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Monaco Coach Corp. raised its motorhome production rates at its Indiana and Oregon factories beginning this week because its yard inventories are in line with retail demand and the economy appears to be gaining strength.
The additional production is in the form of gas engine Class A motorhomes and Class C motorhomes, according to Marty Daley, CFO.
Now, Monaco, the leading diesel pusher Class A manufacturer, is building 100 motorhomes per week at its Indiana factories, up from 85 a week, and it is building 63 motorhomes per week in Oregon, up from 59 a week, Daley said.
Monaco also is hiring more people to build the addition units, although Chairman and CEO Kay Toolson, during a conference call with investment analysts last Tuesday (Oct. 21), did not reveal the number.
In April, after Monaco’s unsold inventory became excessively large, the company laid-off 850 employees and reduced its motorhome output to 133 units per week, from 177 units a week.
Consequently, even though Monaco now is building a total of 163 motorhomes per week, its production rate still is below the 177 units a week rate at which it produced during the first quarter of this year.
Diesel pushers accounted for 79% of Monaco’s $303.2 million in sales revenue during the three months ended Sept. 27, Daley said.
Gas engine Class A’s accounted for 13% of Monaco’s third quarter revenue and towable RVs accounted for 8%, Daley added.
Monaco’s diesel pusher sales revenue declined 3.5% during the third quarter, when compared with the same portion of last year, and its gas motorhome sales revenue was down 15.4%, Daley said.
The company’s towable RV sales revenue declined by 0.9% during the third quarter, he added.
As a result of the increase in production rates, Monaco is operating its factories at 61% of full capacity, Daley said.
“Business is continuing to improve although we are still offering some retail incentives to help dealers move certain models,” said John Nepute, president. “But the programs are now much closer to normal levels for this type of promotion than in the first half of this year.”
During the first eight months of this year, diesel pushers accounted for a little over 42% of the total Class A motorhome market, and Monaco had a leading 30% share of the diesel retail market, Nepute said.
In gas engine Class A’s, Monaco ranked No. 4 with an 8% share of the retail market for gas Class A’s during the first eight months of this year, but during July and August, Monaco ranked No. 3 with a 10% share of the gas Class A market, Nepute added.