Spartan Motors, Inc.

Spartan Motors has built itself on the foundation of its chassis. Founded in 1975, Spartan Motors (through its core Spartan Chassis unit) makes custom chassis for fire trucks, motor homes, and other specialty vehicles, including mine resistant and light armored vehicles for the US military. The company also manufactures emergency vehicles through three subsidiaries that make up its Emergency Vehicle Team (EVTeam) segment. Its Crimson Fire subsidiary builds fire truck bodies, while its Crimson Fire Aerials business makes ladder units for fire trucks. Other operations include subsidiary  Utilimaster, which makes custom walk-in and hi-cube service and delivery vans, truck bodies, and other commercial vehicles.

Like many of its competitors, Spartan has experienced dismal sales and shrinking profits in recent years. Its losses can be attributed, in large part, to shaky economic conditions in the US (its primary market), declines in demand for consumer products like motor homes, and volatile fuel prices. What's more, with the wars in Iraq and Afghanistan winding down, demand from the US government for the company's military vehicles is also falling. 

To mitigate its losses, Spartan Motors has been diversifying its offerings through acquisitions and product development. In 2011 it bolstered its Crimson Fire and Spartan Chassis businesses by purchasing fire apparatus manufacturer Classic Fire. The addition brought new technology and a strong product portfolio (tankers, brush trucks, and mini-pumpers and light rescues), as well as additional coverage in the emergency response market. Spartan has also been leveraging Utilimaster's commercial truck-building operations to expand its product offerings and attract new customers. The subsidiary recently began producing an eco-friendly commercial van (the Reach NGCV) in 2011 that offers improved gas mileage and reduced CO2 emissions. The company also entered into a partnership with Isuzu Commercial Trucks of America in 2011 to produce gas-powered Isuzu N-Series delivery trucks.

The 2009 acquisition of Utilimaster contributed to the rise in Spartan Motors' total revenue in 2010. Excluding Utilimaster's revenues, Spartan Motors as a whole experienced a slight decline in sales and remains well below its peak 2008 revenue levels.

In addition to its growth efforts, Spartan Motors has been selling off some businesses as well. In late 2010 it sold ambulance maker Road Rescue to Allied Specialty Vehicles (which owns ambulance OEM Collins Industries).