New Newmar Layoff

[Route 66]

From WSBT-TV

NAPPANEE, Ind. "” Another round of layoffs is on the way for workers at Newmar RV in Nappanee.

The company says they'll lay off a small number of remaining employees on Wednesday.

In February, they laid off nearly 120 workers "” about 13 percent of their workforce.

Last month, they laid off another 20 percent, about 160 people. That only leaves about 630 of the original 900 workers.

The company says high gas prices and a sluggish economy are to blame.

[Route 66]

From WSBT-TV

NAPPANEE, Ind. "” Another round of layoffs is on the way for workers at Newmar RV in Nappanee.

The company says they'll lay off a small number of remaining employees on Wednesday.

In February, they laid off nearly 120 workers "” about 13 percent of their workforce.

Last month, they laid off another 20 percent, about 160 people. That only leaves about 630 of the original 900 workers.

The company says high gas prices and a sluggish economy are to blame.

[Lug_Nut]

That's not good news. Hopefully the recent continuing drop in the oil price and the strengthening of the U.S. dollar will start a slow turn back.

Peter

[Nathan Focht]

As I have said before, if they can survive they will thrive when it comes back. This is thinning the herd and that can be a good thing long term.

[CSX4350]

"That which does not kill us makes us stronger"

Friedrich Nietzsche

Hopefully that applies in this situation.

[soricobob]

Is anyone else concerned about warrantee coverage if Newmar goes out of business?

[Cruzer]

If I had a Newmar I wouldn't be concerned. I just don't see them as going down the tubes. They might get stuck in the breach for a while, like everyone else, but they'll be back. They don't have their neck stuck out with heavy debt like some other were and they have agreat product and reputation. They may have to adapt their line-up a bit if the market shifts but they will.

[Nathan Focht]

I feel like Newmar is being proactive and know how to survive. I am not concerned about them closing and I am almost to the plant to look at a new purchase.

But, I do think WHEN they come back out, quality will be the challenge. They are letting the trained staff go and knowledge goes with it. When they start to hire back, there will be a lot of learning and this errors. That is the bigger challenge IMHO.

[John34]

I'm in the process of ordering a new coach.I hope this doesnt effect the quality or it even being built?

[rebelsbeach]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by John34:
I'm in the process of ordering a new coach.I hope this doesnt effect the quality or it even being built? </div></BLOCKQUOTE>

If I were in the market, this news would not even be of a true concern to me in reality.

While Newmar is indeed dealing with the depressed market conditions, they're not carrying the debt which other manufacturers are carrying, nor do they have a yard full of finished and unsold coaches sitting somewhere.

[soricobob]

Well, I guess I'm glad I ordered a new one, and expect it in about a month. I hope to share everone's optimism, but it might take a while.

[Lug_Nut]

Additionally Freightliner (not a Newmar supplier at this time) is laying off about 100 employees at their Gaffney S.C. plant. The plant currently makes MH, light delivery, scholl bus and shuttle bus chassis's.

Peter

[edgray]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Additionally Freightliner (not a Newmar supplier at this time) </div></BLOCKQUOTE>
Really? I thought Newmar was building some of the front-engine models on their FRED. ED

[soricobob]

An interesting note: after asking the dealer, from whom I ordered my new Essex a similar question, last night I received a phone call from Mr. Miller, who informed me that Newmar was in good shape, and Lord willing will continue to stay that way. He added that one of the best ways to check up on a company's solvency is to ask a dealer if they are getting paid for warrantee work.