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                    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


             For the Quarter Ended          Commission File Number
                MARCH 31, 1998                      0-13611


                           SPARTAN MOTORS, INC.
          (Exact Name of Registrant as Specified in Its Charter)

                     MICHIGAN                         38-2078923
          (State or Other Jurisdiction of          (I.R.S. Employer
          Incorporation or Organization)         Identification No.)

                1000 REYNOLDS ROAD
                CHARLOTTE, MICHIGAN                     48813
     (Address of Principal Executive Offices)         (Zip Code)

    Registrant's Telephone Number, Including Area Code:  (517) 543-6400

Indicate by check mark whether the registrant (1) 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 period 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.




                                                OUTSTANDING AT
                     CLASS                       MAY 12, 1998
                     -----                       ------------
                                       
         Common stock, $.01 par value         12,560,991 shares



===========================================================================



                           SPARTAN MOTORS, INC.

                                   INDEX
                  ======================================


PART I.  FINANCIAL INFORMATION
                                                                         PAGE
     Item 1. Financial Statements:

         Condensed Consolidated Balance Sheets - March 31, 1998
             (Unaudited) and December 31, 1997                              3

         Condensed Consolidated Statements of Net Earnings -
             Three Months Ended March 31, 1998 and 1997
             (Unaudited)                                                    5

         Condensed Consolidated Statements of Cash Flows -
             Three Months Ended March 31, 1998 and 1997
             (Unaudited)                                                    6

         Notes to Condensed Consolidated Financial Statements               8

     Item 2. Management's Discussion and Analysis of Financial
             Condition and Results of Operations                           11

PART II.  OTHER INFORMATION

     Item 6.  Exhibits and Reports on Form 8-K                             17

SIGNATURES                                                                 18



















                                      -2-

                      PART I.  FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS


                                       SPARTAN MOTORS, INC.

                                   CONSOLIDATED BALANCE SHEETS
                              --------------------------------------


                                                             MARCH 31, 1998        DECEMBER 31, 1997
                                                             --------------        -----------------
                                                              (Unaudited)
                                                                               
ASSETS

CURRENT ASSETS
    Cash and cash equivalents                                 $ 1,367,252             $ 4,812,438
    Investment securities                                       2,820,109               2,893,167
    Accounts receivable, less allowance
       for doubtful accounts of $678,000
       in 1998 and $924,000 in 1997                            26,866,455              26,875,828
    Inventories (Note 4)                                       38,274,197              27,033,117
    Deferred tax benefit                                        3,057,586               2,861,250
    Federal taxes receivable                                       55,729                 513,379
    Other current assets                                          711,059                 591,909
                                                              -----------             -----------

       TOTAL CURRENT ASSETS                                    73,152,387              65,581,088
                                                              ===========             ===========

Property, Plant and Equipment,
    net of accumulated depreciation
    of $10,056,000 and $9,734,000 in
    1998 and 1997, respectively                                12,021,753              11,891,496

Equity Investment in Affiliate (Note 5)                                --                      --
Goodwill, net of accumulated amortization
    of $173,000 and $77,000 in 1998 and
    1997, respectively                                          5,584,048               3,378,408
Other Assets                                                      378,243                 394,638
                                                              -----------             -----------

       TOTAL ASSETS                                           $91,136,431             $81,245,630
                                                              ===========             ===========



See notes to consolidated financial statements.


                                      -3-


                                       SPARTAN MOTORS, INC.

                                   CONSOLIDATED BALANCE SHEETS
                              --------------------------------------


                                                             MARCH 31, 1998        DECEMBER 31, 1997
                                                             --------------        -----------------
                                                              (Unaudited)
                                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
    Accounts payable                                          $12,992,220             $12,001,995
    Other current liabilities and accrued expenses              1,981,381               1,469,211
    Accrued warranty expense                                    3,385,813               3,070,780
    Accrued customer rebates                                      523,365                 695,367
    Taxes on income                                             2,147,437               1,708,090
    Accrued compensation and related taxes                      1,052,984               1,301,525
    Accrued vacation                                              853,660                 720,788
    Deposits from customers                                     2,797,572               3,184,367
                                                              -----------             -----------

       TOTAL CURRENT LIABILITIES                               25,734,432              24,152,123

Long-Term Debt                                                 15,623,381               9,603,785

SHAREHOLDERS' EQUITY:
    Preferred Stock, no par value: 2,000,000
       shares authorized (none issued)
    Common Stock, $.01 par value, 23,900,000 shares
       authorized, issued 12,560,991 shares
       in 1998 and 12,335,960 shares in 1997                      125,610                 123,360
    Additional Paid in Capital                                 24,171,059              22,700,965
    Retained earnings                                          25,522,108              24,683,476
    Valuation allowance                                           (40,159)                (18,079)
                                                              -----------             -----------

       TOTAL SHAREHOLDERS' EQUITY                              49,778,618              47,489,722
                                                              -----------             -----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                    $91,136,431             $81,245,630
                                                              ===========             ===========



See notes to consolidated financial statements.




