Freightliner Custom Chassis CEO Jeff Sather On Staying “Humble And Hungry”

Freightliner Custom Chassis Corp. (FCCC) President and CEO Jeff Sather likes to remind his team that it is not parent company Daimler Trucks North America (DTNA) that pays their salaries: it is their customers. That is why taking care of customers first and foremost – and cultivating that culture throughout the company – is his passion.

“Our products are not just steel and rubber – they’re someone’s dream,” says Sather. “We embrace our customers, we want them for life, and we want to deliver on the memories they’re making. One customer at a time, one ride at a time – that’s why we come to work each day.”

This philosophy and drive have guided Sather throughout his career. He started with DTNA in Portland, Oregon in 2001, 8 years after getting his MBA from Seattle University in 1993, but he was not introduced to the RV business until he, his wife, and two sons moved to North Carolina in 2008 where he became DTNA’s General Manager and Controller for their Aftermarket and Specialty Vehicles operations. There, among other responsibilities, he oversaw finance for the custom chassis business, which includes RVs.

In 2018, Sather was tapped to lead FCCC, which builds custom chassis for RVs, school and commercial buses, and walk-in vans. About 25% of FCCC’s revenues come from the RV unit, but almost 50% of its time and energy is devoted to it. The investment seems to being paying off, however; the company now has two-thirds market share for RV Class A diesel chassis and counts almost all RV motorized manufacturers among its clients.

Sather brought to FCCC broad experience, having worked in several business units and areas, ranging from small to large, in finance, sales-marketing, and manufacturing. One of Sather’s strengths, he believes, is his ability to capture a vision, to set a strategic direction, and to implement initiatives to accomplish the vision.

“My job is to develop and lead the team so we can accomplish our strategy and hit our targets,” says Sather. “This is only possible by building trust and connection with team members. One thing I’ve learned is that leaders are only as good as their people and their ability to connect and work with them.”

Open communications, a clear set of company values, and a commitment to delivering on its promises are at the foundation of FCCC’s culture. The result, he says proudly, is a “humble and hungry” team that wants to do the best it can for customers.

Of course, as a chassis builder, FCCC is three steps away from the ultimate customer, the RV owner. That is why Sather tries to spend as much time as he can with them, listening and learning about their needs to get a sense of where the industry is -- or should be -- going. He typically attends five to six RV rallies per year, as well as the Tampa Super Show and the Hershey Show. It is at these events that Sather hears from RV customers about how much they want to know that the OEM is there for them when they need them.

“At the last rally I attended, I spoke to a potential RV buyer who wanted to be assured that he could get help and support from us and not be left stranded,” says Sather. “I explained what we do and what drives us, and I tried to demonstrate that we are there for the end user – including offering a 24/7 help call center for anyone who purchases an FCCC chassis over the lifetime of the product. Hopefully, he’ll go buy one of our products now!”

In addition to customer support, Sather learned that RV buyers are looking for the kind of safety features and technology that they have in their cars, like adaptive cruise control, lane change notification, collision mitigation and 360° cameras. And just like with their cars, a smooth ride – how the RV handles and feels – is very important.

As a subsidiary of DTNA, FCCC meets many of these challenges by leveraging global engineering, design, and technical innovations and resources from Mercedes-Benz. The passenger car’s dash panel is an example of a design that was adapted by FCCC’s more than 125 in-house RV engineers. Launched in 2019, the DriveTech driving system features a digital dash display with menu items for checking oil and other functions, and an ergonomic steering wheel with fingertip controls allows drivers to do things safely and easily such as place phone calls. In addition, FCCC’s V-Ride rear suspension system offers a smoother and more stable ride and on larger coaches, and its UltraSteer tag axles pivot to allow for a tighter turning radius, which is important for campgrounds.

“The RV industry is so unique,” Sather says. “No two chassis models are alike. Winnebago’s chassis specifications are different than Tiffin’s. Each customer has their own unique business models and approach to the market. So, we design and manufacture customized chassis to fit their needs and for them ‘to build the house’ on.”

But Sather’s bottom line is quality. “If you don’t produce a high-quality product, you won’t survive in the RV industry.”

When asked what the future looks like for RV manufacturers, Sather says he sees the greatest growth in safety features (things in autos that have not made it to RVs, yet); product variations (smaller high-end RVs); and alternative fuels (electric and low-to-no emission vehicles). Realistically, he believes alternative fuels are four-to-five years away in the RV market and will probably start in Class B segment, driven by state regulations.

“The differences in state emissions standards and regulatory requirements will be among the biggest challenges,” Sather says. “Manufacturing vehicles to meet different state and regulatory requirements will have an impact on the motorized vehicle sector of the industry.”

Like almost every other manufacturer and supplier in the RV industry, FCCC has been hit by supply chain disruptions and a skilled labor shortage.

“These challenges are unlike anything I’ve seen in my 30-year career – it’s a global phenomenon,” says Sather. So far, it has not caused any disruptions to our ability to meet customers’ needs, although motorized RV inventory is well below normal, especially in the motorized diesel section where FCCC dominates.

“One of the keys to FCCC’s success is that we have a very good global supply chain team that has saved us many times, so we’ve not had any major production shutdowns due to supply constraints,” Sather says. Most of FCCC’s raw materials are sourced in the United States. He added: “I think the industry will be struggling for about a year with supply chain shortage issues.”

Regarding skilled labor shortage issues, Sather believes the only solution to finding and keeping people in manufacturing is to reach out to high school graduates, as well as technical and community colleges to recruit and build a pipeline of skilled labor; to increase starting wage rates; and to focus more on up front training before putting new employees on manufacturing floor.

“When we get them, we have to engage, connect, listen, and find a path to make it work so they won’t leave,” says Sather, who tries to cultivate a sense of belonging among his team members. “Good supervisors, good team leads, and good management are essential to showing employees that they can have a good career and lifestyle in the RV industry.”

Sather is especially happy with the career and lifestyle the RV industry has brought to him and his family. Now empty nesters in Greenville, South Carolina (about an hour from FCCC’s Gaffney facility), the former West Coast natives have grown to love the Southeast. “It’s home now. It is where we raised our children. And we like being close to so many places; both New York and Miami are only a 10-hour drive away,” he says. Sather and his wife often travel together to RV rallies where they both like to meet with campers – and where campers like to see RV executives and their families.

The RV industry is in his blood now, Sather says. And on the rare occasions when Sather is not working on FCCC business, he is contributing to the industry through his service on the RV Industry Association Board of Directors.

“What’s unique about the board is that it’s large and active – we don’t just come to meetings to talk about what’s going on,” says Sather. “Membership and leadership are 100% committed to the industry, and the association does a great job of promoting and enhancing the RV industry throughout North America.”

As for legislative and regulatory issues, the RV Industry Association does an exceptional job of bringing these to its members, he says, especially via formal and informal sounding boards that discuss the impact of new regulations or environmental initiatives. “The RV Industry Association helps us to stay focused and in touch with what’s happening and allows us to work with people who are passionate and dedicated to promoting the RV industry.”