Textron on Wednesday seemingly hung the “For Sale” sign on its Arctic Cat division when it filed a Form 8-K report with the Securities & Exchange Commission.
In the filing, Textron said it 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,” the filing continued. “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.”
The extended halt on production follows an earlier announcement of a production stop until the first quarter of 2025.
A “strategic alternative” could most certainly include selling the division to an interested third party. For months, chatter online and among industry insiders has focused on brands like Argo, CF Moto, John Deere, Yamaha 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, Minnesota.
At this point, though, all of those names of potential suitors for Arctic Cat have been dropped purely as speculation, with few if any hard facts behind any of it.
UPDATE: Official Statement From Textron
We reached out to Brandon Haddock at Textron, and he relayed the following official announcement:
“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.”
Arctic Cat SEC Announcement
The rest of the Textron announcement today focused on the short-term financial impact of the move – which is what most filings with the Securities and Exchange Commission typically do.
The filing reads: “As a result of these developments, on December 18, 2024, Textron management approved additional actions at the Industrial segment under Textron’s 2023 restructuring plan. Total pretax special charges related to the 2023 restructuring plan are now expected to increase from the previously announced range of $165 million to $170 million to a range of $190 million to $205 million.
“The increased charges of $25 million to $35 million are related to contract termination costs associated with the powersports production pause. These charges will be recorded in the fourth quarter of 2024, with additional cash outlays of $25 million to $35 million expected primarily in the first half of 2025. We expect the plan to be substantially completed in the first half of 2025. In addition, due to the indefinite production pause, the Company expects to incur an inventory valuation charge in the range of $30 million to $40 million to write down production-related powersports inventory to its net realizable value. Item 7.01 Regulation FD Disclosure The inventory valuation charge discussed above is expected to reduce Adjusted earnings per share for 2024 by approximately $0.12 to $0.16.”
Very sad AC was a great brand, former #1 and made many significant advancements in sleds. Pound history in sleds and all forms of racing (Ovals, XC, SX, Drags, Endurance).
Silly, model year 2026 would have been the 23 anniversary of the legendary F7 Fire Cat 700 twin with 140 hp that gave fits to all other brands 800 cc sleds (twins and triples).
AC was poised to replace the current 600 with a new 700 cc twin and could have been the market leader again especially if they updated their current 4 stroke turbo to have 230-235 hp from the current 205 hp would would be very easy since a simple boost tuning makes 225 hp by various tuners. Ski-Doo turbo 4 stroke only makes 180 hp, AC would be 50-55 hp more. If AC management and Textron would only let long time AC sledding management run the company like they did in the 1970’s-1990’s they would be the market leader.
Argo would be interested as they are all run by former AC executive and senior management and HQ is in Thief River Falls and product line fits perfectly with AC.
John Deere would be interested as they need to replace the troubled current manufacturer of their SxS and ATV’s and used to be a great sled builder and winner of many XC races. and need to bring in customers to dealerships in the winter.
Yamaha, Suzuki and Kawasaki all were partners with AC in the past and they will need US manufacturing facilities if Trumps tariffs happen.
Harley Davison would be a good fit similar loyal customer base but HD has poor sales so may not have the money to purchase AC.
Other Asian and European bike, SxS and ATV manufacturers would be interested again to do a run around potential tariffs as would China brands.
Elon Musk may buy it just to turn it solely into a military supplier of sleds, SxS and ATVs for the army, NASA, space exploration as Trump will favour Musk for all his help in winning the election.
Former and current AC management may again due a management buy out like they did in 1981-1982.
Perhaps a local TRF community effort will purchase AC to run it like it proudly used to be operated.
This is sad news but may also be great news if any of the above occur as Textron while it saved AC when it purchased it initially has hampered AC by not allowing and advancing all the engine and chassis development that has been in the pipeline for years and let go many long time very loyal very knowledgeable staff (management, engineers, factory workers, office staff, marketing, test riders, racers,). Textron went to far in reducing the number of dealers,
I wish all the best for AC to resume its operations even better than before. The industry needs AC for great competition and innovation and in keeping sled prices back down to like they used to be from 1960-2000 and market to middle class and working class not upper class 1%ers.
Do more research before commenting please.
I have done extensive for many decades all is correct or potential per multiple sources.
It’s not…its about hedge funds and the same group are the people who took over bass pro and cabellas….where is cabellas now and where did they sell arctic cat products from…..bass pro…then shut down all the cat dealers….those hedge fund investors wanted arctic cat to fail…..why they do this I don’t know……I guess ask the thousands of people that worked at cabellas
It’s all about way over priced products! Just like automotive… I don’t need a damn touch screen or any of that stuff… get back to the basics! Sell a product that works and people can afford to buy! Simple and reliable!! 20 plus thousand dollars is not a few month a year machine! Totally not cool! Built a worthy $8000 machine with power and maybe?
Harley Davison will not buy Arctic Cat. The CEO is the same one from Europe that Robbie Starbuck called out back in the summer for the woke DEI policies. I heard Robbie on Jordan Peterson’s podcast and he said Harley is the one company he was worried about because they didn’t replace the CEO after being outed for the DEI policies. This same CEO still states that Harley Davidson will produce nothing but electric motorcycles by 2030 or 35. So my guess is with him there still, they aren’t getting into 2 strokes and turbo chargers on snowmobiles.
The continual development of more complicated and powerful engines is part of the problem that’s led to the power sports products being unaffordable. If you want prices back down and market to the middle class better scrap that 700cc replacement for what a 600cc could do and for what a 500cc did back in the 90’s. And what a 340cc did before that. Innovation has been great and I, for one, appreciate it but it’s come with a price in product affordability.
You are so correct. Families are not interested in 120hp $20000 machines.
Manufacturers need to listen better to the customers wants and opinions.
Smaller cheaper sleds would sell very well. Not everyone wants to ride 130 mph.
I have commented before and agree. IMO Sleds will go in multiples of 200cc now for 2 strokes: 900 cc muscle sleds, 700cc performance sleds and 500 cc family / entry sleds and 300 cc teen / youth sleds and still 120 & 200 cc current kid sleds.
The EPA emissions are what are killing these companies. They can’t keep up and keep the sport affordable. They are getting exactly what they want. Not that it’s a bad thing saving the environment. It has to be done. They should have put more R&D into electric sleds and explain exactly why. People would understand.
Electric sleds? You are clueless if you think people will buy them
Electric sleds in -10 to -40 C or F for that matter. You need to research batteries and how they self sacrifice below +10 bottom temp of an optimized battery for operating temperature.
Even your Tesla has to start up and run the battery warmers below 0.
I hope you buy the first -20 battery powered sled and see how well it does in the mountains.
Arctic Cat killed itself by getting rid of their core dealerships and not being consistant. Pushing the tech envelope that forces price of your products too high.
As a previous dealership owner! Build sleds that sell for $8000 to $12000 max
And ATVs that sell for $6000 to $8000.
Nothing more. And get rid of your single cylinder snowmobile! Noone wants it!
Your current graffics look terrible and please realize, not everyone needs a long track!
Textron putting their name on the product was a disaster too. Who is making the calls on this stuff? Certainly not an enthusiest.
AMEN
My last new CAT cost me as much as my daily driver automobile. First new cat was 2300.00 dollars last one in 2020 was 16k
That’s ridiculous the writing was on the wall. I feel sorry for the dealerships that had to deal with this company the last 4 years because they were not able to have a floor plan and had to pay for the machines to have inventory on hand.
agreed MK.
My thoughts the same ,many of us boomers would buy a $9000 sled to give the grandkids fun but they would rather sell sleds that are 200 hp and go 130 mph.
Always like to hear from dealership owners. I’ve said this before. I don’t know how many people think the way I do, but concerning the high costs of cars, trucks, snowmobiles, motorcycles, etc., it’s not a matter of “can I afford it” it’s a matter of do I think it’s worth it? It isn’t and it’s never going to be at these prices. $8 to $12 grand is not a small amount of money, but that range would make it worth it, to me anyway.
So sad, so sad!!!!
As a worker at arcticcat for 24.5 years my heart goes out to my friends and coworkers.
Textron and arcticcat had some growing pains the first year but got better.
The killer in my eyes is cutting out small dealers that supported arctic for years.
Unfortunately bad economy, lack of snow and been there ,done that products
didn’t help. Hopefully there’s some lives left in the cat.
As a proud local 598 member and HD truck builder of 22yrs on the line in Flint Mi and also sled nut of everyman my heart goes out to all you hard working men and women on the shop floor this holiday season and for your futures. I hope you guys/gals all get the recognition you so rightfully deserve! I know first hand how hard you work and I deeply deeply thank you for all that hard work and because of you guys there has been a mega ton of smiles for miles over the years and you get to be proud of every single last dam one!!! Good work everyone dam good work! We are all very proud of you all! I believe you will be back because what is winter with no Arctic Cat??
Sorry to hear this I’ve owned 22 cats I’m 84 and still ride a 2023 t cat
Iv rode appox 175 thousand miles
Seroiusly. This is sad!. AC isn’t a brand. It’s a culture. Textrone totlally missed the boat. BY BY. They missed out on huge race winnings . Thats sells sleds. Huge cultural preformance imporvements from guys in a small town, How sad… No company can sell sleds based on performance other than AC…. And they are shipping it down the river. SO many guys looseing jobs. THIS SUCKS!!!!!!
No great loss Yamaha went backwards in 2014
Very great loss the sport needs competition to have the lowest price, best performing, longest lasting durable sleds. With no comepetition prices will sky rocket even more and much worse durability of engines think just a few years back some 800 cc sleds had to be rebuilt every 1,500-2,000 miles, then improved to 5,000 but my triple single pipes lasted well over 20,000+ miles no issues at all, all stock.
Polaris once bought then destroyed by Tex no surprise to me where this went grass roots TRF talent and work force put it back together and the brand thrived but the whole motorsports industry is facing tough times ridiculous pricing multiplied by insane cost of living taking away the fun the working class can afford total shame a long term respected U.S motorsports company reduced to a fire sale a warning to the rot setting in to middle income family recreation.
They all got greedy and over charged. They phased themselves out with crippling high prices. It was sup to be a family sport but families are facing challenging economic impacts and seek cheap fun being unhappy they can’t afford a new sled.
Right on Nick. BRP average customer has $200,000 income now used to be $15,000-$20,000 in mid 1970’s.
Whem Yamaha announced it’s exit last year for snowmobile markets. It saw the light.
Sad to see but people can’t afford a 20-25k sled. I will stick with my old school.sleds..
Yammi failed because they were done in 2014, after topping making 2S in 2005 or so, they kept being lazy and releasing dumb products nobody wanted. The anti vibration bar was the lamest. The partnership with cat only prolonged its death. Cat followed Yamaha to its death.
Ski-Doo needs a US manufacturing facilities if Trumps tariffs happen. They need one anyway.
Viking had some interesting thoughts, the idea of turning the company into a
producer of essantially light tactical vehicles, mil-spec SxS and snowmobiles is a
interesting one, AC also did considerable engine design work and has a engine
plant so they could be self sufficient and not have to rely on outside engine
suppliers, they had a very nice 1000cc 4-stroke v-twin for quads and Sxs types ,
and thier side by side vehicles were quite nicely done.
A turbodiesel side x side with a long cargo box and a turbocharged small diesel
like one of the new kohler engines could be a good seller for the ag market
where it’d have fuel commonality with large ag machines.
Sweden and Finland are both new nato members will need alot of milspec
snow machines for thier long borders with Russia. Finland has 800 miles of
border alone.
Some might say Polaris has the milspec side by side market locked up, I don’t
agree, A side by side has a fraction of the running costs as far as fuel burn
goes compared to any small 4×4 pickup like a toyota hilux or other jeep type
vehicle. and a small displacement say 1000cc to 1200cc three cylinder turbo-
diesel would have plenty of torque and more than enough rated HP .
Theres definitely something to this military, police and government sales
idea .
Polaris has and had it locked up but now with Musk being with the President elect everyday for the last several months he will get whatever he wants, many sources say President elect will get rid of all EV rebates to help Musk and hurt all Detroit and Japan and European auto motive makers. Musk wealth went up $62 billion in one day last week and has nearly double his net worth since Sept. to $500 billion, the richest man in the free world by far. Putin is richest on earth.
It seems that AC is going the same path as Stellantis (Dodge RAM Jeep & Chrysler) control by outsiders that do not understand the culture of the product. Building vehicles thaf should be for middleclass salaries to overboard expensive.
Unfortunately all sport manufacturers are going to go through this. Like the automotive industry, everyone has literally priced themselves out of the market. Its a shame that people’s lively hoods are going to suffer because of this. I stopped by a local sports store and they are panicking with lack of sales. Who can really afford a 20k + sled just to use it 3 months of the year. I wish all of the best for all powers sports companies.
I totally agree, they need a great handling ditch banger 500 and 650 for 10k or less and they wouldnt be able to build enough off them!!
Right on I have been saying this since 2000 and earlier. Think the days of XLT 580 triple , MXZ 583, ZR 580 all low price great second or third from the top performance and vast majority of the market. XLT alone was 25+% of total sled sales in 1933 & 1994.
Polaris and Arctic cat they are both Minnesota based companies that one time were one Company under the Polaris flag. Perhaps that is the answer. Look at history would it be so bad if Polaris bought back Arctic cat. I believe this would be a good thing. They have the experience in rebuilding a brand. In a long term relationship let a successful AC have buy back plan. This in itself helps both manufacturers survive. This has always been a tough business together. They will thrive.
I agree with everyone that’s the main problem is cost, and the attack on the middle class of four all this said somehow we have to get back to grassroots and lean in to towards the beginning of this industry and learned from it success.
Mr William Weir of 84 (he posted Comments) and impressive 175,000 miles on a snowmobile! Would be a wonderful person to have on Arctic cat bored of rebuilding the brand. Especially owning 22 Arctic cats in the past certainly knows about big jump in cost in snowmobile ownership and most importantly the snowmobile culture. My respects, Mr. Weir.
Polaris and AC founders (Allan and Edgar Hetton and David Johnson) were the same, had a disagreement between the three, then started AC but AC and Polaris were never the same company.
When AC went bankrupt in 1982 Polaris was going to buy AC, but AC management did a management resurrection instead.
Polaris did buy out the inventory and parts rights and prototypes when John Deere stopped producing sleds Dad a neat IFS sled with 500 cc Kawasaki engine in the works that shows up at various historic sled events, it could have been an iconic sled for John Deere but Polaris had the great Indy so need to make the JD sled.
Many have been stating for years and still today it is time to go back to marketing sleds (2nd or 3rd from top of the line performance sleds that are at least $10,000 cheaper that current prices so the Industry goes back to it’s historic highs in sled sales in late 1960’s to early 1970’s.) Maybe the manufacturers will start listening and do what was successful for decades.
The current high price model is not working, two iconic Industry giants (Yamaha and AC gone) and MY 2025 sled sales at historic lows, please do this to revive our great recreational sport and country / rural lifestyle.
Textron is and always has been a corporate raider, with executives drawing large salaries and bonuses (draining cash), while leaving the people who actually do the work, wondering how they will buy food for their families and pay the rent.
Yamaha went backwards when they decided to stop making 2 strokes, ok to have some 4 strokes , but not all…. it had nothing to do with the partnership with AC in 2014, if anything it gave Yamaha a few more years of producing sleds…..
Proud AC workers and customers (on social media and in person) are very sad and upset the AC makes more Ski-doo’s than AC sleds because AC makes all the 120 and 200 cc sleds for Ski-Doo (just like they did from themselves and Yamaha). That is true and so sad as in 1970 AC made/sold over 112,000 sleds which now was basically all sled sales in 2023 as stated on podcasts by top AC engineers / VPs.
Due to potential 25%+ tariffs by President elect CFMoto (made in China but sold in100+ countries and fastest growing powersports company by leaps and bounds) (ATV, SxS, UTV and motorcycles) maybe interested in buying the assets (plant & machinery) or the company, they would basically build in China but final assembly (basically put on decals) in the US and be owned by China and have all top management from China with a very small US workforce to get around the tariffs. That is probably what Textron was banking on to be bought out by foreign investors (especially China) so Textron makes few bucks on the sale of assets (not the company or name), gets big tax write-offs for closing down the company. A lot of US companies are going to do this now (sell to foreign buyers and or close down) because of the threat of President elect tariffs.
CFMoto has 5 year warranty on all of their products in Canada. In the US many customers buy two CFMotos for the price of one BRP for both ATV and SxS. This is why we need competition i.e. for AC to stay in business.
In 1980-1981 Ski-Doo wanted to buy Polaris (from Textron) but US government would not allow it as they would control the market, would be no issue now for SD to buy AC as AC has <10% share while Ski-D00 has 65% share.
I’m leaving at Quebec city, and since 8 last years not to much snow more rain, so i sold my sleed 2 years ago. We must go more to the north. I think because winters are more warmer. It’s the end of all snowmobiles industries. SkiDoo’s manufacturer reduce the production of 25% this year.
All the manufacturers have been leaving a huge potential market with no options for years, 4 months per year Weekend riders. I live in CT , im
Not spending $14k on a sled. If i lived in a place with a lot of snow i would. Its obvious, does harley sell more bikes in florida or minnesota? How a bout a reliable adult machine in the $6k to 7k range. Forget the latest bells and whistles
My two cents:
1) Lack of snow in the Midwest (Cat’s core area)
2) Machines way too expensive for a seasonal sport
3) EPA regulations (not a bad thing…I’m glad the air and water are cleaner than when I grew up)
3) 4x4s and ATVs have crowded out the snowmobile market, maybe for reasons #1 and #2
I hope Cat gets bought up by someone who can keep the new Catalyst design and who can keep their plants open and workers working.
RIP Arctic Cat and Yamaha. Sad to see 2 iconic brands exit this industry.
Would be interesting to see if THOR Industries shows any interest in buying Arctic Cat.
Here is a chance for the Employees to purchase a Company. They will not need any CEO’s draining $10 Million per year Salaries.
If Arctic Cat shuts down production for good, I am afraid their Dealers may take on Chinese Brands to stay in business.
I want all of you to look at over the years. Which I have a few years under my belt 50 of those years are snowmobiling Everything is consolidating. It doesn’t matter if it’s farming or screwdrivers and unfortunately Snowmobiles, we don’t even have a motorcycle or snowmobile dealer in our area anymore unfortunately high interest rates lack of snow 58% of the population has high debt The younger crowd has decided something else is more important. and now with the tariffs that are gonna be put on that 51% of the people voted for that will be a deciding factor on a lot of things. And the last word I have is I love snowmobiles riding them /collecting them old or new/ toy snowmobiles/ reading snogoer and others / and memorabilia / and riding with my family and my grandchildren to see their faces light up /and I honestly hope Arctic cat can make it for all our workers in the factory/dealers/accessory companies/magazines /bars, restaurants/and everything else that snowmobiling has a factor in ..
It is devastating for our sport to lose Yamaha and now Arctic Cat. DEVASTATING! But as bad as that is think of the people in TRF’s and St.Cloud who will be out of a job. And the dealers that are still left, many only had Arctic Cat to sell.
