2001 AGM - Drive for better quality will be the key to success
May we apologise for once again being unable to be with you this morning. Rich Emrich and David Webb both have personal engagements which they have been unable to break and Richard Allen is supporting the company at the Crossburn Caravans Border Festival at Peebles in Scotland.
Our report last year emphasised the importance of quality in all areas of factory production and Fleetwood’s failure to improve could result in potentially damaging consequences in our ability to successfully complete with the other manufacturers. The Board recognised that changes in attitude towards what was acceptable has to be made and at the beginning of 2001 model year a re-organisation plan was started which placed greater responsibility on those who controlled key factory areas
There is little doubt that to some degree the policy has been successful and it is now generally agreed by our dealers and customers alike that the Fleetwood Caravan of 2001 has the design, appeal and quality which when placed side by side with all the opposition compares very favourably.
We say “to some degree” because the job is far from complete. The likes of Swift, The Explorer Group and Bailey will not make Fleetwood’s position in the market place any easier and the decision of ABI to finally cease tourer production in May bears witness to the very real problems of a small manufacturer competing successfully and continually against the opposition. The decline and now the closure of ABI however, present Fleetwood with a very positive marketing opportunity which, if taken, will improve our core strength.
ABI have twenty-five trading dealerships which handle their products and it will be our aim to visit each one over the next two months to try and ensure that the Fleetwood dealership network in place for 2002 will increase by 25%. It will not be easy and our co-manufacturers will also have the same idea. It should also be said that the closure of yet another manufacturer is not good news for the customers.
Fleetwood, Avondale and Bailey remain as the last truly independent caravan manufacturers and the strength of the large groups inevitably will further restrict customer choice and specification preferences. Lunar would have been among us, but at the beginning of the year were taken over by the French company, Chateau, and it will be interesting to see in which direction their future development lies.
The continual progress of Fleetwood in re-structuring the factory organisation and improving build quality has received a new impetus by two internal changes, in October last year, Richard Emrich, joined us as the new Managing Director. Richard’s background, as many of you already know was Swift, where he introduced the Corniche and Challenger models and ABI where he was the force behind Brooklyn, Manhatten and the new Award. Richard is very keen to modernise the product and although the layouts will not change too much for 2002 you will never less be able to clearly see his influence. Mick Shaw, who I am sure you all know has now retired through poor health. Mick. Of course, has been with Fleetwood from the start of the company in 1966 and was generally instrumental in moving the company through the various changes which has to be made as Fleetwood developed to where it is today, a tight, modern, little company competing vigorously in a very hard ball park. He will be missed. Fleetwood have this week appointed an Operations Manager to run the factory and all aspects of production for which Mick Shaw was responsible.
Retail sales have been vey good this year. Fleetwood will make 850 units for 2001 and over 35% of the retail sales will have been generated from the major regional and national caravan shows and other promotions. Particularly successful were the Company’s results in Scotland at the Scottish National Show and at the NEC in Birmingham. This particular aspect shows the real strength of Fleetwood and our ability to cope very favourably against all the competition when it is ranged against us in a fair and equal environment.
2001 represents Fleetwood’s thirty-fifth Anniversary of building touring caravans - a feat in its self in today’s unpredictable climate. To mark this event we shall be producing a limited edition of special caravans which will be marketed under the “Island” theme. There are four layouts based on the best selling Colchester models and they will be named after the four tropical islands, Bali, Java, Sumatra and Flores. The Islands will be launched on 7th June and we expect them to be at the Dealerships round about the middle of June. Short teaser details of the range are already on our web site and the launch will be backed by a promotional campaign at the Dealers and in the caravan press in May and June. It is a most exciting development and we certainly look forward to hearing what you the club think about them.
We wish the club well in all its activities and hope that this has been a successful and enjoyable AGM Rally. We value your close association with our company and thank you for your continued and vigorous support. We know that particularly over the last two years many of you have bought new Fleetwoods and the fact that you do this is never taken for granted. Thank you for all that you do in continually promoting Fleetwood. Your health is our health and we wish you well for the future and look forward to meeting some of you again at the Lawns and at Earls Court.
