Monaco Coach Corporation, the number one producer of diesel-powered motorhomes, is permanently shutting down its service and production operations in Wakarusa, Elkhart, and Nappanee, Indiana due to the declining RV market. The announcement was made July 17, 2008.

Production of the motorized and towable motorhomes Monaco makes will be integrated into its manufacturing facilities in Warsaw, Indiana and Coburg, Oregon.

The decrease in production means about 1,400 employees, which is about one third of Monaco’s total workforce, will lose their jobs and that the company will be slashing their Class A motorhome production in half, from 180 units a week to 90.

It’s awful that so many people will be losing their jobs, but Monaco is doing what they need to stay in business. The RV business has been hit with a double whammy of rising gas prices and a general downturn in the economy which means luxury purchases like motorhomes and boats are some of the first markets to feel the pinch.

The Class A motorhome market has been declining for 4 years. Class A shipments went down 29 percent from 2004 to 2007. The sky high diesel fuel prices are causing an even bigger decline from 2007 to 2008. Class A shipments are down another 40 percent since 2007.

As part of this announcement by Monaco, they also announced they will be holding a conference call broadcast over the Internet to discuss their second quarter financial results for the fiscal year 2008 that ended on June 28, 2008. To listen to the call, log onto monaco-online.com. The call will be held at 2 pm Eastern Daylight time on Wednesday, July 30, 2008.