----

----

|   |   | COACHMEN      INDUSTRIES, INC.                              |   |   |
|--------|--------|-------------------------------------------------------------|--------|--------|
|   |   | (Exact      name of registrant as specified in its charter) |   |   |

| Indiana                                       |   | 35-1101097                             |
|-----------------------------------------------|--------|----------------------------------------|
| (State of incorporation or      organization) |   | (IRS      Employer Identification No.) |

| 423      North Main Street, Middlebury, Indiana |   | 46540           |
|-------------------------------------------------|--------|-----------------|
| (Address      of principal executive offices)   |   | (Zip      Code) |

| Registrant's      telephone number, including area code: |   | (574)      825-5821 |
|----------------------------------------------------------|--------|---------------------|

| Large      accelerated filer ¨ |   | Accelerated      filer x |   | Non-accelerated      filer ¨ |   | Smaller      reporting company ¨ |
|------------------------------------------|--------|-------------------------------|--------|-----------------------------------|--------|--------------------------------------------|

----

|   FORM      10-Q                                                                                      |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                            |   |
| INDEX                                                                                                           |
|                                                                                                            |   |
| Part I. Financial      Information                                                                    | Page |
|                                                                                                            |   |
| Financial      Statements:                                                                                      |   |
| Consolidated Balance      Sheets at September 30, 2008 and December 31,    2007                                 | 3 |
|                                                                                                            |   |
| Consolidated      Statements of Operations for the three and nine months ended September 30,      2008 and 2007 | 4 |
|                                                                                                            |   |
| Consolidated Statements of      Cash Flows for the nine months ended September 30, 2008 and      2007           | 5 |
|                                                                                                            |   |
| Notes to Consolidated      Financial Statements                                                                 | 6-13 |
|                                                                                                            |   |
| Management’s Discussion and      Analysis of Financial Condition and Results of      Operations           | 14-20 |
|                                                                                                            |   |
| Quantitative and Qualitative      Disclosures About Market Risk                                                 | 21 |
|                                                                                                            |   |
| Controls and      Procedures                                                                                    | 21 |
|                                                                                                            |   |
| Part      II. Other Information                                                                                 |   |
|                                                                                                            |   |
| Item 6.      Exhibits                                                                                           | 22 |
|                                                                                                            |   |
| Signatures                                                                                                      | 23 |
|                                                                                                            |   |
| Index to      Exhibits                                                                                          | 24 |

----

Index

Coachmen Industries, Inc. and Subsidiaries

|                                                                                                                            |   |   | September      30, |   |   | December      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                                                            |   |   | 2008               |   |   | 2007              |   |
| Assets                                                                                                                          |   |   | (Unaudited)        |   |   |              |   |
| CURRENT      ASSETS                                                                                                             |   |   |               |   |   |              |   |
| Cash      and cash equivalents                                                                                                  |   | $      | 2,621              |   | $      | 1,549             |   |
| Trade      receivables, less allowance for doubtful receivables 2008 - $1,200 and      2007 - $744                              |   |   | 15,722             |   |   | 9,122             |   |
| Other      receivables                                                                                                          |   |   | 4,351              |   |   | 3,819             |   |
| Refundable      income taxes                                                                                                    |   |   | 1,552              |   |   | 1,628             |   |
| Inventories                                                                                                                     |   |   | 55,937             |   |   | 79,268            |   |
| Prepaid      expenses and other                                                                                                 |   |   | 3,203              |   |   | 3,804             |   |
| Assets      held for sale                                                                                                       |   |   | 5,021              |   |   | -                 |   |
| Total      current assets                                                                                                       |   |   | 88,407             |   |   | 99,190            |   |
|                                                                                                                            |   |   |               |   |   |              |   |
| Property,      plant and equipment,    net                                                                                      |   |   | 44,452             |   |   | 52,932            |   |
| Goodwill                                                                                                                        |   |   | 12,993             |   |   | 12,993            |   |
| Cash      value of life insurance, net of loans                                                                                 |   |   | 22,623             |   |   | 33,936            |   |
| Other                                                                                                                           |   |   | 4,746              |   |   | 8,617             |   |
| TOTAL      ASSETS                                                                                                               |   | $      | 173,221            |   | $      | 207,668           |   |
|                                                                                                                            |   |   |               |   |   |              |   |
| Liabilities      and Shareholders' Equity                                                                                       |   |   |               |   |   |              |   |
| CURRENT      LIABILITIES                                                                                                        |   |   |               |   |   |              |   |
| Short-term      borrowings                                                                                                      |   | $      | 15,000             |   | $      | 20,073            |   |
| Accounts      payable, trade                                                                                                    |   |   | 13,332             |   |   | 15,042            |   |
| Accrued      income taxes                                                                                                       |   |   | 497                |   |   | 536               |   |
| Accrued      expenses and other liabilities                                                                                     |   |   | 23,376             |   |   | 33,235            |   |
| Floorplan      notes payable                                                                                                    |   |   | 3,294              |   |   | 4,116             |   |
| Current      maturities of long-term debt                                                                                       |   |   | 819                |   |   | 852               |   |
| Total      current liabilities                                                                                                  |   |   | 56,318             |   |   | 73,854            |   |
|                                                                                                                            |   |   |               |   |   |              |   |
| Long-term      debt                                                                                                             |   |   | 2,807              |   |   | 3,010             |   |
| Deferred      income taxes                                                                                                      |   |   | 1,990              |   |   | 1,990             |   |
| Postretirement      deferred compensation benefits                                                                              |   |   | 6,590              |   |   | 7,632             |   |
| Other                                                                                                                           |   |   | 32                 |   |   | 49                |   |
| Total      liabilities                                                                                                          |   |   | 67,737             |   |   | 86,535            |   |
|                                                                                                                            |   |   |               |   |   |              |   |
| COMMITMENTS      AND CONTINGENCIES (Note      9)                                                                           |   |   |               |   |   |              |   |
|                                                                                                                            |   |   |               |   |   |              |   |
| SHAREHOLDERS'      EQUITY                                                                                                       |   |   |               |   |   |              |   |
| Common      shares, without par value: authorized 60,000 shares; issued 2008 -      21,221 shares and 2007 - 21,180 shares |   |   | 92,665             |   |   | 92,552            |   |
| Additional      paid-in capital                                                                                                 |   |   | 7,697              |   |   | 7,856             |   |
| Accumulated      other comprehensive loss                                                                                       |   |   | (32                | )      |   | (48               | )      |
| Retained      earnings                                                                                                          |   |   | 63,828             |   |   | 79,927            |   |
| Treasury      shares, at cost, 2008 - 5,319 shares and 2007 - 5,402      shares                                            |   |   | (58,674            | )      |   | (59,154           | )      |
| Total      shareholders' equity                                                                                                 |   |   | 105,484            |   |   | 121,133           |   |
|                                                                                                                            |   |   |               |   |   |              |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                 |   | $      | 173,221            |   | $      | 207,668           |   |

Notesto Consolidated Financial Statements

----

Index

Coachmen Industries, Inc. and Subsidiaries

|                                                                               |   | Three      Months Ended September 30, |    | Nine      Months Ended September 30, |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                                               |   | 2008                                  |    | 2007                                 |   |   | 2008 |   | 2007 |   |
| Net      sales                                                                     |   | $                                     | 74,822  |                                 | $      | 123,854 |   |   | $ | 292,848 |   | $ | 403,861 |   |
| Cost      of sales                                                                 |   |                                  | 75,323  |                                 |   | 116,096 |   |   |   | 275,610 |   |   | 388,682 |   |
| Gross      profit (loss)                                                           |   |                                  | (501    | )                               |   | 7,758 |   |   |   | 17,238 |   |   | 15,179 |   |
| Operating      expenses:                                                      |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Selling                                                                            |   |                                  | 4,842   |                                 |   | 5,720 |   |   |   | 14,260 |   |   | 17,472 |   |
| General      and administrative                                                    |   |                                  | 5,664   |                                 |   | 6,410 |   |   |   | 14,576 |   |   | 19,621 |   |
| Gain      on sale of assets, net                                                   |   |                                  | (66     | )                                    |   | (143 | ) |   |   | (313 | )  |   | (610 | ) |
| Impairment      charges                                                            |   |                                  | 3,448   |                                 |   | - |   |   |   | 3,448 |   |   | 3,872 |   |
|                                                                               |   |                                  | 13,888  |                                 |   | 11,987 |   |   |   | 31,971 |   |   | 40,355 |   |
| Operating      loss                                                                |   |                                  | (14,389 | )                                    |   | (4,229 | ) |   |   | (14,733 | )  |   | (25,176 | ) |
| Nonoperating      (income) expense:                                           |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                              |   |                                  | 996     |                                 |   | 808 |   |   |   | 3,134 |   |   |  2,595 |   |
| Investment      income                                                             |   |                                  | (298    | )                               |   | (423 | ) |   |   | (852 | ) |   |  (1,376 | ) |
| Other      income, net                                                             |   |                                  | (624    | )                               |   | (271 | ) |   |   | (916 | ) |   |  (486 | ) |
|                                                                               |   |                                  | 74      |                                 |   | 114 |   |   |   | 1,366 |   |   | 733 |   |
| Loss      before income taxes                                                      |   |                                  | (14,463 | )                                    |   | (4,343 | ) |   |   | (16,099 | ) |   | (25,909 | ) |
| Income      taxes (credit)                                                    |   |                                  | -       |                                 |   | 1 |   |   |   | - |   |   | (994 | ) |
| Net      loss                                                                      |   | $                                     | (14,463 | )                                    | $      | (4,344 | ) |   | $ | (16,099 | ) | $ | (24,915 | ) |
|                                                                               |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Loss      per share - Basic & Diluted                                     |   | $                                     | (.92    | )                               | $      | (.28 | ) |   | $ | (1.02 | )  | $ |  (1.58 | ) |
|                                                                               |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Number      of common shares used in the computation of loss per      share:  |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |                                  | 15,815  |                                 |   | 15,736 |   |   |   | 15,787 |   |   |  15,725 |   |
| Diluted                                                                            |   |                                  | 15,815  |                                 |   | 15,736 |   |   |   | 15,787 |   |   |  15,725 |   |
|                                                                               |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends declared per common share                                 |   | $                                     | -       |                                 | $      | - |   |   | $ | - |   | $ | .06 |   |

