Freightliner chassis are here for a while

[Neal]

https://www.spartanmotors.com/wp-content/uploads/2020/02/SPAR_Divests_ER.pdf

 

[deaton]

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.

NHSO

This is somewhat misleading. Spartan already does disc brakes all around. I had them on my 17 DS and they are standard on the HiLine coaches riding on Spartan. They would be standard on all Spartan chassis if Newmar set the spec that way. The coach manufacturer sets the specs for what will be standard on the chassis. That’s why a Spartan K2 chassis on an Entegra Anthem has push button Start while on a DS riding on a K2 you use a key.

Same for the front axle. Newmar sets the spec. This is not rocket science. Either FL or Spartan will build their product, within reason, to the spec Newmar lays down.

As to the overall motivation for this sale, REV group already has business units building the same types of vehicles that Spartan divested. I have no inside info, but in one release I read, I got the impression that Spartan wants to use the freed up production capacity to build products with higher margins.

Spartan will rename their corporate structure but they retain the right to use the Spartan name for their RV lines.




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[deaton]

FWIW, the announcement doesn’t appear to be hurting Spartan’s stock price.... It’s actually up a bit.

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[MapNerd]

Either FL or Spartan will build their product, within reason, to the spec Newmar lays down.

That’s the way I understand it as well. Newmar is probably lowering the spec to increase their margin.

 

[redbaron]

I agree, newmar sets spec. It is for this reason this reason that there is very little reason to choose one over the other.

What I would like is for Spartan to figure out a way to offer something that is clearly (not subjective, but clearly) better than freightliner.

This should be in quality, innovation, and service. They need to make all 3 drastically better than freightliner.

This would be very good for all owners, as it would force freightliner to improve their product, starting a new battle where everyone wins.

2019 DSDP 4369 * Active Air * NHSO

 

[MapNerd]

I agree, newmar sets spec. It is for this reason this reason that there is very little reason to choose one over the other.

What I would like is for Spartan to figure out a way to offer something that is clearly (not subjective, but clearly) better than freightliner.

This should be in quality, innovation, and service. They need to make all 3 drastically better than freightliner.

This would be very good for all owners, as it would force freightliner to improve their product, starting a new battle where everyone wins.

2019 DSDP 4369 * Active Air * NHSO

An admirable request but how could they do that? Newmar sets the spec. SP delivers a chassis that matches. If SP goes out and decides, Newmar said drum brakes and SP delivers a chassis with disc brakes, Newmar will probably reject it as it’s not to spec.

The only obvious lever I see for SP to pull is to build their chassis using those stepped up components all around, bar none. At that point, if Newmar specs with drum brakes for instance, SP would have to come back to Newmar and say “nope - we don’t build em that way. Discs or bust.” At which point, SP risks losing that chassis business from Newmar.

 

[TJ&LadyDi]

An admirable request but how could they do that? Newmar sets the spec. SP delivers a chassis that matches. If SP goes out and decides, Newmar said drum brakes and SP delivers a chassis with disc brakes, Newmar will probably reject it as it’s not to spec.

The only obvious lever I see for SP to pull is to build their chassis using those stepped up components all around, bar none. At that point, if Newmar specs with drum brakes for instance, SP would have to come back to Newmar and say “nope - we don’t build em that way. Discs or bust.” At which point, SP risks losing that chassis business from Newmar.

Or, Spartan could tell Newmar that there will be an "uncharge" for substituting drum brakes for the standard discs! Wouldn't that be interesting to see how Newmar would explain an "uncharge" for downgraded brakes is spec'd?

TJ

 

[Neal]

Customer service is an intangible that cannot be overlooked. How are warranty claims handled? How about faulty components or selections for their chassis? I'm not stating a side but this intangible is of high value. If you cannot win this side of the game then no matter what tangibles you throw out will matter.

 

[redbaron]

Customer service, dealer network, 24x7 phone service, technology in the dash that works and gets upgraded quickly.

Dealing with mistakes honestly, quickly and openly. (Ball joints, shocks as examples in the past).

Bottom line, putting the customer first, second, and third all the time.

That would make a huge impact on the industry.

2019 DSDP 4369 * Active Air * NHSO

 

[TJ&LadyDi]

I certainly agree that the "customer experience" (a little broader than "customer service") is a very important component. That said, "customer experience" varies widely between customers. There are common elements like "dealing with mistakes honestly" and having a good service network, but even those vary with the individual customer.

As an example, "technology in the dash" is essentially meaningless to me. I grew up with analog instruments and they always served me well; I could determine my speed, engine RPMs, oil pressure, engine temperature, etc. just fine. They rarely had an issue and never needed software upgrades. For others, the digital "glass dash" is very important. For me, I wish everything was still analog. I detail this only to show that it isn't easy to satisfy all sectors of the customer spectrum.

So, "putting the customer first, second and third all the time" is definitely not a simple, straightforward task.

TJ