I would hope many of you get a chance to read a good article in the December issue of Snow Tech. They had a very good, but kind of sad story related to Cat’s position in the sport (prior to this announcement). It’s in an article (page 10) called “Arctic Cat 858 – on the dyno”. The story makes sense to me and basically is saying Cat is most likely six to eight years behind BRP and Polaris in engine development?? That would make it hard for them to catch up.
I agree with many comments I read here and most of Viking’s comments. I had heard of Deere’s possible interest 8-10 months ago, but people were saying much of their interest was for building a better quality UTV than what they currently have. Apparently, the Gator today is not what it used to be and my JD mechanic echos that. I struggle to see anyone stepping in and buying it. Before Textron bought it, I was told a local purchase was coming together but not quick enough. If those people were still willing to look, why would they want today’s version of the company compared to even when Textron bought it. I don’t see anything good Textron brought to Cat especially what they did to their dealer network. By the way Minnesota is still lucky to have a several great Cat Dealers.
The price thing keeps coming up and I will acknowledge that yes you can buy $20,000 snowmobiles in these times but in normal years those high-end models typically sell out. Where I live in a competitive market like the Twin Cities last winter (no snow) and right thru till now, you can buy a darn nice 600cc Doo with RER and electric start for around $11,000+. I just saw some Black Friday deals at Thanksgiving supporting that statement. This week in two different Polaris dealers I saw tags on 2024’s with $3500 to almost $5000 OFF. That was probably off MSRP but still pretty good discounts. Polaris seem to me to be quite a bit higher than Ski-doo. My local Doo dealer says that Ski-doo’s recently announced 0% financing on 2025’s is bringing people thru their doors that are buying. Not enough yet but sales are coming around a little.
One more comment and I will call it quits is SNOW sure would help. Last year was dreadful almost across the whole country, again making side by sides more tempting.
The main reason all the powersports and recreation industry is suffering is because of this green agenda, electric mandates, but most of all its high inflation. I’m not talking the inflation numbers you see on TV. I’m talking the real working class inflation for day to day living expenses mostly over the last four years. Groceries have doubled. Housing has doubled. Property taxes have doubled. All insurance has spiked. Why do you think so many are running old iron? They simply don’t have money left to spend. Dump the climate crap and the green agenda. If they’re green stuff is more efficient and lower cost it will sell on its own merits. No subsidies. No mandates. No tax breaks or write offs. Why should us working class pay for the rich guy to buy a $100,000. electric car or install $100,000. solar panel system? We need common sense EPA requirements that allow clean 2 stroke and 4 stroke gas engines. Set the tariffs in place. Build it here.
Do you think getting rid of “the green agenda” is going to help solve the lack of snow? The lack of winter weather is the real problem. Lots of snow would solve most of the problems plaguing the sport.
No pride no more the clothing line was the best and accessories was better than anyone else
Remember pride I have a 03 f-7 and will ride it till I can’t ride no more than look at it till I die
No pride in new sleds just buttons and big cans
Ac had the best colors orange green purple black
Only ma and pa stores keep parts in stock
New dealership just want to sell new junk and can’t find cen keep parts in stock for the enthusiasts Craig saloom
To understand this we need to stop thinking like sledheads and think like the Textron Board and Textron Top Management (B&TTM) and determine what has changed this year vs last year. 95% sure B&TTM aren’t powersport enthusiasts (or ever rode a sled of ATV/SxS) and 99% sure they are not AC customers.
B&TTM are asking Textron Industrial Division (TID) of their division and perhaps in particular the status the Arctic Cat investment, turnaround. TID is made up of 6 companies (AC, E-Z-Go, Cushman, Jacobson, Kautex & Textron GSE). TID in turn asks Artic Cat Top Management ACTM who in turn ask the Snowmobile division (SD) and ATV&SXS division (AD) the same question.
The S&A division (sled & ATV) has good news and bad news. Good news sled sales are up last year (MY 24) due to the new Catalyst chassis and this year (MY 25) due to 2nd year of the new chassis (many customers avoid first year products) and the new 858 engine and forecast even greater sales growth for MY 26 due to 2nd year of the 858 and likely release of revised 700 engine ( ZR700/F7) to replace the 600 engine with a reduced sales price and a more powerful Turbo 4 stroke (with an increased price) and in MY 27 a turbo 858/900. Good news growth but in total sales are dismal ~3,000-4,000 units, under 5% of the total market.
The AD has bad news with sales decline (in MY 24 & 25) and further forecasted decline for MY 26 and beyond, unless they put in the increased turbo 4 stroke in the WildCat XX and update the ATV & SxS lines and drastically reduce prices.
B&TTM learn of the current and forecasted status and ask how it compares to historic AC sales. They freak out learning industry total sales units are 1/6 of what they were 55 years ago and specifically AC sled unit sales of 3-4,000 vs 112,000 units.
