Newmar announces Layoffs due to low demand

[Stuart W]

RV manufacturer Newmar lays off employees in Nappanee

Some people at an RV manufacturer in Nappanee are without a job this morning.Officials at Newmar confirm the company eliminated positions at its Nappanee campus

wsbt.com

Also consider the dealers in California and the new emissions standards, Spartan not even offering a CA chassis. Or just the $15,600 cost to choose a non California Spartan unit.
I understand the orders at the Newmar dealer show were shockingly low. In the past dealers committed to their years worth of units which gave Newmar a jump start for production of the new model year. Not this year!

Crazy price increases + terrible build quality + poor customer service = drastic reduction in sales.

 

[Neal]

Spot on and very sad indeed. It will take execs to swallow the pride pill and make the necessary changes but staying the course is not the answer. I'm sure most will blame it on the supply chain, post pandemic, on and on ... excuses.

 

[Joe Hogan]

Recreational vehicles have always been a very cyclical business. I’m surprised this up cycle has lasted as long as it has with interest rates as high as they are and uncertainty in the Market, food inflation and Home values.
Discretionary money is drying up.

Hopefully the maintenance team we deal with at Nappanee are not impacted by the layoffs.

 

[Rich W.]

They cite “decreased customer demand” but it would be more accurate to cite negative customer response to an increase in warranty issues and higher pricing. I think the demand is still there but Newmar is loosing its market share due to their own actions.

 

[Stuart W]

They cite “decreased customer demand” but it would be more accurate to cite negative customer response to an increase in warranty issues and higher pricing. I think the demand is still there but Newmar is loosing its market share due to their own actions.

They dodged a bullet over the past couple years where dealers over ordered inventory that’s why we have so many 2023s and 2024s still on dealer lots remember Newmar sold all of these units to the dealers.
Sounds like the dealers aren’t participating in that program any more.

 

[Joe Hogan]

RVIA has some interesting specs and explains the increase in inventory on dealers lots. This through November 2023. The market has not improved since then.

 

[Texas Clodhopper]

I wonder if Winnebago will be right behind Newmar?