FORM 10-Q

                   SECURITIES AND EXCHANGE COMMISSION

                        WASHINGTON, D.C.  20549


                     ____________________________


                Quarterly Report Under Section 13 or 15(d)
                 of the Securities Exchange Act of 1934


                     ____________________________


              For the Quarterly Period Ended March 28, 1998

                         Commission File No. 1-8684



                  Excel Industries, Inc.                      
     (Exact name of registrant as specified in its charter)

     Indiana                                   35-1551685        
(State or other jurisdiction        (IRS Employer Identification
of incorporation or organization)    Number)


          1120 North Main Street, Elkhart, Indiana 46514         
(Address of principal executive offices)        (Zip Code)


Registrant's telephone number, including area code: (219)264-2131

Indicate by "X" whether the registrant (a) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months (or for such 
shorter prior that the registrant was required to file such 
reports), and (2) has been subject to such filing requirements 
for the past 90 days.

Yes    X         No        

Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date.

At April 17, 1998, there were outstanding 12,442,594 common 
shares, no par value.

<PAGE>
<TABLE>
                        EXCEL INDUSTRIES, INC.

                                Index
<CAPTION>

                                                        Page No.
<S>      <C>                                                 <C>
PART I   Financial Information

         Consolidated Balance Sheet -
              March 28, 1998 and December 27, 1997              1

         Consolidated Statement of Income -
              Quarter Ended March 28, 1998 and
              March 29, 1997                                    2

         Consolidated Statement of Shareholders'
          Equity -
              Quarter Ended March 28, 1998 and
              March 29, 1997                                    3

         Consolidated Statement of Cash Flows -
              Quarter Ended March 28, 1998 and
              March 29, 1997                                    4

         Notes to Consolidated Financial Statements           5-8

         Management's Discussion and Analysis of
          Financial Condition and Results of Operations      9-11

PART II  Other Information                                     12

         Signatures                                            13

         Letter Dated May 11, 1998 from Price 
          Waterhouse LLP Regarding Change in 
          Accounting Method                            Exhibit 18

         Financial Data Schedules                      Exhibit 27
</TABLE>

<PAGE>
<TABLE>
                         EXCEL INDUSTRIES, INC.
                 CONSOLIDATED BALANCE SHEET (UNAUDITED)
                            (in thousands)
<CAPTION>
                                       March 28,     December 27,
                                         1998             1997
ASSETS
<S>                                    <C>            <C>
Current assets
  Cash and short-term investments      $  1,558       $  2,317
  Marketable securities                  23,997         24,420
  Accounts receivable                   148,467        140,910
  Customer tooling to be billed          24,727         22,356
  Inventories                            39,995         40,929
  Prepaid expenses                       12,195         14,929
        Total current assets            250,939        245,861

Property, plant and equipment,
   less accumulated depreciation of
   (1998 - $126,515; 1997 - $119,361)   164,531        160,968
Other assets                             51,438         50,968
                                       $466,908       $457,797

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
  Accounts payable                     $ 83,020       $ 85,469
  Accrued liabilities                    48,830         41,170
  Current portion of debt                 2,712          2,672
        Total current liabilities       134,562        129,311

Long-term debt                          105,317        105,943
Other long-term liabilities              37,546         37,228
Commitments and contingent liabilities     --            --
Shareholders' equity
  Preferred shares - no par value,
   authorized 1,000 shares,
   none issued                             --            --
  Common shares - no par value,
   authorized 20,000 shares;
   issued and outstanding in 1998,      115,074        114,730
   12,434, in 1997, 12,414
  Retained earnings                      74,409         70,585
        Total shareholders' equity      189,483        185,315
                                       $466,908       $457,797

NOTE:  The balance sheet at December 27, 1997 has been derived
        from the audited financial statements at that date.

The accompanying notes are an integral part of this statement.
</TABLE>

<PAGE>
<TABLE>
                        EXCEL INDUSTRIES, INC.
             CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
                 (thousands, except per share amounts)

<CAPTION>
                                           Quarter Ended
                                     March 28,          March 29,
                                       1998               1997
<S>                                  <C>                <C>
Net sales                            $230,994           $251,216

Cost of goods sold                    203,414            220,218
      Gross profit                     27,580             30,998
Selling, administrative and
 engineering expenses                  17,236             18,923
      Operating income                 10,344             12,075

Interest expense                       (2,278)            (2,769)
Other income, net                          84                390
      Income before income taxes        8,150              9,696
Provision for taxes on income           2,771              3,394
      Net income                     $  5,379           $  6,302

