Thor/Heartland buys out DRV

History of Thor subsidiaries:

Recreation Vehicles

Airstream
Breckenridge
CrossRoads RV
Dutchmen RV
Redwood RV
Keystone RV
Heartland RV
Livin Lite RV
Bison Coach

Motorized Recreation Vehicles (Motorhomes)

Airstream
Thor Motor Coach (combined Four Winds International and Damon Motor Coach)

Former subsidiaries

Commercial Bus

ElDorado National (sold 2013)
Champion Bus Incorporated (sold 2013)
General Coach America, Inc. (sold 2013)
Goshen Coaches (sold 2013)
SJC Industries (sold 2013)

golf_bears wrote:
TheAmRheins,

I'll venture my opinion on your excellent question. Not sure how many of you remember but when Hartland first introduced their product line, some 5-6 years ago, they looked very similar, functionality wise and on the surface (the glitz factor), to the then Doubletree Suite units. My guess is in the not to distant future we will see DRV merge into Hartland or vice versa.

There just are too many visible similarities between DRV and Hartland product lines to keep them both in production. The quality issue will resolve itself depending on which product line remains in production.

Thor is looking for more manufacturing space and DRV has a great facility and lots of acreage to expand. Time will tell who survives.

You have a good point. But maybe a more likely scenario would be to merge only the Landmark and Suites lines as in the past several years the difference between Heartlands Big Horn and Landmark lines were becoming quite blurred.
A Landmark Suite should be a clear cut above the other Heartland offerings.
BTW only the Classic Landmarks (pre 2008) were DRV comparable IMO.

golf_bears wrote:
My guess is in the not to distant future we will see DRV merge into Hartland or vice versa.

There just are too many visible similarities between DRV and Hartland product lines to keep them both in production. The quality issue will resolve itself depending on which product line remains in production.

Thor is looking for more manufacturing space and DRV has a great facility and lots of acreage to expand. Time will tell who survives.

That would be a HUGE mistake. Corporate acquisitions generally include a portion of the purchase price above and beyond the book value of the acquired company for "goodwill" - the positive effect of brand name and reputation in the marketplace. To eliminate the DRV brand would render the halo effect of a premium brand worthless. To merge the Heartland products into the DRV brand would do nothing but dilute the brand. I would think that Thor's marketing personnel have at least gone beyond Marketing 101, but in the RV industry, who knows.....

Rusty

Any rep who doesn't act thrilled will be let go quick. Certainly at a show.

It's a loss, other way to see it.

TheAmRheins,

I'll venture my opinion on your excellent question. Not sure how many of you remember but when Hartland first introduced their product line, some 5-6 years ago, they looked very similar, functionality wise and on the surface (the glitz factor), to the then Doubletree Suite units. My guess is in the not to distant future we will see DRV merge into Hartland or vice versa.

There just are too many visible similarities between DRV and Hartland product lines to keep them both in production. The quality issue will resolve itself depending on which product line remains in production.

Thor is looking for more manufacturing space and DRV has a great facility and lots of acreage to expand. Time will tell who survives.

That could be it neal, I agree that the DRV is a better product. Still seems strange though.

TheAmRheins wrote:
The curious thing to me about this is why is Heartland involved? Thor (who owns Heartland as well as many other RV companies) could have done this acquisition stand alone, so what is the reasoning for including Heartland?

That is a good question-- without any reasoning from Heartland, I would guess it is product/marketing positioning. Heartland really did not have a high end trailer to offer and Mobile Suites line fits that market. The Landmark is a optioned-up Big Horn and not really considered high end. Nothing wrong with the Big Horn or Landmark, but DRV is clearly a notch above in most aspects.

The curious thing to me about this is why is Heartland involved? Thor (who owns Heartland as well as many other RV companies) could have done this acquisition stand alone, so what is the reasoning for including Heartland?

As far as warranty is concerned, I think most manufacturers offer the same. Either do it yourself with the manufacturer sending the replacement part, have an approved mobile service do the work, or any authorized dealer. Some claim the Heartland's warranty is supper and I don't doubt it, but so are all the other reputable manufacturers. After all this is a very competitive industry and seriously doubt any reputable manufacturer is going to jeopardize their marketing with poor warranty response.
Attention to detail in the engineering, design and manufacturing is what separates some of the RV, and I doubt that Thor/Heartland has an edge in that aspect.

Ford Man wrote:

Travlingman wrote:

Cummins12V98 wrote:
I pulled into Rolling Retreats the day Thor announced the sale. I drove from NW WA to to Elk City, OK to order a MS/Elite from Alicia since she has a stellar record on the Mobile suites Forum. She is not worried and thinks it will be a plus for the DRV product.

I talked with a DRV dealer today and they said it will be a win-win for both DRV and Thor. Said Thor had been wanting to get in the custom build of RV's and DRV's owner was wanting to slow down some. DRV management to remain in place, manufacturing staying the same. With Thor's buying power and volume, DRV will now be able to get materials, appliances, etc. at better prices which should translate into a lower cost to customer in the future.

Heard the same thing from the DRV Rep at the RV Show in Sevierville. The DRV Rep was excited that Heartland had bought them. He said they would be built at 2 separate plants.

DRV is a long way from a custom builder. Changing a few cabinets is not really custom work. If you want to see custom, look at New Horizons, Spacecraft and Continental Coach (Forks RV).

Of course, the dealers, and the manufacturer will put a positive spin on the marketing hype. I doubt if they will leave DRV alone for much more than a year before they start pushing in their management style and cost cutting measures.

Ken