They know of Trump wanting to charge a 25% tariff (foreign sales tax) on all Canadian and foreign goods so they ask TTM what foreign investors / companies will want to buy AC to assemble / crate their products to get around the high tariffs. TTM says BRP, CFMoto and other ATV/SxS companies are potential foreign buyers along with domestic companies like Argo, John Deere, Harley Davidson, Polaris & Elon Musk).
The bottom line, politics, corporate greed and short-term thinking by B&TTM are the reasons for the sale. Specifically, Trump winning the election and threating to charge a 25% tariff on all foreign imports of goods expediated the long-anticipated sale of AC.
B&TTM did not want to wait for the expected turnaround of AC or the industry.
AC will be the first of many US companies who will do the same in 2025 to make a quick buck and sell off US companies to foreign investors to take advantage and simply to get around Trumps tariffs (foreign sales tax on goods). TM will get huge bonuses, investors will make a quick buck, employees will lose their jobs and get lower pay. The 1%ers will win at the loss of the 99% of us.
In 2025 (MY 26) AC lost its best customer, Yamaha who always paid on time, in full with no discounts for inventory which did not sell, unlike AC dealers. Not only was Yamaha far their #1 customer, they were also many times larger than AC.
B&TM could not ignore that reality along with Trumps threatened tariffs which led to a sale opportunity.
Yamaha’s announced departure on June 28/23 was just 18 months before AC’s Dec. 18/24 similar announcement.
We did not want to believe but we knew this was coming.
For more information on this, listen to or read Textron’s fourth quarter 2024 financial results on Wednesday morning, January 22, 2025.
Merry Christmas and Happy New Year to everyone: all AC staff, customers, even the B&TTM, all sledders and especially to John Prusak and staff at SnowGoer.
Lets all stick together and “be a better man” by building up and helping people not mocking or bullying them (physical or verbal) them to protect people, animals and the planet.
Lets hope things work out for the best for AC to be even better than they were in their glory years in the industry. Lets hope smart investors buy AC and listen to experienced people in the industry and former AC staff / management / investors and to build great performing, durable, reliable, fun, easy to maintain inexpensive sleds, ATV’s and SxS’s.
Ride safe and Keep the rubber side down. ;-).
I believe Trump’s upcoming tariff’s are a big issue on this. I would say AC is officially dead.
If AC is bought it will be 4th of AC’s 9 lives. IMO Top 4 contenders are Argo and BRP followed by John Deere and CFMoto.
If BRP buys it, they will make Ski-Doos at TRF with rebranded black,/green/purple/orange SD just like they did when they purchased Moto Ski. All AC sleds (motors and chassis will be gone replaced by SD). No more AC. It is simply done because of Trumps threatened 25% tariffs. Once Trump and tariffs eliminated they will sell AC to Argo. Argo will always want AC, all of their top management and most middle management are former AC employees and their HQ and one of their plants are in TRF. So very little risk for BRP to purchase AC.
Argo, JD ,and CFM would produce AC’s if they purchased AC. That is the only way real AC sleds, ATV and SxS will remain. That would also be the case if HD or any foreign bike/ATV/SxS manufacturer bought it.
Thanks for SnowGoer for reporting on this no other sled media (TV, website, magazine) are reporting on this, except on customer forums. Why is that? Biggest news in the industry for several weeks and the others do not report it? Are the others fake sled media, afraid of Textron or politics? They certainly are not abiding by journalistic ethics?
Best thing would be if Roger Skime could get a group of local investors together and save AC with RS as VP of Engineering to ensure the right products are made based on AC’s great past of great dependable, durable, reliable, performance great value affordable products marketed mainly to working and middle class with of course high end top of the line products for those customers as well and bring back the great marketing ads, posters, brochures, commercials, pride group , AC race teams in all forms (XC, long distance endurance, SX, ovals, drags, hill climb, hill cross, water skipping).
https://snowgoer.com/news/living-legend-roger-skime-innovator-inventor-and-hard-driven-competitor/27221/
I live in southern Wisconsin (Beloit), and lack of snow, and warm winters is a major thing with many. The cost of new sleds doesn’t help either.
B_D Opinion for the New Year of 25.
Hello,
All here on this forum have good thoughts regarding the AC issue at hand. But there’s something much deeper going on. The whole industry AND press have a cancer that’s eating away at the sport of snowmobiling. And nobody wants to talk about it or even realize it. Let me explain. I affectionately call some of this the ‘Industry Whores” and “20,000 Press.” The industry is dying right before our eyes. Sure some of it is weather/snow related but a lot is also a declining demand, shrinking real numbers, club participation and several other factors in maintaining the infrastructure of the sport. Rather than everyday folks supporting the snowmobile industry, what we now have is totally supported by “hard core” riders. You can’t sustain a manufacturing factory base, in real numbers, and all other aspects of a healthy industry with this sort of rider. Don’t get me wrong, there is a place for this and we should thank them but it will only slow the bleeding. The patient is still dying (i.e. Arctic Cat & Yamaha). And its definitely not because of a lack of product innovation. The sport has shrunk to the point in sheer numbers that it can only sustain maybe 1-2 manufacturers. In 10 years with sleds costing $25,000+ and declining participation maybe we’ll be at 1 sled company or 2 with a lot fewer models.