Net income per share:
      Basic                          $    .43           $    .59
      Diluted                        $    .43           $    .53
Cash dividends per share             $   .125           $   .125

The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>

                    EXCEL INDUSTRIES, INC.
   CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
   FOR THE QUARTER ENDED MARCH 28, 1998 AND MARCH 29, 1997
                     (in thousands)
<CAPTION>
                                                      MINIMUM
                                                      PENSION
                              COMMON    RETAINED     LIABILITY
                              SHARES    EARNINGS     ADJUSTMENT
<S>                          <C>        <C>          <C>
Balance at 
 December 27, 1997           $114,730   $ 70,585     $  --      
Net income                                 5,379                
Dividends                                 (1,555)               
Share options exercised            19                           
Shares issued under employee
 stock purchase plan              325                           
Balance at 
 March 28, 1998              $115,074   $ 74,409     $  --       

Balance at 
 December 28, 1996           $ 92,187   $ 58,653     $  (160)   
Net income                                 6,302                
Dividends                                 (1,341)               
Share options exercised             5                           
Shares issued under employee
 stock purchase plan               66                           
Cumulative  translation
 adjustment                                                     
Balance at
 March 29, 1997              $ 92,258   $ 63,614     $  (160)   

<CAPTION>
                            CUMULATIVE
                           TRANSLATION
                            ADJUSTMENT     TOTAL
<S>                           <C>          <C>
Balance at 
 December 27, 1997            $  --        $185,315
Net income                                    5,379
Dividends                                    (1,555)
Share options exercised                          19
Shares issued under employee
 stock purchase plan                            325
Balance at 
 March 28, 1998               $  --        $189,483

Balance at 
 December 28, 1996            $    45      $150,725
Net income                                    6,302
Dividends                                    (1,341)
Share options exercised                           5
Shares issued under employee
 stock purchase plan                             66
Cumulative  translation
 adjustment                      (172)         (172)
Balance at
 March 29, 1997               $  (127)     $155,585

The accompanying notes are an integral part of this statement.
</TABLE>

<PAGE>
<TABLE>
                        EXCEL INDUSTRIES, INC.
            CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                            (in thousands)
<CAPTION>
                                               Quarter Ended
                                            March 28,  March 29,
                                              1998       1997
<S>                                         <C>        <C>
Cash flows from operating activities
   Net income                               $  5,379   $  6,302

Adjustments to reconcile net income
 to net cash from operating activities:
   Depreciation and amortization               7,848      9,178
   Deferred income taxes and other              (273)     1,592
   Changes in current assets and
    liabilities, excluding effect 
    of acquisition:
    Accounts receivable and other             (4,823)    (8,707)
    Inventories and customer tooling          (1,437)       529
    Accounts payable and accrued 
     liabilities                               5,211     15,258
    Total adjustments                          6,526     17,850
 
    Net cash provided by operating
     activities                               11,905     24,152

Cash flows from investing activities
   Purchase of property, plant and
    equipment                                (11,290)    (8,686)
   Investment in marketable securities           423    (11,358)
   Business acquired                            --       (2,741) 
   Net cash used for investing activities    (10,867)   (22,785)

Cash flows from financing activities
   Issuance of common shares                     344         71
   Maturities of long-term debt                 (586)      (654)
   Dividends                                  (1,555)    (1,341)
   Net cash used for financing activities     (1,797)    (1,924)

Net change in cash and short-term investments   (759)      (557)
Cash and short-term investments at 
 beginning of year                             2,317      6,580

Cash and short-term investments at 
 end of first quarter                       $  1,558   $  6,023

Supplemental Schedule of Noncash Activities:
      In connection with the restructuring reserve established 
for plant closures in March, 1997, goodwill was increased by 
$5,400, which is net of income taxes.

The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
                         EXCEL INDUSTRIES, INC.
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               (UNAUDITED)

Note 1 - Basis of Presentation:

The financial statements have been prepared from the unaudited 
financial records of the Company.  In the opinion of management, 
the financial statements include all adjustments consisting only 
of normal recurring adjustments necessary for a fair presentation 
of the results of operations and financial position for the 
interim periods.

