Monaco - Roadmaster Chassis - Workhorse

Some of this was already reported in a thread under Motorhomes (now in this section), but I just came from an information meeting with Mike Snell (VP Sales Monaco). I also had a chance to talk to Mike after the meeting. Mike and Monaco's other VPs report to William Osborne, VP Custom Products Navistar. Custom Products includes Monaco and Workhorse.

Monaco:
Monaco is closing all production in Coburg. This will probably happen by the beginning of next year. This is being done because it is less expensive to build in Wakarusa, IN and they are closer to their primary supplier base. Many of the suppliers that had operations in Oregon have gone out of business or consolidated operations in Indiana.

Monaco will keep a service center in Coburg and will move their parts and customer service operations back into the Service Facility. These operations were in the Service bldg years again. Mike didn't discuss this, but this will leave the rest of the Coburg facility available to sell since the service bldg is at the far south end of the complex.

Mike also announced that Monaco is opening more service centers as they understand the importance of service. They will be opening in Wakarusa, Indiana with 45 days. They further plan to reopen in the SE (probably FL) and the SW (probably PHX, AZ). I questioned Mike about AZ since the last time Monaco tried this they ran into AZ laws that prohibits manufacturers from competing with dealers in service. He said they were working on how to deal with this law and that William Osborne was in PHX today working on the issue. One potential solution would be to build on the Indian reservation.

Roadmaster Chassis - Workhorse.
Both will be built in Elkhart, Indiana in the old Custom Products Chassis plant. This plant was originally a Roadmaster plant, then Monaco sold 50% to Navistar and they formed Custom Products which then went bankrupt. Navistar bought the building out of the bankruptcy. The plant will have 2 lines. One Roadmaster and other will be Workhorse.

Workhorse:
Workhorse is working on a new gas engine platform. Hopefully William Osborne will have more to say about this Friday.

Navistar:

Navistar is consolidating design, engineering and sales in the Chicago area. Their headquarters is in Naperville Warenville and they bought the old Lucent facility in Lisle and will use it to consolidate engineering. Sounds like Mike is moving to my old home town (Chicago and the suburbs). Our last home there was in Naperville.

I also talked to Mike about some issues with the Monaco-Navistar transition. Let?s just say that Mike and I agree.

ken
Currently at the Monaco International Club rally in Manitowoc, WI

Can you ask if the Wakarusa service will be in the previous service facility with it's nice campground?

Ken,

As I remember Navistar makes a small 30+ passenger bus that is quite popular in South America and Asia.  Also, as I remember they are currently are mfg'ed somewhere in the Eastern US.

The Eugene plant could be used to build those buses and ship from a west coast mfg'ing facility.

That was one of the many rumors as to why Navistar wanted Monaco.

It's okay for you to tell Mike Snell I told you this because Mike knows me well.  Ask him to comment on this.  I, for one, would like to know especially because it would be so good for the Eugene economy.

JerryF  AKA:  JerFitz

Navistar just announced the permanent closure of it's truck plant in Chatham (Ontario, Canada) They haven't been running that plant for a couple years so not a huge surprise.  I'm sure with the relative strength of our dollar more US companies will be closing their Canadian plants.

Ned,

The Monaco Service center was in Elkhart. HR used to have a service facility in Wakarusa but Monaco did not purchase that building. There was a small camp ground on Indiana St in Wakarusa but I did think Monaco ever had service there. We used the campground when we did factory pick on the Windsor in Oct 1999.

Anyway if I see Mike again I'll find out.

Ardra,

If I see Mike I'll ask - if not maybe I can find out from Osborne on Friday.

ken

Ken, sorry, I meant the facility in Elkhart.  We did have service in Wakarusa back in 1997 but there wasn't much for a campground, just some electric hookups.

As I remember the Roadmaster plant was next door to the Monaco Service Facility. Since they have repurchased the Roadmaster plant maybe the bought the service facility also - or maybe it was never sold, just mothballed.

I didn't see Mike around the sales area or the dinner tonight, hopefully I'll see him tomorrow.

ken

I forgot to mention the the "headquarters" of Monaco will move to Navistar Headquarters. Some will be in the Warenville HQ and some will go to the new Lisle campus. Obviously Wakarusa is closer to Chicago than Coburg. This also had some play in the decision to move production to Wakarusa.

Mike indicated that all production would move, but several press reports say that some trailers will still be built in Coburg. Frankly this makes no sense. Building a few trailers in a 2.5 million sgft facility? I'll try to find out more.

ken

A couple of articles in RV Business might be of interest:

Here and here.