                                      -4-


                                       SPARTAN MOTORS, INC.

                       CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)
                              --------------------------------------


                                                                          THREE MONTHS ENDED MARCH 31,
                                                                       ----------------------------------
                                                                          1998                   1997
                                                                       -----------            -----------
                                                                                       
SALES                                                                  $59,156,255            $45,787,583
COST OF PRODUCTS SOLD                                                   50,470,479             38,653,503
                                                                       -----------            -----------
GROSS PROFIT                                                             8,685,776              7,134,080

OPERATING EXPENSES
    Research and development                                             1,317,300              1,111,328
    Selling, general and administrative                                  4,219,683              3,326,257
                                                                       -----------            -----------
OPERATING INCOME                                                         3,148,793              2,696,495

OTHER INCOME (EXPENSE)
    Interest Expense                                                      (217,627)              (254,568)
    Interest and Other Income                                              293,950                372,914
                                                                       -----------            -----------
EARNINGS BEFORE TAXES AND EQUITY IN LOSS
    OF AFFILIATE                                                         3,225,116              2,814,841

EQUITY IN LOSS OF AFFILIATE                                              1,250,000              1,669,201
                                                                       -----------            -----------
EARNINGS BEFORE TAXES ON INCOME                                          1,975,116              1,145,640

TAXES ON INCOME                                                          1,036,879              1,095,000
                                                                       -----------            -----------
NET EARNINGS                                                           $   938,237            $    50,640
                                                                       ===========            ===========

BASIC AND DILUTED NET EARNINGS PER SHARE                               $      0.07            $      0.01
                                                                       ===========            ===========
BASIC AND DILUTED WEIGHTED AVERAGE COMMON
    SHARES OUTSTANDING                                                  12,528,000             12,411,000
                                                                       ===========            ===========








                                      -5-


                                       SPARTAN MOTORS, INC.
               CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS/(LOSS)(UNAUDITED)


                                                                          THREE MONTHS ENDED MARCH 31,
                                                                       ----------------------------------
                                                                          1998                   1997
                                                                       -----------            -----------
                                                                                       
Net Earnings                                                           $   938,237            $    50,640
Unrealized losses on investment securities, net of tax                      40,159                102,901
                                                                       -----------            -----------
TOTAL COMPREHENSIVE EARNINGS/(LOSS)                                    $   898,078            $   (52,261)
                                                                       ===========            ===========



See notes to consolidated financial statements.

































                                      -6-


                                       SPARTAN MOTORS, INC.

                         CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                              --------------------------------------


                                                                            THREE MONTHS ENDED MARCH 31,
                                                                          -------------------------------
                                                                             1998                 1997
                                                                          -----------         -----------
                                                                                       
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net earnings                                                          $   938,237         $    50,640
    Adjustments to reconcile net earnings to net cash
    (used in) provided by operating activities:
        Depreciation and amortization                                         582,628             452,654
        Gain on sales of assets and marketable securities                          --             (79,144)
        Equity in net loss of affiliate                                     1,250,000           1,669,201
        Decrease (increase) in:
            Accounts receivable                                               359,159          (2,436,071)
            Inventories                                                    (8,027,682)           (508,163)
            Deferred tax benefit                                                   --              16,309
            Federal taxes receivable                                          457,650             925,000
            Other assets                                                      100,134            (433,807)
        Increase (decrease) in:
            Accounts payable                                                 (388,554)          2,018,794
            Other current liabilities and accrued expenses                    418,438            (605,555)
            Accrued warranty expense                                           80,033             (93,260)
            Accrued customer rebates                                         (172,002)            121,564
            Taxes on income                                                   439,347              83,200
            Accrued vacation                                                  (12,482)             24,000
            Accrued compensation and related taxes                           (544,938)            322,665
            Deposits from customers                                          (845,934)                 --
                                                                          -----------         -----------
        TOTAL ADJUSTMENTS                                                  (6,304,203)          1,477,387
                                                                          -----------         -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                        (5,365,966)          1,528,027
CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchases of property, plant and equipment                               (231,125)           (405,133)
    Proceeds from sales of property, plant and equipment                       27,704              11,600
    Purchases of investment securities                                       (338,658)           (600,000)
    Proceeds from sales of investment securities                              400,000           3,862,969
    Investment in Affiliate                                                (1,250,000)        (10,000,000)
    Acquisition of subsidiary, net of cash received                        (1,661,787)                 --
                                                                          -----------         -----------
NET CASH USED IN INVESTING ACTIVITIES                                      (3,053,866)         (7,130,564)

                                                                                               (Continued)



                                      -7-


                                       SPARTAN MOTORS, INC.