Note 2 - Inventories:
<TABLE>
      Inventories consist of the following:
       (in thousands of dollars)
<CAPTION>
                                  March 28,         December 27,
                                   1998               1997
      <S>                        <C>                 <C>
      Raw materials              $21,868             $23,591
      Work in process and
       finished goods             19,463              18,674
      LIFO Reserve                (1,336)             (1,336)
                                 $39,995             $40,929
</TABLE>
Note 3 - Net Income per Share:

At the end of 1997, the Company adopted Statement of Financial 
Accounting Standards (SFAS) No. 128, "Earnings Per Share".  All 
earnings per share amounts reported herein have been restated to 
comply with this Statement.

     Basic net income per share is computed using the weighted 
average number of shares outstanding during the period.  Shares 
used to compute basic net income per share were 12,425,000 for 
1998 and 10,722,000 for 1997.

     Diluted earnings per share assumes, when dilutive, the 
exercise of common share options and warrants outstanding and the 
conversion of the outstanding 10% convertible subordinated notes 
which were converted into common shares in October, 1997.  Shares 
used to compute diluted earnings per share included the number of 
shares used for basic net income per share plus 1,665,000 in 1997 
for the conversion of the notes and 187,000 in 1998 and 150,000 
in 1997 for the exercise of options and warrants.  Net income 
used to compute diluted earnings per share in 1997 included an 
add-back of $358,000 for the after-tax effect of interest on the 
convertible notes.

Note 4 - Comprehensive Income

Net income does not materially differ from comprehensive income.

Note 5 - Contingencies

A chemical cleaning compound, trichloroethylene (TCE), has been 
found in the soil and groundwater on the Company's property in 
Elkhart, Indiana, and in 1981 TCE was found in a well field of 
the City of Elkhart in close proximity to the Company's facility. 
The Company has been named as one of nine potentially responsible 
parties (PRPs) in the contamination of this site.

      In early 1992, the United States Environmental Protection 
Agency (EPA) issued a Unilateral Order under Section 106 of the 
Comprehensive Environmental Response, Compensation and Liability 
Act which required the Company and other PRPs to undertake 
remedial work.  The Company and the other PRPs have reached an 
agreement regarding the funding of groundwater monitoring and the 
operation of the air-strippers as required by the Unilateral 
Order.  The Company was required to install and operate a soil 
vapor extraction system to remove TCE from the Company's 
property.  A lawsuit seeks recovery of the costs of enforcement, 
prejudgment interest and an amount in excess of $6.8 million, 
which represents costs incurred to date by the EPA and the 
Indiana Department of Environmental Management (IDEM), and a 
declaration that eight defendant PRPs are liable for any future 
costs incurred by the EPA and IDEM in connection with the site.  
On August 21, 1996 the United States Department of Justice lodged 
with the United States District Court for the Northern District 
of Indiana a proposed partial consent decree which specifies 
payment of Federal Past Response Costs from certain PRPs which 
for Excel amounted to approximately $3.2 million which together 
with amounts due IDEM would bring Excel's total obligation to 
approximately $3.4 million, which has been accrued by the 
Company.  Comments objecting to the consent decree were lodged 
with the United States Department of Justice (USDOJ) and the 
Court.  In responding to those objections, USDOJ restated its 
support for the consent decree to the Court on May 23, 1997.  The 
consent decree has not yet been accepted by the Court.

      The Company does not believe the annual cost to the Company 
of monitoring groundwater and operating the soil vapor extraction 
system and the air-strippers will be material.  Each of the PRPs, 
including the Company, is jointly and severally liable for the 
entire amount of the EPA Costs.  The Company believes that 
adequate provisions have been recorded for its costs and its 
anticipated share of the EPA Costs and that its cash on hand, 
unused lines of credit or cash from operations are sufficient to 
fund any required expenditures.

The Company has been named a PRP for costs at seven other 
disposal sites.  The remedial investigations and feasibility 
studies have been completed, and the results of those studies 
have been provided to the appropriate agencies.  The studies 
indicated a range of viable remedial approaches, but agreement 
has not yet been reached with the authorities on the final 
remediation approach.  Furthermore, the PRPs for these sites have 
not reached an agreement on the allocation of costs between the 
PRPs.  The Company believes it either has no liability as a 
responsible party or that adequate provisions have been recorded 
for current estimates of the Company's liability and estimated 
legal costs associated with the settlement of these claims.  It 
is reasonably possible that the Company's recorded estimate of 
its obligation may change in the near term.

      There are claims and pending legal proceedings against the 
Company and its subsidiaries with respect to taxes, workers' 
compensation, warranties and other matters arising out of the 
ordinary conduct of the business.  The ultimate result of these 
claims and proceedings at March 28, 1998 is not determinable, 
but, in the opinion of management, adequate provision for 
anticipated costs has been made or insurance coverage exists to 
cover such costs.

