China to enter US Motorhome market in 2011

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Gary RV_Wizard

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Plans are moving ahead to bring a Chinese built motorhome to the US market. It will be called the En Route and will assembled by the Yutong Bus Company in China using standard US components for appliances, chassis, etc.  Vendor  selection is currently underway.  The price range is anticipated to be $140k-$200k and they expect to begin delivery in the Spring of 2011.  Lengths of 28-30 feet are planned and styling will be more along European lines than current US designs.


http://www.rvbusiness.com/2010/09/planning-continues-for-new-chinese-coach/
 
Thanks Gary, the price range sure puts the speculation from the other thread on this to rest.  So, no real reduction in pricing to swing you towards a Chinese built RV.  It will take a number of RV shows and walk throughs for folks to actually make that decison. 

Way out of my price range, but a 28 - 30 in the 150 to 200k range hardly seems a bargain. 
 
RV Roamer said:
Plans are moving ahead to bring a Chinese built motorhome to the US market. It will be called the En Route and will assembled by the Yutong Bus Company in China using standard US components for appliances, chassis, etc.  Vendor  selection is currently underway.  The price range is anticipated to be $140k-$200k and they expect to begin delivery in the Spring of 2011.  Lengths of 28-30 feet are planned and styling will be more along European lines than current US designs.


http://www.rvbusiness.com/2010/09/planning-continues-for-new-chinese-coach/
Complete with lead paint,and a variety of toxic practicals & fumes yet to be determined!.........No thanks! :(


Edit: Moderator fixed misplace end-quote
 
I am still flabbergasted that someone thinks this is a good idea...business wise, that is.

RV's are labor intensive to build, so I understand the concept, but labor is but a small fraction of the overall cost to build one of these things.  In fact, all told, I would be shocked if labor were more than 15-20% of the total Cost of Goods sold for most manufacturers.  Even if Chinese labor is cheaper, the shipping costs for these things is astronomical.  There is a really good reason that most auto manufacturers that sell large volumes of vehicles in the U.S. relocate product to the U.S., shipping costs outweigh the labor advantage.

Furthermore, the typically RV buyer in the U.S. IN MY OPINION tends to be the type of buyer who would shun a foreign manufacturer.  Many in this demographic are concerned about manufacturing jobs going overseas and I think, on a whole, would be less inclined to purchase a premium product made overseas.

If this were a good idea, the European and Australian manufacturers would have tried it a long time ago...I just don't get it.  Someone tell me that I'm crazy...what's the story here.
 
It remains to be seen what sort of amenities are offered at $140k price point. Or whatever it ends up being. And remember, they are talking a diesel pusher at that price. An Allegro RED runs around $200k, though it is at least 4 feet longer than the EN ROute plans.

It appears they plan to build these motorhomes with American junk rather than Chinese junk. The article says they will buy American components, ship to China and assemble, then ship the finished coach back. So I guess the cabinet work, furnishings, sidewalls & roof are all that are Chinese?  Bound to be more than that, I think, or it won't be economic. Will have to wait and see...
 
My guess is they would gradually substitute Chinese components over time, once they establish the brand here in the US with mostly "made in USA" parts.  But they are going to have to offer a lot of bang for the buck to get started.
 
Probably reverse engineer the U.S. components and make their own copies then phase out the U.S. components.
 
BW talked about this a while back... in general... they noted that China has had the world's leading economy for 19 of the last 20 centuries.  I guess enuf said... they plan to get back into first place... anyway they can.  So far I can't tell that we even notice.
 
I still find it hard to believe they can pay shipping costs to get the US components to China, then ship the completed motorhome back here for less than it costs to assemble it here.
 
Lou Schneider said:
I still find it hard to believe they can pay shipping costs to get the US components to China, then ship the completed motorhome back here for less than it costs to assemble it here.

Can you say 30 cents an hour??? ;)
 
I'm trying to think of components made in America. You can't buy any appliance made here, maybe the engine, tranny and tires. Their steel has been some of the worst (referring to pipe) on the market so I wouldn't trust the frames. Electronics....not a chance, remember Taiwan is still China. I would much rather have Mexican made, at least they aren't communists. Sorry, they may even be high quality but it somehow rubs against the grain too much.
 
Don't be too fast to write off China. Many moons ago I learned a number of things about US companies setting up shop in China. There were/are a number of prerequisites:

  • Grease the palms of government officials.
  • Pay for some infrastructure (a school, a road, etc).
  • Transfer technology to the Chinese.
When I made my first visit to a Chinese telecom company, I was expecting a small technical meeting. I was surprised to see a large room filled with engineers, all taking notes, asking questions, and grabbing all my handouts. The company was jointly funded by the Chinese government and private investment. Quite an impressive campus.

At the other extreme, I've seen both the sweat shops and the cottage industry. I doubt that an RV manufacturer would use either of the latter.
 
At the other extreme, I've seen both the sweat shops and the cottage industry. I doubt that an RV manufacturer would use either of the latter.

OTOH at least one US boat manufacturer has the innards of their boats done by "Taiwan families".
 
Cheoy Lee has been building world class yachts and ships in China 1870.  I've had the pleasure to sail on a couple of their sailboats.
 
Cheoy Lee has been Taiwan, which only recently really became China again.  Buddy of mine has a Cheoy Lee, real nice boat, amazing hand carved features.
 
With lots of teak to oil.  But very nice boats, better than anything built in the US.
 
[quote author=PancakeBill] ... Taiwan, which only recently really became China again.[/quote]

Not as far as China was concerned.
 

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