----

----

|   |   | 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 June 30, 2008 and      December 31, 2007                              | 3 |
|                                                                                                 |   |
| Consolidated Statements of Operations for      the three and six months ended June 30, 2008 and 2007 | 4 |
|                                                                                                 |   |
| Consolidated Statements of Cash Flows for the six months      ended June 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 4. Submission of Matters to a Vote of Security      Holders                                     | 22 |
|                                                                                                 |   |
| Item 6. Exhibits                                                                                     | 22 |
|                                                                                                 |   |
| Signatures                                                                                           | 23 |
|                                                                                                 |   |
| Index to Exhibits                                                                                    | 24 |

----

Index

CoachmenIndustries, Inc. and Subsidiaries

|                                                                                                                       |   |   | June      30, |   |   | December      31, |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|-------------------|--------|
|                                                                                                                       |   |   | 2008          |   |   | 2007              |   |
| Assets                                                                                                                     |   |   | (Unaudited)   |   |   |              |   |
| CURRENT      ASSETS                                                                                                        |   |   |          |   |   |              |   |
| Cash      and cash equivalents                                                                                             |   | $      | 2,279         |   | $      | 1,549             |   |
| Trade      receivables, less allowance for doubtful receivables 2008 - $849 and 2007      - $744                           |   |   | 23,943        |   |   | 9,122             |   |
| Other      receivables                                                                                                     |   |   | 6,044         |   |   | 3,819             |   |
| Refundable      income taxes                                                                                               |   |   | 1,556         |   |   | 1,628             |   |
| Inventories                                                                                                                |   |   | 80,983        |   |   | 79,268            |   |
| Prepaid      expenses and other                                                                                            |   |   | 1,752         |   |   | 3,804             |   |
| Assets      held for sale                                                                                                  |   |   | 5,021         |   |   | -                 |   |
| Total      current assets                                                                                                  |   |   | 121,578       |   |   | 99,190            |   |
|                                                                                                                       |   |   |          |   |   |              |   |
| Property,      plant and equipment,    net                                                                                 |   |   | 46,055        |   |   | 52,932            |   |
| Goodwill                                                                                                                   |   |   | 12,993        |   |   | 12,993            |   |
| Cash      value of life insurance, net of loans                                                                            |   |   | 26,469        |   |   | 33,936            |   |
| Other                                                                                                                      |   |   | 7,903         |   |   | 8,617             |   |
| TOTAL      ASSETS                                                                                                          |   | $      | 214,998       |   | $      | 207,668           |   |
|                                                                                                                       |   |   |          |   |   |              |   |
| Liabilities      and Shareholders' Equity                                                                                  |   |   |          |   |   |              |   |
| CURRENT      LIABILITIES                                                                                                   |   |   |          |   |   |              |   |
| Short-term      borrowings                                                                                                 |   | $      | 32,392        |   | $      | 20,073            |   |
| Accounts      payable, trade                                                                                               |   |   | 19,356        |   |   | 15,042            |   |
| Accrued      income taxes                                                                                                  |   |   | 497           |   |   | 536               |   |
| Accrued      expenses and other liabilities                                                                                |   |   | 26,900        |   |   | 33,235            |   |
| Floorplan      notes payable                                                                                               |   |   | 3,390         |   |   | 4,116             |   |
| Current      maturities of long-term debt                                                                                  |   |   | 819           |   |   | 852               |   |
| Total      current liabilities                                                                                             |   |   | 83,354        |   |   | 73,854            |   |
|                                                                                                                       |   |   |          |   |   |              |   |
| Long-term      debt                                                                                                        |   |   | 2,975         |   |   | 3,010             |   |
| Deferred      income taxes                                                                                                 |   |   | 1,990         |   |   | 1,990             |   |
| Postretirement      deferred compensation benefits                                                                         |   |   | 6,832         |   |   | 7,632             |   |
| Other                                                                                                                      |   |   | 49            |   |   | 49                |   |
| Total      liabilities                                                                                                     |   |   | 95,200        |   |   | 86,535            |   |
|                                                                                                                       |   |   |          |   |   |              |   |
| COMMITMENTS      AND CONTINGENCIES (Note      9)                                                                      |   |   |          |   |   |              |   |
|                                                                                                                       |   |   |          |   |   |              |   |
| SHAREHOLDERS'      EQUITY                                                                                                  |   |   |          |   |   |              |   |
| Common      shares, without par value: authorized 60,000 shares; issued 2008 - 21,200      shares and 2007 - 21,180 shares |   |   | 92,629        |   |   | 92,552            |   |
| Additional      paid-in capital                                                                                            |   |   | 7,643         |   |   | 7,856             |   |
| Accumulated      other comprehensive loss                                                                                  |   |   | (44           | )      |   | (48               | )      |
| Retained      earnings                                                                                                     |   |   | 78,291        |   |   | 79,927            |   |
| Treasury      shares, at cost, 2008 - 5,327 shares and 2007 - 5,402      shares                                            |   |   | (58,721       | )      |   | (59,154           | )      |
| Total      shareholders' equity                                                                                            |   |   | 119,798       |   |   | 121,133           |   |
|                                                                                                                       |   |   |          |   |   |              |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY                                                                            |   | $      | 214,998       |   | $      | 207,668           |   |

