----

----

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**Form      10-Q**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**o**
**       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT      OF 1934**

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

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

| **2831                Dexter Drive, Elkhart, Indiana**    |   | **46514**                   |
|-----------------------------------------------------------|--------|-----------------------------|
| *(Address                of principal executive offices)* |   | *(Zip                Code)* |

| Registrant's                telephone number, including area code |   | **(574)                262-0123** |
|-------------------------------------------------------------------|--------|-----------------------------------|

| Large                accelerated filer o |   | Accelerated                filer x |   | Non-accelerated                filer o |
|-----------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------------|

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----

| **FORM                10-Q**                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                      |   |
|                                                                                                                      |   |
| **INDEX**                                                                                                                 |
|                                                                                                                      |   |
| **Part                I. Financial Information**                                                                          | **Page** |
|                                                                                                                      |   |
| Financial                Statements:                                                                                      |   |
| Consolidated                Balance Sheets at March 31, 2007 and December 31,                2006                         | 3 |
|                                                                                                                      |   |
| Consolidated                Statements of Operations for the three                months ended March 31, 2007 and 2006    | 4 |
|                                                                                                                      |   |
| Consolidated                Statements of Cash Flows for the three                months ended March 31, 2007 and 2006    | 5 |
|                                                                                                                      |   |
| Notes                to Consolidated Financial Statements                                                                 | 6-13 |
|                                                                                                                      |   |
| Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 14-21 |
|                                                                                                                      |   |
| Quantitative                and Qualitative Disclosures About Market Risk                                                 | 22 |
|                                                                                                                      |   |
| Controls                and Procedures                                                                                    | 22 |
|                                                                                                                      |   |
| **Part                II. Other Information**                                                                             |   |
|                                                                                                                      |   |
| Item                6. Exhibits                                                                                           | 23 |
|                                                                                                                      |   |
| Signatures                                                                                                                | 24 |
|                                                                                                                      |   |
| Index                to Exhibits                                                                                          | 25 |

----

*Index*

**Coachmen      Industries, Inc. and Subsidiaries**

**Consolidated      Balance Sheets**

|                                                                                                                                                                               |   |   | March                31, |   |   | December                31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|-----------------------------|--------|
|                                                                                                                                                                               |   |   | 2007                     |   |   | 2006                        |   |
| **Assets**                                                                                                                                                                         |   |   | (Unaudited)              |   |   |                        |   |
| CURRENT                ASSETS                                                                                                                                                      |   |   |                     |   |   |                        |   |
| Cash                and cash equivalents                                                                                                                                           |   | $      | 3,669                    |   | $      | 2,651                       |   |
| Trade                receivables, less allowance for doubtful receivables 2007 - $1,125                and                2006                - $1,134                             |   |   | 36,544                   |   |   | 25,874                      |   |
| Other                receivables                                                                                                                                                   |   |   | 2,865                    |   |   | 2,332                       |   |
| Refundable                income taxes                                                                                                                                             |   |   | 4,161                    |   |   | 10,820                      |   |
| Inventories                                                                                                                                                                        |   |   | 86,187                   |   |   | 83,511                      |   |
| Prepaid                expenses and other                                                                                                                                          |   |   | 2,457                    |   |   | 3,957                       |   |
| Assets                held for sale                                                                                                                                                |   |   | -                        |   |   | 288                         |   |
| Total                current assets                                                                                                                                                |   |   | 135,883                  |   |   | 129,433                     |   |
|                                                                                                                                                                               |   |   |                     |   |   |                        |   |
| Property,                plant and equipment**,**                net                                                                                                               |   |   | 55,895                   |   |   | 57,018                      |   |
| Goodwill                                                                                                                                                                           |   |   | 16,865                   |   |   | 16,865                      |   |
| Cash                value of life insurance, net of loans                                                                                                                          |   |   | 33,196                   |   |   | 31,119                      |   |
| Other                                                                                                                                                                              |   |   | 8,580                    |   |   | 8,699                       |   |
| TOTAL                ASSETS                                                                                                                                                        |   | $      | 250,419                  |   | $      | 243,134                     |   |
|                                                                                                                                                                               |   |   |                     |   |   |                        |   |
| **Liabilities                and Shareholders' Equity**                                                                                                                            |   |   |                     |   |   |                        |   |
| CURRENT                LIABILITIES                                                                                                                                                 |   |   |                     |   |   |                        |   |
| Short-term                borrowings                                                                                                                                               |   | $      | 7,614                    |   | $      | 9,284                       |   |
| Accounts                payable, trade                                                                                                                                             |   |   | 35,062                   |   |   | 16,998                      |   |
| Accrued                income taxes                                                                                                                                                |   |   | 5                        |   |   | 18                          |   |
| Accrued                expenses and other liabilities                                                                                                                              |   |   | 36,604                   |   |   | 35,116                      |   |
| Floorplan                notes payable                                                                                                                                             |   |   | 4,319                    |   |   | 4,156                       |   |
| Current                maturities of long-term debt                                                                                                                                |   |   | 1,037                    |   |   | 1,077                       |   |
| Total                current liabilities                                                                                                                                           |   |   | 84,641                   |   |   | 66,649                      |   |
|                                                                                                                                                                               |   |   |                     |   |   |                        |   |
| Long-term                debt                                                                                                                                                      |   |   | 3,825                    |   |   | 3,862                       |   |
| Deferred                income taxes                                                                                                                                               |   |   | 4,524                    |   |   | 4,524                       |   |
| Postretirement                deferred compensation benefits                                                                                                                       |   |   | 7,854                    |   |   | 7,768                       |   |
| Other                                                                                                                                                                              |   |   | 22                       |   |   | -                           |   |
| Total                liabilities                                                                                                                                                   |   |   | 100,866                  |   |   | 82,803                      |   |
|                                                                                                                                                                               |   |   |                     |   |   |                        |   |
| COMMITMENTS                AND CONTINGENCIES** **(Note                10)                                                                                                     |   |   |                     |   |   |                        |   |
|                                                                                                                                                                               |   |   |                     |   |   |                        |   |
| SHAREHOLDERS'                EQUITY                                                                                                                                                |   |   |                     |   |   |                        |   |
| Common                shares, without par value: authorized 60,000 shares; issued 2007                -                21,161                 shares and 2006 - 21,156 shares |   |   | 92,428                   |   |   | 92,382                      |   |
| Additional                paid-in capital                                                                                                                                          |   |   | 7,735                    |   |   | 7,648                       |   |
| Accumulated                other comprehensive loss                                                                                                                                |   |   | (14                      | )      |   | (10                         | )      |
| Retained                earnings                                                                                                                                                   |   |   | 108,704                  |   |   | 119,623                     |   |
| Treasury                shares, at cost, 2007 - 5,431 shares and 2006 - 5,433                shares                                                                                |   |   | (59,300                  | )      |   | (59,312                     | )      |
| Total                shareholders' equity                                                                                                                                          |   |   | 149,553                  |   |   | 160,331                     |   |
|                                                                                                                                                                               |   |   |                     |   |   |                        |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                          |   | $      | 250,419                  |   | $      | 243,134                     |   |

