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

Banishing oil burners reaps benefits for schools

News
Tuesday, April 01, 2014
04.02.14 thumb co2schoolsBY APRIL STREETER | OB CONTRIBUTOR

Three years ago, PPS set out to begin to convert the 1930s-era boilers from diesel/bunker fuel to cleaner-burning natural gas. Oregon’s largest school district has realized impressive carbon dioxide emissions reductions, setting an example for public and private institutions.


Read more...

Car ignition recalls and lean product design

Contributed Blogs
Friday, April 11, 2014
04.11.14 thumb gm-gettyTOM COX | OB BLOGGER

The auto industry is starting to share more costs across manufacturers for complex and challenging design work, like new transmission design, and certain new engine technologies. What we’re not yet seeing is wholesale outsourcing of “unavoidable waste” components to specialist companies.


Read more...

100 Best Companies to Work for in Oregon [VIDEO]

News
Monday, March 03, 2014

Screen shot 2014-03-03 at 11.26.47 AM

Check out interviews with employees from some of the 100 Best Companies to Work For in Oregon winners and find out what makes their company a great place to work.


Read more...

Fuel's gold

March 2014
Tuesday, February 25, 2014
BY SOPHIA BENNETT

The coastal town of Coos Bay appears poised to land every economic development director’s dream: a single employer that will bring hundreds of family-wage jobs and millions in tax revenue. 


Read more...

Wheel man

March 2014
Tuesday, February 25, 2014
BY LINDA BAKER

Les Schwab has put a premium on customer service since 1952, when legendary namesake Les Schwab founded the company with one store in Prineville. (Schwab died in 2007.) But if the corporate principles remain essentially the same, the world around this iconic Oregon business has changed dramatically.


Read more...

Leader's bookshelf

Contributed Blogs
Friday, March 14, 2014
02.06.14 BooksBY TOM COX | OB BLOGGER

Five books that will make you a better leader.


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