Notes to Consolidated FinancialStatements

----

Index

Coachmen Industries, Inc. andSubsidiaries

|                                                                               |   | Three      Months Ended June 30, |   | Six      Months Ended June 30, |    |
|------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------------------------------|---------|
|                                                                               |   | 2008                             |   | 2007                           |    |   | 2008 |   | 2007 |   |
| Net      sales                                                                     |   | $                           | 96,708 |                           | $  | 149,763 |   |   | $  | 218,026 |   | $  | 280,006 |   |
| Cost      of sales                                                                 |   |                             | 89,832 |                           |    | 143,769 |   |   |   | 200,287 |   |   | 272,586 |   |
| Gross      profit                                                                  |   |                             | 6,876  |                           |    | 5,994 |   |   |   | 17,739 |   |   | 7,420 |   |
| Operating      expenses:                                                      |   |                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Selling                                                                            |   |                             | 4,821  |                           |    | 5,939 |   |   |   | 9,418 |   |   | 11,752 |   |
| General      and administrative                                                    |   |                             | 4,379  |                           |    | 6,976 |   |   |   | 8,912 |   |   | 13,210 |   |
| Gain      on sale of assets, net                                                   |   |                             | (39    | )                              |    | (22 | )  |   |   |  (247 | )  |   | (467 | ) |
| Goodwill      impairment charge                                                    |   |                             | -      |                           |    | 3,872 |   |   |   | - |   |   | 3,872 |   |
|                                                                               |   |                             | 9,161  |                           |    | 16,765 |   |   |   | 18,083 |   |   | 28,367 |   |
| Operating      loss                                                                |   |                             | (2,285 | )                              |    | (10,771 | )  |   |   | (344 | )  |   | (20,947 | ) |
| Nonoperating      (income) expense:                                           |   |                             |   |                           |    |   |   |   |   |   |   |   |   |   |
|  Interest      expense                                                        |   |                             | 1,110  |                           |    | 944 |   |   |   | 2,138 |   |   |  1,787 |   |
|  Investment      income                                                       |   |                             | (260   | )                         |    | (479 | )  |   |   | (554 | ) |   |  (953 | ) |
|  Other      income, net                                                       |   |                             | (172   | )                         |    | (119 | )  |   |   | (292 | ) |   |  (215 | ) |
|                                                                               |   |                             | 678    |                           |    | 346 |   |   |   | 1,292 |   |   | 619 |   |
| Loss      before income taxes                                                      |   |                             | (2,963 | )                              |    | (11,117 | )  |   |   | (1,636 | ) |   | (21,566 | ) |
| Income      tax credit                                                        |   |                             | -      |                           |    | (994 | )  |   |   | - |   |   | (995 | ) |
| Net      loss                                                                      |   | $                           | (2,963 | )                              | $       | (10,123 | ) |   | $ | (1,636 | ) | $ | (20,571 | ) |
|                                                                               |   |                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Loss      per share - Basic & Diluted                                     |   | $                           | (.18   | )                         | $       | (.64 | ) |   | $  |  (.10 | )  | $  |  (1.31 | )  |
|                                                                               |   |                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Number      of common shares used in the computation of loss per      share:  |   |                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |                             | 15,774 |                           |    | 15,726 |   |   |   | 15,762 |   |   |  15,722 |   |
| Diluted                                                                            |   |                             | 15,774 |                           |    | 15,726 |   |   |   | 15,762 |   |   |  15,722 |   |
|                                                                               |   |                             |   |                           |    |   |   |   |   |   |   |   |   |   |
| Cash      dividends declared per common share                                 |   | $                           | -      |                           | $  | .03 |   |   | $  | - |   | $  | .06 |   |