Note 6 - Accounting Change

The Company has historically depreciated plant and equipment 
using accelerated depreciation methods for both financial and tax 
reporting purposes.  A survey conducted by the Company confirmed 
that the straight-line method of depreciation is the predominant 
method used throughout the automotive supply industry.  
Accordingly, for new capital expenditures for the 1998 fiscal 
year and thereafter, the Company has adopted the straight-line 
method of depreciation for financial reporting purposes.  The 
Company expects a favorable effect of the change on net income 
for the fiscal year ending January 2, 1999 to be approximately 
$1.2 million or $.08 per share.

Note 7 - Acquisitions

In March, 1998, the Company signed a definitive agreement to 
acquire on July 1, 1998 for cash 70 percent of Schade GmbH & Co. 
KG, Plettenberg, Germany, a privately held long-time automotive 
OEM supplier with which it has had a nine-year non-equity 
technological alliance.  The Company will purchase all shares of 
Schade insiders for approximately $10 million and add 
approximately $15 million of capital to increase shareholders 
equity.  The remaining 30 percent of Schade is owned by Hella KG 
Hueck & Co., another international OEM supplier.  Schade has 
sales and manufacturing operations in Germany, Portugal, Spain, 
the United Kingdom and the Czech Republic. It has annual sales of 
more than $275 million in encapsulated window modules, door 
frames, modular doors, outside trim and injection molded plastic 
components.
<PAGE>
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS


General

The Company has two lines of business to distinguish activities 
for the light vehicle products segment separate from the 
recreational vehicle, mass transit and heavy truck products 
segment (RV/MT/HT).  The light vehicle products segment normally 
experiences reduced sales volumes in the months of July, August 
and December as vacation periods, model changeover and start-up 
and holidays affect the number of production days.  The RV/MT/HT 
products segment is seasonal in that sales in the quarter October 
through December are normally at reduced levels.

Material Changes in Results of Operations:
Quarter Ended March 28, 1998 Compared to
Quarter Ended March 29, 1997

Sales in the first quarter of 1998 decreased 8% or $20.2 million 
to $231.0 million from $251.2 million in 1997.  Sales for the 
light vehicle products segment were $172.5 million in the first 
quarter of 1998 compared to $196.7 million in the 1997 period.  
The decrease was due to the discontinuance of several programs in 
production in the 1997 period.  North American light vehicle 
build was similar in the comparative periods, but our largest 
customer, Ford Motor Company, dropped its long-running Aerostar 
van and Thunderbird/Cougar programs in mid-1997 and ended its 
production of F-Series light trucks with vent windows.  These 
programs accounted for approximately $7 million in revenue in the 
1997 first period.  Approximately $4 million of the decrease was 
due to the parking brake product line which was sold in May, 
1997.  Sales were further affected by approximately $1.5 million 
for customer selling price reductions associated with long-term 
supply agreements.  The remainder of the decrease was due to 
changes in customers product mix, predominantly lower passenger 
car production and higher light truck and sport utility vehicles. 
For the RV/MT/HT products segment sales increased to $58.5 
million in 1998 from $54.5 million in 1997.

     Gross profit was $27.6 million in the current quarter or 
11.9% of sales, down from $31.0 million or 12.3% of sales in the 
first quarter of 1997.  The lower gross margins were due to lower 
sales volumes in the light vehicle products segment ($2.5 
million), the effects of the selling price reductions due to 
long-term supply agreements ($1.5 million) and increased launch 
costs for new products ($600,000).  These reductions were offset 
by higher sales volumes in the RV/MT/HT products segment 
($800,000) and product mix ($400,000).

     The Company has historically depreciated plant and equipment 
using accelerated depreciation methods for both financial and tax 
reporting purposes.  A survey conducted by the Company confirmed 
that the straight-line method of depreciation is the predominant 
method used throughout the automotive supply industry.  
Accordingly, for capital expenditures for the 1998 fiscal year 
and thereafter, the Company has adopted the straight-line method 
of depreciation for financial reporting purposes.  The Company 
expects a favorable effect of the change on net income for the 
fiscal year ending January 2, 1999 to be approximately $1.2 
million or $.08 per share.

     Selling, administrative and engineering expenses totaled 
$17.2 million in the first quarter of 1998, down from $18.9 
million in the 1997 first quarter.  Approximately $1.1 million of 
the decrease was due to the administrative costs of the 
facilities closed in late 1997 and $300,000 was due to lower 
accruals for management incentive bonuses in 1998.