Notesto Consolidated Financial Statements

----

Index

Coachmen Industries, Inc. and Subsidiaries

|                                                                                  |   | Nine      Months Ended September 30, |
|---------------------------------------------------------------------------------------|--------|--------------------------------------|
|                                                                                  |   | 2008                                 |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                            |   |                                 |   |   |   |   |   |
| Net      loss                                                                         |   | $                                    | (16,099 | )  | $ | (24,915 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                                 |   |   |   |   |   |
| Depreciation                                                                          |   |                                 | 3,872 |   |   | 4,389 |   |
| Provision      for doubtful receivables, net of recoveries                            |   |                                 | 670 |   |   | 474 |   |
| Net      realized and unrealized gains (losses) on      derivatives              |   |                                 | 16 |   |   | (6 | ) |
| Impairment      charges                                                               |   |                                 | 3,448 |   |   | 3,872 |   |
| Gains      on sale of properties and other assets, net                                |   |                                 | (313 | ) |   | (610 | ) |
| Increase      in cash surrender value of life insurance policies                      |   |                                 | (661 | ) |   | (1,495 | ) |
| Deferred      income tax benefit                                                      |   |                                 | - |   |   | (1,659 | ) |
| Other                                                                                 |   |                                 | (738 | )  |   | 1,199 |   |
| Changes      in certain assets and liabilities:                                       |   |                                 |   |   |   |   |   |
| Trade      receivables                                                                |   |                                 | (7,495 | )  |   | 74 |   |
| Inventories                                                                           |   |                                 | 23,331 |   |   | 13,070 |   |
| Prepaid      expenses and other                                                       |   |                                 | 601 |   |   | (56 | ) |
| Accounts      payable, trade                                                          |   |                                 | (1,710 | )  |   | 9,178 |   |
| Income      taxes - accrued and refundable                                            |   |                                 | 37 |   |   | 7,905 |   |
| Accrued      expenses and other liabilities                                           |   |                                 | (9,859 | ) |   | (5,709 | ) |
| Net      cash (used in) provided by operating activities                              |   |                                 | (4,900 | )  |   | 5,711 |   |
|                                                                                  |   |                                 |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                            |   |                                 |   |   |   |   |   |
| Proceeds      from sale of properties and other assets                                |   |                                 | 1,283 |   |   | 1,499 |   |
| Investments      in life insurance policies                                           |   |                                 | (1,026 | ) |   | (1,509 | ) |
| Purchases      of property and equipment                                              |   |                                 | (1,441 | ) |   | (2,246 | ) |
| Other                                                                                 |   |                                 | 174 |   |   | 466 |   |
| Net      cash used in investing activities                                            |   |                                 | (1,010 | )  |   | (1,790 | ) |
|                                                                                  |   |                                 |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                            |   |                                 |   |   |   |   |   |
| Proceeds      from short-term borrowings                                              |   |                                 | 16,813 |   |   | 10,659 |   |
| Payments      of short-term borrowings                                                |   |                                 | (22,708 | ) |   | (12,898 | ) |
| Payments      of long-term debt                                                       |   |                                 | (236 | ) |   | (395 | ) |
| Proceeds      from borrowings on cash value of life insurance    policies             |   |                                 | 32,000 |   |   | - |   |
| Payments      of borrowings on cash value of life insurance    policies               |   |                                 | (19,000 | ) |   | - |   |
| Issuance      of common shares under stock incentive plans                            |   |                                 | 113 |   |   | 130 |   |
| Cash      dividends paid                                                              |   |                                 | - |   |   | (944 | ) |
| Purchases      of common shares for treasury                                          |   |                                 | - |   |   | (15 | ) |
| Net      cash provided by (used in) financing activities                         |   |                                 | 6,982 |   |   | (3,463 | ) |
|                                                                                  |   |                                 |   |   |   |   |   |
| Increase      in cash and cash equivalents                                            |   |                                 | 1,072 |   |   | 458 |   |
|                                                                                  |   |                                 |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS:                                                       |   |                                 |   |   |   |   |   |
| Beginning      of period                                                              |   |                                 | 1,549 |   |   | 2,651 |   |
| End      of period                                                                    |   | $                                    | 2,621 |   | $ | 3,109 |   |
|                                                                                  |   |                                 |   |   |   |   |   |
| Supplemental      disclosures of cash flow information:                          |   |                                 |   |   |   |   |   |
| Operating      cash received during the period related to insurance      settlements  |   | $                                    | 988 |   | $ | - |   |

