Monaco Coach Corp. will extend its traditional Christmas shutdown by an extra week, idling approximately 3,000 workers from Dec. 24 through Jan. 9 at three Indiana plants in Wakarusa, Elkhart and Nappanee, according to a report in the Elkhart Truth.
The shutdown will also affect a motorhome production facility at its headquarters in Coburg, Ore.
The Truth reported that workers who opt not to take vacation time for the second week will lose a week’s pay during the shutdown.
“Wholesale has been in front of retail most of the year, so this plays catch-up as far as cutting our production a little bit,” said Craig Wanichek, company director of treasury support and corporate communications.
The extended shutdown was announced last week after corporate officials from Coburg went to Indiana.
Wanichek said company officials elected to keep Indiana plants closed an extra week rather than alter production rates, which would have caused some layoffs. He said the extended shutdown is not a layoff.
The company alluded to a cutback in production in its third-quarter earnings report, acknowledging a softening in the marketplace.
“The company has reduced production and run rates to reflect the softer retail market and weakness in specific brands,” Monaco President John Nepute stated in the report. “The reduction should lessen our reliance on discounts and incentives,”
Following the National RV Trade Show, Nov. 30-Dec. 2 in Louisville, Ky., Monaco announced its new products had been “well received” by the dealer body.
“This was the best Louisville show for dealer attendance in recent memory,” CEO Kay Toolson said in a press release. “We view the reception to our new products at this show as an endorsement of our product development direction.
“The ’05 product continues to be well received by our dealer partners and RV consumers, and the show appeared to be an extension of that momentum.”