BigSkyBob
Western Montana
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Joined: 11/21/2006
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From a different RV website....
BREAKING NEWS
Monaco Coach Cutting 600 in Oregon, Indiana
RV Business
Friday, April 25, 2008
Monaco Coach Corp. announced today (April 25) that it is cutting 600 jobs, fairly evenly split between the company’s home base in Oregon and its Indiana operations.
“With the decline in consumer confidence, oil prices and the financial market unrest, consumers are delaying the purchase of RVs,” Craig Wanichek, director of investor relations, told RVBusiness. “We also want to size our business to come out of this a stronger company.”
The Coburg, Ore.-based recreational vehicle builder said the layoffs represent about 12% of its work force and included administrative and production employees. In January, Monaco laid off 200 workers at its Wakarusa, Ind., facility.
Wanichek said that employees were informed Thursday and today of the layoff, which reduced the company’s work force to around 4,400 people.
“This is a very difficult decision,” Wanichek said. “It’s not the only cost-saving measure we’re putting in place. We’re also increasing manufacturing efficiencies and trying to be more efficient with our supply chain.”
The announcement comes on the heels of Wednesday's first-quarter earnings report that showed a net loss of $8.5 million. Monaco also projected a loss again for the current quarter.
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soberjoe
Gainesville, FL USA
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Joined: 03/19/2004
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We did our part to support them. We just got a 08 Safari Simba DP. Yea baby it's sweet.
Joe & Pascale
Gainesville, FL
08 Safari Simba RD 37PDQ
05 Mazda B2300 dinghy
07 Honda VTX 1300R loaded in the dinghy
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barnaclebill
Atlanta, Michigan or towards the sun
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Joined: 03/09/2005
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People in all types of businesses are being layed off, not just in the rv industry.
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jimmyz989
Sacramento, CA
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Joined: 10/17/2007
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Sign o' the times
Jim and Jill
2004 Itasca Sunova 30B 1 slide
Ford Triton V-10.
Purchased 11/07
Guard dogs Max and Maggie (12 and 16)
Go Gators!!!!!!
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Travelr
Lake Tahoe, Nevada
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Joined: 10/24/2006
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We hope this will be all that Monaco needs to do to survive. For us, they are a great organization and build a very nice product. We've become friends with several at the service center in harrisburg, Or. They always take care of us like family.
Ken Cash
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wamesit
lowell ma. usa
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Joined: 02/07/2004
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Like someone said sign of the times. Right now my mh cost me 50cents a mile just for fuel not counting insurance, upkeep, campgrounds. I still plan on doing some traveling just cut down on the distance we travel. Happy travels Chuck
Donna and Chuck
2004 Dutchstar Model 4009 tripple slide
Spartan chasis and 370 ISL Cummins
2003 Saturn L-300 (toad)
1998 Hi-Line Park Model trailor up in Maine
2 chihuahua one female (chi-chi) one male (Alabama)
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Cloud Dancer
San Antonio and Livingston TX USA
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Joined: 06/08/2001
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The alarming thing to me is that there are people who are surprised. Apparentyly, these people had no clue how much it hurts for fuel to increase in price, that much that quick. IMO it's the tip of the iceberg.
Willie & Betty Sue
Miko & Sparky
2003 41 ft Dutch Star Diesel Pusher/Spartan
Floorplan 4010
Blazer toad & Ranger bassboat
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John S.
Northern Virginia
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Well, it is a bunch of issues. Sales are down over 24 percent. That means there is way too much capacity. Now there are fixed expenses that can not be changed and if they get out of control then they close. THe variable expenses such as labor and materials need to be reduced. Now they are cutting labor then they will cut material costs and you can read that as quality. I foresee a bigger difference in the higher line and the entry level... Though I will say if that video and news report on quality and motohomes falling apart and the EPA on the glue and air quality change the game it will raise the prices again...
You will have a couple more manufacturers go out of business and the few that are going to be left will be wounded for a while.
John
2001 42' Foretravel U320
2007 Bornfree 24 Painted
2001 Jeep Wrangler
2007 Burgman 650 Executive
Susie and Dolly (Cavalier King Charles Spaniels)
Dolly now in our hearts and thoughts 8-27-05
Doodle a Black and Tan Cavalier
Lolly a Ruby Cavalier
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BigSkyBob
Western Montana
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A little off topic I guess, but since I was the OP I can hijack my own thread lol. What I don't understand is the constant rant about first and second year coach depreciation. My coach is a 2008 Camelot and the MONACO MSRP was right at 300K. I feel I negotiated a decent deal at 220K. The 2008 models aren't in the NADA schedules yet so I checked a 2007 Camelot with the exact options and standard equipment as mine and it was listed at $264,550. I can only assume the 2008 models would be somewhat higher in value. I'm hearing check the NADA book for this and that on values so I did. Now someone needs to show me where I'm off base on this one and where I'm losing my undies on first year depreciation.
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Squealers
NW Arkansas
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Cyclical economics. Hopefully we have learned from past mistakes and work to keep the low cycle from causing depression type scenarios across the US. We are seeing adjustments by our government to contain the back wave of a recession market....remember the 18% interest rates for homes in the 80's?
Monaco will right the ship, make adjustments, and weather the storm. Not all will, as has been witnessed. As mentioned, it is not just the RV industry hit with slowdowns.
Now is the time to be smart and steady, and some time in the future we will see a return of the bear market. And then again, one day, we will be taking about a free spending economy and live it up lifestyles.
1999 Sea Breeze 33'
2002 PT Cruiser Toad
2006 Goldwing MotorTrike-Bushtec Trailer
& Other toys my wife finds amusing.
Patriot Guard Rider---Serving Those Who Served.
USAF Veteran 1975-1981 ATC-Giant Talk
Go Hogs!
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