Notesto Consolidated Financial Statements

----

Index

Coachmen Industries, Inc. and Subsidiaries

| 1. | BASIS      OF PRESENTATION. |
|----|-----------------------------|

|                        |   |                    |   |   | Fair      Value Measurements at Reporting Date Using |   |
|-----------------------------|--------|-------------------------|--------|--------|------------------------------------------------------|--------|
|                        |   |                    |   |   |                                                 |   |   |   |   |   |   |   |
|                        |   |                    |   |   | Quoted      Prices in                                |   |   |   |   |   |   |   |
|                        |   |                    |   |   | Active      Markets                                  |   |   | Significant |   |   | Significant |   |
|                        |   |                    |   |   | For      Identical                                   |   |   | Other      Observable |   |   | Unobservable |   |
|                        |   |                    |   |   | Assets                                               |   |   | Inputs |   |   | Inputs |   |
|                        |   | Total      as of        |   |   |                                                 |   |   |   |   |   |   |   |
| Description                 |   | September      30, 2008 |   |   | (Level      1)                                       |   |   | (Level      2) |   |   | (Level      3) |   |
|                        |   |                    |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cash                        |   | $                       | 2,621  |   |                                                 | $      | 2,621 |   |   | $ | - |   |   | $ | - |   |
|                        |   |                    |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Swap (1) |   |                    | (32    | )      |                                                 |   | - |   |   |   | (32 | ) |   |   | - |   |
|                        |   |                    |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                         |   | $                       | 2,589  |   |                                                 | $      | 2,621 |   |   | $ | (32 | ) |   | $ | - |   |

----

Index

| 2. | SEGMENT INFORMATION. |
|----|----------------------|

|                         |   | Three      Months Ended September 30, |    | Nine      Months Ended September 30, |   |
|------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                         |   | 2008                                  |    | 2007                                 |   | 2008 |   | 2007 |   |
| Net      sales               |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                     | 44,059  |                                 | $      | 91,778 |   | $ | 193,319 |   | $ | 307,158 |   |
| Housing                      |   |                                  | 30,763  |                                 |   | 32,076 |   |   | 99,529 |   |   | 96,703 |   |
| Consolidated      total      |   | $                                     | 74,822  |                                 | $      | 123,854 |   | $ | 292,848 |   | $ | 403,861 |   |
|                         |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Gross      profit            |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                     | (5,432  | )                                    | $      | 3,501 |   | $ | (490 | )  | $ | 2,566 |   |
| Housing                      |   |                                  | 4,931   |                                 |   | 4,257 |   |   | 17,729 |   |   | 12,613 |   |
| Other      reconciling items |   |                                  | -       |                                 |   | - |   |   | (1 | ) |   | - |   |
| Consolidated      total      |   | $                                     | (501    | )                               | $      | 7,758 |   | $ | 17,238 |   | $ | 15,179 |   |
|                         |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Operating      expenses      |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                     | 5,699   |                                 | $      | 7,758 |   | $ | 18,722 |   | $ | 27,011 |   |
| Housing                      |   |                                  | 4,347   |                                 |   | 4,907 |   |   | 12,664 |   |   | 14,944 |   |
| Other      reconciling items |   |                                  | 3,842   |                                 |   | (678 | ) |   | 585 |   |   | (1,600 | ) |
| Consolidated      total      |   | $                                     | 13,888  |                                 | $      | 11,987 |   | $ | 31,971 |   | $ | 40,355 |   |
|                         |   |                                  |    |                                 |   |   |   |   |   |   |
| Operating      income (loss) |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                     | (11,131 | )                                    | $      | (4,257 | ) | $ | (19,212 | ) | $ | (24,445 | ) |
| Housing                      |   |                                  | 584     |                                 |   | (650 | )  |   | 5,065 |   |   | (2,331 | ) |
| Other      reconciling items |   |                                  | (3,842  | )                               |   | 678 |   |   | (586 | )  |   | 1,600 |   |
| Consolidated      total      |   | $                                     | (14,389 | )                                    | $      | (4,229 | ) | $ | (14,733 | ) | $ | (25,176 | ) |
|                         |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Pre-tax      income (loss)   |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                     | (10,956 | )                                    | $      | (4,156 | ) | $ | (18,881 | ) | $ | (24,471 | ) |
| Housing                      |   |                                  | 572     |                                 |   | (690 | )  |   | 4,981 |   |   | (2,271 | ) |
| Other      reconciling items |   |                                  | (4,079  | )                               |   | 503 |   |   | (2,199 | )  |   | 833 |   |
| Consolidated      total      |   | $                                     | (14,463 | )                                    | $      | (4,343 | ) | $ | (16,099 | ) | $ | (25,909 | ) |

|                         | September      30, |    | December      31, |   |
|------------------------------|--------------------|---------|-------------------|--------|
|                         | 2008               |    | 2007              |   |
| Total      assets            |               |    |              |   |   |   |
| Recreational      vehicles   | $                  | 61,064  |              | $      | 86,816 |   |
| Housing                      |               | 54,036  |              |   | 54,601 |   |
| Other      reconciling items |               | 58,121  |              |   | 66,251 |   |
| Consolidated      total      | $                  | 173,221 |              | $      | 207,668 |   |

----

Index

| 3. | INVENTORIES. |
|----|--------------|

|                       |   | September      30, |   | December      31, |   |
|----------------------------|--------|--------------------|--------|-------------------|--------|
|                       |   | 2008               |   | 2007              |   |
| Raw      materials         |   |               |   |              |   |   |   |
| Recreational      vehicles |   | $                  | 10,939 |              | $      | 11,789 |   |
| Housing                    |   |               | 4,534  |              |   | 5,989 |   |
| Consolidated      total    |   |               | 15,473 |              |   | 17,778 |   |
|                       |   |               |   |              |   |   |   |
| Work      in process       |   |               |   |              |   |   |   |
| Recreational      vehicles |   |               | 5,060  |              |   | 12,913 |   |
| Housing                    |   |               | 3,121  |              |   | 2,941 |   |
| Consolidated      total    |   |               | 8,181  |              |   | 15,854 |   |
|                       |   |               |   |              |   |   |   |
| Improved      lots         |   |               |   |              |   |   |   |
| Housing                    |   |               | 670    |              |   | 645 |   |
| Consolidated      total    |   |               | 670    |              |   | 645 |   |
|                       |   |               |   |              |   |   |   |
| Finished      goods        |   |               |   |              |   |   |   |
| Recreational      vehicles |   |               | 20,809 |              |   | 34,038 |   |
| Housing                    |   |               | 10,804 |              |   | 10,953 |   |
| Consolidated      total    |   |               | 31,613 |              |   | 44,991 |   |
|                       |   |               |   |              |   |   |   |
| Consolidated      total    |   | $                  | 55,937 |              | $      | 79,268 |   |
|                       |   |               |   |              |   |   |   |

|                                    |   | September      30,2008 |    | December      31,2007 |   |
|-----------------------------------------|--------|------------------------|---------|-----------------------|--------|
|                                    |   |                   |    |                  |   |
| Land      and improvements              |   | $                      | 10,591  |                  | $      | 11,452 |   |
| Buildings      and improvements         |   |                   | 52,160  |                  |   | 59,765 |   |
| Machinery      and equipment            |   |                   | 24,342  |                  |   | 24,429 |   |
| Transportation      equipment           |   |                   | 13,495  |                  |   | 14,654 |   |
| Office      furniture and fixtures      |   |                   | 17,180  |                  |   | 17,274 |   |
|                                    |   |                   |    |                  |   |   |   |
| Total                                   |   |                   | 117,768 |                  |   | 127,574 |   |
| Less,      accumulated depreciation     |   |                   | 73,316  |                  |   | 74,642 |   |
|                                    |   |                   |    |                  |   |   |   |
| Property,      plant and equipment, net |   | $                      | 44,452  |                  | $      | 52,932 |   |

----

Index

| 5. | ACCRUED      EXPENSES AND OTHER LIABILITIES. |
|----|----------------------------------------------|

|                                                                                                                             |   | September      30,2008 |   | December      31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|-----------------------|--------|
|                                                                                                                             |   |                   |   |                  |   |
| Wages,      salaries, bonuses and commissions                                                                                    |   | $                      | 1,863  |                  | $      | 2,432 |   |
| Dealer      incentives, including volume bonuses, dealer trips, interest      reimbursement, co-op advertising and other rebates |   |                   | 941    |                  |   | 1,577 |   |
| Warranty                                                                                                                         |   |                   | 5,324  |                  |   | 8,123 |   |
| Insurance-products      and general liability, workers compensation, group health and      other                                 |   |                   | 5,456  |                  |   | 8,519 |   |
| Customer      deposits and unearned revenues                                                                                     |   |                   | 2,909  |                  |   | 4,208 |   |
| Litigation                                                                                                                       |   |                   | 370    |                  |   | 930 |   |
| Interest                                                                                                                         |   |                   | 583    |                  |   | 751 |   |
| Sales      and property taxes                                                                                                    |   |                   | 1,871  |                  |   | 1,837 |   |
| Deferred      gain on sale of real estate                                                                                        |   |                   | 814    |                  |   | 1,145 |   |
| Other      current liabilities                                                                                                   |   |                   | 3,245  |                  |   | 3,713 |   |
|                                                                                                                             |   |                   |   |                  |   |   |   |
| Total                                                                                                                            |   | $                      | 23,376 |                  | $      | 33,235 |   |

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Index

| 5. | ACCRUED      EXPENSES AND OTHER LIABILITIES,continued. |
|----|--------------------------------------------------------|

|                                                                                               |   | Three      Months Ended September 30, |   | Nine Months      Ended September 30, |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|-------------------------------------------|--------|
|                                                                                               |   | 2008                                  |   | 2007                                      |   | 2008 |   | 2007 |   |
| Balance      of accrued warranty at beginning of period                                            |   | $                                     | 6,511  |                                      | $      | 9,766 |   | $ | 8,123 |   | $ | 11,099 |   |
| Warranties      issued during the period and changes in liability for pre-existing      warranties |   |                                  | 1,838  |                                      |   | 4,074 |   |   | 7,594 |   |   | 14,184 |   |
| Settlements      made during the period                                                            |   |                                  | (3,025 | )                                         |   | (4,303 | ) |   | (10,393 | ) |   | (15,746 | ) |
|                                                                                               |   |                                  |   |                                      |   |   |   |   |   |   |   |   |   |
| Balance      of accrued warranty at September 30                                                   |   | $                                     | 5,324  |                                      | $      | 9,537 |   | $ | 5,324 |   | $ | 9,537 |   |

