Found this on the Monaco fourm today.
We are at the service center here in Elkhart and have troubling news
to share. Some executive from Coburg OR has been here the last few
days and left this morning.
The news is this. Monaco is closing ALL facilities, service &
production, in Elkhart IN. We learned from employees that all were
given a 60 day notice. Everything closes Sept 17 2008. Roadmaster is
included in this closure.
All production is being moved to Coburg OR. The only service centers
to remain open are Wildwood FL and Harrisburg OR. This effects
somewhere near 1700 employees.
This is very bad news for an area already hit hard by the economy.
There are many companies who supply Monaco and Monaco is their only
customer.
Followup:
(MNC) 2.74 -0.34 : Co announces that it will relocate all service
and production operations in Wakarusa, Elkhart and Nappanee,
Indiana and permanently cease operations at those locations. The
shutdown is presently scheduled for approximately September 17,
2008. "We have implemented several successful initiatives over
the past 18 months in an effort to size our business to match
declining market demand. However, market conditions have
continued to deteriorate, and we do not see significant
improvements occurring in the near future. Therefore, the co
finds it necessary to take further action by implementing a
significant capacity reduction." Approximately 1,400 hourly and
salaried employees will be impacted by the move, or 33% of the
Company's total workforce. Monaco Coach Corporation will still
maintain a significant presence in the Northern Indiana area with
approximately 700 employees at its Warsaw, Milford and Goshen
operations. The moves, once completed, are expected to reduce
costs by over $12 million per quarter. One-time costs associated
with the move will be approximately $7.5 mln in Q3, including
employee compensation expenses. The co has created a compensation
package for its employees who continue to work through the
shutdown and relocation assistance for any employees moving to
Oregon. The co is evaluating the impairment charges that will be
taken due to the idling of the Indiana facilities, which have a
current book value of $47.9 mln. (stock is halted)
I really think Monaco should keep the service center open. They could continue doing warranty work and start doing refurbs for older Monaco coaches. I'm suppose to be there week after next, guess I'd better get all of my work done now.
MM
Linear Mode
