Arctic Cat Announces Plan to Begin Manufacturing Snowmobile Engines in Minnesota
MINNEAPOLIS--Arctic Cat Inc. today announced that it has entered into an agreement to transition its snowmobile engine manufacturing from Suzuki Motor Corporation. Arctic Cat will begin manufacturing some of its own snowmobile engines in St. Cloud, Minn., after the 2014 model year. Currently, Suzuki supplies all engines for Arctic Cat’s snowmobiles. Suzuki will continue to supply the company with engine parts to service existing engines after the 2014 model year.
“Our St. Cloud engine facility has been a great addition for the company since we began manufacturing our ATV engines there in 2007.”
Commented Arctic Cat’s chairman and chief executive officer Christopher A. Twomey: “Suzuki has been an outstanding engine supply partner for more than 25 years and remains a significant shareholder in Arctic Cat. However, we are changing our engine strategy in order to gain more control over our products, and enhance our ability to meet regulatory and performance requirements. This also will enable us to better utilize our current engine manufacturing capacity, resulting in potentially better costs.�??
Twomey added: “Our St. Cloud engine facility has been a great addition for the company since we began manufacturing our ATV engines there in 2007.�??
The 56,000-square- foot plant is located on 15 acres and currently employees 41 people. At this time, the company plans to use existing plant capacity and personnel during the transition. Arctic Cat expects snowmobile engine production to begin in St. Cloud in fiscal 2015.
About Arctic Cat
Arctic Cat Inc. designs, engineers,
manufactures and markets all-terrain vehicles (ATVs) and snowmobiles
under the Arctic Cat® brand name, as well as related parts, garments
and
accessories. Its common stock is traded on the Nasdaq Global Select
Market under the ticker symbol “ACAT.�?? More
information about Arctic Cat
and its products is available at www.arcticcat.com.
Forward-Looking Statements
The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for certain
forward-looking statements. The Company’s Annual
Report, as well as the
Report on Form 10-K, its Quarterly Report on Form 8-K and other
filings
with the Securities and Exchange Commission, the
Company’s press
releases and oral statements made with the approval of an authorized
executive officer, contain forward-looking statements that reflect
the
Company’s current views with respect to future events
and financial
performance. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from historical results or those anticipated. The words
“aim,�?? “believe,�??
“expect,�?? “anticipate,�??
“intend,�?? “estimate�?? and
other
expressions that indicate future events and trends identify
forward-looking statements. Actual future results and trends may
differ
materially from historical results or those anticipated depending on
a
variety of factors, including, but not limited to: product mix and
volume; competitive pressure on sales and pricing; cost and
availability
of financing for the Company, our dealers and our suppliers; increase
in
material or production cost which cannot be recouped in product
pricing;
changes in the sourcing of snowmobile engines from Suzuki; warranty
expenses; foreign currency exchange rate fluctuations; product
liability
claims and other legal proceedings in excess of insured amounts;
environmental and product safety regulatory activity; effects of the
weather; overall economic conditions; and consumer demand and
confidence. The Company does not undertake any obligation to publicly
update or revise any forward-looking statement, whether as a result
of
new information, future events or otherwise.
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