by David Hill
Editor
SnowGoer is reporting that Textron has paused production of its powersports products at Arctic Cat. On Dec. 18, it filed a Form 8-K report with the Securities and Exchange Commission.
A Form 8K is a document that publicly traded companies must file with the Securities and Exchange Commission to announce significant, unscheduled events or corporate changes that investors should be aware of.
The document stated, “Textron Inc. is pursuing strategic alternatives for its Powersports product line within the Industrial segment’s Textron Specialized Vehicles (TSV) business. The consumer end market demand for powersports products continues to remain soft. As a result, and in conjunction with its annual operating plan process, TSV has begun to pause production of its powersports products as Textron’s management reviews strategic alternatives for the business. Upon completion of limited production runs to satisfy customer commitments, production of TSV’s powersports products will be paused indefinitely in the first half of 2025.”
In November, Arctic Cat announced layoffs and a pause in production that would resume in the first quarter of 2025. That doesn’t appear to be the case now.
The story in SnowGoer stated that a “strategic alternative” could include selling the division to interested third parties. “For months, chatter online and among industry insiders has focused on brands like Argo, CF Moto, John Deere, Yamha and many others who in theory could be interested in Arctic Cat – both for its current products and for its U.S.-based manufacturing facilities in Thief River Falls and St. Cloud.”
The Times reached out to a representative of Textron, and received the following statement:
“In response to the ongoing business conditions facing the powersports industry, Arctic Cat will suspend manufacturing operations indefinitely at our facilities in Thief River Falls and St. Cloud, Minnesota, after planned production in the first half of 2025 is complete.
“Textron Inc. also announced that it is exploring strategic alternatives regarding the future of the powersports business. These actions are difficult but necessary as we have continued to experience softness in consumer end-market demand, resulting in a need to reduce costs.
“Arctic Cat remains open for business with respect to selling current inventory and providing aftermarket support and services to our existing installed customer base. Our sales organization, customer service teams, aftermarket distribution centers, and other functions are ready to assist our dealers and loyal customers. We are committed to providing the service and support to keep our thousands of loyal customers riding and enjoying Arctic Cat vehicles.
“We will resume production as planned after the new year to produce units under existing customer commitments. However, once that build is completed, we will suspend operations indefinitely, and will release our manufacturing employees at the Thief River Falls and St. Cloud facilities. Employees who work through their specific completion date will be offered severance benefits.
“We will monitor industry conditions throughout this suspension, and make further announcements about our operational plans when we have more information to share.
“We thank our employees, dealers, customers and supporters for their loyalty, patience and understanding as we weather the difficult conditions facing our business and our industry.”