Fleetwood Closes Plants--Hundreds Get Pink Slips

RV manufacturing giant, Fleetwood Enterprises, surprised employees late last week by passing out several hundred "pink slips." Fleetwood says it will close three trailer manufacturing plants, one in California, one in Maryland, and a third in Texas. Citing declining towable sales, the company is moving to shore up its assets in the light of low sales.

Friday was the last day of work for most employees at Fleetwood’s Williamsport, Maryland plant--253 employees seeing their jobs out the door. In Longview, Texas, employees received a letter which said, in part, "We want you to know that this business decision is not a reflection of your work performance. We are proud of the excellent quality product and service you have provided to our customers and dealers over the years. Despite the strong commitment that all of you have made, conditions in the travel trailer industry have changed to the point where our capacity exceeds the market needs." About 300 Texas workers will receive their regular pay up to May 1st, even though Friday was their last day on the job.

Meanwhile, at Rialto, California, an 18 acre facility dedicated to toy hauler manufacturing was idled, leaving 429 employees looking at the breadline. Fleetwood says it will try and find other jobs for some of the employees from the Rialto plant, and expects to continue making its toy haulers at plants in the Pacific Northwest where manufacturing costs are said to be lower.

The Fleetwood layoffs came just days before the Recreational Vehicle Industry Association announced that sales of "towable" units in January were about a third less than in the same month in 2006.