*See      Notes to Consolidated Financial      Statements.*

----

*Index*

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Operations**

|                                                                                                                                  |   | Three                Months Ended March 31, |          |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------------|
|                                                                                                                                  |   | 2007                                        |          | 2006 |   |
|                                                                                                                                  |   |                                        |          |   |   |   |   |
| Net                sales                                                                                                              |   | $                                      | 130,244       |   | $  | 162,554 |   |
| Cost                of sales                                                                                                          |   |                                        |  128,817 |   |   |  156,141 |   |
| Gross                profit                                                                                                           |   |                                        |  1,427   |   |   |  6,413 |   |
| Operating                expenses:                                                                                               |   |                                        |          |   |   |   |   |
| Selling                                                                                                                               |   |                                        |  5,813   |   |   |  5,180 |   |
| General                and administrative                                                                                             |   |                                        |  6,235   |   |   |  2,850 |   |
| Gain                on sale of assets, net                                                                                            |   |                                        |  (445    | )  |   |  (2,677 | )  |
|                                                                                                                                  |   |                                        |  11,603  |   |   |  5,353 |   |
| Operating                income (loss)                                                                                                |   |                                        |  (10,176 | )  |   |  1,060 |   |
| Nonoperating                (income) expense:                                                                                    |   |                                        |          |   |   |   |   |
|  Interest                expense                                                                                                 |   |                                        |  842     |   |   |  968 |   |
|  Investment                income                                                                                                |   |                                        |  (474    | )  |   |  (362 | )  |
|  Other                income, net                                                                                                |   |                                        |  (95     | )  |   |  (164 | )  |
|                                                                                                                                  |   |                                        |  273     |   |   |  442 |   |
|  Income                (loss) from continuing operations before income taxes                                                     |   |                                        |  (10,449 | )  |   |  618 |   |
| Income                taxes (credit)                                                                                             |   |                                        |  (1      | )  |   |  214 |   |
| Net                income (loss) from continuing operations                                                                      |   |                                        |  (10,448 | )  |   |  404 |   |
|                                                                                                                                  |   |                                        |          |   |   |   |   |
| Discontinued                operations                                                                                           |   |                                        |          |   |   |   |   |
|  Loss                from operations of discontinued entities (net of tax credits of $175                in                2006) |   |                                        |  -       |   |   |  (329 | )  |
|  Gain                on sale of assets of discontinued entities (net of taxes of $1,510                in                2006)   |   |                                        |  -       |   |   |  2,835 |   |
| Income                from discontinued operations                                                                                    |   |                                        |  -       |   |   |  2,506 |   |
| Net                income (loss)                                                                                                      |   | $                                      |  (10,448 | )  | $  |  2,910 |   |
|                                                                                                                                  |   |                                        |          |   |   |   |   |
| Earnings (loss)                per share - Basic                                                                            |   |                                        |          |   |   |   |   |
| Continuing                operations                                                                                                  |   | $                                      |  (.67    | )  | $  |  .03 |   |
| Discontinued                operations                                                                                                |   |                                        |  -       |   |   |  .16 |   |
| Net                earnings (loss) per share                                                                                          |   |                                        |  (.67    | )  |   |  .19 |   |
| Earnings                (loss) per share - Diluted                                                                               |   |                                        |          |   |   |   |   |
| Continuing                operations                                                                                                  |   |                                        |  (.67    | )  |   |  .03 |   |
| Discontinued                operations                                                                                                |   |                                        |  -       |   |   |  .16 |   |
| Net                earnings (loss) per share                                                                                          |   |                                        |  (.67    | )  |   |  .19 |   |
|                                                                                                                                  |   |                                        |          |   |   |   |   |
| Number                of common shares used in the computation of earnings (loss) per                share:                      |   |                                        |          |   |   |   |   |
| Basic                                                                                                                                 |   |                                        |  15,700  |   |   |  15,593 |   |
| Diluted                                                                                                                               |   |                                        |  15,700  |   |   |  15,650 |   |
|                                                                                                                                  |   |                                        |          |   |   |   |   |
| Cash                dividends declared per common share                                                                          |   | $                                      | .03      |   | $  | .06  |   |

*See      Notes to Consolidated Financial      Statements.*

----

*Index*

