Navistar cuts 450 of 600 jobs at Monaco Coach in Coburg

Navistar cuts 450 of 600 jobs at Monaco Coach in Coburg

COBURG, Ore. - Navistar, the company that bought Monaco Coach out of bankruptcy and brought 600 jobs back to Coburg, will eliminate 450 of those jobs, KVAL News learned Tuesday.

"It's not good news we want to share. It's a tough thing for us," Navistar spokesperson Steve Schrier said.

Navistar plans to move the motorhome manufacturing part of the business to Indiana, closer to suppliers.

Layoffs will take effect toward the end of 2011 and into 2012.

Jobs lost at the Coburg plant include welders, builders and painters.

The company convened an all-employee meeting on Tuesday, Aug. 2, 2011, to break the news.

Schrier would not comment on severance packages.

This is breaking news. Watch and KVAL 13 TV News at 5, 6 and 11 for updates

Brian Rooney with the Oregon Employment Department agreed with the description of Monaco as the last of the big guys from an industry that once employeed 4,500 people at companies like Monaco, Country Coach and Marathon in 2007.

Monaco's return to a workforce of 600 was a comeback story for the industry. Marathon has been diminished by the recession, Rooney said, and Country Coach is now a service center, not a manufacturer.

Monaco cut 2,000 jobs and filed for bankruptcy in March 2009. At the time, some employees reported having final paychecks bounce.

Navistar of Chicago bought the company out of bankruptcy for $47 million later that year.