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

Up on the Roof

September 2015
Wednesday, August 19, 2015
BY LINDA BAKER

In 2010 Vanessa Keitges and several investors purchased Portland-based Columbia Green Technologies, a green-roof company. The 13-person firm has a 200% annual growth rate, exports 30% of its product to Canada and received its first infusion of venture capital in 2014 from Yaletown Venture Partners. CEO Keitges, 40, a Southern Oregon native who serves on President Obama’s Export Council, talks about market innovation, scaling small business and why Oregon is falling behind in green-roof construction. 


Read more...

The Cover Story

Linda Baker
Thursday, August 27, 2015
01-cover-0915-thumbBY LINDA BAKER | EDITOR

How do you put a baby on the cover of a business magazine without it looking too cutesy?


Read more...

Portland’s long-distance bike commuters

The Latest
Monday, August 03, 2015
Matt KellyresizethumbBY KIM MOORE | RESEARCH EDITOR

Pushing the extreme.


Read more...

Ranking the airlines that fly PDX

The Latest
Friday, August 14, 2015
airlinesthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

17 airlines make stops at Portland International Airport, but not all are created equal when it comes to customer service.


Read more...

Living the dream

News
Friday, August 21, 2015

smugglespearsthumbRenee Spears, founder and owner of Portland-based Rose City Mortgage, is hot to trot to sell pot.


Read more...

Aim High

September 2015
Thursday, August 20, 2015
BY JOE CORTRIGHT

We get the education we deserve.


Read more...

Back to School

September 2015
Wednesday, August 19, 2015
BY CHRIS NOBLE

Oregon is home to an abundance of gritty warehouses reborn as trendy office spaces, as well as crafty hipsters turned entrepreneurs. Does the combination yield an equally bounteous office products sector? Not so much. Occupying the limited desk jockey space are Field Notes, a spinoff of Portland’s Draplin Design Company, and Schuttenworks, known for whittling Apple device stands. For a full complement of keyboard trays, docking stations and mouse pads, check out the GroveMade line, guaranteed to boost the cachet of even the lowliest cubicle drone. 


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