database it builds for each individual dealer. The dealer can keep a personal inventory control, customer file, interface with accounting programs and expand the program to handle all parts they carry, Draw-Tite or otherwise.

The CATS system was developed by Draw-Tite to supplement the electronic catalog. CATS is a CD-ROM program that provides detailed and printable installation instructions, photos of the product installed on the various makes and models of vehicles and gives pointers on what to look for when doing an installation.

"These two new programs are examples of the kinds of efforts that keep Draw-Tite on the forefront of technology," Wilson said. "We want to be sure our dealers are equipped to handle the rapidly changing face of the industry and better serve the customer."

Draw-Tite hopes to have the electronic catalog available on the Internet to the general public within the year.

Blue Bird Promotes Maddox to President

Maddox

Paul E. Glaske, chairman of the board and chief executive officer of Blue Bird Corporation, has announced the appointment of Richard Maddox to the position of president of Blue Bird Corporation. In addition, Maddox has been elected to the company's board of directors.

In announcing this promotion, Glaske said that considerable thought has been given to how and when to initiate a succession plan that would insure operating stability and cultural continuity for Blue Bird. It is important that significant management changes should be part of a process rather than occur as an event. In addition, any plan must also be viewed as a natural evolution that continues to focus on meeting the expectations of our distributors and customers.

Maddox, 46, has been employed by Blue Bird Corporation since 1974, and during his 25-year tenure, has held sales positions related to the company's school bus products. Most recently, since 1994, Maddox held the position of both sales and marketing for the company's full product lines for the school, commercial, international, and recreational vehicle markets.

Fleetwood Adds 3 New Directors to Board

Fleetwood Enterprises, Inc. (NYSE: FLE) announced that its board of directors has voted to expand the number of directors from eight to eleven. At the same time, the board appointed three new directors with extensive business backgrounds to fill these newly created positions. The new directors are Paul D. Borghesani, Loren K. Carroll and David S. Engelman.

Board chairman Glenn F. Kummer said, "We believe that the substantial experience and talents which these new members bring to the board will contribute significantly during a time when the company is growing its core manufacturing businesses and expanding into the manufactured housing retail business. We feel fortunate to have the services of three new directors with very impressive credentials.''

Paul Borghesani is affiliated with Baker & Daniels, a large law firm in Indiana. He has an extensive background in the transportation industry, most recently serving as chairman and chief executive officer of Morgan Drive Away, a national leader in services to the manufactured housing and recreational and commercial vehicle industries.

Loren Carroll is currently president and chief executive officer of M-I, an oil services company and the world's largest drilling fluid and fluid handling equipment supplier. Carroll is also executive vice president and a director of Smith International, the parent company of M-I. David Engelman is currently a director of MGIC Investment Corporation and Long Beach Financial Corporation, and has held a number of key executive positions in the banking and financial services industries.

Spartan Motors Takes Summit RV Chassis Orders from National RV and Forest River

Custom chassis engineer and manufacturer Spartan Motors, Inc. (NASDAQ: SPAR) announced plans to supply its newly introduced Summit custom chassis to Perris, California-based National RV Holdings, Inc. (NYSE: NVH) and Goshen, Indiana-based, Forest River.

WDA Plans Summer Education Conference

The town is Chicago; the theme is "Experience the Best and Be the Best You Can Be," and the event is the WDA RV Aftermarket Associations' summer education conference, which will be held in Chicago, IL, June 25-27, 1999. The conference includes a lineup of seminars, roundtable discussions and entertainment, including a trip to Wrigley Field for a Chicago Cubs baseball game. Attendees will also tour the Borg-Warner Automotive transmission systems plant, which supplies components to virtually every automobile manufacturer in the world, and was the winner of the 1998 "Industry Week's" -America's Best Plant Award

Upon arrival the tour will receive a brief overview of key plant statistics, which will help them understand the guiding principles and manufacturing strategies used to make this plant one of the best in the world.

For more information on the Summer conference contact the WDA national office at 312-553-0300.

BP Amoco Invests $45 Million in Solarex Stake to Create World's Biggest Solar Co.