**Coachmen      Industries, Inc. and      Subsidiaries**

**Consolidated      Statements of Cash Flows **

|                                                                                                                                     |   | Three                Months Ended March 31, |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                                                                                     |   | 2007                                        |   | 2006 |   |
| CASH                FLOWS FROM OPERATING ACTIVITIES:                                                                                     |   |                                        |   |   |   |   |   |
| Net                income (loss)                                                                                                         |   | $                                           | (10,448 | )  | $ | 2,910 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by operating                activities:                   |   |                                        |   |   |   |   |   |
| Depreciation                                                                                                                             |   |                                        | 1,506 |   |   | 1,669 |   |
| Provision                for doubtful receivables, net of recoveries                                                                     |   |                                        | 30 |   |   | 148 |   |
| Net                realized and unrealized (gains)/losses on derivatives                                                                 |   |                                        | (4) |   |   | 18 |   |
| Gains                on sale of properties and other assets, net                                                                         |   |                                        | (445 | ) |   | (7,022 | ) |
| Increase                in cash surrender value of life insurance policies                                                               |   |                                        | (301 | ) |   | (584 | ) |
| Deferred                income tax provision (benefit)                                                                                   |   |                                        | - |   |   | 1,654 |   |
| Other                                                                                                                                    |   |                                        | 599 |   |   | 407 |   |
| Changes                in certain assets and liabilities, net of effects of acquisitions                and                dispositions: |   |                                        |   |   |   |   |   |
| Trade                receivables                                                                                                         |   |                                        | (11,449 | )  |   | 1,880 |   |
| Inventories                                                                                                                              |   |                                        | (2,676 | ) |   | (5,842 | ) |
| Prepaid                expenses and other                                                                                                |   |                                        | 1,500 |   |   | 94 |   |
| Accounts                payable, trade                                                                                                   |   |                                        | 18,064 |   |   | 10,958 |   |
| Income                taxes - accrued and refundable                                                                                     |   |                                        | 6,646 |   |   | 802 |   |
| Accrued                expenses and other liabilities                                                                                    |   |                                        | 1,096 |   |   | (1,727 | ) |
| Net                cash provided by operating activities                                                                                 |   |                                        | 4,118 |   |   | 5,365 |   |
| CASH                FLOWS FROM INVESTING ACTIVITIES:                                                                                     |   |                                        |   |   |   |   |   |
| Proceeds                from sale of properties and other assets                                                                         |   |                                        | 746 |   |   | 17,870 |   |
| Investments                in life insurance policies                                                                                    |   |                                        | (1,776 | ) |   | (1,334 | ) |
| Purchases                of property and equipment                                                                                       |   |                                        | (391 | ) |   | (1,785 | ) |
| Other                                                                                                                                    |   |                                        | 330 |   |   | 188 |   |
| Net                cash provided by (used in) investing activities                                                                       |   |                                        | (1,091 | )  |   | 14,939 |   |
| CASH                FLOWS FROM FINANCING ACTIVITIES:                                                                                     |   |                                        |   |   |   |   |   |
| Proceeds                from short-term borrowings                                                                                       |   |                                        | 3,866 |   |   | 7,070 |   |
| Payments                of short-term borrowings                                                                                         |   |                                        | (5,373 | ) |   | (18,639 | ) |
| Proceeds                from long-term debt                                                                                              |   |                                        | - |   |   | 255 |   |
| Payments                of long-term debt                                                                                                |   |                                        | (77 | ) |   | (2,012 | ) |
| Issuance                of common shares under stock incentive plans                                                                     |   |                                        | 46 |   |   | 85 |   |
| Cash                dividends paid                                                                                                       |   |                                        | (471 | ) |   | (937 | ) |
| Net                cash used in financing activities                                                                                |   |                                        | (2,009 | ) |   | (14,178 | ) |
| Increase                in cash and cash equivalents                                                                                     |   |                                        | 1,018 |   |   | 6,126 |   |
| CASH                AND CASH EQUIVALENTS:                                                                                                |   |                                        |   |   |   |   |   |
| Beginning                of period                                                                                                       |   |                                        | 2,651 |   |   | 2,780 |   |
| End                of period                                                                                                             |   | $                                           | 3,669 |   | $ | 8,906 |   |
|                                                                                                                                     |   |                                        |   |   |   |   |   |
| Supplemental                disclosures of cash flow information:                                                                   |   |                                        |   |   |   |   |   |
| Operating                cash received during the quarter related to insurance                settlement                                 |   | $                                      |  - |   | $  |  2,875 |   |
|                                                                                                                                     |   |                                        |   |   |   |   |   |
|                                                                                                                                     |   |                                        |   |   |   |   |   |