|                                                             |   | Three      Months Ended September 30, |    | Nine      Months Ended September 30, |   |
|------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                             |   | 2008                                  |    | 2007                                 |   | 2008 |   | 2007 |   |
| Net      loss                                                    |   | $                                     | (14,463 | )                                    | $      | (4,344 | ) | $ | (16,099 | ) | $ | (24,915 | ) |
| Unrealized      gains (losses) on cash flow hedges, net of taxes |   |                                  | 12      |                                 |   | (16 | )  |   | 16 |   |   | (6 | ) |
|                                                             |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                                          |   | $                                     | (14,451 | )                                    | $      | (4,360 | ) | $ | (16,083 | ) | $ | (24,921 | ) |

|                                                               |   | Three      Months Ended September 30, |    | Nine      Months Ended September 30, |   |
|--------------------------------------------------------------------|--------|---------------------------------------|---------|--------------------------------------|--------|
|                                                               |   | 2008                                  |    | 2007                                 |   | 2008 |   | 2007 |   |
| Numerator:                                                    |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Net      loss available to common stockholders                     |   | $                                     | (14,463 | )                                    | $      | (4,344 | ) | $ | (16,099 | ) | $ | (24,915 | ) |
| Denominator:                                                       |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Number      of shares outstanding, end of period:                  |   |                                  |    |                                 |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares used in basic EPS    |   |                                  | 15,815  |                                 |   | 15,736 |   |   | 15,787 |   |   | 15,725 |   |
| Effect      of dilutive securities                                 |   |                                  | -       |                                 |   | - |   |   | - |   |   | - |   |
| Weighted      average number of common shares used in dilutive EPS |   |                                  | 15,815  |                                 |   | 15,736 |   |   | 15,787 |   |   | 15,725 |   |

----

Index

8.     INCOME TAXES.

| 9. | COMMITMENTS ANDCONTINGENCIES. |
|----|-------------------------------|

----

Index

----

Index

| 10. | STOCK-BASED      COMPENSATION. |
|-----|--------------------------------|

----

Index

Coachmen Industries, Inc. and Subsidiaries

| Three Months      Ended                |
|----------------------------------------|
|                                   |   |   | PercentageChange |
|                                   |   |   |   | Percentage |   |   |   |   | Percentage |   |   | 2008 |   |
|                                   |  September      30, |   | of |   |  September      30, |   | of |   |   | to |   |
|                                   |  2008 |   | Net      Sales |   |  2007 |   | Net      Sales |   |   | 2007 |   |
| Net      sales:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             | $ | 44,059 |   | 58.9 | % | $ | 91,778 |   | 74.1 | % |   | (52.0 | )% |
| Housing                                |   | 30,763 |   | 41.1 |   |   | 32,076 |   | 25.9 |   |   | (4.1 | ) |
| Consolidated      total                |   | 74,822 |   | 100.0 |   |   | 123,854 |   | 100.0 |   |   | (39.6 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit:                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             |   | (5,432 | ) | (7.3 | ) |   | 3,501 |   | 2.8 |   |   | (255.2 | )  |
| Housing                                |   | 4,931 |   | 6.6 |   |   | 4,257 |   | 3.4 |   |   | 15.8 |   |
| Consolidated      total                |   | (501 | ) | (0.7 | )  |   | 7,758 |   | 6.2 |   |   | (106.5 | )  |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling                           |   | 4,842 |   | 6.5 |   |   | 5,720 |   | 4.6 |   |   | (15.3 | ) |
| General      and administrative   |   | 5,664 |   | 7.6 |   |   | 6,410 |   | 5.2 |   |   | (11.6 | )  |
| Gain      on sale of assets, net  |   | (66 | ) | (0.1 | )  |   | (143 | ) | (0.1 | )  |   | (53.8 | ) |
| Impairment      charges                |   | 3,448 |   | 4.6 |   |   | - |   | - |   |   | 100.0 |   |
| Consolidated      total                |   | 13,888 |   | 18.6 |   |   | 11,987 |   | 9.7 |   |   | 15.9 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      expense         |   | 74 |   | - |   |   | 114 |   | - |   |   | (35.1 | )  |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before income taxes     |   | (14,463 | ) | (19.3 | ) |   | (4,343 | ) | (3.5 | ) |   | (233.0 | )  |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      taxes                      |   | - |   | - |   |   | 1 |   | - |   |   | - |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                     | $ | (14,463 | ) | (19.3 | )% | $ | (4,344 | ) | (3.5 | )% |   | (233.0 | )% |