BP Amoco (NYSE: BPA) stepped up investment in its growing solar energy business with an announcement that it is to buy the 50% stake it did not already own in Solarex, one of the world's leading solar companies in the US, for $45 million.

The buyout of what was previously a 50:50 joint venture between Amoco and Enron will create the largest solar company in the world.

The integrated company will be called BP Solarex and will build on the current business activities of Solarex and BP Solar. It will have annual revenues of more than $150 million, representing a 20% share of the global market. It will have manufacturing operations in four countries -- the USA, Spain, Australia and India, producing around 30 megawatts of solar products each year.

Greg Guinn Named President of RV Products

Mel Adams, president and CEO of Airxcel, Inc., announced that Greg Guinn has been named president of RV Products (RVP), a division of Airxcel. The promotion was effective in March.

Guinn

Guinn has been involved with the Coleman RV air conditioner product line almost since its inception in 1967, first as part of the Coleman Company, and since 1991 when RVP became a separate firm.

In 1991, when RVP separated from Coleman, Guinn became RVP's vice president of sales and marketing.

In 1997, when RVP acquired Suburban, a leading manufacturer of RV furnaces, water heaters and cooking appliances, and changed the company's name to Airxcel, Guinn became the vice president of sales and marketing for both companies.

Adams said, "Greg has directed the substantial sales growth that Airxcel enjoys today from its RV air conditioning business."

Conlan Appointed Freightliner Custom Chassis President

Conlan

Freightliner Corporation has appointed Jack Conlan president of its subsidiary Freightliner Custom Chassis Corporation. Marv Hoff, who was previously president of Freightliner Custom Chassis, has been appointed president of Freightliner's specialized vehicles group, which includes Freightliner Custom Chassis in Gaffney, SC; Thomas Built Buses, Inc., in High Point, NC; American LaFrance in Cleveland, NC; and Freightliner Specialty Vehicles Corporation in Clinton, OK.

In his new position, Conlan will oversee Freightliner's dedicated chassis manufacturing facility operations and production of the company's motor home, school bus, shuttle bus and delivery walk-in van chassis.

Rexhall Posts Record Year Earnings

Rexhall Industries Inc. (NASDAQ:REXL) announced record sales and earnings for the year ended Dec. 31, 1998.

Sales for the full year 1998 were $71,454,000, an increase of 13.4% over 1997 sales of $63,012,000. Net income was $3.39 million as compared with a net loss of $1,835,000 in 1997.

During 1998 the company hit several production and sales highs. Demand for the company's product line has remained strong. Closing the Indiana facility at the end of 1997 required the California plant to assume all production requirements for its dealership network. This allowed the company to benefit from lower labor costs, directly affecting the bottom line.

The company's 1998 fourth-quarter sales increased 55.6% compared with the same period in 1997.

Bill Rex, president and chief executive officer said, "The year 1998 has been our most productive year to date. Management's continued efforts in carrying out the restructuring plan have reflected throughout the year. From the closing of its second plant in Indiana, undertaking all production in California, to setting several record quarters in earnings, production and sales highs. Management and employees at Rexhall Industries reached their objective in 1998.''

Navistar, Siemens Automotive Form Joint Venture To Produce Next Generation Diesel Fuel Injectors Designed to Reduce Emissions, Improve Air Quality

Navistar International Corp., Chicago, IL (NYSE: NAV), and Siemens Automotive Corp., Auburn Hills, MI., today announced they have finalized previously announced plans to form a joint venture to develop and manufacture next generation diesel fuel injectors incorporating proprietary digital valve technology under license from Sturman Engine Systems, L.L.C. Capital investment in the joint venture is estimated at $100 million.

Siemens Automotive owns 51% of the joint venture, which will operate as Siemens Diesel Systems Technology, L.L.C. The joint venture, which is expected to reach production levels of 4 million injectors per year by 2005 or sooner, will assume a leading position in the North American market for diesel injectors.

The joint venture will develop and manufacture electronically controlled, hydraulically actuated low-pressure injectors for use in diesel fuel systems designed and manufactured by Navistar's Engine and Foundry Division. The injector incorporates proprietary Sturman digital valve technology under license from Sturman Engine Systems, L.L.C.

