Reportedly strapped for cash and struggling in a down market, longtime recreational vehicle manufacturer Western RV shut down Tuesday, giving workers little hope for future employment with the company.

The longtime company said in a news release that its operations have been temporarily suspended due to a market slowdown.

"During this short break in manufacturing, Western RV will review our alternatives and determine the best course of action going forward," company President Bob Wert said in the statement. "Once a plan has been developed or a suitable buyer for the business is identified, we intend to resume normal manufacturing operations."

Production workers were informed Tuesday not to return to work and salaried employees were let go later in the day, reportedly told it would be best for them to look for work elsewhere.

About 220 employees are affected by the closure. The firm, which makes high-end motor homes, fifth-wheel trailers and campers, laid off 47 workers last month in a move company officials said was to align production with market demand.

The firm's owner, Monomoy Capital Partners of New York City, did not return messages for comment. A receptionist said the equity firm's partners were at an annual meeting and not in the office.

Monomoy bought the 37-year-old company, founded by Bill and Suzanne Doyle, in late 2006. The firm made an unsuccessful attempt last fall to merge the firm with an Indiana RV manufacturer.

The company's human resources director, contacted by phone at her office Wednesday, said she could not provide any information to clarify the situation.

Salaried employees weren't paid on schedule Tuesday, said one employee who asked not to be identified. Payday for production workers is today, but it's unclear whether they'll receive any checks.

"Those are 220 people who won't be buying the newspaper or getting a haircut," the employee said of the layoffs. "The ripple effect is pretty substantial."

The company shutdown in Union Gap is emblematic of tough times in the RV industry nationwide. As housing values have dropped, many potential buyers have lost the equity in their homes they had in the past to purchase big-ticket items.

According to the industry's trade association, shipments of new RVs are projected to be down nearly 25 percent in 2007 and 2008.

A quiet atmosphere hovered over the plant at 2900 Southerland Drive on Wednesday. Some employees were inside, but the doors were locked and customers -- some needing work done on their RVs and others wanting to pick up parts -- were turned away.

Beau Durkee, a salaried employee who headed sales for the company's camper division, told a reporter the company might be looking to sell. He was carrying out a box of his personal items to his truck.

"There's still a lot that's up in the air," he said. "It has not gone into bankruptcy. It's just shut down."

While Durkee said he believed the plant would reopen, he couldn't say when.

"There are a lot of things that could happen in a week and there are folks working on it right now," he said without elaborating.

One production worker who showed up late Wednesday morning to find out about his pay said the shutdown was sudden. Like others, he declined to provide his name or any details per the company's request.

"They don't want me to talk about it," he said as he got into his small, older compact style car.

A handful of RVs had been parked outside the plant Tuesday waiting for service, but left, said RV owners Ole Iverson and his wife, Sandy.

Sandy's sister's RV was scheduled to have warranty work done and remained parked at the plant alongside the Iversons on Wednesday. The work wasn't complete, said Sandy.

"No one from Western RV has come out and confirmed what's going on to its customers," she said. "To me, that's bad business."

The Iversons said they had ordered curtains for their RV a few weeks ago, but say they won't get them now.

Ole said he has empathy for the workers who lost their jobs, and that local RV owners will be affected by the shutdown.

"It will have a major impact on those who have newer Western RVs that need warranty work or repairs," he said.

Company officials say they will contact owners of RVs brought in for service so they can pick them up, Durkee said.

Whether work will be completed was uncertain Wednesday as was the ability to have future repairs and warranty work done at the plant, he said.

"Everything is up in the air right now," he said.

As far as those laid off, he would only say: "I wouldn't expect that to last forever."

Local Employment Security Department officials haven't been told very much.

Lori Edwards-Olson, dislocated worker supervisor at the WorkSource office in Yakima, said the agency was notified Tuesday that production workers had been laid off.

"They said the layoff was temporary and, based on demand, they will hire the people back," she said.

Local economic development officials said the news is a blow to the employees and the community.

Dave McFadden, president of the Yakima County Development Association, also known as New Vision, said the RV industry has struggled with economic uncertainty.

