Is Newmar beyond the point of return?

[Neal]

Has Winnebago taken Newmar too far in trying to capitalize on their investment? Not the first time I raised this question (or my eyebrow) as to the current pricing of Newmar motorhomes. It looks like the Mountain Aire is rapidly approaching the 1mil line (before discounts) which is insane. Great coach but this was supposed to be the entry point of the luxury line for greater than 35ft motorhomes.

Newmar was known not only for its quality and customer service but let's start with woodworking (cabinetry). I believe this is outsourced now and has been troublesome from a few I've heard from with numerous attempts of getting woodwork right. Paint was Newmar's shining star (pun intended) and now it seems paint has become a disaster that some dealers have to fix themselves such as I've heard of extensive work done by NIRVC to correct Newmar's severe deficiencies. Beyond cabinetry and paint is obviously pricing has become out of control and I'm not sure how they will ever recover from this other than extensive discounts and you'll have to fight dealers to get that as obviously they still have big profitability by not extending the discounts to you. Oh the joy of buying cars....and the games you have to play.

Sad to see Newmar end up where it is today, I think many that may have desired to be part of the Newmar family will need to look elsewhere.

 

[Richpatty]

I guess as long as they have price parity with Tiffin and Entegra equivalents, the pricing will rise.

I cannot speak to the recent changes in paint and cabinetry. But it is sad if it is true that it is outsourced.

 

[Joe Hogan]

In a cyclical industry the bean counters push Out Sourcing as a way to reduce financial risk. This transition from a vertically integrated business is going to reduce quality most likely. I do not believe there currently is a RV. house supply chain. There is your typical low end suppliers but no Premium supplier of House parts like cabinets.
this is what happens to public companies when they HAVE to produce financials that the market will not punish.

 

[scottramer]

It is nuts. I was building coaches yesterday to compare to what I have owned. I had a 2019 Dutch Star and the MSRP was $468k. A 2024 spec out the same way is $726k. I now have a 2019 London Aire and the MSRP was $704k a 2024 is $968k.

The Dutch Star is/was Newmars core bread and butter coach that was in a price range that many could afford. The DS at the prices at 30% off is $508k which puts that out of reach for a lot of buyers.

 

[ARD]

let's start with woodworking (cabinetry). I believe this is outsourced now and has been troublesome from a few I've heard from with numerous attempts of getting woodwork right.

It has been outsourced to four different suppliers, with the exception of the woodwork in the Essex and King Aire models, which is exclusively crafted by Newmar.

 

[Headhunter]

So speaking strictly A Class coaches. What do you think the price an AVERAGE person can afford dollar wise. Can an average Joe afford a $200K coach? a $300K coach, or a $400K coach. I really think a $500K is beyond average means. But what do I know.

For most people they all ready have a sticks and bricks house or apartment, non full timers. So taking on an additional couple hundred thousand coach can be a big hit. Unless you have DEEP pockets.

HH

 

[AbdRahim]

The challenge of aging: BayStar $250,000? Not too long ago that was DP territory. The problem is where else does one look? Jayco, -- oh that is Thor. FR? The Georgetown has had its abysmal issues.

Many may have to get out of RVing. Maybe take up crocheting. Sad!

 

[Jim]

The WinnaMar! lol

 

[Neal]

The challenge of aging: BayStar $250,000? Not too long ago that was DP territory. The problem is where else does one look? Jayco, -- oh that is Thor. FR? The Georgetown has had its abysmal issues.

Many may have to get out of RVing. Maybe take up crocheting. Sad!

It's going to make 8 tires in January absolutely pain free! Okay, a little sting, but keeping my vintage Ventana running is the only option.

 

[Richpatty]

It's going to make 8 tires in January absolutely pain free! Okay, a little sting, but keeping my vintage Ventana running is the only option.

Yea...time for us too. Probably March. Not to derail this thread, but as much as I am a Michelin fan, I may try Toyo's. For both price and availability.