Navistar will contribute expertise for the electro-hydraulic system and its applications in engines and vehicles. Siemens Automotive will contribute fuel delivery technology and high volume manufacturing capability at a site yet-to-be-determined in the southeastern United States. It is anticipated that the joint venture will create up to 500 new jobs.

The fuel injection system is scheduled to be ready for commercial use by the 2002 model year. The new technology will benefit Navistar's International brand trucks and buses, as well as products of other major customers in both North and South America.

New ARCO Diesel Fuel Could Lead to Cleaner Bus, Truck, and Car Emissions

Preliminary testing of a new low-emission ARCO diesel fuel indicates that dramatic reductions can soon be achieved in soot emissions from buses, trucks, and cars in Southern California.

Initial testing of the new fuel, EC (Emission Control) Diesel, resulted in up to a 15% reduction in particulates (soot) and a 5% reduction in Nitrogen Oxide (NOx) emissions, with no loss in fuel economy.

According to the California Air Resources Board (CARB), there will be approximately 738,900 diesel-powered vehicles on the road in California by the year 2000. Although these diesel vehicles represent only 2% of all vehicles on the road statewide, they emit about 25% of the nitrogen oxides and 70% of particulates currently found in California's air.

ARCO, which a decade ago pioneered development of reformulated gasolines that significantly improved California's air quality, will soon begin a demonstration program to validate preliminary testing of EC Diesel. The program will be conducted in cooperation with CARB, the South Coast Air Quality Management District (SCAQMD) and the California Energy Commission (CEC).

BLM Director Stresses Importance of Recreation

Tom Fry, acting director of the Bureau of Land Management (BLM), is a strong supporter of the recreational use of BLM lands. In a recent appearance at the American Recreation Coalition's Recreation Exchange, Fry described his agency's multiple-use mandate and emphasized that recreation is a key part of that mandate. He did acknowledge that, in the past, other land uses like grazing, mining, and oil and gas production had taken precedence. Today, however, is different, he said, stressing the point that "recreation has become a full-fledged partner in the [BLM's] multiple-use family."

The BLM is responsible for managing 265 million acres of the nation's public land and waters and 570 million acres of subsurface mineral resources.

Fry reported that the BLM had received 72 million visitors in 1997, a substantial increase over visitation in previous years. He linked this trend to the overall population growth in the western United States, where BLM lands are almost exclusively located. "Nine of the top 10 growth areas are in the West," he said. With recreation visitation increasing, Fry observed that the agency was "getting more and more into the business of managing recreation." He noted that the "special use lands" managed by the agency -including Wild and Scenic Rivers, Back Country Byways, and National Wilderness Areas -are now equal in size to the nation's wildlife refuge system. He also described the development of what he called "recreation niches" within the agency, explaining that BLM field offices were being encouraged to identify certain forms of recreation that would be an excellent fit with local resources. As examples, he cited field attempts to work more closely with rock climbers and cavers.

The BLM Director also addressed the agency's implementation of the recreation fee demonstration program, which he characterized as another key part of the agency's recreation function. In 1997, he reported, the BLM had 10 demonstration projects; today it has 90. In discussing the public's reaction to the program, he said, "The public is very supportive, very happy to pay," as long as the money is returned to operations at the site. As evidence of that support, he cited the experience at one unmanned fee-collection site in New Mexico where, according to a visitor count based on car traffic, 60-65% of the visitors are paying the fee on a voluntary basis.

Looking to the future, Fry pointed out that continued population growth in the West and increased recreation visitation will present the BILM with some real challenges. As urban areas begin to encroach on BLM lands, as is already the case with Las Vegas, additional resources, which the agency currently lacks , will be needed to police and protect the public, he said. A second challenge will involve deciding how the land is to be used as recreation use continues to grow, Citing off-road vehicles as an example, he asked, "Do we need standards for ORV's?" and observed that it is better to think about such issues now, "before the public lands are overrun." However, he also assured the group that recreation will remain an equal partner with other land uses and offered an explicit commitment to bolster recreation's status within the agency. "We will do what we need to," he said.