Production restarts at Monaco's Oregon RV plant

Associated Press Report

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Monaco Coach has agreed to sell most of its assets, including its facilities and equipment in Elkhart County, to Illinois-based Navistar International for $52 million. That is welcome news for the hard-hit town of Wakarusa. (WSBT photo)

By WSBT 24/7 News

Story Created: Aug 7, 2009 at 10:55 PM EST

Story Updated: Aug 7, 2009 at 10:55 PM EST

COBURG, Ore. (AP) — About 400 workers are back on the job at the Monaco RV plant in Coburg eight months after it shut down.

Roy Wiley, spokesman for Illinois-based Navistar International, the new parent company of Monaco RV, says the plant is producing about seven recreational vehicles a day.

Navistar completed its purchase of Monaco's major assets in June, paying $47 million for plants in Coburg and nearby Harrisburg, and in Wakarusa and Milford, Ind.

On Aug. 5, President Barack Obama, speaking before about 250 people at the Monaco RV plant in Wakarusa, announced $2.4 billion in federal stimulus grants to help develop electric vehicles.

Some $39.2 million of that will go to Navistar for its Wakarusa operation, which bought Monaco RV from the bankrupt Monaco Coach Corp.

Wiley said there are no indications the RV market has begun to recover, but Navistar decided to resume production in Oregon about two weeks ago to build some inventory.

Monaco halted production last December after it was battered by record-high gas prices, the financial meltdown, tight credit and sagging consumer confidence in 2008.

Monaco filed for Chapter 11 bankruptcy protection in March and laid off about 2,000 workers.

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