And the Big Boys Keep Buying... Warren Buffett's Berkshire Hathaway/Forest River has purchased Dynamax — maker of luxury class C and C-plus motor homes and high-end fifth wheels. Although when comparing Dynamax with Forest River, you're comparing high-end luxury products with mostly entry-level to mid-priced models, this particular move could be beneficial for Dynamax and may not necessitate any changes in quality. The initial intention, according to Pete Liegl, CEO of Forest River, is for Dynamax to operate as an independent division with Dynamax's 14-year president Dewayne Creighton remaining at the helm and existing staff staying in place. Dynamax, like so many other RV manufacturers, was hit hard by the recession of 2008-2009 when buyers stayed away from high-priced vehicles, particularly in the motorized category. The people at Dynamax were reportedly happy with the Forest River deal. Supposedly, the infusion of cash from Berkshire Hathaway would not only allow them to continue building a good product and keep jobs intact, but would afford the company greater national exposure. Forest River would gain product and profit at the high end where they were formerly lacking. It could also bring the latter company a competitive edge over other big companies like Thor that do not produce anything comparable to, say, the Dynamax Grand Sport C-Plus. CONSUMER BE AWARE Although Forest River supposedly has no immediate plans to interfere with Dynamax operations, they are eyeing the specialty vehicle market that utilizes large class C's — for example, police and military command units. That means expanding options, government contracts, and big bucks for Forest River. Also, it's good to note that as long as they're under Forest River's wing, Dynamax must become and remain profitable. Otherwise, they could be absorbed and eventually disappear or, at worst, their products could turn into downgraded Forest River motor homes. Motorized has not been Forest River's forte. On the positive side, however, you'll probably be okay for the present if you're considering a Dynamax product. With any luck, you may even be better off than in the last few years because they'll be less worried about money and may be less likely to skimp on quality and customer service. Just remember that they're now owned by Forest River and keep your eyes open. Make sure you read thoroughly any document you sign. That's just good sense. 3/1/2011