(6/10/2010)
Press Release -
Arctic Cat Announces Plan to Begin Manufacturing Snowmobile Engines in Minnesota
Arctic Cat to begin manufacturing snowmobile engines in its St. Cloud facility after 2014 model year
MINNEAPOLIS, June 10,2010 - Arctic Cat 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.
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.
-end release
My immediate thoughts:
“Shock” doesn’t even begin to describe my reaction after reading this news release. Suzuki has supplied Arctic Cat snowmobile engines since the 1976 model season, and a strong partner in the formation of Arctco as it rose from the ashes of Arctic Enterprises.
Suzuki has manufactured many excellent engines over the years, although I’ve also been told that they’ve been at times reluctant to provide the kind of technology that Arctic Cat requested.
I’ve been to the Arctic Cat Engine Facility in St. Cloud a few times, and it’s a model of technology and efficiency. And the ATV engines produced there have been excellent.
I like that Arctic Cat wants to have greater control over its engines, and that it wants to manufacture engines in the U.S. rather than Mexico or some other distant country. This will be a huge project.
The release's wording, "Arctic Cat will begin manufacturing some of its own snowmobile engines in St. Cloud, Minn..." also suggests further developments on the matter.
I'm going to attempt to get an interview with some people at Cat as soon as possible, because I have a lot of questions.
Wow. WOW!
What are your thoughts and questions?
Comments (15):
Mike Feil Says:
6/10/2010 5:05:00 PM
Holy cow! Didn't see that coming! I hope they know what they are doing.
Kevin Says:
6/10/2010 5:49:00 PM
This is good news, especially in light of the recent news from Polaris. I'll predict that this will be solely 4-stroke technology and that any remaining two strokes will still be made by Suzuki at that point in time. This won't be easy -- especially to insure cost effective/reliable/strong performing engines, however, I believe they have a lot of experience to draw on and they will get it right.
Tom Rowland Says:
6/10/2010 6:03:00 PM
I have suspected this to very much be a possibility, I just had no idea when. If they can produce the snowmobile engines with the same reliability, performance and technology that is in the St Cloud MN built ATV engines...life will be fine. As far as I know...the 550, 650, 700 and 1000 ATV and Prowler engines are all built in St Cloud and each of those engines has a great track record.
Vince Says:
6/10/2010 8:46:00 PM
Good move, it should help the company decrease costs and offer some protection against currency fluctuations, and what boon for St. Cloud.
It's also great to see an American company investing money here at home for American jobs, kudos to Arctic Cat.
JonnySox Says:
6/10/2010 10:04:00 PM
Happy to see things moving to Minnesota and not Mexico!!!!! Sounds like Cat has a plan!!!
olie f7 Says:
6/10/2010 10:14:00 PM
cat you make me proud every day. you are one of the fue corps that really gets it. way to go! now lets get the new chassie with a 800 usa twin and a new prem. clothing line made in theif......ill be there with my $$$ how abou you guys??
flintstone Says:
6/10/2010 11:41:00 PM
that's awsome
Todd Ulschmid Says:
6/11/2010 8:20:00 AM
Made in the USA. Made in Minnesota...I like the way that sounds.....GO ARCTIC CAT!
Suzuki, thank you for all the great years!
Roger Paulson Says:
6/11/2010 8:57:00 AM
Great move Cat! Unlike Polaris, I for one am glad you are making your products more "Made in America!" I have nothing against Suzuki as an engine biulder. They have made some great engines, like the laydown 700, but an old saying comes to mind: "If you want it done right, do it yourself!"
olief7 Says:
6/11/2010 12:23:00 PM
ooh ooh how about new sno pro chassie style new usa 4 stroke twin procharger style supercharger and patriot graphix yaaa 250 hp all usa made american flag now were talking.
Mike Says:
6/12/2010 9:10:00 AM
This would be good for the company if they don't go bankrupt or lose/close all their dealers before 2014.
Bob B Says:
6/12/2010 8:07:00 PM
I can say without question that Suzuki shares greatly in Arctic Cats success and am sorry to see the split. I am a Cat fan because I was first a Suzuki fan. I hope AC continues to dominate it's markets and Suzuki the same for it's markets. Thanks AC and Suzuki for being the best and providing the best for consumers and racing pros. I am concerned however that AC has alienated so many dealers in the past couple of years. Arent dealers neccessary for product sales??? Whats up with that?
MR ATTITUDE Says:
6/14/2010 8:12:00 PM
I think it will benefit us all in the long run,the atv engines have been getting better every year and I feel confident CAT will produce the power and durability we all look for,but please dont forget value in the changing economy as im sure you have!thank you for world class products and ass kicking performance we all have longed for!thundercats,firecats,CFR's,turbo's!what trick do you have CAT?only time will tell!
Captain Says:
6/17/2010 1:09:00 PM
This is a bold move my Arctic Cat and what perfect timing! Only a few short weeks after Polaris (their Nemesis from the North) has announced they are getting rid of some 500 people and closing their engine facility in favor of moving to Mexico, AC has taken the stance to keep it here!
Bravo Arctic Cat!
I am sure this will be a greatly phased approach to which engines are produced here. As most of you already know, the AC engineers work shoulder to shoulder with Suzuki in designing the engines that Suzuki builds to AC SPECS! This really doesnt make me nervous at all and I dont expect a tremendous quality drop off because of the shift. I remember reading that Suzuki personnel were very impressed with the St Cloud facility with the technology employed there. It is quite possible that AC has the ability to do it better and more efficiently that even Suzuki could because of this.
It will be sad to see Suzuki leave, but this will not be overnight. I would imagine that they will play a large part in 2 stroke engines for some time.
Tom Rowland Says:
6/22/2010 2:13:00 PM
Hey, how about Arctic Cat start selling engines to Suzuki to use in their ATVs...or...maybe Arctic could sell engines to Honda to use in the new Honda snowmobile that has been rumored!
