Freightliner chassis are here for a while

[redbaron]

It appears that the battle has been won. Spartan is desperate for cash. They have sold their emergency division and name/logo to rev group, owners of fleetwood.

They have licensed (for now) the logo so that they can transition to a new name as they continue to try and succeed in the rv market.

Spartan Motors Announces Business Transformation to Focus on its Delivery and Specialty Vehicle Segments, Divests Emergency Response Business Unit

/PRNewswire/ -- Spartan Motors, Inc. (NASDAQ: SPAR) (the "Company"), the North American leader in specialty vehicle manufacturing and assembly for the...

www.prnewswire.com

As we know, newmar is the only one that offers a choice. How long this will continue is unknown, especially with the lack of certainty with a struggling chassis manufacturer formally known as spartan.

2019 DSDP 4369 * Active Air * NHSO

 

[Neal]

Gonna be interesting to see how Newmar works with this.

 

[redbaron]

Some random thoughts:

1) freightliner resale value improves or holds steady.
2) spartan vintage values improve or hold steady.
3) new Spartans are seen as less than desirable. Not based on facts, but based on community think and perception.


Newmar should take advantage of kicking a guy while he is down and negotiate even stronger. Force spartan fo be ***truly*** better than freightliner.

Things like disc brakes all around, 20k front axle, better marketing on service locations, and a joint partnership on the warranty effort, making it seamless for the buyer.

There is a great opportunity here for spartan, but they need to change more than just immediate cash flow.

Heck, it appears they have already allocated all their proceeds just to retire debt. What better time to make big changes?

2019 DSDP 4369 * Active Air * NHSO

 

[TJ&LadyDi]

Well, after a careful reading of Spartan's announcement and some research within that industry, I see this quite differently. Spartan says it has sold its "emergency response business unit" (fire trucks and associated vehicles) in order to focus more on "specialty vehicles" (which includes their RV chassis line). And, they have retained (through a lease-back arrangement) the Spartan name and logo. This may actually mean that Spartan will gain a stronger foothold in the RV market.

I know there is a fierce rivalry between Spartan and Freightliner chassis owners, but both companies make excellent products; we have owned both and have had good service from both. And, we've had some issues with both.

Let's see how this shakes out before determining whether or not the sky is falling.

TJ

 

[Neal]

How will Newmar under Winnebago handle this? I heard W doesn't do SP, will W influence Newmar to discontinue SP? Didn't Newmar long ago try to move away from SP but the customers revolted?

 

[TJ&LadyDi]

Or, could this be Spartan's entry point to the Winnie line?

TJ

 

[redbaron]

I dont see this as sky falling either.

I do think it shows that spartan is not financially strong, and they have made a move to right the ship.

I hope they take it even further, as the product they make is very good. I would like to see more innovation and improvements to make their product superior to freightliner.

This may mean dropping chassis and focusing only on tag axle 40+ chassis. Simplification in supply line, and marketing on the service as well as investing into a 24x7 support center will mean more to buyers than seeing the name everywhere.


You can see a thor everywhere. I personally shop where thors are not sold.

2019 DSDP 4369 * Active Air * NHSO

 

[Neal]

When you look back you start putting 2 and 2 together such as the upcharges for SP. The need for more cash on the sale. I had heard through an unnamed source that FL was simply able to offer lower pricing to Newmar on chassis which is what drove the price differences.

 

[redbaron]

Freightliner will win a price war.

Spartan needs to fight a different battle.

A smaller company cannot have the depth of product line and maintain superior quality.

Hopefully spartan focuses on killing freightliner with quality.

2019 DSDP 4369 * Active Air * NHSO

 

[Neal]

I think FL will also win and continue to win the innovation war. They already parted ways with the norm with the new smart wheel. Larger resources are able to do this. Newmar keeps the playing field level with the components (brakes, etc.) but the tech side is up to the chassis vendor it appears.