# Jayco Will Reduce Starcraft Rv To Nothing For Now



## Carey (Mar 6, 2012)

MIDDLEBURY, Ind. - Jayco today announced that it is closing its Starcraft RV subsidiary in Topeka, Ind., and will relocate production of Starcraft brand products to the company's Middlebury, Ind. facilities. The closure will take place beginning in January of next year and will affect 244 employees.

"This decision has been taken with deep regret because we know that it will place hardship on many of our employees and their families," said Derald Bontrager, Jayco's president and chief operating officer. "But, the RV industry has been hit hard, first by run-away fuel prices and, more recently, by severely diminished consumer confidence and a significant decline in the supply of credit at both retail and wholesale levels. Business conditions dictate that we take steps to reduce operating costs and maintain production capacity that reflects marketplace realities."

Bontrager acknowledged the leadership Don Walter has provided Starcraft RV as president for the past 17 years. "I would like to thank Don for all his years of dedicated and trusted leadership. Walter plans to continue in his roles as a member of the RVIA Board of Directors and as co-chair of the Go RVing Coalition on Jayco's behalf," Bontrager said.

Starcraft RV currently builds folding camping trailers, truck campers, travel trailers and fifth wheel travel trailers, and Bontrager said that production of Starcraft products will be shifted to Middlebury. He stressed that Starcraft will continue to operate as a separate brand with a separate dealer body and a separate sales and product development staff. All other aspects of the Starcraft ongoing operations will be integrated into Jayco's existing departments in Middlebury.

"There is no doubt that the RV industry is undergoing fundamental, long-term change and it is critical that Jayco position itself to be able to adapt to these new market
circumstances," Bontrager said. "We are confident that the industry will rebound and Jayco will have the necessary capacity to continue to enjoy healthy market share
increases."

In a separate letter to its dealer base, Bontrager noted, "Starcraft will continue to operate as a separate brand, with a separate sales and product development staff. All other management functions will now be integrated into our corporate departments in Middlebury. For those of you who know us, you know that we are proud and protective of our relationships with our dealers. We look forward to providing you with high quality, high value, competitively-priced Starcraft products that will be a leading contributor to your success in your market. The members of our staff will be contacting you shortly to provide you with details regarding our plans and to get your input on how we can serve you better. In the meantime, if you have questions or concerns, please don't hesitate to contact us."

Walter also sent dealers a message, in which he stated, "I won't take your time to re-phrase any of the organizational details outlined by Derald and Wilbur Bontrager. However, I would be extremely remiss if I didn't take this opportunity to express my personal appreciation for your support for so many years.

"All of us on the Starcraft Team have enjoyed working with you and growing our business together. Our collective wish is for the Starcraft brand to continue to flourish in the years to come. The consolidation moves are absolutely necessary and reflect the same thinking you have no doubt employed in your dealership to face the current and future economic challenges.

"Many of you have had the opportunity to meet Wilbur and Derald Bontrager. Therefore, you already know that the family values and industry leadership that have propelled Jayco to the top will be the cornerstones of Starcraft's future growth. My plan is to remain involved in the industry via the RVIA Board of Directors and as co-chair of the Go RVing Coalition. I look forward to a positive and continuing link to Jayco in these roles and to witnessing significant growth for Starcraft. Thanks again for your friendship during our business partnership - it has been a great trip for over 17 years!"


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