He said he was not informed of the company's plans.

"I think this industry is going through some significant challenges all the way back to 9/11," he said. "They have been through some pretty well-defined downturns."

Kevin Broom, a spokesman for the industry trade group, Recreational Vehicle Industry Association, based in Arlington, Va., said overall economic conditions have been the biggest challenge for manufacturers.

Country Coach, a company near Eugene, Ore., announced recently that it was laying off 8 percent of its work force, or about 100 workers. In Forest City, Iowa, Winnebago has announced plans to lay off 225 workers this year. And in northern Indiana, home of several RV manufacturers, hundreds of workers have lost or are expected to lose their jobs.

The slowdown comes on the heels of five consecutive years of growth, culminating in historic sales of 390,500 units in 2006.

But in a sluggish economy, a RV can be daunting for price-conscious consumers.

Western RV motor homes can cost $250,000 to $500,000 each. The Alpine Coach Limited SE, for example, costs at least $300,000 for a motor home that is 34 to 40 feet long and includes features such as an entertainment system with satellite television and a DVD player, cherry cabinets and leather furniture.

"An RV is a discretionary purchase. When consumer confidence stops, they postpone discretionary purchases. We see heavy traffic at (RV) shows and a lot of interest in RV-ing," Broom said, noting consumers are still showing interest. But, he added, "People are postponing the purchase because they want to see what will happen."

Company also named #1 Motor Home Retailer and #1 Towable Retailer in U.S. by Statistical Surveys

Statistical Surveys has ranked FreedomRoads RV the #1 dealer of Motor Homes, RV Trailer and combined Trailer and Motor Home in the U.S. for calendar year 2007. The national award was based on the 31 states in which Statistical Surveys tracks retail sales by dealer.

"We are very honored to receive this prestigious award," said Marcus Lemonis, President and CEO of FreedomRoads.

Statistical Surveys' awards are based solely on unit volume according to independent data gathered annually. Award rankings are in no way influenced by the opinion of Statistical Surveys or its staff.

For more information, visit us online at http://www.statisticalsurveys.com

Coachmen RV Group is introducing its Easy RVing “Smart Buy” Retail Finance Program which provides qualifying consumers with financing as low as 4.99 percent for the life of the loan on the purchase of a new Coachmen®, Georgie Boy® or Sportscoach® Class A motorhome.

Purchasing a motorhome using the Smart Buy 4.99 percent financing provides substantial savings versus today's typical rates of 7 percent or higher. For instance, if a consumer financed $100,000 over a 240-month term at 4.99 percent compared to 6.99 percent, the savings would amount to $27,670 over the life of the loan ($115/per month).

Carriage Inc. announced recently that the best shipment month in company history has just been achieved, with the fiscal results in for the February month-end on 2/22/2008.

“In the same month that the Dow Jones average plunges and the housing market falls into a mortgage mess, we post our best month ever,” said Carriage National Product Manager Andy Wesdorp, adding, “the combination of hot product, industry-first floor plans and aggressive dealers has allowed us to succeed”.

Don Emahiser, Carriage Vice President of Sales and Marketing, was quick to point out that, “While good times typically can breed bad habits, we’re far from resting on our laurels and are already preparing for the next great thing,” which he would not comment on further other than to say, “Watch out for the next great bed/bath layout in our 40th anniversary units this summer”.

To celebrate the 40th model year anniversary of Carriage products, each unit will have a medallion added to the exterior of the coach commemorating the year. “We’re not only having our 2009 model year open house in Boston (June 10-13), but also a 40th birthday party celebration honoring our tradition and our future,” said Emahiser.

The spring sun had just begun to shine over Calgary, Alberta when Cruise Canada first opened its doors to travelers in 1988. The first Canadian location of Arizona-based Cruise America RV Rental and Sales, the Calgary RV rental office featured a fleet of just 100 vehicles available for short- and long-term rental.