Case in point. Over the course of recent time the snowmobile media has lost Snow Week, Snowmobile, American Snowmobiler and so many others. The ones that remain are hanging on by a thread. Lose an ad or two (Yamaha) and they may be gone forever. Not a lot of new advertisers either. The aftermarket has lost Tucker Rocky (snowmobile), Marshall Distributing (bought out), Bell Industries (mostly), Western Powersports (new management) and a host of others including smaller players and including in Canada, Motovan (reorganization), Steen Hanson and so many more. PU is not what it used to be in the snowmobile business as well as are the so called “mail order” companies (Shade Tree comes to mind). The small aftermarket manufacturers that actually truly made stuff for the masses was the underpinning of a healthy network of support that are all now mostly gone as well. Some retired and others couldn’t justify the declining sales (plus competition from internet foreign sources like China).
The “Industry Whores” are sled manufacturers that continue pushing the envelope, partly they think, by the need to supply consumer demand, media wrath after Snow Shoot or perceived competition but also a lot of it is age old biblical greed. Just look at the current H-1B visa debate. Remember when you could buy an Indy 500 or XLT, anything pre-Rev, Phaser or ZL series sled and then load it up with customer specific aftermarket parts for whatever aspect you were trying to achieve. Be it suspension, motor or whatever. The money you spent, the O.E.’s figured was lost revenue to them so they simply started adding it themselves for increased margins. Sure the end product was better but at what cost to the industry players as a whole. Do the remaining “soft” riders (and the masses of those that left in droves) really need what the O.E.’s are peddling. The media loves it.
Then my friends we have the “20,000 Press” who right after Snow Shoot will comment that if an O.E. didn’t reinvent the wheel will tell their readers nothing new here, just “BNG” (bold new graphics) or that an O.E.’s product offering is getting long in the tooth. Or you need to sell your new snowmobile you just bought last season by way of a 2nd mortgage because its now obsolete. Sounds like the same mindset of people who want to rewrite the U.S. Constitution or the Holy Bible because its the same old thing. Nothing new here to report. It used to be a manufacturer would add a thrust washer here or strengthen a bolt over there from a Gr. 5 to an 8. Or maybe just an easy calibration update. Stamp out a tunnel, add a simple trailing arm bulkhead. Add a cool decal or two and shazam! A new model year sled of similar cost from last year. But the media would crucify a manufacturer for such a thought today. And if you think no one today would buy such a sled in that price range, then if true, the sport will unfortunately continue to decline due to high cost.
There is a certain snowmobile mentality promoted by the “20,000 Press” that looks down on anyone, especially seasoned riders, even thinking about a fan cooled or liquid 56HP class sled. Its not manly don’t you know. Here’s a novel idea… Don’t accept any press units from the OEM. If the “20,000 Press” wants a sled(s) to run, go buy it like we have to, then trade it in for another every year. Tell readership about your experience and if you lost money through depreciation on next year’s purchase. Try another manufacture the following year. Continue commenting on the others from press releases. Your doing it now anyway. Show us you’ve got skin in the game like the rest of us. Maybe with some enlightenment you’ll be known as the “10,000 Press” at some point.
Innovation breeds cost increases. And cost increases breed fewer units sold and less sport participation. Some of you will say, we had low cost type sleds like that and some mfg’s still do today and it didn’t do anything. True to a point but you fail to add into the equation the “20,000 Press” and their influence with so called manly images of the sport along with cleaver mid-air photos and slick copy verbiage and full page O.E. ads promoting the insane just to name a few. Remember we are trying to increase in numbers, retain what we’ve got and grow. Not sing to the choir.
How to make AC #1 again! Right after Textron bought Cat if you noticed the MSRP was quite attractive and down $1000’s less than the others. After noticing I figured they realized rather than compete tech for tech, they were going to flood the market with product that would reignite the masses back into the industry and buy an Arctic Cat. Sadly the “20,000 Press” fought against this with the above mentioned press coverage. Promoting instead Space X rocket equipped snowmobiles with horsepower exceeding your average automobile. And Textron I think got greedy and/or changed market strategy the following years and as such, MSRP was right back on top with the rest. Remember the Blast! Too high of a MSRP and decades old stigma of a one lunger. A small 292 or 340 twin calling it a Puma or Lynx may of been a better choice. And maybe a small Yamaha 4 stroke option. The Chinese would of sold them at or above cost as a leader just to gain market share and then migrate your growing base up to a higher margin choice later on. Cap the tech at a certain point to retain a less MSRP than the others. Don’t forget about the “20,000 Press.” They kept complaining about “better shocks with remote reservoirs or that the Blast was an entry sled or Woman’s sled or young teenager sled not for the real Man of the house. The “20,000 Press” wouldn’t be caught dead or seen running a Puma or Lynx all year long. Or even purchasing a few. Right?