*See      Notes to Consolidated Financial      Statements.*

----

*Index*

**Coachmen      Industries, Inc. and Subsidiaries**

**Notes      to Consolidated Financial Statements**

**1.         BASIS OF PRESENTATION.**

**Statement      of Operations Classification - **
*Accounting      Changes and Error Corrections*

**Reclassifications      - **

**2.         SEGMENT INFORMATION.**

Note      9

|                                 |   | Three                Months Ended March 31, |    |
|--------------------------------------|--------|---------------------------------------------|---------|
|                                 |   | 2007                                        |    | 2006 |   |
| Net                sales             |   |                                        |    |   |   |   |   |
| Recreational                vehicles |   | $                                           | 104,152 |   | $ | 119,854 |   |
| Housing                              |   |                                        | 26,092  |   |   | 42,700 |   |
| Consolidated                total    |   | $                                           | 130,244 |   | $ | 162,554 |   |
|                                 |   |                                        |    |   |   |   |   |
| Gross                profit          |   |                                        |    |   |   |   |   |
| Recreational                vehicles |   | $                                           | (866    | )  | $ | 1,306 |   |
| Housing                              |   |                                        | 2,293   |   |   | 5,107 |   |
| Consolidated                total    |   | $                                           | 1,427   |   | $ | 6,413 |   |

----

*Index*

| **2.                   SEGMENT INFORMATION, continued.**  |   | Three                Months Ended March 31,  |                     |
|-------------------------------------------------------------------------------|--------|---------------------------------------------------|--------------------------|
|                                                                          |   | 2007                                              |                     | 2006 |   |
| Operating                expenses                                             |   |                                              |                     |   |   |   |   |
| Recreational                vehicles                                          |   | $                                                 | 7,072                    |   | $ | 3,654 |   |
| Housing                                                                       |   |                                              | 5,022                    |   |   | 4,999 |   |
| Other                reconciling items                                        |   |                                              | (491                     | ) |   | (3,300 | )  |
| Consolidated                total                                             |   | $                                                 | 11,603                   |   | $ | 5,353 |   |
|                                                                          |   |                                              |                     |   |   |   |   |
| Operating                income (loss)                                        |   |                                              |                     |   |   |   |   |
| Recreational                vehicles                                          |   | $                                                 | (7,938                   | ) | $ | (2,347 | ) |
| Housing                                                                       |   |                                              | (2,729                   | )  |   | 107 |   |
| Other                reconciling items                                        |   |                                              | 491                      |   |   | 3,300 |   |
| Consolidated                total                                             |   | $                                                 | (10,176                  | )  | $ | 1,060 |   |
|                                                                          |   |                                              |                     |   |   |   |   |
| Pre-tax                income (loss) from continuing operations               |   |                                              |                     |   |   |   |   |
| Recreational                vehicles                                          |   | $                                                 | (8,044                   | ) | $ | (2,668 | ) |
| Housing                                                                       |   |                                              | (2,677                   | )  |   | 142 |   |
| Other                reconciling items                                        |   |                                              | 272                      |   |   | 3,144 |   |
| Consolidated                total                                             |   | $                                                 | (10,449                  | )  | $ | 618 |   |
|                                                                          |   |                                              |                     |   |   |   |   |
|                                                                          |   |                                              | March                31, |   |   | December                31, |   |
|                                                                               |   |                                              | 2007                     |   |   | 2006 |   |
| Total                assets                                                   |   |                                              |                     |   |   |   |   |
| Recreational                vehicles                                          |   | $                                                 | 124,002                  |   | $ | 113,627 |   |
| Housing                                                                       |   |                                              | 59,850                   |   |   | 57,968 |   |
| Other                reconciling items                                        |   |                                              | 66,567                   |   |   | 71,539 |   |
| Total                                                                         |   | $                                                 | 250,419                  |   | $ | 243,134 |   |

**3.         INVENTORIES.**

|                                 |   | March                31, |   | December                31, |   |
|--------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
|                                 |   | 2007                     |   | 2006                        |   |
| Raw                materials         |   |                     |   |                        |   |   |   |
| Recreational                vehicles |   | $                        | 19,881 |                        | $      | 13,874 |   |
| Housing                              |   |                     | 6,413  |                        |   | 6,065 |   |
| Total                                |   |                     | 26,294 |                        |   | 19,939 |   |
|                                 |   |                     |   |                        |   |   |   |
| Work                in process       |   |                     |   |                        |   |   |   |
| Recreational                vehicles |   |                     | 15,386 |                        |   | 15,661 |   |
| Housing                              |   |                     | 4,217  |                        |   | 3,466 |   |
| Total                                |   |                     | 19,603 |                        |   | 19,127 |   |
|                                 |   |                     |   |                        |   |   |   |
| Improved                lots         |   |                     |   |                        |   |   |   |
| Housing                              |   |                     | 201    |                        |   | 221 |   |
| Total                                |   |                     | 201    |                        |   | 221 |   |
|                                 |   |                     |   |                        |   |   |   |
| Finished                goods        |   |                     |   |                        |   |   |   |
| Recreational                vehicles |   |                     | 29,736 |                        |   | 35,079 |   |
| Housing                              |   |                     | 10,353 |                        |   | 9,145 |   |
| Total                                |   |                     | 40,089 |                        |   | 44,224 |   |
|                                 |   |                     |   |                        |   |   |   |
| Total                                |   | $                        | 86,187 |                        | $      | 83,511 |   |

----

*Index*

**4.         PROPERTY, PLANT AND EQUIPMENT.**

|                                              |   | March                31,2007 |    | December                31,2006 |   |
|---------------------------------------------------|--------|------------------------------|---------|---------------------------------|--------|
|                                              |   |                         |    |                            |   |
| Land                and improvements              |   | $                            | 11,546  |                            | $      | 11,562 |   |
| Buildings                and improvements         |   |                         | 61,119  |                            |   | 61,043 |   |
| Machinery                and equipment            |   |                         | 24,844  |                            |   | 24,798 |   |
| Transportation                equipment           |   |                         | 14,267  |                            |   | 14,310 |   |
| Office                furniture and fixtures      |   |                         | 17,100  |                            |   | 17,481 |   |
|                                              |   |                         |    |                            |   |   |   |
| Total                                             |   |                         | 128,876 |                            |   | 129,194 |   |
| Less,                accumulated depreciation     |   |                         | 72,981  |                            |   | 72,176 |   |
|                                              |   |                         |    |                            |   |   |   |
| Property,                plant and equipment, net |   | $                            | 55,895  |                            | $      | 57,018 |   |

