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Old 03-23-2020, 07:46 AM   #1
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Winnebago Industries Temporarily Suspending Production Due to Coronavirus Situation




News Release

March 23, 2020 at 9:00 AM EDT

WINNEBAGO INDUSTRIES TEMPORARILY SUSPENDING PRODUCTION BECAUSE OF CORONAVIRUS SITUATION

FOREST CITY, Iowa, March 23, 2020 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE:WGO) today announced it will be temporarily suspending most production activities at the Company’s Winnebago, Grand Design RV, Newmar, and Chris-Craft facilities. This action is in response to the national spread of the coronavirus, the national emergency associated with the virus, and unforeseeable change in business circumstances that have accompanied it. These steps are designed to lower the probability of coronavirus exposure to employees and adjust future production output relative to a fast-changing demand landscape for the Company’s products. Winnebago Industries and its businesses will remain open and perform essential activities for its dealers and end customers, including remote retail support for dealers, along with technical care, warranty administration, and parts fulfillment. Each of the Company’s businesses will suspend production during the week of March 23rd and based on present conditions, the manufacturing suspension is currently anticipated to last through April 12th.

“As this global situation continues to rapidly evolve, our top priority is the health and well-being of our employees, business partners, customers and communities,” said Winnebago Industries President and Chief Executive Officer Michael Happe. “We are also seeing demand for our products shift dramatically as the nation takes appropriate action to curb the spread of the coronavirus. This decision is not an easy one, but we are confident it is in the best interests of all our stakeholders. During this time, we will remain flexible with operations that can provide products related to the support of mobile health care, command centers and other logistical needs that local, state and Federal resources may require during this crisis.”

To support employees and their families affected by this temporary production suspension, the Company is providing base pay and benefits for the first two weeks.

“As we take precautionary measures in the best interest of both our employees’ health and our long-term business prospects, we remain confident in the strength of our balance sheet and in our cash position to allow us to provide the appropriate pay and benefits to our employees and weather a period of business interruption from this health crisis,” Happe continued.

Winnebago Industries will continue to monitor this situation very closely and is committed to executing contingency plans that ensure a safe work environment for employees and disciplined production strategies that benefit the Company and its channel partners before resuming full operations.
About Winnebago Industries

Winnebago Industries, Inc. is a leading U.S. manufacturer of recreation vehicles under the Winnebago, Grand Design, Newmar and Chris-Craft brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes, travel trailers, fifth wheel products and boats. Winnebago Industries has multiple facilities in Iowa, Indiana, Oregon, Minnesota and Florida.
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Old 03-23-2020, 09:46 AM   #2
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My gut feeling is anyone that wants to find a new RV will still be able to find one. I think I'll wait.....
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Old 03-23-2020, 10:04 AM   #3
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Everyone says that prices are going to drop on new and used units due to the economic downturn and lower demand. But with many factories now closing and the number of new units being reduced I think that in a few months when this epidemic is over and most people are back to work and the demand goes back up that prices will surge upward due to the lack of supply. Just maybe, thinking out loud.
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Old 03-23-2020, 06:35 PM   #4
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My DSDP just started assembly Wednesday last week. Can't be good to be stopped mid-production.
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Old 03-29-2020, 12:39 PM   #5
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Quote:
Originally Posted by MJoyce View Post
My DSDP just started assembly Wednesday last week. Can't be good to be stopped mid-production.
I read this notice as....coaches that are currently being built would be finished but any new orders and full production will cease for now. Hopefully for you that will be the case.
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Old Yesterday, 08:42 AM   #6
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My sales person at Steinbring in MN indicates that is not the case. All work stopped at one time, leaving a number of coaches incomplete.

I like your version better.
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