Possible new life for Country Coach

[lloyd&pamela]

http://www.registerguard.com/csp/cms...5-55/story.csp

[Will Garner]

Lloyd,

Here we go again. Let's see if I understand what was stated in the article. $11.5 million to build up to 43 coaches in the next 11 months. Oh yeah, that $11.5 million includes the $8.5 million debt CC already owes to Wells Fargo, my bank since the Wachovia "buyout." That leaves $3 million to build up to 43 coaches. Humm $3 million/43 coaches equals $69767.44 cost per coach. Looks like we are talking "plastic" at best, certainly no Prevosts. Now some of that $69767.44 has to be personnel costs so we are talking about "coaches" built with less than $50,000 in materials. I don't think I want one of those. Oh and we have to "rush" this deal through the courts since it is soooo time critical!

I'd like to see the court document include a requirement that CC coach build records be made available to current and future owners over the internet.

One last shot across the bow. My experiences with trying to get information out of CC while I was IN Junction City and with Jay Howard remaining as the CEO do not give me a warm fuzzy feeling about CC's future. When you treat your current CC owners like crap, then crap is what you should expect to receive back.

[ajhaig]

Quality issues aside, is there currently a demand for new Country Coaches?

Thanks Lloyd.

[Petervs]

There has been quite some discussion about Country Coach on the other thread, "Orphan Coaches". I have been saying all along, if there are no customers willing to part with a pile of cash , or banks where they can get cash, it does no good to build more units.

People have seen their nest eggs ( 401k) erode away enough that they are hoarding the remaining amount. They can no longer go get a juicy second mortgage to provide cash for a coach. Plus, with used coaches available for microscopic prices, why buy new?

There will not be a viable business without customers who buy. They certainly will not make a profit on warranty or service work.

I still believe they are trying to resurrect the company just so they can finish building what is on the assembly line or what they have parts on hand for, try to convert that into cash, liquidate the rest. It is better for the major shareholder ( Wells Fargo) to do that than to have a court ordered frenzy of dumping everything. There is probably a very small market for a few new coaches but the idea of a new Country Coach that looks anything like the old one is just a dream.

[flyu2there]

Just one question Peter..

Do you have something personally against Country Coach or are you referring to nearly every other business as well, save possibly medical care, food and the mortician?

Nobody in business, and I mean nobody, is doing as well as they were 24 months ago save possibly the aforementioned....they too may soon be hit.

[garyde]

The article actually says they expect to spend 18 mil for operations, and collect 23 mil over the next 42 weeks of which 2.3 mil will be for Bankruptcy costs. The line of credit is revolving, which means basically it will fluctuate depending on their cash flow. So, of the 7 or 8 models they will produce, hopefullythey will sale at a margin which pays down the line of credit, and supports on going operations. Selling 42 or 43 Coaches is a modest goal and if they can do this, hey have a chance to pay down their debts and wait out the recession. Fingers crossed.

[Coloradobus]

When we bought our Affinity in 2000, CC only produced around 5-7 coaches a week, total for the entire fleet. They had 4 lines of plastic, Allure, Intrigue, Magna, Affinity. A bus-like hybrid, the Concept, and a bus. Our coach had exceptional quality and customer service was absolutely a 180 from what recent Pogger's have experienced over the last several years. At that time, with Star Wood and Don Fultz and Bob Lee running the show, it was our opinion, the company was an A-1, First Class outfit. Hopefully, they can re-gain all that they had "sans" the Jay Howard Clan and Mark Anderson.

[Petervs]

Hey FlyU There,

I have nothing whatever against Country Coach, I almost bought a new one before I discovered Prevost conversions. My comments concern the business climate in general. Trying to stay in business these days is really hard, especially with a large debt load.

[rahangman]

I should think everyone would be glad to see CC make a go of it. Why not? My particular wish is to be able to reconnect to Service to try and get as much info on my 1990 CC Prevost as I can , just in case of a mishap. Good Luck

[flyu2there]

Got a call from Country Coach, seems they are now back up and running...starting to produce 2010 models, including the Prevost Conversions.

Looks like they did away with all of their dealers and all sales/warranty will be factory direct....interesting concept. They have a handful of coaches on their web site that are for sale at deep discounts (still a pile of $$$), gather they came back from dealers.....

Looks like they are finally getting back to customer service....least that's what they explained to me and shows on thier site.

John