----

Index

| Nine Months      Ended                 |
|----------------------------------------|
|                                   |   |   | PercentageChange |
|                                   |   |   |   | Percentage |   |   |   |   | Percentage |   |   | 2008 |   |
|                                   |  September      30, |   | of |   |  September      30, |   | of |   |   | to |   |
|                                   |  2008 |   | Net      Sales |   |  2007 |   | Net      Sales |   |   | 2007 |   |
| Net      sales:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             | $ | 193,319 |   | 66.0 | % | $ | 307,158 |   | 76.1 | % |   | (37.1 | )% |
| Housing                                |   | 99,529 |   | 34.0 |   |   | 96,703 |   | 23.9 |   |   | 2.9 |   |
| Consolidated      total                |   | 292,848 |   | 100.0 |   |   | 403,861 |   | 100.0 |   |   | (27.5 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit:                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             |   | (490 | ) | (0.2 | )  |   | 2,566 |   | 0.7 |   |   | (119.1 | )  |
| Housing                                |   | 17,729 |   | 6.1 |   |   | 12,613 |   | 3.1 |   |   | 40.6 |   |
| Other                                  |   | (1 | ) | - |   |   | - |   | - |   |   | - |   |
| Consolidated      total                |   | 17,238 |   | 5.9 |   |   | 15,179 |   | 3.8 |   |   | 13.6 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling                           |   | 14,260 |   | 4.8 |   |   | 17,472 |   | 4.3 |   |   | (18.4 | ) |
| General      and administrative   |   | 14,576 |   | 5.0 |   |   | 19,621 |   | 4.9 |   |   | (25.7 | )  |
| Gain      on sale of assets, net  |   | (313 | ) | (0.1 | ) |   | (610 | ) | (0.2 | ) |   | 48.7 |   |
| Impairment      charge                 |   | 3,448 |   | 1.2 |   |   | 3,872 |   | 1.0 |   |   | (11.0 | ) |
| Consolidated      total                |   | 31,971 |   | 10.9 |   |   | 40,355 |   | 10.0 |   |   | (20.8 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      expense         |   | 1,366 |   | 0.5 |   |   | 733 |   | 0.2 |   |   | 86.4 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before income taxes     |   | (16,099 | ) | (5.5 | ) |   | (25,909 | ) | (6.4 | ) |   | 37.9 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax credit                 |   | - |   | - |   |   | (994 | ) | (0.2 | ) |   | - |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                     | $ | (16,099 | ) | (5.5 | )% | $ | (24,915 | ) | (6.2 | )% |   | 35.4 | % |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                    |   | Three      Months  |   | Three      Months  |   | Nine      Months   |   | Nine      Months   |   |
|-----------------------------------------|--------|--------------------|--------|--------------------|--------|--------------------|--------|--------------------|--------|
|                                    |   | Ended              |   | Ended              |   | Ended              |   | Ended              |   |
|                                    |   | September      30, |   | September      30, |   | September      30, |   | September      30, |   |
|                                    |   | 2008               |   | 2007               |   | 2008               |   | 2007               |   |
|                                    |   |               |   |               |   |               |   |               |   |   |   |   |   |
| Gain      on sale of assets             | $      | (66                | )      | $                  | (143   | )                  | $      | (313               | )      | $ | (610 | ) |
|                                    |   |               |   |               |   |               |   |               |   |   |   |   |
| Legal/Insurance      expense recoveries |   | (388               | )      |               | -      |               |   | (2,428             | )      |   | - |   |
|                                    |   |               |   |               |   |               |   |               |   |   |   |   |
| Goodwill      impairment charge         |   | -                  |   |               | -      |               |   | -                  |   |   | 3,872 |   |
|                                    |   |               |   |               |   |               |   |               |   |   |   |   |
| Impairment      charges                 | $      | 3,448              |   | $                  | -      |               | $      | 3,448              |   | $ | - |   |

