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NEWS
Fleetwood reviews caravan business
Perth manufacturer to conduct review of Coromal and Windsor business as sales stallThe Perth-based and ASX-listed Fleetwood Corporation has announced it will conduct an independent review of its RV division after a slowdown in sales of Coromal and Windsor caravans in recent months.
Managing director Brad Denison blamed “unstable industry volume” on reduced demand for Coromal and Windsor vans during the second half of 2017, after close to 50 per cent growth in revenue during the previous 12 months.
Denison said while “we have been outperforming most of our competitors in recent caravan shows”, sales have “stalled” due to the fact “we are seeing very unstable market conditions in the industry as a whole for the first time in many years”.
As a result the company will conduct “a fully independent strategic review of the business”, with the results expected to be made public in February.
He said “there are no plans to discontinue the business”, which has been rejuvenated over the past two years with new models including the upmarket Princeton, Silhouette camper and the Windsor Hybrid toy hauler, which has only just hit the market.
Dealer numbers have also increased from 17 to 22, with 15 of those now single franchise operations.
“The investment Fleetwood has made in developing these new products and the dealer network is starting to pay off, with a 50 per cent increase in revenue for 2017,” he said.
However, he said “this improvement in sales and market share has come at a cost, with the factory in a very inefficient state while it rapidly prototyped new units and at the same time ramped production to meet the increased demand”.
He said the review will cover “among other factors the competitive environment, the business structure including its manufacturing locations and the result will be the identifications of options the board has with respect to the business”.
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Written byCaravancampingsales Staff
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Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
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