Family-Focused Luxury

Fleetwood’s luxury Class A diesel Palisade motorhome, new for the 2025 model year, made its official debut at Pennsylvania’s Hershey RV Show in September 2024, drew robust reviews from dealers at the Elkhart Open House and is building momentum into the new year.

Doug Miller, sales and product manager for Fleetwood RV, Holiday Rambler and American Coach, describes Palisade as being unique in the marketplace. Built on a 45-foot Freightliner XCM chassis, Palisade has family-centric features with ample sleeping areas and a large bathroom with side-by-side sinks.

Miller says the Palisade was developed following two years of market research.

“A couple of years ago, we started looking at areas of deficiency in the market, and we recognized that during COVID, and even after with inflation, prices have gone through the roof, anywhere between 25% to 35%,” Miller says. “It really left a void in a price segment where we thought we could capture some attention.”

Miller says the Palisade fills an opening in Fleetwood’s offerings, replacing the American Tradition model.

“Looking at our own portfolio, we saw that our Discovery LXE did a fantastic job where it was positioned; our American Dream and our American Eagle were chugging right along as well. Our American Tradition was caught in the middle, as one of those victims to escalation in prices, and it left its favorable position in that $500,000 range that we were targeting. As the Tradition left, we needed to find something to fill that void, so we started looking around the marketplace and noticed that other manufacturers had also evacuated that segment. If we positioned ourselves properly, and equipped a coach the right way and made it look really nice with great features, we could get something to fit right into that gap.”

Miller says Fleetwood began with a base of the Discover LXE and strived to build a hybrid between its most popular diesel and its luxury line to create a new market segment.

“That is where the Palisade was born,” he says. “We added about 15 features that the Discovery LXE does not have and created the feeling of a hybrid product. It is in the luxury segment, but it is a manufacturable piece, where we can run it down the production line in a fashion that does not cripple our manufacturing process.”

Continuously Evolving

Early dealer feedback has been positive. They have been impressed that REV Group has been able to achieve its targeted price point, both at the wholesale and retail levels.

“We took numerous orders based on the show at Elkhart,” Miller says. “We have great dealer partners out there who jumped the gun, so that our first 25 weeks of production were already filled, and going into that show filled up the remainder.

“One thing you really notice when you walk up to that coach is it has a beautiful paint job on the outside — the drop shadows and the fades, and a bit of modern linear graphic detail. All those things work together to create an impactful appearance that makes you inquisitive about what the inside looks like.”

Fleetwood is limiting its initial construction of Palisades in order to not flood the market. One to two will be built each week to avoid creating a backlog.

“Our theory is to run lean and mean and keep the process going, and keep dealers clean on inventory,” Miller says.

Early reception from dealers and consumers has been positive. Miller says the first the two floorplans, the 45DS and the 45CS, have generated considerable excitement. A new floorplan, the 45FS (family sleep) has two full baths and a bunk design in a 45-footer.

“There are still a lot of families out there who want a high-end luxury motorhome, and they need that extra sleeping space,” Miller explains. “We have the drop-down loft in the front that you don’t typically find in the luxury motorhomes, as well as the sofa bed and the dinette table that will break down into a bed. You can sleep a lot of people in a really nice coach. It has two full tile showers to give it that luxury feel.”

Fleetwood plans to debut the new floorplan at the Florida RV SuperShow in Tampa in January.

“The Florida show is a very important one from a manufacturing standpoint. And it is a great time of year to be in Tampa. It is well attended, and we have always had great success there. We bring all guns blazing to that show, so we have a large sales staff and marketing staff to support us.”

The Palisade features a 150-gallon fuel tank that gives a longer travel range. It has larger 315/80 tires, offering better handling and support, according to Miller.

Fleetwood exclusively uses Freightliner chassis for its diesel motorhomes. The two companies have a close working relationship. Freightliner employees are on hand as needed during the motorhome manufacturing process, and Fleetwood sends staff to the Freightliner plant in Gaffney, South Carolina, to stay abreast of developments.

“Year after year, we try to make subtle enhancements to our coaches, but nothing extreme that would jeopardize the inventory on the ground,” Miller says. “It is a fine line to walk, but every year, there are improvements that we find either from our internal research or from customer feedback. We tried not to miss a thing on this production, but no one is perfect, so we will do our best to incorporate any modifications needed over time. It is a continuously evolving product.”

Keeping the Momentum Going

Miller works closely with two designers to determine colors. The process involves attending kitchen and bath shows, high-end boat shows and home shows to determine residential trends. He notes that RV is typically behind residential.

“A few years ago, everything was dark woods, like mahogany and cherry. Then the cottage or coastal feel arrived, so we created a design along those lines called Enclave for the interior of the Discovery LXE, paired with a wood called Winter Fog. People walked into that coach and basically just fell over. They said it was so light and bright and airy. We had intended to make only 20 of those, but when we walked out of Elkhart that year, I think we had 150 orders for that decor.”

Miller says Fleetwood tries to operate with the trending market, but without being too far outside what consumers are seeking.

“We want to focus on what we call the top step approach. That means we have created a really nice exterior to bring customers over and then invite them inside. When they get to the top step and look in, that is where we win. Or where we could potentially lose. … We want to make it inviting enough, and in line with current trends enough, to make them want to see more. That is in our minds every time we create a new decor.”

About 20 dealers will sell Palisades, some of which have multiple locations. In all, about 35 locations in the U.S. and Canada will be selling the new model.

Fleetwood plans to build about 75 Palisade units during its first year, which will be somewhat less than a full model year. Miller expects that number to rise to 100 during its second year, adding that if demand warrants it, more will be built.

Looking ahead, Miller sees plenty of reason for optimism in 2025, noting the RV industry seems to be emerging from a downturn.

“We believe in the Class A market. Over the years, we have seen roller coasters in the RV space. It has its ups and downs. We have to stay optimistic to keep the momentum going.”