                    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - CONTINUED
                              --------------------------------------


                                                                            THREE MONTHS ENDED MARCH 31,
                                                                          -------------------------------
                                                                             1998                 1997
                                                                          -----------         -----------
                                                                                       
CASH FLOWS FROM FINANCING ACTIVITIES:
    Payments on notes payable                                             $  (236,177)
    Proceeds from long-term debt                                            6,000,000         $ 5,000,000
    Payments on long-term debt                                               (676,092)           (173,206)
    Net proceeds from exercise of stock options                                24,140              80,124
    Purchase of treasury stock                                               (137,225)                 --
                                                                          -----------         -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                   4,974,646           4,906,918

                                                                          -----------         -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                                  (3,445,186)           (695,619)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                            4,812,438           4,912,001
                                                                          ===========         ===========

CASH AND CASH EQUIVALENTS AT END OF PERIOD                                $ 1,367,252         $ 4,216,382
                                                                          ===========         ===========





SUPPLEMENTAL DISCLOSURES:  Cash paid for interest was $267,000 and $257,000
for the three months ended March 31, 1998 and 1997, respectively.  Cash paid
for income taxes was $636,000 and $73,000 for the three months ended March 31,
1998 and 1997, respectively.












See notes to consolidated financial statements.

                                      -8-

                           SPARTAN MOTORS, INC.

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  --------------------------------------


NOTE 1   For a description of the accounting policies followed refer to
         the notes to the Company's annual consolidated financial
         statements for the year ended December 31, 1997, included in Form
         10-K filed with the Securities and Exchange Commission on March
         31, 1998.

         Effective January 1, 1998, the Company adopted Statement of
         Financial Accounting Standard No. 130, "Reporting Comprehensive
         Income" which requires that all items recognized as components of
         other comprehensive income be reported in the financial statements.
         Comprehensive income for the Company generally represents items that
         are reported as components of shareholders' equity in accordance with
         generally accepted accounting principles but have not been recognized
         as part of net income, such as unrealized gains or losses on
         investment securities and foreign currency translation adjustments.

NOTE 2   The accompanying unaudited interim consolidated financial
         statements reflect all normal and recurring adjustments that are
         necessary for fair presentation of the financial position as of
         March 31, 1998, and the results of operations for the three month
         periods ended March 31, 1998 and 1997.

NOTE 3   The results of operations for the three month period ended March
         31, 1998 are not necessarily indicative of the results to be
         expected for the full year.

NOTE 4   Inventories consist of raw materials and purchased components,
         work in process and finished goods and are summarized as
         follows:



                                                                   MARCH 31, 1998        DECEMBER 31, 1997
                                                                   --------------        -----------------
                                                                                  
           Finished goods                                           $ 3,789,441             $ 2,801,432
           Raw materials and purchased components                    30,069,957              21,721,297
           Work in process                                            5,950,849               3,612,888
           Obsolescence reserve                                      (1,545,050)             (1,102,500)
                                                                    -----------             -----------
                                                                    $38,274,197             $27,033,117
                                                                    ===========             ===========




                                      -9-

NOTE 5   The Company has a 33% interest in Carpenter Industries, Inc.
         ("Carpenter").  Carpenter is a manufacturer of school bus bodies
         and chassis.  The Company advanced $1,250,000 to Carpenter during
         the first quarter of 1998, which was written off to record the
         Company's share of Carpenter's net loss for the quarter.  The
         Company accounts for its investment in Carpenter using the equity
         method of accounting.  A summary of Carpenter's balance sheet as of
         March 31, 1998 and the results of its operations for the three-month
         period ended March 31, 1998 are as follows:



                                                                        MARCH 31, 1998
                                                                        --------------
                                                                         (Unaudited)
                                                                  
           BALANCE SHEET
                Current Assets                                           $30,918,086
                Total Assets                                              46,213,382
                Current Liabilities                                       32,192,723
                Total Liabilities                                         50,382,323
                Shareholders' Equity                                      (4,168,941)
                Total Liabilities and Shareholders' Equity                46,213,382

           INCOME STATEMENT
                Revenues                                                   9,923,322
                Loss from Operations                                      (3,541,649)
                Net Loss                                                  (4,572,663)



         A going concern opinion was issued for Carpenter for its year
         ended December 31, 1997.  Therefore, the Company's investment in
         Carpenter had been impaired.  The Company has written down its
         investment in Carpenter to zero.

         On March 31, 1998, the shareholders of Carpenter, including the
         Company, entered into a Contribution, Subscription and Stock
         Purchase Agreement whereby $1.0 million of new capital was invested
         by two shareholders and a commitment was made by the third
         shareholder to invest approximately $0.5 million.  Carpenter
         actively is pursuing the refinancing of its entire debt and upon the
         completion of such refinancing, with certain termination rights, the
         shareholders have agreed to make additional contributions to
         Carpenter.

NOTE 6   During the three months ended March 31, 1998 shareholders'
         equity changed as follows:




                                      -10-





                                                              
           Balance at December 31, 1997                              $47,489,722
           Net earnings                                                  938,237
           Exercise of stock options                                      24,140
           Purchase of treasury stock                                   (137,225)
           Stock issued in purchase of subsidiary                      1,485,824
           Valuation allowance - investment securities                  (22,080)
                                                                     -----------
           Balance at March 31, 1998                                 $49,778,618
                                                                     ===========



NOTE 7   On January 7, 1998, the Company purchased all of the outstanding
         stock of Road Rescue, Inc. ("Road Rescue"), a manufacturer of
         emergency vehicles, including ambulances, rescue vehicles, and
         critical care units.  The purchase price paid for Road Rescue was
         approximately $3.3 million, including cash consideration of
         approximately $1.8 million with the balance funded through the
         issuance of 240,133 shares of the Company's Common Stock.  The
         fair market value of the Company's Common Stock on the effective
         date of the transaction was $6-3/16 per share. Funds for the
         payment of the purchase price were provided primarily through the
         Company's line of credit.  The acquisition was accounted for using
         the purchase method and, accordingly, the assets and liabilities
         of the acquired entity have been recorded at their estimated fair
         value at the date of the acquisition.  The excess of purchase
         price over the estimated fair value of the net assets acquired,
         approximately $2.4 million, has been recorded as goodwill, which
         is being amortized over 15 years.  The fair values of the assets
         acquired and the liabilities assumed were as follows:  current
         assets of approximately $3.9 million; property, plant and
         equipment of approximately $0.4 million; other assets of
         approximately $0.1 million; current liabilities of approximately
         $3.3 million; and long-term liabilities of approximately $0.3
         million.

         The following unaudited pro forma results of operations for the
         three months ended March 31, 1998 and 1997 assume the
         acquisitions occurred at the beginning of the respective periods.
         These unaudited pro forma results have been prepared for
         comparative purposes only and do not purport to be indicative of
         what would have occurred had the acquisition been in effect on
         the dates indicated, or of the results which may occur in the
         future.




                                      -11-





                                                             FOR THE THREE MONTHS ENDED MARCH 31,
                                                             ------------------------------------
                                                                1998                     1997
                                                             -----------              -----------
                                                                            
           Net sales                                         $59,156,255              $50,971,511
           Net earnings                                          938,237                  103,924
           Basic and diluted earnings per share              $      0.07              $      0.01





NOTE 8   The Financial Accounting Standards Board has issued SFAS No.
         131 "Disclosures about Segments of an Enterprise and Related
         Information."  This statement is effective for fiscal years
         beginning after December 15, 1997.  As interim financial
         statements are not required to reflect this statement in the
         first year of adoption, the Company will adopt SFAS No. 131
         during the fourth quarter of 1998.


ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS

     The following is a discussion of the major elements impacting the
Company's financial and operating results for the period ended March 31,
1998 compared to the period ended March 31, 1997.  The comments that follow
should be read in conjunction with the Company's consolidated financial
statements and related notes contained in this Form 10-Q.

RESULTS OF OPERATIONS

     The following table sets forth, for the periods indicated, the
components of the Company's consolidated statements of net earnings, on an
actual basis, as a percentage of revenues:












                                      -12-

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (CONTINUED)



                                                                          THREE MONTHS ENDED MARCH 31,
                                                                         ------------------------------
                                                                          1998                    1997
                                                                         ------                  ------
                                                                                       
        Revenues                                                         100.0%                  100.0%
        Cost of Product Sold                                              85.3%                   84.4%
                                                                         -----                   -----
        Gross Profit                                                      14.7%                   15.6%
        Operating Expenses:
            Research and development                                       2.2%                    2.4%
            Selling, general and administrative                            7.2%                    7.3%
                                                                         -----                   -----
        Income from operations                                             5.3%                    5.9%
        Other                                                              0.1%                    0.2%
                                                                         -----                   -----
        Earnings before loss on equity investment,
            minority interest and taxes on income                          5.4%                    6.1%
        Equity in loss of affiliate                                        2.1%                    3.6%
        Taxes on income                                                    1.7%                    2.4%
                                                                         -----                   -----
        Net earnings                                                       1.6%                    0.1%
                                                                         -----                   -----



THREE MONTH PERIOD ENDED MARCH 31, 1998, COMPARED TO THE THREE MONTH PERIOD
ENDED MARCH 31, 1997

     For the three months ended March 31, 1998 consolidated sales
increased $13.4 million (29.3%) over the amount reported for the same
period in the previous year.  The Emergency Vehicle Group provided
approximately $12.5 million in sales during the first quarter of 1998 and
was not consolidated with the Company during the first quarter of 1997.

