Travel Trailer Prices

Monaco RV sheds 450 jobs in Coburg as parent company finds supply-chain ...

UPDATED 8/4, 9:30 a.m.:

Oregon lost its bid to get a major Midwest manufacturer to concentrate its recreational vehicle production around Eugene, culminating in the loss of 450 jobs over the next several months.

But state and company officials said Wednesday it wasn't for lack of trying, and industry officials suggest that economic and manufacturing trends might have doomed the job-preservation effort from the start.

State and local economic development officials worked with Gov. John Kitzhaber's office to offer Navistar International around $2 million in cash incentives to centralize its RV business at its Monaco subsidiary in Coburg, said Jack Roberts, director of the Lane Metro Partnership Inc. That could've expanded Monaco's local employment from 600 to 1,000, he said.

Instead, Chicago-area-based Navistar chose to invest $1 million in an existing Monaco plant in northern Indiana, long home to the nation's largest collection of RV makers. Navistar also will move some executives from Monaco's Coburg headquarters to its corporate campus in Lisle, Ill., where it makes buses and heavy-duty, International-brand trucks.

The decision eliminates 450 jobs in Coburg over the next nine months and signals a decisive shift in Oregon's RV industry, which shrank considerably after the debt bubble burst and fuel prices jumped in the late 2000s.

The departure will leave the state with an industry making largely towable RVs which retail from $25,000 to $100,000 instead of $250,000 or more.

It also reflects a move by some large manufacturers to consolidate production close to suppliers to cut costs. Navistar officials said Monaco's northern Indiana plant is closer to suppliers and its headquarters.

Monaco's longtime rival Fleetwood Enterprises Inc., which filed for bankruptcy protection in 2009, was bought by a private-equity firm and promptly relocated from California to northern Indiana.

"Elkhart County in Indiana is arguably the RV capital of North America," said Navistar spokeswoman Karen Denning. "Navistar's headquarters are in the Chicago area, too, so there's a proximity advantage for its engineers and support staff," she said.

Still, the loss is a bitter pill for Lane County workers and politicians, who in 2008 won a similar bidding war with Indiana when Monaco was a standalone, publicly traded company. The financial crisis, credit crunch and spike in fuel prices drove Monaco Coach Corp.

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