Monaco Coach closing 3 Elkhart County plants

Tools

(WSBT file photo)

By Beth Boehne

Story Created: Jul 17, 2008 at 11:17 AM EST

Story Updated: Jul 22, 2008 at 10:05 AM EST

One of the area's largest RV companies is cutting hundreds of jobs and closing three Elkhart County plants. Monaco Coach announced it is permanently stopping operations at its plants in Wakarusa, Elkhart and Nappanee.

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Most production of motorized units now made in those factories will move to Oregon, where the company is based, but work on two models will move to nearby Warsaw. Monaco also will consolidate its production of trailers in Warsaw.

Monaco officials cited rising fuel prices, declining consumer confidence and tight credit for the fourth straight year of declining sales.

“With sales down significantly, we cannot continue to be a strong and viable company unless we reduce out production capacity and build fewer units," explained CEO & Chairman Kay L. Toolson in a letter to employees. "This was a difficult decision, and one that we delayed as long as possible."

Approximately 1,400 people — about a third of the workforce — are expected to be impacted. The shutdown will leave Monaco with about 700 Indiana workers in Warsaw, Milford and Goshen.

"While this is certainly a major event, Monaco Coach Corporation remains a strong company," Toolson said. "However, in order to maintain our company’s health into the future, we must take bold action now."

At this point, the shutdown is scheduled for September 17.

The company produces a range of motor-homes and travel trailers under the Monaco, Holiday Rambler, Safari, Beaver,McKenzie, R-Vision and Dodge brands.

This round of layoffs in the RV industry began in January:

January 2008 — Monaco Coach in Wakarusa lays off 200; 15 percent of the company’s total workforce. Monaco Coach slashes jobs in Wakarusa

January 2008 — Newmar RV in Nappanee lays off 20 percent of its workforce. More RV workers laid off in Elkhart County

January 2008 — Coachmen RV announces it will sell its Elkhart plant and move its headquarters in Middlebury; plans consolidation of some of the Middlebury plants.

April 2008 — More layoffs at Monaco Coach: An additional 600 workers at plants in Indiana and Oregon, about 300 in each state; 12 percent of its workforce. Monaco Coach lays off 600 in Indiana and Oregon

June 2008 — Terra Group announces cuts at five plants, including three in Elkhart County. Company employs 200 but doesn't say how many jobs will be eliminated.

July 2008 — Dutchmen Manufacturing in Goshen announces it will lay off 116 people and close two facilities in August. Dutchmen Manufacturing to lay off 116

July 2008 — Newmar RV in Nappanee lays off more than 150 workers.

WSBT Radio, The South Bend Tribune, and The Associated Press contributed to this report.

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