Rexhall Introduces Sprinter-Based Class C



Source: RV Business.com


California-based Rexhall Industries Inc., a small Class A motorhome builder, has reentered the Class C market with the diesel RVAN minimotorhome built on an imported Dodge Sprinter cutaway chassis manufactured in Germany by Mercedes-Benz.

RVAN, which made its retail debut in October at the California RV Show in Pomona, features 24- and 26-foot floorplans with either one or two slideouts.

“I'm starting with the Dodge Sprinter because Class C's are really something that I know,' said Rexhall President and CEO William J. Rex.

The company built minimotorhomes under the AIREX brand until the early 1990s when the Lancaster, Calif., manufacturer switched its focus to gas and diesel-powered Class A motorhomes.

“I want to reestablish myself in minimotorhomes with the Sprinter,” he said.

RVAN joins high-end gas and diesel RoseAire, mid-priced RexAir and Aerbus, and the gas-only Vision and American Clipper Class A brands in Rexhall's lineup. Rexhall also markets T-Rex Double and Wide floorplans that incorporated opposing 30-inch-deep slideouts up to 32-feet long in some of its Class A motorhomes.

Rexhall, which manufactures many of its own motorhome components as well as fiberglass parts, dashboards and upholstered furniture for some of its competitors, has downsized in recent years.

Rexhall employs about 140 people – down from a high of 500 in the 1990s – in a 120,000-square-foot plant on 24 acres in Lancaster. Rexhall also operates a 44,000-square-foot service center two miles west of the factory.

Part of the reason for that is that the publicly owned publicly owned company's stock, once listed on the NASDQ stock exchange, currently is traded on the over-the-counter market. “I found the new regulatory rules under Sarbanes-Oxley crippling,' Rex said of legislation Congress passed in the wake of the Enron accounting fraud. “We decided to delist the company.”

Another setback surfaced in 2000 when Rexhall suffered the bankruptcy of its largest dealer in Arizona, and subsequently lost market share by focusing its manufacturing efforts on gas-powered motorhomes in the face of the increasing popularity of diesel pushers, Rex said. “We lost market share for focusing on gas for too long,” Rex said.

But Rex has aggressive plans for the future.

Although going “factory direct” with its A-bodies several years ago and now affiliated with three factory stores in southern California, Rex said Rexhall intends to establish a dealer network for the RVAN and will export the coach to Europe under the VanIIGo and TourLiner brands.

Rex said Rexhall is considering establishing a network of “factory” outlets similar to Monaco Coach Corp.'s newly established “Franchise for the Future” that rewards dealers for product commitment with tiered sales incentives.

“We are looking at strategic market areas for other factory stores,” Rex said. “I want to get to the point that the dealer is my partner, not an adversary that I sell product to.'

Along with other components it builds, Rexhall also has developed body and rear-storage kits for GM's Hummer SUV. And Rex has plans to engineer a diesel chassis for his company.



-Matt-

 

That's awesome! lol I'd pimp that thing out!

 

Must be a different company, but I've seen quite a few Sprinters with RV configurations. Talking to the people, they seem to like them. Pretty easy on fuel, and they just run steady down the highway.

 

Definately. I bet it's expensive though.


-Matt-

 

Thanks for the post Matt. I stumbled across this forum as I was doing research into the finanial collapse of Rexhall. This article is similar to one I read in RV Business where I am also a member. It is interesting to hear the spin as it is quite different from other forums where several former executives allege corporate fraud and outright looting by the Rex Family. I am not sure what to believe.

The CEO told me that the NASD was going to delist the company because they did not have enough public equity in the company. That is why he delisted the shares hours before the NASD forced him. This is in direct conflict with the article you posted. The SEC investigation into improper accounting and the fact that Rexhall hasn't bothered filing public financial statements for the last few years doesn't help the situation. Even today, the company only has a $2.5 million dollar market cap. The ENTIRE company is not worth a penny more. Is that enough money to launch a new product into foreign markets as the article suggests? I suppose the 43 cent stock price tells it all.

Unfortunately, it appears that this product has stalled. Has anyone seen one? I am not sure the company has enough funds to pay for any current year chassis. Check out their website. All 2006 Class A models year are built on 2003 and 2004 chassis. I called the factory today and was told the only way I can buy a coach on a 2006 chassis would be if I special order and prepay in full. No refund or cancel would be permitted. Is buying a 2006 coach on a 2006 chassis too much to ask for? What will happen next month when competitors relase their 2007 models. Will Rexhall also build those on 2003 chassis?

Let's hope Rexhall gets their act together. I doubt it. Here is a quote from one of their last set of auditors in a SEC filed document:

"the Company’s other current assets of $1,881,000 at September 30, 2004, are insufficient to satisfy its current liabilities of $7,084,000. The Company has been seeking financing for future operations but due to its recurring losses and uncertain future prospects, it may be difficult to obtain financing on acceptable terms or at all and the Company may have to consider other alternatives such as further reducing its level of operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern."