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01-07-2005, 08:23 AM
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#1
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Just a member
1978 28' Argosy 28
Lutz
, Florida
Join Date: Mar 2002
Posts: 4,549
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Airstream: The Rebirth of the Silver Bullet
2005 Fast 50, from Fast Company
Airstream: The Rebirth of the Silver Bullet
Richard Riegel
President and CEO, Airstream, Inc
Jackson Center - OH US
What did you accomplish in 2004?
Airstream, Inc., was reborn in 2004 and a new business model, on trial in 03, was validated. No longer relegated to the dustbin of history, the Airstream brand came storming back on the strength of its product offering, a rekindling of interest in authentic American goods, and the growing public awareness that “yes, they still make those things.” 2004 also brought new strategic alliances and resulting business opportunities: BMW/Designworks, Nissan Design America, and Daimler-Chrysler, to name a few. The results: revenues up 57% for the fiscal year ending 7/31, and up more than twofold in the months since.
How did you do it?
Design, Quality and Innovation: Airstream, Inc., was established on these three principles almost 75 years ago, and it has been the rediscovery and reapplication of these principles that has allowed Airstream its recent successes. Far from being outdated, in this age (and industry) these principles have pointed the way to rapid growth. And none too soon: in recent years sales and profitability were greatly diminished due to a stagnant product mix and narrow focus on a shrinking market. Don’t get me wrong, timing has also played a role; the country is experiencing a groundswell of interest in authentic American products (see Harley-Davidson, Mini-Cooper, and the vintage car craze to name just a few) and nothing embodies these qualities better than the shiny, silver Airstream trailer. Presenting a product that draws from our past but has relevance to today’s customer has been an exciting challenge. It has also been a matter of recognizing and celebrating our differences. In an industry defined by cut-rate sameness, a premium brand with an established heritage can really stand out. Combine this with a laser focus on product development, marketing, and dealer development and you have the ingredients for growth. Stir in a few new faces and a bit of organizational shuffling, and pretty soon you’re hitting on all cylinders. But the single biggest contributor to our growth has been the creation, through radical product redesign, of a whole new generation of Airstreamer enthusiasts. To borrow a line, this is not your father’s Airstream trailer.
What were the major obstacles that you faced?
The obstacles have been many: a company culture that was risk-averse and resistant to change, a significantly eroded dealer base, an aging (and shrinking) traditional customer base, rising material and labor costs, capacity constraints, and, at the peak of it all, a devastating fire that all but shut down a critical part of our operation. And, as always, the competition for consumer’s discretionary dollars is fierce, and purchasing an Airstream trailer represents a significant financial commitment. In addition, most shoppers for an RV buy the least expensive brand that meets their need. Convincing them to spend twice as much for a product that, while designed to last for generations, does much of the same thing is no small task.
What was the result?
While the numbers speak for themselves (revenues up 57%, workforce up 39%, dealer base up by 50%, significant warranty reduction, construction of an additional plant initiated to double our manufacturing space), the real accomplishment has been reintroducing the Airstream brand to the American public as a product that’s been around long enough to be hip, but has the content and style to make it relevant today. People have always aspired to own an Airstream, not just because it represents product excellence, but because it represents a way of life that is about freedom, adventure, and camaraderie. Recreating the kind of panache that the Airstream trailer had in the 1950s was a critical part of the equation. Luckily, the trailer is iconic enough that it has been widely used in print and TV ads (Dodge, Toyota), movies (Charlie's Angels, Simone), TV shows (Simple Life II, Made In America), all at no cost to us. Airstream is back on good footing, growing strongly, and aggressively pursuing the opportunities that are due a brand with our history and our heritage.
What are your goals for 2005?
In 2005 our goals are broad: reorganization and realignment of company structure to better focus on our wide range of products, expand our offerings to include lower cost trailers and distinct motorhomes, introduce our products to a waiting market in Europe, implement lean manufacturing techniques in our production processes, build new facilities to support required capacity, and continue to augment our branded and licensed products. Can all this be done while maintaining our focus on design, quality, and innovation? We will, not because we can, but because we must.
__________________
Brett G
WBCCI #5501 AIR # 49
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1978 Argosy 28 foot Motorhome
Wise men talk because they have something to say; fools, because they have to say something. -- Plato
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01-07-2005, 08:32 AM
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#2
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Aluminut
2004 25' Safari
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, Illinois
Join Date: Feb 2003
Posts: 10,477
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Interesting...if I read this correctly they plan on expanding the factory?
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01-07-2005, 08:54 AM
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#3
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Rivet Master
1959 26' Overlander
Putnam
, Connecticut
Join Date: Sep 2003
Posts: 3,064
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continue to augment our branded and licensed products
Thus the Decal Problem if you use the A word and want them to like you.
because it represents a way of life that is about freedom, adventure, and camaraderie. Ever wonder how many of the executives belong to WBCCI and attend rallies in AS. They sure would be if I was running the place. That's how the kind of panache that the Airstream trailer had in the 1950s got there. Wally created and ran a vertically integrated enterprise. Buy a trailer and you were part of the family.
You cann't understand it if you don't do it.
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01-07-2005, 09:08 AM
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#4
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Rivet Master
2020 30' Flying Cloud
1995 25' Excella
Clear Lake
, Minnesota
Join Date: Jul 2004
Posts: 588
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<---- executive in training, now meeting your ownership criteria, just waiting for the invite.
__________________
Mark
72 Sovereign: L couch, mid-twin, rear-bath "When you come to a fork in the road, take it" "It was impossible to get a conversation going; everybody was talking too much." "If you don't know where you are going, you will wind up somewhere else." - Yogi Berra
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01-07-2005, 10:01 AM
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#5
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1 Rivet Member
Join Date: Sep 2004
Posts: 11
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Mini-Cooper, Authentic American?
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01-07-2005, 10:29 AM
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#6
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Aluminut
2004 25' Safari
.
, Illinois
Join Date: Feb 2003
Posts: 10,477
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Quote:
Originally Posted by bensonortho
Mini-Cooper, Authentic American?
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Good catch...flew over that one.
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01-07-2005, 10:30 AM
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#7
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Rivet Master
1968 24' Tradewind
Rural, blink and you'll miss it
, Missouri
Join Date: Oct 2004
Posts: 692
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This is similar to what Harley-Davidson did in the 80s. They actively pursued their market share by protecting their trademark and prosecuting trademark infringement. They even went so far as to try to trademark the Harley sound.
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01-07-2005, 10:57 AM
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#8
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Rivet Master
2021 27' Globetrotter
Saint Louis
, Missouri
Join Date: Jan 2004
Posts: 1,105
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Hopefully, they'll invest some of their revenue in production techniques to eliminate or cut down the known issues. Also, they might hire quality control people to check the units out BEFORE shipping them.
Dennis
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01-07-2005, 11:23 AM
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#9
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Rivet Master
1966 26' Overlander
Woodstock
, Georgia
Join Date: Feb 2002
Posts: 8,525
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there is a new plant coming to build the new Classic motorhome.
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01-16-2005, 07:49 AM
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#10
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4 Rivet Member
1977 25' Caravanner
Jeffersonville
, Kentucky
Join Date: Jul 2004
Posts: 490
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Lean manufacturing
If the factory is just now installig Lean Manufacturing they are really behind,all factories must change with the times or they will go down the tubes, Scott
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01-16-2005, 08:42 AM
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#11
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3 Rivet Member
2005 28' International CCD
Las Cruces
, New Mexico
Join Date: Jan 2005
Posts: 176
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Actually, I'm not certain lean manufacturing gets you much until you have a fairly consistent process that churns out a lot of product. There aren't that many Airstreams made in a year, and they tend to do them in batches based on model. Since the CCDs came out just a couple years ago, and new CCD models wound up taking over a huge chunk of trailer proudction, it would have been hard to keep up without a pretty flexible supply inventory. Which seems to have been extremely difficult for them in any case.
When you watch Airstreams being built, you quickly realize how much of it is hand work. I saw a show a couple weeks ago about the RV industry, and the others appear to be "manufactured" in a more industrial sense, probably because they build so many more. Given the nature of riveted external shells, it would be pretty hard for Airstream to make use of robots and so forth. It would cost millions for tooling to support that, and if you're building only a few hundred of each model per year, you'd never get resultant manufacturing savings that would justify the investment. One alternative would be to standardize on just a few components, but then we wouldn't get the variety and customization we have now.
I'm not saying they can't make improvements, but by analogy, I'd say Airstream production is a lot more like an Aston-Martin or a Morgan operation than it is like a Ford or a Chevy one. They have a niche product that is expensive and unique. They have picky customers who expect a ceratin treatment not usually available from their competitors. Their most obvious specialty is a traditional structure type that was abandoned by their competitors ages ago. All of these things imply a different approach than your common widget factory.