     Interest expense totaled $2,278,000 in 1998 down from 
$2,769,000 in the year ago first quarter.  The decrease was due 
to the conversion of the 10% convertible subordinated notes into 
common shares of the Company in October, 1997.

     Other income of $84,000, consists of primarily interest 
income on marketable debt securities less $245,000 for the 
Company's share of losses in its Brazilian joint venture.  The 
$390,000 in the 1997 first quarter was primarily interest income 
on marketable securities.

     Provision for taxes on income was at an effective rate of 
34% for 1998, down from 35% in 1997.  The reduction was due to 
increased tax credits expected for 1998.

Material Changes in Financial Condition:

For the quarter ended March 28, 1998 cash flow from operations 
totaled $11.9 million and $11.3 million was used for capital 
expenditures and an additional $1.6 million for dividends.  
Capital expenditures for the year are estimated to be $42 
million.

     Cash and short-term marketable securities amounted to $25.6 
million at March 28, 1998, a decrease of $1.2 million from 
December 27, 1997.  At March 28, 1998, the Company had available 
unused lines of credit of approximately $55 million.  For the 
remainder of 1998 the Company expects its current cash balances, 
operating cash flow and available credit lines to be sufficient 
to finance operating cash needs, capital expenditures, the 
acquisition of Schade and any environmental clean-up 
requirements.

     In March, 1998, the Company signed a definitive agreement to 
acquire on July 1, 1998 for cash 70 percent of Schade GmbH & Co. 
KG, Plettenberg, Germany, a privately held long-time automotive 
OEM supplier with which it has had a nine-year non-equity 
technological alliance.  The Company will purchase all shares of 
Schade insiders for approximately $10 million and add 
approximately $15 million of capital to increase shareholders 
equity.  The remaining 30 percent of Schade is owned by Hella KG 
Hueck & Co., another international OEM supplier.  Schade has 
sales and manufacturing operations in Germany, Portugal, Spain, 
the United Kingdom and the Czech Republic.  It has annual sales 
of more than $275 million in encapsulated window modules, door 
frames, modular doors, outside trim and injection molded plastic 
components.

     The Company entered into a 1994 Supply Agreement with Ford 
Motor Company which requires the absorption of the effects of 
inflation and requires specified price reductions or productivity 
offsets to price reductions.  The Company believes that this type 
of agreement is typical in the automotive supply business, and 
the Company's ability to maintain gross margins at or near their 
present levels will be dependent on its ability to substantially 
offset the effects of this and other such agreements through 
productivity improvements, cost reduction programs and 
implementation of value analysis/value engineering programs, 
which reduce part weight and system costs to the customer.

     The Company has started a program to ensure year 2000 
compliance (Y2K) issues.  This program addresses software 
applications computer controlled manufacturing processes as well 
as obtaining assurance that vendors supplying services and 
materials will be Y2K compliant.  Costs to administer this 
program are estimated not to exceed $250,000.

Forward-Looking Statements

This report contains certain forward-looking statements which 
involve certain risks and uncertainties.  Such statements are 
subject to certain risks and uncertainties which could cause 
actual results to differ materially from those anticipated.  
Potential risks and uncertainties include economic factors, 
concentration of a substantial percentage of sales in a few major 
OEM customers, and other business factors.  Readers are cautioned 
not to place undue reliance on those forward-looking statements 
which speak only as of the date of this report.

<PAGE>
                     PART II.  OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K

        (a)  Exhibits
             18.  Letter dated May 11, 1998 from Price Waterhouse 
                  LLP regarding change in accounting method.

        (b)  Reports on Form 8-K
             None
<PAGE>
                            SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 
1934, the registrant has duly caused this report to be signed on 
its behalf by the undersigned hereunto duly authorized.
<TABLE>
                                     EXCEL INDUSTRIES, INC.
                                         (Registrant)


<S>    <C>                               <C>
Date:  May 11, 1998                      s/ James O. Futterknecht
                                          James O. Futterknecht
                                          Chairman, President and
                                          Chief Executive Officer



Date:  May 11, 1998                      s/ Joseph A. Robinson   
                                          Joseph A. Robinson
                                          Senior Vice President,
                                          Secretary and 
                                          Chief Financial Officer 



Date:  May 11, 1998                      s/ Ike K Eikelberner    
                                          Ike K. Eikelberner
                                          Vice President,
                                          Corporate Controller
                                          and Chief Accounting
                                          Officer
</TABLE>