Friday, July 04, 2008

Winnebago Industries in Trouble?

There is presently much gnashing of teeth and hand wringing about the state of the motorhome industry. With economic indicators signaling a slow-down and fuel prices at record highs doom-sayers are proclaiming the end is nigh for America's Land Yachts. One person of note signaling the alarm is none other than Garrison Keillor of Prairie Home Companion fame.

Not so fast, I say. While it is true that Winnebago's stock has taken a tumble it does not mean the industry or the lifestyle is dead. The market has already made significant adjustments even before fuel prices skyrocketed. The Dodge/Sprinter chassis with the Mercedes diesel engine has taken the industry by storm with nearly every major manufacturer of Class 'B' and Class 'C' motorhomes having some variant in their model line-up. Considering a classic Winnie would be lucky to get around 10-11 mpg, the average 19 mpg of the Sprinter is fantastic. It's even better than some SUVs! 

As for me, the $90,000+ acquisition cost of one of these new rigs would cost more than I would pay in gas, even if it was $10 gallon, over the next 10 years! Not wanting to be a carbon footprint pig, or pay too much for gas, I'm looking into OxyHydrogen injection. Some people claim that they've improved their mileage by as much as 75%. I don't believe that for a minute, but I have seen enough tests to think a 10% to 25% increase in economy is achievable.

Personally, I think the used RV market is the biggest danger to the new RV market. At least in the near term. There are just too many classic rigs out there that are more than willing to feed our wanderlust. All they need is a little TLC. The $100,000 you save can probably buy quite a bit of gas, too. 

See you out there!