Winnebago announced that it will shift Winnebago-branded Class A diesel motorhome manufacturing from its Junction City, Ore., plant to its manufacturing campus in Forest City, Iowa. The strategic manufacturing transition consolidates and centralizes product development, supply chain, and assembly operations for the company’s diesel motorhome business to a single location.
In the fall of 2015, Winnebago Industries acquired the assets of a dormant diesel motorhome manufacturer, Country Coach. The purchase included the Country Coach brand, product drawings, and various assembly and service facilities in Junction City. Excluding its Forza brand, Winnebago Industries moved the rest of its diesel line-up from Forest City, Iowa, to the Junction City campus, began production late in 2016, and continued to operate the factory service center as well. The Horizon is one of the products currently being produced in Oregon.
“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,” said Brian Hazelton, VP and general manager of Winnebago’s motorhome division. “This difficult decision to relocate diesel manufacturing back to Forest City, Iowa and centralize our diesel business value chain geographically is necessary. It will enable more effective product development, enhance profitability through increased manufacturing efficiency and sourcing savings, and most importantly result in being a more reliable supplier to our diesel dealers and end customers.”
The company expects to begin the transition process immediately and complete the manufacturing start-up of a new diesel assembly line in Forest City during the fourth quarter of its 2019 fiscal year.
Following the transition, the Junction City service operation will continue to operate as one of Winnebago Industries’ aftermarket and RV parts support facilities. The company will determine its plans for the vacant assembly space in the near future. There are approximately 250 positions currently at the Junction City facility. It is anticipated following the transition, approximately 30 positions will remain at the Oregon campus. The additional assembly presence in Forest City, Iowa will result in a projected increase of 175 positions at that site by the end of fiscal year 2020.