Notes to Consolidated FinancialStatements

----

Index

Coachmen Industries, Inc. and Subsidiaries

|                                                                                  |   | Six      Months Ended June 30, |
|---------------------------------------------------------------------------------------|--------|--------------------------------|
|                                                                                  |   | 2008                           |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                            |   |                           |   |   |   |   |   |
| Net      loss                                                                         |   | $                              | (1,636 | )  | $ | (20,571 | )  |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |   |                           |   |   |   |   |   |
| Depreciation                                                                          |   |                           | 2,688 |   |   | 3,011 |   |
| Provision      for doubtful receivables, net of recoveries                            |   |                           | 234 |   |   | 314 |   |
| Net      realized and unrealized gains on derivatives                            |   |                           | 4 |   |   | 9 |   |
| Goodwill      impairment charge                                                       |   |                           | - |   |   | 3,872 |   |
| Gains      on sale of properties and other assets, net                                |   |                           | (247 | ) |   | (467 | ) |
| Increase      in cash surrender value of life insurance policies                      |   |                           | (544 | ) |   | (1,120 | ) |
| Deferred      income tax provision (benefit)                                          |   |                           | - |   |   | (1,659 | ) |
| Other                                                                                 |   |                           | (580 | )  |   | 1,337 |   |
| Changes      in certain assets and liabilities:                                       |   |                           |   |   |   |   |   |
| Trade      receivables                                                                |   |                           | (16,870 | )  |   | (13,336 | )  |
| Inventories                                                                           |   |                           | (1,715 | ) |   | 8,640 |   |
| Prepaid      expenses and other                                                       |   |                           | 2,052 |   |   | 1,944 |   |
| Accounts      payable, trade                                                          |   |                           | 4,314 |   |   | 14,295 |   |
| Income      taxes - accrued and refundable                                            |   |                           | 33 |   |   | 7,599 |   |
| Accrued      expenses and other liabilities                                           |   |                           | (6,335 | ) |   | (4,600 | ) |
| Net      cash used in operating activities                                            |   |                           | (18,602 | )  |   | (732 | )  |
|                                                                                  |   |                           |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                            |   |                           |   |   |   |   |   |
| Proceeds      from sale of properties and other assets                                |   |                           | 630 |   |   | 808 |   |
| Investments      in life insurance policies                                           |   |                           | (1,989 | ) |   | (1,509 | ) |
| Purchases      of property and equipment                                              |   |                           | (1,036 | ) |   | (1,702 | ) |
| Other                                                                                 |   |                           | 125 |   |   | 387 |   |
| Net      cash used in investing activities                                            |   |                           | (2,270 | )  |   | (2,016 | )  |
|                                                                                  |   |                           |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                            |   |                           |   |   |   |   |   |
| Proceeds      from short-term borrowings                                              |   |                           | 16,813 |   |   | 10,659 |   |
| Payments      of short-term borrowings                                                |   |                           | (5,220 | ) |   | (6,272 | ) |
| Payments      of long-term debt                                                       |   |                           | (68 | ) |   | (164 | ) |
| Proceeds      from borrowings on cash value of life insurance    policies             |   |                           | 19,000 |   |   | - |   |
| Payments      of borrowings on cash value of life insurance    policies               |   |                           | (9,000 | ) |   | - |   |
| Issuance      of common shares under stock incentive plans                            |   |                           | 77 |   |   | 88 |   |
| Cash      dividends paid                                                              |   |                           | - |   |   | (944 | ) |
| Purchases      of common shares for treasury                                          |   |                           | - |   |   | (15 | ) |
| Net      cash provided by financing activities                                   |   |                           | 21,602 |   |   | 3,352 |   |
|                                                                                  |   |                           |   |   |   |   |   |
| Increase      in cash and cash equivalents                                            |   |                           | 730 |   |   | 604 |   |
|                                                                                  |   |                           |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS:                                                       |   |                           |   |   |   |   |   |
| Beginning      of period                                                              |   |                           | 1,549 |   |   | 2,651 |   |
| End      of period                                                                    |   | $                              | 2,279 |   | $ | 3,255 |   |
|                                                                                  |   |                           |   |   |   |   |   |
| Supplemental      disclosures of cash flow information:                          |   |                           |   |   |   |   |   |
| Operating      cash received during the period related to insurance      settlement   |   | $                              | 600,000 |   | $ | - |   |

