Monaco motorhome sales up and reconfigured production lines
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Monaco motorhome sales up and reconfigured production lines

Kay Toolson, the Monaco Chairman and Chief Executive Officer said in the latest Monaco results statement (read it here):

"One of the significant changes we made in 2006 was the reconfiguration of our motorized production lines," said Toolson. "This modification reduced the number of lines producing motorhomes from seven to five and allowed us to produce more similarly priced products on each line, which in turn has given us greater flexibility in adjusting our production mix to meet demand for individual models."

"This change along with the recent improvement in wholesale and retail activity has resulted in a stronger order position," continued Toolson. "Our improved position has translated into modest increases in production run rates, and combining this with our low finished goods inventory, we believe that we are doing a much better job of matching our production level with wholesale and retail demand, which we believe should continue to reduce the need for incentives to move our products through the distribution channel."

Total units shipped for the fourth quarter (to end December 2006) were 1,392, an increase of 5.7% compared to the comparable period in 2005.

"Internal retail reporting shows retail sales up over 15% for January 2007. This is a positive indicator for this segment of the business in the first quarter," said John Nepute, President of Monaco Coach Corporation. "We are also encouraged by dealers' positive acceptance of our 2007 models introduced at the November 2006 Louisville RV Show."

Monaco motorhome sales up but overall sales down
- Monaco 2006 results (to December 30th, 2006)

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Readers comments:

JAY :   Too bad they cannot make full body paint that does not micro crack. Then after the 1 year warranty they ignore the customer. I have looked at numerous coaches 2-3 years old and they all have it to some degree.

Ken G. :   Too bad that Monaco can't come up with a way to help with the used market. There is just way too much depreciation in a coach for any right thinking individual to continue to buy them. Good old NADA doesn't help either with their continued depreciation schedule. I love RVing and motorhomes, but this will be my last. I am just tired of losing so much money on them.

Homer :   What I am seeing and hearing is a lot of people are in love with the idea of a motorhome. However, too many are financing these babies. Couple the cost of debt service to the rapid depreciation, I think you will see a lot of young motor homes on the used market soon.

Len N. :   Japanese did what? Lets remember their economy is in bad shape PLUS everything they learned they stole from us. Lets stick up for our country, my moto LOVE IT OR LEAVE IT. NO other country makes RV's as we do ...

Jean W. :   I think a price war would be good, BUT let's find two comparible manufacturers to stage it. Seems like Fleetwood is not in the same league as Monaco!

Ron Coates :   Monaco and RV manufacturers in general are doing what Japanese car manufacturers did 30 years ago, making themselves more efficient. It will help pricing and maybe make it so that you don't have to take the RV back to the dealer with a long list of problems almost as soon as you get it.

Bruce K :   Interesting to see in the recent Fleetwood release that they said they are making a change to more diesel units. I guess the trend is to the more profitable upper end of the market. Maybe the Monaco changes will make them more cost efficient and we'll see a price war between Monaco and Fleetwood?

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