Winnebago to Move Diesel Motorhome Assembly Back to IA

FOREST CITY, IA—Winnebago Industries Inc. announced plans on Monday to move the manufacturing of its Class A diesel motorhomes here from Junction City, OR. The move will lead to a net loss of about 45 jobs.

The recreational vehicle maker said the transition process will begin immediately. The Oregon facility, which currently employees about 250 people, will employ about 30 people after the move is completed, while the move is expected to boost employment in Iowa by 175 positions.

"While the strategic purpose of the company's decision to move diesel manufacturing to Junction City years ago was well intended as a means to acquire additional motorhome assembly capacity and tap into an experienced RV workforce in the Northwest, we have not achieved our targeted operating efficiency and profitability goals," says Brian Hazelton, general manager of Winnebago's motorhome busineess. "This difficult decision to relocate diesel manufacturing back to Forest City, Iowa and centralize our diesel business value chain geographically is necessary."

The company stock has plunged 35.4 percent over the past 12 months, while the S&P 500 SPX has eased 2 percent.

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