If one is in the market to buy a new or used RV, watching this video is a real eye-opener. A friend passed it on to me.
Since the pandemic, quality in manufacturing RVs has gone downhill. Instead of nails, manufacturers are using staples and glue. This is resulting in RVs literally falling apart. Thor Industries seems to be the main culprit, which is not surprising as I have heard they make crappy RVs at different RV forums.
My nine-year-old motorhome is working just fine. No problems.
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| Above, a Winnebago Class C motorhome at the California RV Show. Photo by Armand Vaquer. |
Winnebago Industries says it can meet the "incredible demand" for RVs as the country is slowly easing out of the pandemic.
According to Motley Fool:
Investors had some good reasons to expect solid sales numbers from Winnebago (NYSE:WGO), especially after peer Thor Industries (NASDAQ:THOR) described a booming RV market earlier in the month. But Wall Street was worried about manufacturing and supply chain challenges, and about a potential slowdown as the pandemic threat fades.
Winnebago put most of those fears to rest in its recent fiscal third-quarter report, which points to a sustained sales boost and surging profits on the way as travel picks up.
Protecting profits
Thor Industries noted major supply chain issues that were holding up production rates for RVs, just as they have been for many automakers so far in 2021. But Winnebago's manufacturing rates were strong this quarter, likely reflecting its wider portfolio and larger base of production.
The combination of higher prices and low dealership inventory, meanwhile, allowed Winnebago to increase prices even as more customers opted for premium products. As a result, gross profit margin jumped to 18% of sales compared to 8% a year ago.
To read more, go here.
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| Above, Thor-owned brands includes Jayco. Photo by Armand Vaquer. |
If one is skeptical over the "alleged" shortage of RVs on dealer lots, the following will set one straight.
It was posted yesterday by RV Travel.
They begin with:
If you had doubts about the stories regarding RV dealer lot inventory shortages and the demands on RV manufacturers, Thor Industries CEO Bob Martin wants you to know that yes, everything you’ve heard is true. Thor, the largest manufacturer of recreational vehicles in the world, is all sold out until next year.
Martin recently appeared on CNBC’s popular “Mad Money” television show to talk about the first quarter of 2021 being the best quarter in Thor’s history. He said the explosion of interest in RVing and the subsequent boom in sales has left Thor “pretty much sold out for the next year.”
In fact, Thor is reporting an “order backlog” worth more than $14 billion.
Thor Industries owns the following brands outright: Airstream, Crossroads, Cruiser RV, Luxury Suites, Dutchmen, Entegra Coach, Heartland, Highland Ridge RV, Jayco, Keystone RV Company, KZ Recreational Vehicles, Redwood Recreational Vehicles, Starcraft, Thor Motor Coach, Tiffin Motorhomes, Vanleigh, and Ventura RV. That long list includes a plethora of different models. If you don’t own a Forest River or Winnebago, it’s likely you have a Thor.
To read more, go here.
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| Above, The Beast at Crater Lake National Park. Photo by Armand Vaquer. |
Iconic RV firms Winnebago (WGO) and Thor Industries (THO) plunged in heavy volume Friday, extending recent losses as an analyst raised concerns over dealer inventories.
Northcoast Research lowered both stocks to a neutral rating from buy due to concerns that dealer inventory is at an "unsustainable level" for 2018.
Winnebago fell 8.4% to 44.88 on the stock market today. On Thursday, shares tumbled more than 8%, losing sight of their 50-day moving average. Thor Industries plunged 7.7% to 139.81, joining Winnebago below its 50-day line.
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| Above, the California RV Show in Pomona. Photo by Armand Vaquer. |
For anyone who has gotten stuck on a mountain road behind a massive recreational vehicle, get used to it, there are a lot more on the highway.
Recreational vehicles, ranging from bus-sized motor homes to retro trailers, have been a boom-and-bust industry since they first became popular in the early 1970s. Now a wave of retiring baby boomers and a surprisingly young new fan base have sent U.S. unit sales above their housing boom peak. Shares of the two leading manufacturers of RVs, Thor Industries THO -1.28% and smaller Winnebago Industries , WGO -1.37% each hit records last week.
The fundamentals—fuel prices, interest rates, disposable income and demographics—all look solid. That has the Recreation Vehicle Industry Association projecting a further jump this year and next. Despite that, delighted investors might want to unhitch themselves from these stocks. When things go badly for the economy, they go very badly for RV makers.
Shares of one-time industry leader Winnebago Industries plunged by 94% from peak to trough in the first 1970s energy crisis and by 78% in the second one. A lack of easy credit and consumer confidence can be just as devastating. Shares fell 92% between their housing boom peak and housing bust trough, while wholesale RV shipments fell by two-thirds.