Notes to 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                 |   | June      30, 2008 |   |   | (Level      1)                                       |   |   | (Level      2) |   |   | (Level      3) |   |
|                        |   |               |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Cash                        |   | $                  | 2,279  |   |                                                 | $      | 2,279 |   |   | $ | - |   |   | $ | - |   |
|                        |   |               |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Rate Swap (1) |   |               | (44    | )      |                                                 |   | - |   |   |   | (44 | ) |   |   | - |   |
|                        |   |               |   |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net                         |   | $                  | 2,235  |   |                                                 | $      | 2,279 |   |   | $ | (44 | ) |   | $ | - |   |

----

Index

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

|                         |   | Three      Months Ended June 30, |   | Six      Months Ended June 30, |   |
|------------------------------|--------|----------------------------------|--------|--------------------------------|--------|
|                         |   | 2008                             |   | 2007                           |   | 2008 |   | 2007 |   |
| Net      sales               |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                | 58,781 |                           | $      | 111,227 |   | $ | 149,260 |   | $ | 215,379 |   |
| Housing                      |   |                             | 37,927 |                           |   | 38,536 |   |   | 68,766 |   |   | 64,627 |   |
| Consolidated      total      |   | $                                | 96,708 |                           | $      | 149,763 |   | $ | 218,026 |   | $ | 280,006 |   |
|                         |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Gross      profit            |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                | (251   | )                              | $      | (69 | ) | $ | 4,942 |   | $ | (935 | ) |
| Housing                      |   |                             | 7,127  |                           |   | 6,063 |   |   | 12,798 |   |   | 8,356 |   |
| Other      reconciling items |   |                             | -      |                           |   | - |   |   | (1 | ) |   | (1 | ) |
| Consolidated      total      |   | $                                | 6,876  |                           | $      | 5,994 |   | $ | 17,739 |   | $ | 7,420 |   |
|                         |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Operating      expenses      |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                | 6,738  |                           | $      | 12,181 |   | $ | 13,023 |   | $ | 19,253 |   |
| Housing                      |   |                             | 4,027  |                           |   | 5,016 |   |   | 8,317 |   |   | 10,037 |   |
| Other      reconciling items |   |                             | (1,604 | )                              |   | (432 | ) |   | (3,257 | ) |   | (923 | ) |
| Consolidated      total      |   | $                                | 9,161  |                           | $      | 16,765 |   | $ | 18,083 |   | $ | 28,367 |   |
|                         |   |                             |   |                           |   |   |   |   |   |   |
| Operating      income (loss) |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                | (6,989 | )                              | $      | (12,250 | ) | $ | (8,082 | ) | $ | (20,188 | ) |
| Housing                      |   |                             | 3,100  |                           |   | 1,047 |   |   | 4,481 |   |   | (1,681 | ) |
| Other      reconciling items |   |                             | 1,604  |                           |   | 432 |   |   | 3,257 |   |   | 922 |   |
| Consolidated      total      |   | $                                | (2,285 | )                              | $      | (10,771 | ) | $ | (344 | ) | $ | (20,947 | ) |
|                         |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Pre-tax      income (loss)   |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles   |   | $                                | (6,868 | )                              | $      | (12,270 | ) | $ | (7,924 | ) | $ | (20,315 | ) |
| Housing                      |   |                             | 3,051  |                           |   | 1,096 |   |   | 4,409 |   |   | (1,581 | ) |
| Other      reconciling items |   |                             | 854    |                           |   | 57 |   |   | 1,879 |   |   | 330 |   |
| Consolidated      total      |   | $                                | (2,963 | )                              | $      | (11,117 | ) | $ | (1,636 | ) | $ | (21,566 | ) |