But after two decades in the Canadian motorhome rental business and more than 75,000 rentals under its belt, Cruise Canada has plenty of reasons to celebrate its 20th anniversary this month -- including healthy growth, a thriving RV rental market and new lower prices on many used RVs for sale, including many at just $23,000, their lowest price ever.

Cruise Canada quickly expanded in its first years, adding RV rental centers in Toronto, Vancouver and Montreal in 1989. The company has since added locations in Halifax and Whitehorse. Today more than 5,000 RV rentals are completed each year, bringing the thrill of the driver's seat to outdoor enthusiasts, sports fans, road trippers and others throughout Canada.

While the company now offers rentals across the country, trips in the Canadian Rockies near Calgary -- such as famed Banff National Park -- are still some of the most popular destinations among Cruise Canada customers. Other common vacation spots include Drumheller Valley, home of the Canadian Badlands and incredible prehistoric dinosaur fossils, and Niagara Falls, the massive waterfalls that straddle the border between Upstate New York and Ontario. Coast-bound travelers also flock to the Pacific Ocean and Vancouver Island on the West Coast, or the Maritimes along Canada's Eastern Seaboard. For more information on vacation destinations, visit the Canadian motorhome vacations section.

The company's RV rentals and used motorhomes for sale in Canada are available in compact, standard and large sizes, sleeping four to seven people and offering a kitchen, bathroom and living area. In addition to Cruise Canada's six locations, RV enthusiasts in the U.S. can visit one of Cruise America's more than 130 RV rental and sales centers at locations across the country.

For more information, visit www.CruiseAmerica.com.

Carriage Incorporated announced recently that as a result of a strong Louisville backlog, response to the industry’s first and only full-wall slide out fifth wheel, and early show season results that production will again ramp up in early spring and that the company will be adding employees in both the Carriage and Domani production lines.

“We’ve been fortunate to sustain our momentum in an uncertain market, but it’s a pretty simple result of dynamite products and dealers that aren’t afraid to stock and sell them,” said V.P. of Sales and Marketing Don Emahiser.

Also, due to the increased retail sales of the Domani fifth wheel product, that division has begun prototyping 4 travel trailer floor plans that will debut at Carriage’s 2009 model year open house at Boston in June, including a toy hauler. “It’s part of a planned rollout for Domani that is proceeding on schedule quite nicely,” said Emahiser.

The production increases coincide with the 1-year anniversary of Building One, the 180,000sqft facility built for production of the Cameo, Carri-Lite, Carriage and Royals International product lines. Said Emahiser, “The team has been waiting on this for a while and is ready to prove that they can maximize production in Building 1 while not sacrificing quality, something they’ve proven tenfold in the past year with our previous increases.”

Good Day,

I come to you on behalf of the RV Dealers of America. Please help us understand why our industry is not benefiting from the interest rate cuts made by the Fed. My dealers tell me they have not seen any changes in financing rates. Consumers are expecting reductions as they shop and blame the dealer for the lack of movement.

The most recent cut before today that was supposed to increase consumer spending may have had the opposite effect according to one dealer in the south. He writes, “the Fed’s surprise rate cut the Monday prior to our show hurt. Many deals were cancelled between the show buy and delivery because retail lending rates did not drop along with the Fed’s move. Many said they say they are going to wait until rates do come down before locking in. “

We cherish you and your company as our partner in industry market expansion; please let me know when our dealers and consumers will see the results of the financial stimulus that the Fed is trying to provide.

I appreciate your looking into this matter and look forward to a response.

Mike
Michael A. Molino, CAE
President
RVDA, The National RV Dealers Association

Registration is now open for the “new and different” 2008 RV Dealers International Convention/Expo in Las Vegas, NV, at the Rio All-Suite Hotel and Casino, Sept. 23-26. The annual event is sponsored by RVDA -- the National RV Dealers Association, and RVDA of Canada, and features educational workshops developed by the RV Learning Center.

The new convention format is designed to be two educational events in one. For dealer owners and general managers, new RV Learning Center “Thought Leader” sessions will include strategic workshops with experts from inside and outside the RV industry. These sessions will provide powerful ideas that can lead to business growth and increased revenue.

For managers and other employees, the RV Learning Center is organizing cutting-edge workshops to help them achieve top performance in the sales, service, parts, F&I, and rental departments. Attendees can follow one dealership department educational track or attend the sessions that best fit the needs of their dealership.

In addition to new education sessions, the convention will launch a new series of dealer-manufacturer meetings organized by brand. The Expo show floor will feature a complete array of products and services needed to run today’s RV dealerships.

The HARVEST Education Foundation is a non-profit education foundation created by the Michigan Manufactured Housing, Recreation Vehicle and Campground Association in 1991. HARVEST grants scholarships to persons who would like to pursue a career in the RV and campground industries.

In cooperation with the Michigan State Police, as well as county and local police agencies, MARVAC has been asked to participate in a statewide task force to investigate the recent rash of RV thefts and break-ins. Over the past three months, dealers from across the state have reported numerous break-ins resulting in the theft of high-end electronics, such as flat screen HD televisions, DVR players, sound systems and locating devices such as GPS. State Police officials have asked members of MARVAC to report any incidents to the association office. Hopefully, by investigating all occurrences, some clues to the person or persons involved may be developed.

Whether you are one of those rugged types who likes to go camping with friends and take your toys along, or you simply appreciate the versatility of an affordable multipurpose trailer, you will love the new V-Trec™ 16 from Viking RVs. This is Viking's first hard-sided toy hauler, built in the Viking tradition of creating rugged, practical RVs that give owners a lot for their money.

Weighing in at under 3,500 pounds, most SUVs and half-ton pickups can easily tow this multi-functional trailer. It goes to work as a trailer to take to the jobsite, hauling materials and equipment; and then on the weekend, load it up with motorcycles or an ATV and head out for some off-road fun. In addition it comes with a very affordable price tag (MSRP) starting at $13,890.

The exterior aluminum skin is durable and functional. Viking added eye-catching graphics and an optional checkered flag awning to make this trailer stand out. The rear ramp door can handle up to 2,000 pounds of weight and utilizes coil spring hinges so there are no cables to get in the way while loading equipment. A spray away outside shower with 15-foot coiled hose is also available as an option for washing sporting equipment after use.

Once inside, it's obvious that V-Trec is more than a cargo trailer. For its size, V-Trec is surprisingly spacious with an interior height of 6 feet 9 inches and multiple windows let in plenty of natural light. The trailer comes complete with a shower, marine toilet, six-gallon gas water heater, cooktop, microwave oven, double bowl sink, refrigerator and 16,000 BTU furnace.

Viking paid attention to the details when designing V-Trec. For example, the sidewalls are reinforced to allow for hanging a variety of tools or gear; and the floor is insulated for climate control. The V-Trec 16 comfortably sleeps two on its 76-inch fold up bed/sofa. With the optional second fold up bed/sofa and the manual pull-down queen bed, the V-Trec 16 can sleep up to six. Viking plans to introduce additional, larger floor plans of V-Trec later this year.

The Viking V-Trec is a multi-use hauler. It can work hard during the week and play even harder on the weekends. And, it's one of the most affordable toy haulers available today.

RVIA's ROOM BLOCK and GROUP RATES END NEXT TUESDAY, JANUARY 29.

If you're thinking about attending YOU MUST ACT NOW. Fax your reservation form to MAGIC Meetings and Global Incentives at 703/671-1937. Questions about the hotel, call MAGIC at 703/379-8071. Once the room block cuts off, staff will not be able to help you get RVIA's rate or get a room if none are available.

Fifty members have already made their reservations. Join them and make new contacts and spend time with industry decision makers. Here are some more reasons why you should attend:

• Get the most up-to-date information on what's happening with the formaldehyde issue (representatives from the Center for Disease Control will present their findings and conclusions and take questions;
• Find out how the new CAFE standards will affect your business;
• Dr. Lowell Catlett, Regent's Professor of Economics at New Mexico State University will give you a reliable economic forecast to help you plan for the coming year;
• Jack Ulrich of The Nano Veritas Group will introduce you to the newest products and trends for use in building better, lighter and technologically advanced products;
• Morton Krondrake, who has covered American politics and foreign policy as a print and broadcast journalist and is known for his appearances on The McLaughlin Group, will give you an insider's view of the upcoming elections and the changes that are likely to occur as a result of the elections;
• During the membership meeting you'll find out the latest decisions the Board of Directors have taken and what the association is doing for you;
• The popular golf tournament on March 2 is a great networking event and good way to get to know other members. Non-golfers will enjoy lunch and whale watching.