     Chassis sales for the three months ending March 31, 1998 increased
$0.9 million (1.9%) compared to the sales reported for the same period in
1997.  For the first quarter of 1998, motorhome chassis sales increased
12.2% compared to the first quarter of 1997, primarily due to the increase
in market demand for recreational vehicles.  Fire truck chassis sales
decreased 27.5% during the first quarter of 1998 compared to the same
period for 1997.  With the acquisition of two of the Company's customers,
Luverne Fire Apparatus Co., Ltd. and Quality Manufacturing, Inc., $1.9
million of chassis that were in the inventory of the new subsidiaries at
March 31, 1998 had to be eliminated from consolidated sales.  In previous


                                      -13-

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (CONTINUED)

years, these chassis would have been considered sales for the Company.
Additionally, the reduction of sales reflects the soft market during 1997.
The backlog for fire trucks, at March 31, 1998, is 8.8% above the previous
year in response to the strengthening of the market and the demand for the
Company's Advantage product line. Bus sales for the first quarter of 1998
have increased 121.3% over the same period for 1997 primarily due to the
introduction of Z2, the Company's new tour bus chassis.

     Gross profit increased $1.6 million for the first quarter of 1998
compared to the first quarter of 1997.  The increase primarily is due to
the contribution of the Emergency Vehicle Group and the increased
sales of the chassis.  Gross profit as a percentage of sales declined from
15.6% for the first quarter of 1997 to 14.7% for the first quarter of 1998.
The Emergency Vehicle Group operates at lower margins than the Chassis
Group since their value added is in the body rather than the chassis.  Also,
the change in product mix, the increase in bus chassis sales and decrease
in fire truck chassis sales during the first quarter of 1998 compared to
the first quarter of 1997, depressed the Company's gross margin percentage.

     Operating expenses declined from 9.7% of sales for the first quarter
of 1997 compared to 9.4% for the first quarter of 1998.  The decline is
primarily due to a 2% decline in Chassis Group operating expenses from
the first quarter of 1997 to the first quarter of 1998.  Also, the reduction
in operating expenses as a percentage of sales reflects the Company's
continued efforts to increase efficiencies and reduce costs.

     The equity in loss of affiliate is the result of Carpenter losing $4.6
million during the first quarter of 1998. In an effort to minimize the impact
of the losses, during the first quarter of 1998, Carpenter management began to
dispose of fixed assets and inventory that are nonessential to continuing
operations and have streamlined their production efforts and reduced
production and operating costs.

     On March 31, 1998, the shareholders of Carpenter, including the
Company, entered into a Contribution, Subscription and Stock Purchase
Agreement whereby $1.0 million of new capital was invested by two
shareholders and a commitment was made by the third shareholder to invest
approximately $0.5 million.  Carpenter actively is pursuing the refinancing
of its entire debt and upon the completion of such refinancing, with
certain termination rights, the shareholders have agreed to make additional
contributions to Carpenter.

     Total chassis orders received decreased 3.1% during the three months
ended March 31, 1998 compared to the same period in 1997.  The decrease in
orders primarily is attributed to the Company's school bus and motorhome
product lines.  Based on average order lead-time, the Company estimates
that approximately one-half of the motorhome, one-third of the
                                      -14-

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (CONTINUED)

bus/specialty and none of the fire truck orders received during the three-
month period ended March 31, 1998 were produced and delivered by March 31,
1998.

     At March 31, 1998, the Company had approximately $81.1 million in
backlog chassis orders compared with a backlog of approximately $56.1
million for the same period in 1997.  While orders in backlog are subject
to modification, cancellation or rescheduling by customers, the Company has
not experienced significant modification, cancellation or rescheduling of
orders in the past.  Although the backlog of unfilled orders is one of many
indicators of market demand, several factors, such as changes in production
rates, available capacity, new product introductions and competitive
pricing actions, may affect actual sales.  Accordingly, a comparison of
backlog from period to period is not necessarily indicative of eventual
actual shipments.