One thing they could look at is a "custom shop." The big US guitar makers, Fender and Gibson, make some products that have to be spot-on duplicates of things they built 60 years ago. Took them both decades to understand that their biggest competition was the guitars they built themsleves years earlier. Every time they introduced "improvements" in the 70s, the customer just got less interested. They both eventually realized this, and offered models that are difficult to distinguisg from the originals. They also created custom shops where you can order a guitar made to exactly the color or neck shape you want - for an enormous price.
Airstream could make their own custom shop. Customers could get on the net, or go to a dealer, and pick from a menu of options (interior color, applaince types, fabrics, etc.). Then the factory would take that spec sheet and build to it. I suspect that they would quickly find out exactly what sells best. That new Safari with the exposed aluminum is a great experiment. Maybe 1/2 the buyers would want that. But until they have a process for finding out, who knows? So the custom shop units would be correct by definition, and the off-the-rack units could be tuned for better sales by using the custom shop information.
I'm hoping maybe they'll read this.
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01-16-2005, 09:58 AM
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#12
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4 Rivet Member
2002 19' Bambi
1989 29' Excella
1980 28' International
Avon
, Colorado
Join Date: Jul 2003
Location: 1989 29' Excella
Posts: 282
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Quote:
Originally Posted by AgZep
Airstream could make their own custom shop. Customers could get on the net, or go to a dealer, and pick from a menu of options (interior color, applaince types, fabrics, etc.). Then the factory would take that spec sheet and build to it.
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I'll take a Bambi "Wide Body"! The extra 5" will help the bed situation.
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01-16-2005, 10:06 AM
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#13
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Aluminut
2004 25' Safari
.
, Illinois
Join Date: Feb 2003
Posts: 10,477
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I agree AG. I know that the web is far underutilized by Airstream and the dealer networks. Some dealers really hit a home run when it comes to the web--- colonialairstream.com and sutton RV on the west coast. It would be way cool to do a build your own type thing and be able to pick fabrics and browse all avail options and get an overall retail cost. Lotst of places do this. The RV industry in general seems a bit behind when it comes to web contact with it's customers.
As for the wide body giving you an extra 5", we had a Bambi and went to the Safari C which has the same back end as the 19' Bambi but 5" inches of bed, I can't say the extra 5" is not helpful, but it still is only 5".
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01-16-2005, 10:38 AM
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#14
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3 Rivet Member
2005 28' International CCD
Las Cruces
, New Mexico
Join Date: Jan 2005
Posts: 176
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Personally, I'd vote for the elimination of anything that might rust or rot. I would have paid extra for some sort of inert, non-water-vulnerable subfloor material for example (might that kill the infamous '05 floor squeak?).
I'd even consider aluminum cabinetry, if such a thing is possible. Probably it is I guess. I've never seen a modern military airplane with much in the way of wood inside (but believe it or not, the floorboards of my '87 Porsche are made out of wood).
I'd also like to see a better way to handle wiring, such as all the A/V feeds for TV, satelite and music. Maybe some kind of electrical channel in the ceiling or something, where you could run your own cables.
There would be plenty of non-engineering ramifications to consider. Of course, Chris Deem would need to protect his personal franchise, so if you ordered a madras pattern fabric with a blue velvet wall covering, he probably wouldn't want you to have a CCD plate on it.
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01-16-2005, 11:51 AM
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#15
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Aluminut
2004 25' Safari
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, Illinois
Join Date: Feb 2003
Posts: 10,477
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I think we'd all agree that there are several things that could be done differently. For me, it's easy to play couch coach. I was very happy to see Airstream starting to make cross type coaches. Meaning some of the CCD features brought into the main line, yet retain some of the natural feels of the fabrics and woods. This is a big step they took and it tells me that they really are listening to what folks are saying. For whatever the reason, I hope it continues. Hint, hint....CCD style windows in the cross coaches (main exsiting windows on the Safari only) and maybe a wrap round up front.
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01-16-2005, 12:04 PM
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#16
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Moderator Emeritus
1964 26' Overlander
1978 Argosy Minuet 6.0 Metre
Anna
, Illinois
Join Date: Sep 2002
Posts: 5,705
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Aluminum Cabinetry and Alternate Flooring in Airstream Products
Greetings AgZep!
