Home Archives June 2008 Monaco hits the brakes and fires 600

Monaco hits the brakes and fires 600

| Print |  Email
Sunday, June 01, 2008

COBURG Rising gas prices and the slowing economy hit Oregon’s largest RV manufacturer hard in late April, but other companies in Oregon’s luxury motor home cluster say they’re doing just fine.

Coburg’s Monaco Coach reported its first- quarter revenue had plummeted 22% from the year before, $252.4 million compared to $322.2 million. In response, its stock dropped to a 10-year-low. The company cut 600 jobs, or about 12% of its workforce, in Oregon and Indiana.

According to Craig Wanichek, director of investor relations, Monaco doesn’t anticipate more cuts and is developing lighter, smaller RVs to meet consumer demand for fuel efficiency.

The economy also is hurting the nation’s non-luxury RV makers. But at Country Coach in Junction City, spokeswoman  Sherry Fanning says fuel prices are not affecting the company’s business or marketing plans. Like Monaco, Country Coach makes RVs that cost more than $1 million, and get less than 10 mpg on average.

Steve Schoellhorn, president and COO of Marathon Coach in Coburg, says that because his company focuses on high-end conversions — which he describes as a low-volume, high-price business model — there has only been a slight slowdown in production. The company’s upgraded coaches run from $600,000 to more than $2 million.

“The people who enjoy RVing,” he says, referring to Marathon’s customers, “aren’t going to stop. But when we hear about oil hitting $200 [a barrel], well, we’re hoping prices stay right where they are.”       

ABRAHAM HYATT


To comment, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

More Articles

Spreading the wealth

March 2014
Tuesday, February 25, 2014
HiResBY PAIGE PARKER

A money management firm broadens its reach. 


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...

Making faces

News
Thursday, February 20, 2014
02.20.14 Thumbnail ModelsBY VIVIAN MCINERNY | OB BLOGGER

As retailers consolidate and newspapers fold, the business of modeling shifts to ad agencies, apparel companies and new media.


Read more...

Rapid ascent

March 2014
Tuesday, February 25, 2014
IMG 4255-2BY AMY MILSHTEIN

Kelly Dachtler, president of The Clymb, redefines outdoor retail.


Read more...

What I'm reading: Brad Smith & Travis Boersma

March 2014
Tuesday, February 25, 2014

Brad Smith, founder of Hot Pepper Studios, and Travis Boersma, president of Dutch Bros. Coffee, share their recent reads.


Read more...

The future of money

March 2014
Tuesday, February 25, 2014
BY JAKE THOMAS

An ancient institution moves slowly into the digital age. 


Read more...

From the Editor: The human factor

March 2014
Tuesday, February 25, 2014

In this issue, we celebrate our 21st annual 100 Best Companies to Work For in Oregon project.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS