According to the Associated Press, the RV manufacturer Country Coach says it may have to close down its Junction City Oregon factory unless it can obtain additional financing by March.

Many RV manufacturers are currently experiencing a severe industry slump. According to the Recreation Vehicle Industry Association (RVIA), shipments from RV manufacturers to dealers through October 2008 fell 27 percent from the comparable period in 2007. This follows a 9.5% drop in RV's shipped in 2007 vs. 2006.

In a letter to employees, Country Coach CEO Jay Howard stated Monday that even if the company gets a cash infusion, it expects to see layoffs starting about March 1. The company says the letter was sent out to meet legal requirements that companies give notice of closings or layoffs. Country Coach had already laid off hundreds of employees in 2008. In June 2006, it had about 1,700 employees and is now down to approximately 500 employees remaining.

The outlook isn't all bad however. According to a 2005 University of Michigan study, RV ownership grew 15% during 2001-2005 and stood at nearly 8 million households at the end of 2005. There are as many as 30 million RV enthusiasts, including renters in the US alone according to RVIA estimates. With fuel prices easing and the growing acceptance of the RV lifestyle, RVing is still going strong.