**5.         ACCRUED EXPENSES AND OTHER LIABILITIES.**

|                                                                                                                                                 |   | March                31,2007 |        | December                31,2006 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|---------------------------------|--------|
|                                                                                                                                                 |   |                         |        |                            |   |
| Wages,                salaries, bonuses and commissions                                                                                              |   | $                            | 3,851       |                            | $      | 3,135 |   |
| Dealer                incentives, including volume bonuses, dealer trips, interest                reimbursement, co-op advertising and other rebates |   |                         | 3,345       |                            |   | 4,140 |   |
| Warranty                                                                                                                                             |   |                         | 10,132      |                            |   | 11,099 |   |
| Insurance-products                and general liability, workers compensation, group health and                other                                 |   |                         | 7,301       |                            |   | 7,593 |   |
| Customer                deposits and unearned revenues                                                                                               |   |                         | 6,873       |                            |   | 3,865 |   |
| Litigation                                                                                                                                           |   |                         | 465         |                            |   | 345 |   |
| Interest                                                                                                                                             |   |                         |  805   |                            |   | 955 |   |
| Sales                and property taxes                                                                                                              |   |                         |  1,681 |                            |   | 1,226 |   |
| Other                current liabilities                                                                                                             |   |                         | 2,151       |                            |   | 2,758 |   |
|                                                                                                                                                 |   |                         |        |                            |   |   |   |
| Total                                                                                                                                                |   | $                            | 36,604      |                            | $      | 35,116 |   |

|                                                                                                                   |   | Three                Months Ended March 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                                                   |   | 2007                                        |   | 2006 |   |
|                                                                                                                   |   |                                        |   |   |   |
| Balance                of accrued warranty at beginning of period                                                      |   | $                                           | 11,099 |   | $ | 20,005 |   |
|                                                                                                                   |   |                                        |   |   |   |   |   |
| Warranties                issued during the period and changes in liability for pre-existing                warranties |   |                                        | 5,363  |   |   | 6,536 |   |
|                                                                                                                   |   |                                        |   |   |   |   |   |
| Settlements                made during the period                                                                      |   |                                        | (6,330 | ) |   | (9,936 | ) |
|                                                                                                                   |   |                                        |   |   |   |   |   |
| Balance                of accrued warranty at March 31                                                                 |   | $                                           | 10,132 |   | $ | 16,605 |   |

----

*Index*

**6.         COMPREHENSIVE INCOME (LOSS).**

|                                                                       |   | Three                Months Ended March 31, |    |
|----------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                       |   |  2007                                  |    |  2006 |   |
|                                                                       |   |                                        |    |   |   |   |   |
| Net                income (loss)                                           |   | $                                           | (10,448 | )  | $ | 2,910 |   |
| Unrealized                gains (losses) on cash flow hedges, net of taxes |   |                                        | (4      | ) |   | 18 |   |
|                                                                       |   |                                        |    |   |   |   |   |
| Comprehensive                income (loss)                                 |   | $                                           | (10,452 | )  | $ | 2,928 |   |

**7.         EARNINGS PER SHARE. **

|                                                                        |   | Three                Months Ended March 31, |
|-----------------------------------------------------------------------------|--------|---------------------------------------------|
|                                                                        |   | 2007          |   | 2006       |   |
| Numerator:                                                                  |   |                                        |   |   |   |   |   |
| Net                income (loss) available to common stockholders           |   | $                                           | (10,448 | )  | $ | 2,910 |   |
| Denominator:                                                                |   |                                        |   |   |   |   |   |
| Number                of shares outstanding, end of period:                 |   |                                        |   |   |   |   |   |
| Weighted                average number of common shares used in basic EPS   |   |                                        | 15,700 |   |   | 15,593 |   |
| Effect                of dilutive securities                                |   |                                        |  - |   |   |  57 |   |
| Weighted                average number of common shares used in diluted EPS |   |                                        | 15,700 |   |   | 15,650 |   |

----

*Index*

**8.   INCOME      TAXES.**

**9.**
**RESTRUCTURING      CHARGES AND DISCONTINUED      OPERATIONS.**

**Housing      Segment**

----

*Index*

| **9.  ** | **RESTRUCTURING                CHARGES AND DISCONTINUED OPERATIONS,                continued.** |
|--------------------|-------------------------------------------------------------------------------------------------|

**Recreational      Vehicle Segment**

**10.       COMMITMENTS AND CONTINGENCIES. **

**Obligation      to Purchase Consigned Inventories **

**Repurchase      Agreements**

----

*Index*

| **10.  ** | **COMMITMENTS                AND CONTINGENCIES, continued.** |
|---------------------|--------------------------------------------------------------|