|                         | June      30, |    | December      31, |   |
|------------------------------|---------------|---------|-------------------|--------|
|                         | 2008          |    | 2007              |   |
| Total      assets            |          |    |              |   |   |   |
| Recreational      vehicles   | $             | 91,320  |              | $      | 86,816 |   |
| Housing                      |          | 63,844  |              |   | 54,601 |   |
| Other      reconciling items |          | 59,834  |              |   | 66,251 |   |
| Consolidated      total      | $             | 214,998 |              | $      | 207,668 |   |

----

Index

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

|                       |   | June      30, |   | December      31, |   |
|----------------------------|--------|---------------|--------|-------------------|--------|
|                       |   | 2008          |   | 2007              |   |
| Raw      materials         |   |          |   |              |   |   |   |
| Recreational      vehicles |   | $             | 14,967 |              | $      | 11,789 |   |
| Housing                    |   |          | 5,757  |              |   | 5,989 |   |
| Consolidated      total    |   |          | 20,724 |              |   | 17,778 |   |
|                       |   |          |   |              |   |   |   |
| Work      in process       |   |          |   |              |   |   |   |
| Recreational      vehicles |   |          | 8,516  |              |   | 12,913 |   |
| Housing                    |   |          | 5,172  |              |   | 2,941 |   |
| Consolidated      total    |   |          | 13,688 |              |   | 15,854 |   |
|                       |   |          |   |              |   |   |   |
| Improved      lots         |   |          |   |              |   |   |   |
| Housing                    |   |          | 670    |              |   | 645 |   |
| Consolidated      total    |   |          | 670    |              |   | 645 |   |
|                       |   |          |   |              |   |   |   |
| Finished      goods        |   |          |   |              |   |   |   |
| Recreational      vehicles |   |          | 35,534 |              |   | 34,038 |   |
| Housing                    |   |          | 10,367 |              |   | 10,953 |   |
| Consolidated      total    |   |          | 45,901 |              |   | 44,991 |   |
|                       |   |          |   |              |   |   |   |
| Consolidated      total    |   | $             | 80,983 |              | $      | 79,268 |   |
|                       |   |          |   |              |   |   |   |

| 4.   | LONG-TERM      ASSETS |
|----------------|-----------------------|

|                                    |   | June      30,2008 |    | December      31,2007 |   |
|-----------------------------------------|--------|-------------------|---------|-----------------------|--------|
|                                    |   |              |    |                  |   |
| Land      and improvements              |   | $                 | 10,848  |                  | $      | 11,452 |   |
| Buildings      and improvements         |   |              | 53,117  |                  |   | 59,765 |   |
| Machinery      and equipment            |   |              | 24,323  |                  |   | 24,429 |   |
| Transportation      equipment           |   |              | 13,499  |                  |   | 14,654 |   |
| Office      furniture and fixtures      |   |              | 17,233  |                  |   | 17,274 |   |
|                                    |   |              |    |                  |   |   |   |
| Total                                   |   |              | 119,020 |                  |   | 127,574 |   |
| Less,      accumulated depreciation     |   |              | 72,965  |                  |   | 74,642 |   |
|                                    |   |              |    |                  |   |   |   |
| Property,      plant and equipment, net |   | $                 | 46,055  |                  | $      | 52,932 |   |

----

Index

| 4.   | LONG-TERM      ASSETS, continued. |
|----------------|-----------------------------------|