LIQUIDITY AND CAPITAL RESOURCES

     For the three months ended March 31, 1998 cash used in operating
activities was $5.4 million compared to cash provided by operations of $1.5
million for the three months ended March 31, 1997.  The use of cash
primarily relates to an increase in inventory since December 31, 1997.
This inventory build up was due to the change in engine design to meet
requirements of the Environmental Protection Agency and the components
associated with this design change. Working capital increased $6.0 million,
from $41.4 million to $47.4 million, during the three months ended March 31,
1998. See the Consolidated Statement of Cash Flows contained in this Form
10-Q for further information regarding the $3.4 million decrease in cash and
cash equivalents from $4.8 million at December 31, 1997 to $1.4 million at
March 31, 1998.

     Shareholders' equity increased from approximately $47.5 million as of
March 31, 1997 to approximately $49.8 million as of March 31, 1998.  This
change primarily is due to the result of net earnings of $0.9 million and
stock issued in purchase of Road Rescue of $1.5 million.  See Note 7 of the
financial statements in this Form 10-Q for further information regarding the
acquisition of Road Rescue.  The Company's debt to equity ratio increased to
31.4% on March 31, 1998, compared with 20.2% at December 31, 1997 due to the
$1.5 million of term debt used to finance the acquisition of Road Rescue and
the increase in borrowing due to the increased inventory.

     The Company's primary unsecured line of credit with a bank provides
for maximum borrowings of $20.0 million at 45 basis points above the 30-day
LIBOR, which was 6.13% at March 31, 1998.  As of March 31, 1998, there were
no borrowings against this line.  In addition, under the terms of its
credit agreement with its bank, the Company has the ability to issue

                                      -15-

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (CONTINUED)

letters of credit totaling $0.4 million.  At March 31, 1998, the Company had
outstanding letters of credit totaling $0.2 million.  The Company also has
unsecured lines of credit at its subsidiary locations for $0.75 million and
$1.0 million.  There were no borrowings on these lines of credit at March
31, 1998.  The Company believes it has sufficient resources from cash flows
from operating activities and, if necessary, from additional borrowings
under its lines of credit to satisfy ongoing cash requirements for the next
12 months.

EFFECT OF INFLATION

     Inflation affects the Company in two principal ways.  First, the
Company's debt is tied to the prime and LIBOR rates so that increases
affecting interest rates may be translated into additional interest
expense.  Second, general inflation impacts prices paid for labor, parts
and supplies.  Whenever possible, the Company attempts to cover increased
costs of production and capital by adjusting the selling prices of its
products.  However, the Company normally does not attempt to negotiate
inflation-based price adjustment provisions into its contracts.  Since
order lead times can be as much as six months, Spartan has limited ability
to pass on cost increases to its customers on a short-term basis.  In
addition, the markets served by the Company are competitive in nature, and
competition limits the pass through of cost increases in many cases.  The
Company strives to minimize the effect of inflation through cost reductions
and improved productivity.

YEAR 2000 COMPLIANCE

     The Company is currently in the process of addressing a potential
problem that is facing all users of automated information systems.  The
problem is that many computer systems that process transactions based on
two digits representing the year of transaction may recognize a date using
"00" as the year 1900 rather than the year 2000.  The problem could affect
a wide variety of automated information systems, in the form of software
failure, errors or miscalculations.

     The Company established a Year 2000 task force and developed a plan to
prepare for the year 2000 in 1998.  This plan began with the performance of
an inventory of software applications and communicating with third party
vendors and suppliers.  The Company has a plan, which regularly is updated
and monitored by technical personnel.  Plan status regularly is review by
management of the Company.

     The Company will continue to assess the impact of the Year 2000 issue
on the remainder of its computer-based systems and applications throughout
1998.  The Company's goal is to perform tests of its systems ad

                                      -16-

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (CONTINUED)

applications during 1998 and to have all systems and applications compliant
with the century change by December 31, 1998, allowing 1999 to be used for
full validation and testing.

     The costs associated with the Year 2000 compliance primarily will
consist of personnel expense for staff dedicated to the effort and
professional fees paid to third party providers of remedial services.  It
is the Company's policy to expense such costs as incurred.  The Company
also may invest in new or upgraded technology that has definable value
lasting beyond 2000.  In these instances, where Year 2000 compliance is
merely ancillary, the Company may capitalize and depreciate such an asset
over its estimated useful life.

     In addition to reviewing its own computer operating systems and
applications, the Company will have formal communications with its
significant suppliers and large customers to determine the extent to which
the Company's interface systems are vulnerable to those of third parties'
failure to resolve their own Year 2000 issues.  There is no assurance that
the systems of other companies on which the Company's systems rely will be
converted in a timely manner.  If such modification and conversions are not
made, or are not completed timely, the Year 2000 issue could have an
adverse impact on the operations of the Company.

     Based on currently available information, management does not
presently anticipate that the costs to address the Year 2000 issues will
have as adverse impact on the Company's financial conditions, results of
operation or liquidity.

