Jayco Corp. today (Dec. 8) announced that it is closing its Entegra Coach subsidiary in Wakarusa, Ind., and will relocate all production to the company’s headquarters in nearby Middlebury.
According to a press release, the closure will take place beginning in February and affect 134 employees. The news comes on the heels of Jayco’s Nov. 17 announcement that it would consolidate operations from its Topeka, Ind.-based Starcraft RV Inc. subsidiary to Middlebury.
“This action has been taken as a result of the cruel impact that negative economic conditions have had on the RV industry,” said Derald Bontrager, Jayco’s president and COO. “We sincerely regret the hardship it will place on the Entegra Coach employees and their families. But current recessionary conditions, characterized by a severe decline in the supply of credit at both the wholesale and retail level, have underscored the necessity for further efforts to reduce operating costs.
“It is fundamentally important that we continue to align production capacity with current marketplace circumstances.”
Jayco purchased certain of the assets of the former Travel Supreme Corp. in early 2008 and has manufactured Class A motorhomes and fifth-wheels in the 160,000-square-foot facility in Wakarusa.
Bontrager emphasized that the company will continue to build Entegra Coach products and the division will operate with a separate dealer organization and a separate sales and product development team. All other aspects of the Entegra Coach ongoing operations will be integrated into Jayco’s existing departments in Middlebury.
“The National RV Trade Show, which took place in Louisville last week, has given us cause for renewed optimism,” Bontrager said. “We have been gratified with the commitment that the dealers of all our brands have made to us. This gives us confidence that Jayco will continue to enjoy market share momentum. But we also understand that the current market for recreational vehicles is severely diminished and the recovery will require hard work and dedication.”