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

|                                                                                                                             |   | June      30,2008 |      | December      31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|-----------------------|--------|
|                                                                                                                             |   |              |      |                  |   |
| Wages,      salaries, bonuses and commissions                                                                                    |   | $                 | 2,456     |                  | $      | 2,432 |   |
| Dealer      incentives, including volume bonuses, dealer trips, interest      reimbursement, co-op advertising and other rebates |   |              | 759       |                  |   | 1,577 |   |
| Warranty                                                                                                                         |   |              | 6,511     |                  |   | 8,123 |   |
| Insurance-products      and general liability, workers compensation, group health and      other                                 |   |              | 6,103     |                  |   | 8,519 |   |
| Customer      deposits and unearned revenues                                                                                     |   |              | 3,766     |                  |   | 4,208 |   |
| Litigation                                                                                                                       |   |              | 385       |                  |   | 930 |   |
| Interest                                                                                                                         |   |              |  745 |                  |   | 751 |   |
| Sales      and property taxes                                                                                                    |   |              | 1,734     |                  |   | 1,837 |   |
| Deferred      gain on sale of real estate                                                                                        |   |              | 814       |                  |   | 1,145 |   |
| Other      current liabilities                                                                                                   |   |              | 3,627     |                  |   | 3,713 |   |
|                                                                                                                             |   |              |      |                  |   |   |   |
| Total                                                                                                                            |   | $                 | 26,900    |                  | $      | 33,235 |   |

|                                                                                               |   | Three      Months Ended June 30, |   | Six Months      Ended June 30, |   |
|----------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|-------------------------------------|--------|
|                                                                                               |   | 2008                             |   | 2007                                |   | 2008 |   | 2007 |   |
|                                                                                               |   |                             |   |                                |   |   |   |   |   |   |   |   |   |
| Balance      of accrued warranty at beginning of period                                            |   | $                                | 7,277  |                                | $      | 10,132 |   | $ | 8,123 |   | $ | 11,099 |   |
| Warranties      issued during the period and changes in liability for pre-existing      warranties |   |                             | 2,781  |                                |   | 4,747 |   |   | 5,757 |   |   | 10,110 |   |
| Settlements      made during the period                                                            |   |                             | (3,547 | )                                   |   | (5,113 | ) |   | (7,369 | ) |   | (11,443 | ) |
|                                                                                               |   |                             |   |                                |   |   |   |   |   |   |   |   |   |
| Balance      of accrued warranty at June 30                                                        |   | $                                | 6,511  |                                | $      | 9,766 |   | $ | 6,511 |   | $ | 9,766 |   |

----

Index

|                                                    |   | Three      Months Ended June 30, |   | Six      Months Ended June 30, |   |
|---------------------------------------------------------|--------|----------------------------------|--------|--------------------------------|--------|
|                                                    |   | 2008                             |   | 2007                           |   | 2008 |   | 2007 |   |
|                                                    |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Net      loss                                           |   | $                                | (2,963 | )                              | $      | (10,123 | ) | $ | (1,636 | ) | $ | (20,571 | ) |
| Unrealized      gains on cash flow hedges, net of taxes |   |                             | 26     |                           |   | 13 |   |   | 4 |   |   | 9 |   |
|                                                    |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                                 |   | $                                | (2,937 | )                              | $      | (10,110 | ) | $ | (1,632 | ) | $ | (20,562 | ) |

|                                                               |   | Three      Months Ended June 30, |   | Six      Months Ended June 30, |   |
|--------------------------------------------------------------------|--------|----------------------------------|--------|--------------------------------|--------|
|                                                               |   | 2008                             |   | 2007                           |   | 2008 |   | 2007 |   |
| Numerator:                                                         |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Net      loss available to common stockholders                     |   | $                                | (2,963 | )                              | $      | (10,123 | ) | $ | (1,636 | ) | $ | (20,571 | ) |
| Denominator:                                                       |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Number      of shares outstanding, end of period:                  |   |                             |   |                           |   |   |   |   |   |   |   |   |   |
| Weighted      average number of common shares used in basic EPS    |   |                             | 15,774 |                           |   | 15,726 |   |   | 15,762 |   |   | 15,722 |   |
| Effect      of dilutive securities                                 |   |                             | -      |                           |   | - |   |   | - |   |   | - |   |
| Weighted      average number of common shares used in dilutive EPS |   |                             | 15,774 |                           |   | 15,726 |   |   | 15,762 |   |   | 15,722 |   |