     The date on which the Company believes it will complete the Year 2000
modifications are based on management's best estimates.  There can be no
guarantee that these estimates will be achieved and actual results could
differ from those anticipated.  Specific factors that might cause
differences include, but are not limited to, the ability of other companies
on which the Company's systems rely to modify or convert their systems to
be Year 2000 compliant, the ability to locate and correct all relevant
computer code and similar circumstances.

FORWARD-LOOKING STATEMENTS

     This report contains forward-looking statements that are based on
management's beliefs, assumptions, current expectations, estimates and
projections about the chassis market, the economy and about the Company
itself. Words such as "anticipates," "believes," "estimates," "expects,"
"forecasts," "intends," "is likely," "plans," "projects,"  variations of
such words and similar expressions are intended to identify such forward-
looking statements.  These statements are not guarantees of future

                                      -17-

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
           RESULTS OF OPERATIONS (CONTINUED)

performance and involve certain risks, uncertainties and assumptions
("Future Factors") that are difficult to predict with regard to
timing, extent, likelihood and degree of occurrence.  Therefore, actual
results and outcomes may differ materially from what may be expressed or
forecasted in such forward-looking statements.  The Company undertakes no
obligation to update, amend or clarify forward-looking statements, as a
result of new information, future events or otherwise.  Future Factors that
could cause a difference between a ultimate actual outcome and a preceding
forward-looking statement include, but are not limited to, changes in
interest rates; demand for products and services; the degree of competition
by competitors; changes in laws or regulations, including changes related
to safety standard adopted by NFPA; changes in prices, levies and
assessments; the impact of technological advances; government and
regulatory policy changes; trends in customer behaviors; dependence on key
personnel; and the vicissitudes of the world and national economy.
































                                      -18-


                        PART II.  OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  EXHIBITS.  The following documents are filed as exhibits to this
report on Form 10-Q:

    EXHIBIT NO.               DOCUMENT

       3.1      Spartan Motors, Inc. Restated Articles of Incorporation.
                Previously filed as an exhibit to the Company's Annual
                Report on Form 10-K for the period ended December 31, 1995,
                and incorporated herein by reference.

       3.2      Spartan Motors, Inc. Bylaws (restated to reflect all
                amendments).  Previously filed as an exhibit to the
                Company's Annual Report on Form 10-K for the period ended
                December 31, 1995, and incorporated herein by reference.

       4.1      Restated Articles of Incorporation.  See Exhibit 3.1 above.

       4.2      Bylaws.  See Exhibit 3.2 above.

       4.3      Form of Stock Certificate.  Previously filed as an exhibit to
                the Registration Statement on Form S-18 (Registration No.
                2-90021-C) filed on March 19, 1984, and incorporated herein
                by reference.

       4.4      Rights Agreement dated June 4, 1997, between Spartan Motors,
                Inc. and American Stock Transfer and Trust Company.
                Previously filed as an Exhibit to the Company's Form 8-A filed
                on June 25, 1997, and incorporated herein by reference.

       10.1     Restated Spartan Motors, Inc. 1988 Non-Qualified Stock Option
                Plan.  Previously filed as an Exhibit to the Company's
                Quarterly Report on Form 10-Q for the period ended June 30,
                1996, and incorporated herein by reference.

       10.2     The Spartan Motors, Inc. 1984 Incentive Stock Option Plan.
                Previously filed as an Exhibit to the Registration Statement
                on Form S-8 (Registration No. 33-28432) filed on April 28,
                1989, and incorporated herein by reference.

       10.3     Restated Spartan Motors, Inc. 1994 Incentive Stock Option
                Plan.  Previously filed as an Exhibit to the Company's
                Quarterly Report on Form 10-Q for the period ended June 30,
                1996, and incorporated herein by reference.


                                      -19-


    EXHIBIT NO.               DOCUMENT

       10.4     The Spartan Motors, Inc. 1996 Stock Option and Restricted
                Stock Plan for Outside Market Advisors. Previously filed as
                an Exhibit to the Company's Quarterly Report on Form 10-Q for
                the period ended June 30, 1996, and incorporated herein by
                reference.

       10.5     Carpenter Industries, Inc. Stockholders' Agreement.
                Previously filed as an Exhibit to the Company's Form 8-K
                Current Report filed on January 21, 1997, and incorporated
                herein by reference.

       10.6     Contribution Agreement between Carpenter Industries LLC and
                Carpenter Industries, Inc.  Previously filed as an Exhibit to
                the Company's Form 8-K Current Report filed on January 21,
                1997, and incorporated herein by reference.

       10.7     Carpenter Industries, Inc. Registration Rights Agreement.
                Previously filed as an Exhibit to the Company's Form 8-K
                Current Report filed on January 21, 1997, and incorporated
                herein by reference.