**Corporate      Guarantees**

**Financing      Obligation**

----

*Index*

**10.      **
**COMMITMENTS      AND CONTINGENCIES, continued. **

**Litigation      **

**11.       STOCK-BASED COMPENSATION. **

*Share-Based      Payment*

----

*Index*

**Coachmen      Industries, Inc. and Subsidiaries**

**Management’s      Discussion and Analysis of**

**Financial      Condition and Results of Operations**

|                                                                                             |    | Three                Months |   |                     |    |    | Three                Months |   |                     |    | Percentage                Change       |
|--------------------------------------------------------------------------------------------------|---------|-----------------------------|--------|--------------------------|---------|---------|-----------------------------|--------|--------------------------|---------|----------------------------------------------------------------------|
|                                                                                             |    | Ended                       |   | Percentage               |    |    | Ended                       |   | Percentage               |    |                                                                 | 2007 |   |
|                                                                                             |    | March                31,    |   | of                       |    |    | March                31,    |   | of                       |    |                                                                 | to |   |
|                                                                                             |    | 2007                        |   | Net                Sales |    |    | 2006                        |   | Net                Sales |    |                                                                 | 2006 |   |
| Net                sales:                                                                   |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Recreational                vehicles                                                             |  $ | 104,152                     |   | 80.0                     | %  | $  | 119,854                     |   |  73.7               | %  |                                                                 |  (13.1 | )% |
| Housing                                                                                          |    | 26,092                      |   | 20.0                     |    |    | 42,700                      |   | 26.3                     |    |                                                                 | (38.9 | ) |
| Consolidated                total                                                                |    | 130,244                     |   | 100.0                    |    |    | 162,554                     |   | 100.0                    |    |                                                                 | (19.9 | ) |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Gross                profit:                                                                |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Recreational                vehicles                                                             |    | (866                        | )      | (0.7                     | )       |    | 1,306                       |   | 0.8                      |    |                                                                 | (166.3 | ) |
| Housing                                                                                          |    | 2,293                       |   | 1.8                      |    |    | 5,107                       |   | 3.1                      |    |                                                                 | (55.1 | ) |
| Consolidated                total                                                                |    | 1,427                       |   | 1.1                      |    |    | 6,413                       |   | 3.9                      |    |                                                                 | (77.7 | ) |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Operating                expenses:                                                          |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Selling                                                                                     |    | 5,813                       |   | 4.4                      |    |    | 5,180                       |   | 3.2                      |    |                                                                 | 12.2 |   |
| General                and administrative                                                   |    | 6,235                       |   | 4.8                      |    |    | 2,850                       |   | 1.7                      |    |                                                                 | 118.8 |   |
| Gain                on sale of assets, net                                                  |    | (445                        | )      | (0.3                     | )       |    | (2,677)                     |   | (1.6                     | )       |                                                                 | (83.4 | ) |
| Consolidated                total                                                                |    | 11,603                      |   | 8.9                      |    |    | 5,353                       |   | 3.3                      |    |                                                                 | 116.8 |   |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Nonoperating                expense                                                         |    | 273                         |   | 0.2                      |    |    | 442                         |   | 0.3                      |    |                                                                 | (38.2 | ) |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Income                (loss) from continuing operations before income                taxes  |    | (10,449                     | )      | (8.0                     | )       |    | 618                         |   | 0.4                      |    |                                                                 | n/m |   |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Income                taxes (credit)                                                        |    | (1                          | )      | -                        |    |    | 214                         |   | 0.1                      |    |                                                                 | (100.5 | ) |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Net                income (loss) from continuing operations                                 |    | (10,448                     | )      | (8.0                     | )       |    | 404                         |   | 0.3                      |    |                                                                 | n/m |   |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Discontinued                operations:                                                     |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Loss                from operations of discontinued entities, net                                |    | -                           |   | -                        |    |    | (329                        | )      | (0.2                     | )       |                                                                 | 100.0 |   |
| Gain                on sale of assets of discontinued entities, net                              |    | -                           |   | -                        |    |    | 2,835                       |   | 1.7                      |    |                                                                 | (100.0 | ) |
| Income                from discontinued operations                                               |    | -                           |   | -                        |    |    | 2,506                       |   | 1.5                      |    |                                                                 | (100.0 | ) |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
| Net                income (loss)                                                            |  $ | (10,448                     | )      | (8.0                     | )%      | $       | 2,910                       |   | 1.8                      | %       |                                                                 | (459.0 | )% |
|                                                                                             |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |
|  n/m                - not meaningful                                                        |    |                        |   |                     |    |    |                        |   |                     |    |                                                                 |   |   |

