Motor homes may be latest gas price casualty

Winnebago Industries CEO Bob Olson said the motor home market has changed significantly in the past year, with dramatic declines in the past few months. He expects no improvement in the industry for the rest of 2008.

Winnebago profit was down 73 percent in the third quarter of 2007.

The company sells motor homes under the Winnebago, Itasca and ERA brand names.

CEO Bob Olson said that dealers are cutting their inventories, a trend he expects to continue, which further reduces sales.

Winnebago is forced to offer discounts because of competitors pricing.

The industry has seen a decrease in motor home sales of more than 26 percent for the first four months of this year and a decline of more than 30 percent in both March and April, typically strong sales months.

The company has cut employment by 830 workers, or 26 percent, through layoffs and attrition since the beginning of its fiscal year.

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