Pennington County, MN (trfnews.i234.me)—Arctic Cat, a renowned manufacturer of snowmobiles and all-terrain vehicles, has announced significant operational changes affecting its Minnesota facilities in Thief River Falls and St. Cloud. Key points from the announcement include:
- Indefinite Suspension of Manufacturing Operations: Arctic Cat will indefinitely suspend manufacturing at its Thief River Falls and St. Cloud facilities after completing planned production in the first half of 2025.
- Response to Industry Challenges: This decision is attributed to ongoing challenges in the powersports industry, including weakened consumer demand and the necessity to reduce operational costs.
- Exploration of Strategic Alternatives: Parent company Textron Inc. is exploring strategic alternatives for the future of its powersports business, indicating potential changes or restructuring within the company.
- Commitment to Current Customers: Despite the suspension, Arctic Cat remains committed to selling current inventory and providing aftermarket support and services to its existing customer base. Sales organizations, customer service teams, and aftermarket distribution centers will continue operations to assist dealers and customers.
- Employee Impact and Severance Benefits: Manufacturing employees at both facilities will be released following the completion of the production period. Employees who remain through their assigned completion dates will be offered severance benefits.
- Monitoring Industry Conditions: The company will closely monitor industry conditions during the suspension and plans to provide updates on its operational plans as new information becomes available.
- Community Impact: The closure of these facilities is expected to affect a significant number of employees, with reports indicating that more than 500 jobs in Thief River Falls alone will be impacted.
- Historical Context: Arctic Cat, founded in 1960 by Edgar Hetteen, has been a significant player in the powersports industry, with its headquarters and primary manufacturing operations based in Thief River Falls, Minnesota.
These developments mark a substantial shift for Arctic Cat and its operations in Minnesota, reflecting broader challenges within the power sports industry.
I’m Chris Harper, reporting for trfnews.i234.me