| 8.   | INCOME TAXES. |
|----------------|---------------|

----

Index

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

----

Index

----

Index

----

Index

Coachmen Industries, Inc. and Subsidiaries

| Three Months      Ended                |
|----------------------------------------|
|                                   |   |   |   | Percentage      Change |
|                                   |   |   |   | Percentage |   |   |   |   | Percentage |   |   | 2008 |   |
|                                   |  June      30, |   | of |   |  June      30, |   | of |   |   | to |   |
|                                   |  2008 |   | Net      Sales |   |  2007 |   | Net      Sales |   |   | 2007 |   |
| Net      sales:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             | $ | 58,781 |   | 60.8 | % | $ | 111,227 |   | 74.3 | % |   | (47.2 | )% |
| Housing                                |   | 37,927 |   | 39.2 |   |   | 38,536 |   | 25.7 |   |   | (1.6 | ) |
| Consolidated      total                |   | 96,708 |   | 100.0 |   |   | 149,763 |   | 100.0 |   |   | (35.4 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit:                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             |   | (251 | ) | (0.3 | ) |   | (69 | ) | - |   |   | n/m |   |
| Housing                                |   | 7,127 |   | 7.4 |   |   | 6,063 |   | 4.0 |   |   | 17.5 |   |
| Consolidated      total                |   | 6,876 |   | 7.1 |   |   | 5,994 |   | 4.0 |   |   | 14.7 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling                           |   | 4,821 |   | 5.0 |   |   | 5,939 |   | 4.0 |   |   | (18.8 | ) |
| General      and administrative   |   | 4,379 |   | 4.5 |   |   | 6,976 |   | 4.6 |   |   | (37.2 | )  |
| Gain      on sale of assets, net  |   | (39 | ) | - |   |   | (22 | ) | - |   |   | (77.3 | ) |
| Goodwill      impairment charge        |   | - |   | - |   |   | 3,872 |   | 2.6 |   |   | (100.0 | ) |
| Consolidated      total                |   | 9,161 |   | 9.5 |   |   | 16,765 |   | 11.2 |   |   | (45.4 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      expense         |   | 678 |   | 0.7 |   |   | 346 |   | 0.2 |   |   | 96.0 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before income taxes     |   | (2,963 | ) | (3.1 | ) |   | (11,117 | ) | (7.4 | ) |   | 73.3 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax credit                 |   | - |   | - |   |   | (994 | ) | (0.7 | ) |   | 100.0 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                     | $ | (2,963 | ) | (3.1 | )% | $ | (10,123 | ) | (6.7 | )% |   | 70.7 | % |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| n/m      - not meaningful              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