Lots of business and some fun sum up the meeting.

Don't Wait!

Reservations forms are in the brochure sent to members. Complete the reservation form and fax to 703-671-1937 or overnight it to MAGIC at the address on the form ASAP.

Carefree of Colorado, is proud to announce its going green initiatives.

This initiative has impacted every area:

• Sales & Marketing – Will supply all sales literature including press releases, pc manuals, and lot surveys as digital files on www.e-carefree.com.
• Customer Service - Will be receiving and archiving all orders digitally. Before we would store all orders in filing cabinets. Call tags issued electronically rather than printing them and mailing to the customer. In addition, Customer Service will be emailing invoices rather than traditional mail, e-carefree orders are growing, document archiving on the computer rather than a filing cabinet allowing for easy access & retrieval, owners manuals, Service Manuals for all products are on-line. Orders can also be placed via e-carefree rather than fax.
• Production - Will be implementing more of our L.E.A.N. program from the L.E.A.N. grant that we received from the state of Colorado. Recycling all recyclable material.

Coachmen Industries, Inc. (NYSE: COA) announced that All American Building Systems, LLC, (AABS) its major projects division had signed a final agreement to provide military housing to the U.S. Army at Ft. Carson in Colorado.

Coachmen’s Housing Group has begun construction of barracks modules at its production facilities in Dyersville, Iowa and Milliken, Colorado with initial deliveries expected to commence in the first quarter. The Group will produce and deliver modular apartment buildings comprised of 736 units to house 1,472 Army personnel.

“We are pleased to be building high-quality housing for the brave men and women serving our country in the U.S. Army based at Ft. Carson,” commented Rick Bedell, President of the Coachmen Housing Group. “The speed and efficiency of our modular construction methods will allow us to provide the Army with the housing they need with greater durability and improved speed of completion without the delays and disruptions often experienced with on-site construction.”

All American Building Systems has partnered with several companies on this project that have complementary areas of expertise in development and construction. Hensel Phelps is the prime contractor; architectural and engineering leadership is being provided by the firm of Hayes, Seay, Mattern & Mattern, Inc.; (HSMM), a division of AECOM; and The Warrior Group is responsible for delivering the completed living units produced by AABS. The Coachmen Housing Group’s portion of the contract is approximately $36.7 million.

“We are pleased to begin production for the Fort Carson barracks project at our Iowa and Colorado divisions,” stated Coachmen Industries CEO, Rick Lavers. “Our successful work on the previous barracks projects at Fort Bliss has formed a foundation for the continued expansion of our major projects business. Our work on the Ft. Carson project will serve to further showcase our modular construction capabilities as we pursue additional military housing projects in other parts of the country,” concluded Lavers.

Western Recreational Vehicles, Inc., has partnered with Coach-Net. Coach-Net will be providing Technical and Emergency Roadside Assistance for Western RV’s 2008 Alpine Coach and Alpenlite products.

Coach-Net is a provider of around the clock emergency roadside assistance, membership fulfillment and other travel-related services for various RV market segments and membership associations. Coach-Net pioneered RV Tech Advantage®, providing access to a team of RVIA Certified Technicians, and is dedicated to meeting the demands of RV travelers throughout the United States and Canada.

2008 model year Western RV products are now covered by a comprehensive Factory Warranty which includes Coach-Net Technical and Emergency Roadside Assistance for a three-year period. Services such as towing, fuel delivery, battery charges, jumpstarts and lockout assistance will support 2008 model owners. In addition, Western RV will provide Coach-Net to new 2007 model year owners for a two-year period.