       27       Financial Data Schedule.

     (b)  REPORTS ON FORM 8-K.  The Company filed a Current Report Form 8-K on
January 19, 1998, regarding the Company's merger with Road Rescue, Inc.























                                     -20-

                                SIGNATURES


    Pursuant to the requirements of the Securities Exchange Act of 1934,
Spartan Motors, Inc. has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.

                              SPARTAN MOTORS, INC.


Date:  May 14, 1998           By /S/RICHARD J. SCHALTER
                                 Richard J. Schalter
                                 Secretary, Treasurer and Chief Financial
                                  Officer




































                                      -21-


                               EXHIBIT INDEX


   EXHIBIT NO.               DOCUMENT

       3.1      Spartan Motors, Inc. Restated Articles of Incorporation.
                Previously filed as an exhibit to the Company's Annual
                Report on Form 10-K for the period ended December 31, 1995,
                and incorporated herein by reference.

       3.2      Spartan Motors, Inc. Bylaws (restated to reflect all
                amendments).  Previously filed as an exhibit to the
                Company's Annual Report on Form 10-K for the period ended
                December 31, 1995, and incorporated herein by reference.

       4.1      Restated Articles of Incorporation.  See Exhibit 3.1 above.

       4.2      Bylaws.  See Exhibit 3.2 above.

       4.3      Form of Stock Certificate.  Previously filed as an exhibit to
                the Registration Statement on Form S-18 (Registration No.
                2-90021-C) filed on March 19, 1984, and incorporated herein
                by reference.

       4.4      Rights Agreement dated June 4, 1997, between Spartan Motors,
                Inc. and American Stock Transfer and Trust Company.
                Previously filed as an Exhibit to the Company's Form 8-A filed
                on June 25, 1997, and incorporated herein by reference.

       10.1     Restated Spartan Motors, Inc. 1988 Non-Qualified Stock Option
                Plan.  Previously filed as an Exhibit to the Company's
                Quarterly Report on Form 10-Q for the period ended June 30,
                1996, and incorporated herein by reference.

       10.2     The Spartan Motors, Inc. 1984 Incentive Stock Option Plan.
                Previously filed as an Exhibit to the Registration Statement
                on Form S-8 (Registration No. 33-28432) filed on April 28,
                1989, and incorporated herein by reference.

       10.3     Restated Spartan Motors, Inc. 1994 Incentive Stock Option
                Plan.  Previously filed as an Exhibit to the Company's
                Quarterly Report on Form 10-Q for the period ended June 30,
                1996, and incorporated herein by reference.

       10.4     The Spartan Motors, Inc. 1996 Stock Option and Restricted
                Stock Plan for Outside Market Advisors. Previously filed as
                an Exhibit to the Company's Quarterly Report on Form 10-Q for
                the period ended June 30, 1996, and incorporated herein by
                reference.




   EXHIBIT NO.               DOCUMENT

       10.5     Carpenter Industries, Inc. Stockholders' Agreement.
                Previously filed as an Exhibit to the Company's Form 8-K
                Current Report filed on January 21, 1997, and incorporated
                herein by reference.

       10.6     Contribution Agreement between Carpenter Industries LLC and
                Carpenter Industries, Inc.  Previously filed as an Exhibit to
                the Company's Form 8-K Current Report filed on January 21,
                1997, and incorporated herein by reference.

       10.7     Carpenter Industries, Inc. Registration Rights Agreement.
                Previously filed as an Exhibit to the Company's Form 8-K
                Current Report filed on January 21, 1997, and incorporated
                herein by reference.

       27       Financial Data Schedule.


 


                                                                 5
  THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
          FROM THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF SPARTAN
          MOTORS, INC. AND SUBSIDIARIES FOR THE PERIOD ENDED MARCH 31,
          1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
          FINANCIAL STATEMENTS.

                                                          1,000
       
                                                            
                                                         3-MOS
                                               DEC-31-1998
                                                  JAN-01-1998
                                                    MAR-31-1998
                                                            1,367,252
                                                      2,820,109
                                                    26,866,455
                                                        678,000
                                                      38,274,197
                                                 73,152,387
                                                           12,021,753
                                                   10,056,000
                                                   91,136,431
                                            25,734,432
                                                            125,610
                                                          15,623,381
                                                     0
                                                               0
                                                       49,653,008
                                     91,136,431
                                                          59,156,255
                                                 59,450,205
                                                            50,470,479
                                                    50,470,479
                                                  5,754,610
                                                     66,474
                                                  217,627
                                                   3,225,116
                                                      1,036,879
                                                 938,237
                                                            0
                                                           0
                                                                 0
                                                        938,237
                                                          0.07
                                                          0.07