| Six      Months Ended                  |
|----------------------------------------|
|                                   |   |   |   | Percentage      Change |
|                                   |   |   |   | Percentage |   |   |   |   | Percentage |   |   | 2008 |   |
|                                   |  June      30, |   | of |   |  June      30, |   | of |   |   | to |   |
|                                   |  2008 |   | Net      Sales |   |  2007 |   | Net      Sales |   |   | 2007 |   |
| Net      sales:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             | $ | 149,260 |   | 68.5 | % | $ | 215,379 |   | 76.9 | % |   | (30.7 | )% |
| Housing                                |   | 68,766 |   | 31.5 |   |   | 64,627 |   | 23.1 |   |   | 6.4 |   |
| Consolidated      total                |   | 218,026 |   | 100.0 |   |   | 280,006 |   | 100.0 |   |   | (22.1 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit:                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recreational      vehicles             |   | 4,942 |   | 2.2 |   |   | (935 | ) | (0.3 | ) |   | n/m |   |
| Housing                                |   | 12,798 |   | 5.9 |   |   | 8,356 |   | 2.9 |   |   | 53.2 |   |
| Other                                  |   | (1 | ) | - |   |   | (1 | ) | - |   |   | - |   |
| Consolidated      total                |   | 17,739 |   | 8.1 |   |   | 7,420 |   | 2.6 |   |   | 139.1 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling                           |   | 9,418 |   | 4.3 |   |   | 11,752 |   | 4.2 |   |   | (19.9 | ) |
| General      and administrative   |   | 8,912 |   | 4.1 |   |   | 13,210 |   | 4.7 |   |   | (32.5 | )  |
| Gain      on sale of assets, net  |   | (247 | ) | (0.1 | ) |   | (467 | ) | (0.2 | ) |   | 47.1 |   |
| Goodwill      impairment charge        |   | - |   | - |   |   | 3,872 |   | 1.4 |   |   | (100.0 | ) |
| Consolidated      total                |   | 18,083 |   | 8.3 |   |   | 28,367 |   | 10.1 |   |   | (36.3 | ) |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonoperating      expense         |   | 1,292 |   | 0.6 |   |   | 619 |   | 0.2 |   |   | 108.7 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before income taxes     |   | (1,636 | ) | (0.8 | ) |   | (21,566 | ) | (7.7 | ) |   | 92.4 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax credit                 |   | - |   | - |   |   | (995 | ) | (0.4 | ) |   |  100.0 |   |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                     | $ | (1,636 | ) | (0.8 | )% | $ | (20,571 | ) | (7.3 | )% |   | 92.0 | % |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  n/m      - not meaningful        |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                    |   | Three      Months |   | Three      Months |   | Six      Months |   | Six      Months |   |
|-----------------------------------------|--------|-------------------|--------|-------------------|--------|-----------------|--------|-----------------|--------|
|                                    |   | Ended             |   | Ended             |   | Ended           |   | Ended           |   |
|                                    |   | June      30,     |   | June      30,     |   | June      30,   |   | June      30,   |   |
|                                    |   | 2008              |   | 2007              |   | 2008            |   | 2007            |   |
|                                    |   |              |   |              |   |            |   |            |   |   |   |   |   |
| Gain      on sale of assets             | $      | (39               | )      | $                 | (22    | )               | $      | (247            | )      | $ | (467 | ) |
|                                    |   |              |   |              |   |            |   |            |   |   |   |   |
| Legal/Insurance      expense recoveries | $      | (987              | )      | $                 | -      |            | $      | (1,937          | )      | $ | - |   |
|                                    |   |              |   |              |   |            |   |            |   |   |   |   |
| Goodwill      impairment charge         | $      | -                 |   | $                 | 3,872  |            | $      | -               |   | $ | 3,872 |   |

----

Index

----

Index

Note2

Note8

----

Index

New Accounting Pronouncements

----

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      impact of sub-prime lending on the availability of credit for the broader      housing market;                                                                                                                                                                                |
| • | 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 HousingSegments.                                                                                                                                                |

----

Index

----

Index

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK

ITEM 4. CONTROLS AND PROCEDURES

----

Index

Item 4. Submission of Matters to a Vote of SecurityHolders

|                    | For        | Withheld |   |
|-------------------------|------------|----------|--------|
|                    |       |     |   |
| Geoffrey      B. Bloom  | 12,563,320 | 320,221  |   |
| William      P. Johnson | 12,776,517 | 107,024  |   |

Item 6. Exhibits

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Index

SIGNATURES

| Date:      July 24, 2008 | By:    | /s/      Richard M. Lavers                      |
|--------------------------|--------|-------------------------------------------------|
|                     |   | Richard      M. Lavers, Chief Executive Officer |
|                     |   |                                            |
|                     |   |                                            |
|                     |   |                                            |
|                     |   |                                            |
| Date:      July 24, 2008 | By:    | /s/      Colleen A. Zuhl                        |
|                     |   | Colleen      A. Zuhl, Chief Financial Officer   |
|                     |   |                                            |
|                     |   |                                            |
|                     |   |                                            |
|                     |   |                                            |
| Date:      July 24, 2008 | By:    | /s/      Stephen L. Patterson                   |
|                     |   | Stephen      L. Patterson, Corporate Controller |

----

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.                                                                                                                                                                           |
|                                                     |                                                                                                                                                                                                                    |
| (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.                                                                                                                                                             |

----

----