Silicon Valley tech/cell phone companies practically give stuff away (apps or hardware) getting you hooked on their product similar to a drug dealer. Once your addicted, you migrate to something higher if you wish. Smart. But never do they, by way of press outlets, denigrate the masses or base. After all, who wants to buy a product, then read in the media, its for Children, Women or entry level only but definitely not for a real Man… “A real Man needs HP between his legs and arm straightening acceleration with his thumb on the loud handle cruising down the trail at 50 or 60 mph hitting the apex and launching his machine mid-air while taking a selfie for his social media page wearing chrome goggles.” What a mess we have become (adjectives taken from real past press conversations). No wonder we are experiencing near misses on the trail today and have contributed to the masses of abandonment. Who wants to risk it?
My perspective only. I’ve been in this industry for a number of years and have known a lot of the players. So yes, I have had and still do have some skin in the game (but have decided to remain anonymous). I live where there used to be constant snowmobile activity and trail usage but sadly now you seldom even hear a sled running a near by lake or down a corridor trail that has very little use as well. The industry knows this but won’t talk about it. Rather, they talk about turbo’s and led lighting and mogul bashing, etc. The “hard core” are keeping it alive, barely, but this will not grow the sport and why your seeing a slow decline. Did I mention it has also become a rich man’s sport or as some in the industry say HNWI (high net worth individual). Further alienating the masses who were the underpinning of support we had. I once spoke to a well known racer (in the Hall of Fame) everyone would recognize by his name and he talked about how snowmobiles needed to be more like modern day versions of trailing arm Jags, JD Spitfires, Citations, 440 Indy’s, Enticers, etc. Something like a commodity. Not a specialized Ferrari.
Then again some will say well, we are just giving the consumer what he wants. So let’s analyze this… If the NFA law changed allowing full on AR-15 machine guns without any tax stamp and they were selling like hot cakes, the consumer would be getting what they want, right? Then with cooler minds the law changed back to non NFA regulated AR-15 semi automatics, the consumer would bitch and complain and stop buying firearms? The snowmobile industry needs to get back to semi automatics. A $20,000 sled sure is fun but so is an AR-15 full auto. Just because Smith & Wesson can make one doesn’t mean its especially good for your crazed neighbor to have one. Or for the sports survival in promoting a $20,000 snowmobile.
Can it change and survive? Yes. But only if we admit the damage, only then can we rebuild and prosper and bring back the patient from life support (weather permitting). The O.E.’s and media both have a huge responsibility in this. Will they? And also the State or Provincial snowmobile associations. They very simply could put their collective foot down and say enough. Or mandate a trail permit requiring machine insurance based on MSRP and not HP. Allow certain exceptions for older sleds or other criteria.
In closing, the snowmobile industry product line need to return to being a commodity again for the common man… Not a privilege for the few HNWI. Think long term. Not short term profit margins. Don’t be greedy or our grand children won’t have a sport. And the press needs to stop nursing on the OEM nipple. Nobody purchases a snowmobile on what the media says anyways. Just give us the specs and photo angles and we will decide. Like our fathers did before us. Buy the sleds you actually report on with a revolving bank credit line (like the rest of us) and acquire an attitude adjustment, setting your mind straight on the way things ought to be for the sports survival. AKA “financial skin in the game.”
B_D
B_D, you hit the nail on the head here. Well written and explained. It’s time for a wake up call to everyone. I’ve had similar discussions with friends in and out of the industry over the last few weeks regarding the current state of affairs in snowmobiling. Things need a redirection and quickly or the sport most us love will be dead in 10 years besides the mountain riding.
We also need to get the youth rejuvenated in the sport. Youth snowmobile training classes are not filling up like they used too. Families have a lot of things going on today understandably. But many of the youth are not even exposed to the sport to realize how great it is. We need a younger class of customers to keep the sport alive. They amount of teenagers and 20 somethings that have sleds today is a fraction compared to 20-40 years ago. There’s no simple single answer, but your points would go a long way to help with this.
I would encourage you to share this message more broadly with the masses on social media.
Burn,
I held a lot back about what’s going on within the industry but my point I think was made. We also need to give a lot of credit to John @ Snow Goer for even allowing this to be printed. He could of killed it because of what was said about the media but he didn’t and we need to thank Snow Goer.
Also, if you think this was accepted by other readers then you’d think there would be more response like yours. You took a courageous step in commenting with your opinion and that’s definitely a start in the right direction. I am actually very busy this time of year for obvious reasons but feel free to use my text on any social media you think is best. We all want the same thing in the end… The sports survival and good health to be prosperous for Arctic Cat, Ski-Doo, Polaris and yes our collective open arms are always open for Yamaha if they did a 180.
Good Riding,
B_D