Arctic Cat to build snowmobile engines in Minnesota

Arctic Cat will move all snowmobile engine production to its St. Cloud, Minn., plant in fiscal 2015.June 10, 2010

Arctic Cat today announced that it will transition its snowmobile engine manufacturing from Suzuki Motor Corporation. The snowmobile manufacturer will begin building some of its own snowmobile engines in St. Cloud, Minn., after the 2014 model year. Currently, Suzuki supplies all engines for Arctic Cat sleds. Suzuki will continue to supply the company with engine parts to service existing engines after the 2014 model year.

“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,” said Arctic Cat chairman and CEO Chris Twomey. The move will also allow the company to make better use of its current engine manufacturing capabilities, possibly resulting in better cost controls, he said.

Arctic Cat began manufacturing ATV engines at its St. Cloud plant in 2007. The 56,000-square-foot facility employs 41 people. 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. St. Cloud is located on the Mississippi River about 65 miles northwest of Minneapolis.

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