Bloomberg reports that recreational vehicle manufacturer Winnebago is about to announce that shipments fell for the first time in six years. The downturn reflects an industry-wide slump, indicating that the U.S. economy (including the new car market) is, as predicted, headed for the doldrums. "For the past three decades, deliveries of motor homes and travel trailers have dropped before each decline in the U.S. economy, giving the $15 billion industry a reputation as a bellwether." This time 'round, Winnebago is going down fighting. The company is unveiling more fuel efficient models, including one that can get 22mpg (highway, tail-wind). Meanwhile, Thor brand's Chief Operating Officer isn't about to concede defeat. "The industry is definitely not immune to macroeconomic factors," Dicky Riegel admitted. But with 11k Americans turning fifty each day, Riegel reckons "we still have the demographic wind at our back." [thanks to starlightmica for the link]
9 Comments on “Winnebago Slump Signals Economic Downturn...”
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22mph is still not very fast.
I am assuming that it is “22 mpg” not “22 mph,” and that a simple typo took place somewhere.
You are correct: it should be 22 mpg (fixed). However, having been trapped behind some of these things merging onto the interstate, 22 mph with a tailwind probably isn’t that far from wrong!
The rationale for going on vacation with a house strapped to your back somehow isn’t as strong when fuel is in the $3-$4 range as it was at around $1/gallon. The RV industry cratered during the mid 1970s gas crunches. The only surprise is that it hasn’t completely cratered again today …. yet.
The overhang of lightly used RVs on the market has to be a drag on new sales as well, especially when things get soft. If you think cars depreciate badly, check out the depreciation on RVs!
RV sales as a marker for the entire economy? Pretty tenuous, at best.
This I believe: Winnebago hits paydirt when they make an RV based on the Prius. :)
@jthorner
The economics still pan out if your campsite is substantially cheaper than a hotel. RVs are very popular in the UK where gas is $8 a gallon. OTOH they use some very small RVs.
This I believe: Winnebago hits paydirt when they make an RV based on the Prius. :)
Sajeev: Why couldn’t they? Most of the transit busses in this area are running on natural gas. A hybrid electric system couldn’t be that much more difficult.
GM should license out there 2 mode hybrid mated to an efficient V6 or even better a turbo diesel 6. If they don’t make it gargantuan it could be more efficient than the Tahoe hybrid joke.