Quote:
Originally Posted by AgZep
Personally, I'd vote for the elimination of anything that might rust or rot. I would have paid extra for some sort of inert, non-water-vulnerable subfloor material for example (might that kill the infamous '05 floor squeak?).
I'd even consider aluminum cabinetry, if such a thing is possible. Probably it is I guess. I've never seen a modern military airplane with much in the way of wood inside (but believe it or not, the floorboards of my '87 Porsche are made out of wood).
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Both of these have been at least tried in past Airstream products. To be more specific, the Argosy Minuet 1977-1979. These coaches were narrow (7' wide at floor level), and came in legths of 6.0 Metre (20'), 6.7 Metre (22"), and 7.3 Metre (24'). They were in part a reaction to the fuel crisis of the early/mid 1970s and were designed to be light weight. All of the interior cabinetry for these coaches was of vinyl clad aluminum - - the only item that wasn't constructed with aluminum was the credenza and table as these utilized the stock Formica covered particle board. In addition most (but not all) of the 6.0 Metre coaches had aluminum composite flooring while a few (but far from all) 6.7 Metre coaches also utilized the aluminum composite flooring.
I have owned my Minuet for two full seasons, and it has the aluminum composite flooring as well as the vinyl-clad aluminum cabinets. It is a wonderful coach that is light and easy to tow. The only issue that I have had is the limitation placed upon floor covering selection by the need to deal with the rows of rivets utilized to attach the aluminum composite panels to the frame.
Kevin
__________________
Kevin D. Allen
WBCCI (Lifetime Member)/VAC #7864
AIR #827
1964 Overlander International
1978 Argosy Minuet 6.0 Metre
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01-16-2005, 01:01 PM
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#17
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Rivet Master
2021 27' Globetrotter
Saint Louis
, Missouri
Join Date: Jan 2004
Posts: 1,105
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There is aluminum decking for homes that can handle 30" joist spans that may be an idea for the factory to look at. The samples I have are for a deck on a house. They're 6" wide and have a tongue and groove that gives you an almost solid surface. It's about $3.25 per linear foot. But that includes a powder coated and slip resistant finish. I'm sure the factory could get it "plain" for much less. Another idea is to use a Velcro type fastener to install carpet or vinyl at the edges and make it easier to take up in case of a leak or just to update your trailer.
Dennis
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01-16-2005, 01:02 PM
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#18
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3 Rivet Member
2005 28' International CCD
Las Cruces
, New Mexico
Join Date: Jan 2005
Posts: 176
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And even that might not be an issue today. Now they can bond aluminum with special glues to almost anything, even in car chassis applications. A bonded attachment would certainly be strong enough for an Airstream floor.
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01-16-2005, 06:43 PM
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#19
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5 rivets, 1 loose screw
1966 20' Globetrotter
Saginaw County
, Michigan
Join Date: May 2002
Posts: 1,555
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Quote:
Originally Posted by thenewkid64
"In an industry defined by cut-rate sameness, a premium brand with an established heritage can really stand out.".
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What a powerful statement that is. While other RV manufacturers strive to offer the same for less, Airstream has held fast to the principle that the best product money can buy need not compromise integrity
for economy. In today's world of disposable products and disposable people, the Airstream flagship still serves as a shining beacon for all who admire reliability that does not yield to fluctuating market trends.
Of course there have been falters along the way but Wally Byam set a course that was clear, concise and accurate. We consumers don't want sameness, we want excellence. If you will continue to build it, we will continue to buy it.
__________________
Rog
May you camp where wind won’t hit you, where snakes won’t bite and bears won’t git you.
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01-17-2005, 05:14 AM
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#20
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Rivet Master
1976 31' Sovereign
Currently Looking...
Chandler
, Oklahoma
Join Date: Oct 2004
Posts: 1,770
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I have owned two AS in my life, both older models. I don't suppose I will ever be in a position financially to buy a new AS coach. My hope is that AS will help those of us that hold these older coaches so dear by offering retro parts that we can use to keep them up and running. To be truthful, I'm not certain I would give up my 1978 Argosy 24ft coach for a new AS. But I think the fact that people see a coach this old in this great a condition is the best advertising Airstream could get. Why wouldn't you consider spending your money on a brand that you can see will last for 20, 30, 40 years or more in fantastic shape. And the resale value is there too. We are an advertising gold mine for Airstream. Judy and Bob
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