Pennington County, MN (trfnews.i234.me) – Textron Inc., the parent company of Arctic Cat, has announced plans to indefinitely suspend production of its powersports products in the first half of 2025. This decision is attributed to ongoing weak consumer demand in the powersports market.
In a Form 8-K filing with the Securities and Exchange Commission dated December 18, 2024, Textron stated that it is “pursuing strategic alternatives” for its Powersports product line, managed under the Textron Specialized Vehicles (TSV) business segment. The company noted that, following the completion of limited production runs to fulfill existing customer commitments, production will be paused indefinitely in the first half of 2025.
This development follows a previous announcement in November 2024, where Arctic Cat indicated plans to lay off approximately 65 employees and pause production at its Thief River Falls facility, with an initial expectation to resume operations in the first quarter of 2025. The latest filing suggests a more extended suspension than initially anticipated.
Industry analysts speculate that Textron’s exploration of “strategic alternatives” could involve selling the Arctic Cat division. Potential buyers mentioned include companies such as Argo, CF Moto, John Deere, and Yamaha, though no official statements have been made regarding any sale.
In an official statement, Textron confirmed the indefinite suspension of manufacturing operations at its facilities in Thief River Falls and St. Cloud, Minnesota, after completing planned production in the first half of 2025. The company emphasized its commitment to supporting existing customers through sales of current inventory and aftermarket services. Employees who continue through their specific completion dates will be offered severance benefits.
Textron acquired Arctic Cat in 2017 for $247 million, integrating it into its Textron Specialized Vehicles segment. The decision to suspend production reflects broader challenges within the powersports industry, including declining consumer demand and the need for cost reductions.
The company plans to monitor industry conditions during the suspension and will provide updates on future operational plans as more information becomes available. In the interim, Arctic Cat remains operational concerning sales of current inventory and providing aftermarket support to its customer base.
I’m Chris Harper, reporting for trfnews.i234.me