MIDDLEBURY -- Recreational vehicle and manufactured housing maker Coachmen Industries intends to turn "vacant production facilities" into revenue by building transit and shuttle buses for ARBOC Mobility LLC.
Coachmen will build ARBOC's "Spirit of Mobility" specialized transit and shuttle buses at its facilities in Middlebury, the RV company stated in a release. The buses are specially designed with a low-floor, kneeling air suspension chassis and ramp systems which provide features that allow easy access for all passengers, including those in wheelchairs and those toting luggage or children in strollers.
Production is expected to start this month, the company reported, and sales are anticipated to begin in the second quarter.
Officials from Coachmen and ARBOC did not returns calls Wednesday.
In recent years, Coachmen has struggled with declining balance sheets. Its net sales have steadily dropped from $802.8 million in 2004 to $480.8 million in 2007 and net income was reported as a $38.8 million loss in 2007, according to filings with the U.S. Securities and Exchange Commission.
Also as part of the company's "Intensive Recovery Plan," announced in 2005, Coachmen has been selling several businesses and other properties as well as reducing expenses and consolidating operations.
The agreement with ARBOC, based in Middlebury, is a new step for the RV maker.
"Our relationship with ARBOC will allow us to expand our business into new market segments where we can profitably leverage our core engineering and manufacturing capabilities," said Richard M. Lavers, president and chief executive officer of Coachmen. "With limited initial investment, we have been able to utilize vacant production facilities to transform them into revenue and profit enhancing assets."
ARBOC Mobility will sell the buses through dealerships in the United States and Canada, Coachmen reported. The vehicles are designed for use in airports, hotels, retirement communities, assisted living centers, resorts and other venues where short haul transportation and accessibility are required.