Note      9

*Restructuring      Charges and Discontinued Operations*

----

*Index*

|                                           |   | Three                Months |   | Three                Months |    |
|------------------------------------------------|--------|-----------------------------|--------|-----------------------------|---------|
|                                           |   | Ended                       |   | Ended                       |    |
|                                           |   | March                31,    |   | March                31,    |    |
|                                           |   | 2007                        |   |  2006                  |    |
|                                           |   |                        |   |                        |    |   |   |
| (Gain)                loss on sale of assets:  |   |                        |   |                        |    |   |   |
| **Continuing                operations:**      |   |                        |   |                        |    |   |   |
| Texas                property (Grapevine, TX)  |   | $                           | -      |                        | $       | (1,824 | ) |
| Michigan                property (Georgie Boy) |   |                        | (305   | )                           |    | (56 | ) |
| Indiana                property (various)      |   |                        | (140   | )                           |    | (797 | ) |
| Total                                          |   | $                           | (445   | )                           | $       | (2,677 | ) |
|                                           |   |                        |   |                        |    |   |   |
| **Discontinued                operations:**    |   |                        |   |                        |    |   |   |
| Miller                                         |   | $                           | -      |                        | $       | (2,522 | ) |
| Prodesign                                      |   |                        | -      |                        |    | (1,899 | ) |
| All                American Homes - Kansas     |   |                        | -      |                        |    | 76 |   |
| Total                                          |   |                        | -      |                        |    | (4,345 | ) |
| Taxes                                          |   |                        | -      |                        |    | 1,510 |   |
| Total,                net of taxes             |   | $                           | -      |                        | $  | (2,835 | ) |
|                                           |   |                        |   |                        |    |   |   |
| Legal                expense recoveries        |   | $                           | -      |                        | $       | (3,620 | ) |
|                                           |   |                        |   |                        |    |   |   |

----

*Index*

**NET      SALES**

**COST      OF SALES**

*Accounting      Changes and Error Corrections*

**OPERATING      EXPENSES**

----

*Index*

**GAIN      ON THE SALE OF ASSETS, NET**

**INTEREST      EXPENSE**

**INVESTMENT      INCOME**

**OTHER      INCOME, NET**

**PRE-TAX      INCOME (LOSS) **

Note      2

**INCOME      TAXES**

----

*Index*

**DISCONTINUED      OPERATIONS**

**NET      INCOME (LOSS)**

**LIQUIDITY,      CAPITAL RESOURCES AND FINANCIAL CONDITION**

----

*Index*

**CRITICAL      ACCOUNTING POLICIES**

----

*Index*

**FORWARD-LOOKING      STATEMENTS**

| • | the                ability of the new management team to achieve desired                results;                                                                                                                                                                                                                                              |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | interest                rates, which affect the affordability of the Company's                products;                                                                                                                                                                                                                                       |
| • | consumer                confidence and the availability of 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;                                                                                                                                     |
| • | 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 of the Housing Segment to perform in new market segments                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;                                                                                                                                                                                                                                                                   |
| • | oil                supplies;                                                                                                                                                                                                                                                                                                                  |
| • | 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                accuracy of the estimates of the costs to remedy the disclosed                recreational vehicle warranty issues;                                                                                                                                                                                                        |
| • | 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                potential fluctuation in the Company’s operating                results;                                                                                                                                                                                                                                             |
| • | uncertainties                regarding the impact on sales of the disclosed restructuring steps                in both                the Recreational Vehicle and Housing                Segments.                                                                                                                                           |

----

*Index*

----

*Index*

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK**

**ITEM      4. CONTROLS AND PROCEDURES**

----

*Index*

**PART      II. OTHER INFORMATION**

Item      6. Exhibits

Index      to Exhibits 

----

*Index*

**SIGNATURES**

**COACHMEN      INDUSTRIES, INC.**

| Date:                May 7, 2007 | By:    | /s/                Richard M. Lavers                      |
|----------------------------------|--------|-----------------------------------------------------------|
|                             |   | Richard                M. Lavers, Chief Executive Officer |
|                             |   |                                                      |
|                             |   |                                                      |
|                             |   |                                                      |
|                             |   |                                                      |
|                             |   |                                                      |
| Date:                May 7, 2007 | By:    | /s/                Colleen A. Zuhl                        |
|                             |   | Colleen                A. Zuhl, Chief Financial Officer   |
|                             |   |                                                      |
|                             |   |                                                      |

----

*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 September 9, 2005 (incorporated by reference                to the                Company's Form 8-K filed September 15, 2005).                                                                                      |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (10)(a)                                                                                | Form                of the 2007 Restricted Stock Award Agreement and listing of the maximum                number of shares each Executive may earn under the                Agreements.                                                                             |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (10)(b)                                                                                | Entry                into a Material Definitive Contract for production of Modular Units                for                Ft. Bliss.                                                                                                                                |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (18)(a)                                                                                | Preferability                Letter from External Audit Firm regarding Delivery Expense                Reclassification.                                                                                                                                             |
|                                                                                   |                                                                                                                                                                                                                                                                 |
| (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.                                                                                                                                                                                 |

----

----