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Index

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Index

Note 2

Note 8

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Index

----

Index

| • | the      ability of the management team to achieve desired  results;                                                                                                                                                                                                                                  |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | interest      rates, which affect the affordability of the Company's      products;                                                                                                                                                                                                                   |
| • | consumer      confidence and the availability of consumer credit;                                                                                                                                                                                                                                     |
| • | the      Company’s ability to utilize manufacturing resources      efficiently;                                                                                                                                                                                                                 |
| • | the      Company’s ability to introduce new models that achieve consumer      acceptance;                                                                                                                                                                                                       |
| • | the      margins associated with the mix of products the Company sells in a      particular period;                                                                                                                                                                                                   |
| • | the      availability of floorplan financing for the Company's recreational vehicle      dealers and corresponding availability of cash to the    Company;                                                                                                                                            |
| • | oil      supplies and the availability and price of gasoline and diesel fuel, which      can impact the sale of recreational vehicles;                                                                                                                                                                |
| • | the      Company's dependence on chassis and other suppliers;                                                                                                                                                                                                                                         |
| • | potential      liabilities under repurchase agreements and guarantees;                                                                                                                                                                                                                                |
| • | consolidation      of distribution channels in the recreational vehicle    industry;                                                                                                                                                                                                                  |
| • | legislation      governing the relationships of the Company with its recreational vehicle      dealers, which may affect the Company’s options and liabilities in the      event of a general economic downturn;                                                                                |
| • | the      price volatility of materials used in production and the ability to pass      on rapidly increasing costs of product components and raw materials to end      buyers;                                                                                                                        |
| • | the      availability and cost of real estate for residential    housing;                                                                                                                                                                                                                             |
| • | the      increased size and scope of work of military housing projects, and other      major projects, as compared to the Company's traditional single-family      homes business, with increased reliance on third parties for performance      which could impact the Company;                 |
| • | the      ability to perform in new market segments or geographic areas where it has      limited experience;                                                                                                                                                                                          |
| • | the      impact of performance on the valuation of intangible    assets;                                                                                                                                                                                                                              |
| • | the      supply of existing homes within the Company’s markets;                                                                                                                                                                                                                                 |
| • | the      impact of home values on housing demand;                                                                                                                                                                                                                                                     |
| • | uncertainties      and timing with respect to sales resulting from recovery efforts in the      Gulf Coast;                                                                                                                                                                                           |
| • | adverse      weather conditions affecting home deliveries;                                                                                                                                                                                                                                            |
| • | changing      government regulations, including those covering accounting      standards;                                                                                                                                                                                                             |
| • | environmental      matters or product warranties and recalls, which may affect costs of      operations, revenues, product acceptance and  profitability;                                                                                                                                             |
| • | the      state of the recreational vehicle and housing industries in the United      States;                                                                                                                                                                                                          |
| • | changes      in property taxes and energy costs;                                                                                                                                                                                                                                                      |
| • | changes      in federal income tax laws and federal mortgage financing      programs;                                                                                                                                                                                                                 |
| • | competition      in the industries in which the Company operates;                                                                                                                                                                                                                                     |
| • | further      developments in the war on terrorism and related international      crises;                                                                                                                                                                                                              |
| • | uncertainties      of matters in litigation and other risks and  uncertainties;                                                                                                                                                                                                                       |
| • | the      ability of the Company to generate taxable income in future years to      utilize deferred tax assets and net operating loss carryforwards that are      available;                                                                                                                          |
| • | the      availability of financing under the Company’s line of    credit;                                                                                                                                                                                                                       |
| • | the      Company’s ability to increase gross margins which are critical whether or      not there are increased sales;                                                                                                                                                                          |
| • | the      Company’s use of incentives at either the wholesale or retail      level;                                                                                                                                                                                                              |
| • | the      availability of credit for the consumers of both housing and RV      markets;                                                                                                                                                                                                                |
| • | the      dependence on key customers within certain product  types;                                                                                                                                                                                                                                   |
| • | the      potential fluctuation in the Company’s operating  results;                                                                                                                                                                                                                             |
| • | the      addition or loss of our dealers or builders;                                                                                                                                                                                                                                                 |
| • | the      introduction and marketing of competitive product by others, including      significant discounting offered by our competitors;                                                                                                                                                              |
| • | uncertainties      regarding the impact of the disclosed restructuring steps in both the      Recreational Vehicle and Housing Segments;                                                                                                                                                              |
| • | uncertainties      concerning obligations to financial institutions on repurchase agreements      in connection with financing provided by such institutions to most of the      Company's independent dealers in connection with their purchase of the      Company's recreational vehicle products; |
| • | the      availability of and repurchase terms related to wholesale financing for      our dealers.                                                                                                                                                                                                    |

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Index

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Index

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUTMARKET RISK

ITEM 4.   CONTROLS AND PROCEDURES

----

Index

PART II. OTHER INFORMATION

----

Index

SIGNATURES

| Date:      October 28, 2008 | By:    | /s/      Richard M. Lavers                      |
|-----------------------------|--------|-------------------------------------------------|
|                        |   | Richard      M. Lavers, Chief Executive Officer |
|                        |   |                                            |
|                        |   |                                            |
|                        |   |                                            |
|                        |   |                                            |
| Date:      October 28, 2008 | By:    | /s/      Colleen A. Zuhl                        |
|                        |   | Colleen      A. Zuhl, Chief Financial Officer   |
|                        |   |                                            |
|                        |   |                                            |
|                        |   |                                            |
|                        |   |                                            |
| Date:      October 28, 2008 | By:    | /s/      Stephen L. Patterson                   |
|                        |   | Stephen      L. Patterson, Corporate Controller |

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Index

INDEX TO EXHIBITS

| Number      AssignedIn      RegulationS-K, Item      601 | Description of      Exhibit                                                                                                                                                                                             |
|----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     |                                                                                                                                                                                                                    |
| (3)(a)(i)                                                | Articles      of Incorporation of the Company as amended on May 30, 1995 (incorporated      by reference to Exhibit 3(i) to the Company's Annual Report on Form 10-K      for the fiscal year ended December 31, 1995). |
|                                                     |                                                                                                                                                                                                                    |
| (3)(a)(ii)                                               | Articles      of Amendment to Articles of Incorporation (incorporated by reference to      Exhibit 4.2 to the Company's Form S-3 Registration Statement, File No.      333-14579).                                      |
|                                                     |                                                                                                                                                                                                                    |
| (3)(b)                                                   | By-Laws      as modified through May 1, 2008 (incorporated by reference to Exhibit 3(b)      to the Company’s Quarterly Report on Form 10-Q for the quarter ended June      30, 2008).                            |
|                                                     |                                                                                                                                                                                                                    |
| (31.1)                                                   | Rule 13a-14(a)      Certification of Chief Executive Officer.                                                                                                                                                           |
|                                                     |                                                                                                                                                                                                                    |
| (31.2)                                                   | Rule 13a-14(a)      Certification of Chief Financial Officer.                                                                                                                                                           |
|                                                     |                                                                                                                                                                                                                    |
| (32.1)                                                   | Section 1350      Certification of Chief Executive Officer.                                                                                                                                                             |
|                                                     |                                                                                                                                                                                                                    |
| (32.2)                                                   | Section 1350      Certification of Chief Financial  Officer.                                                                                                                                                            |

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