Polaris Engines Made in Mexico

[r.a.]

What are your thoughts.Thanks
I will never buy another new polaris product again. Let Mexico support them.

 

[MX86]

So your saying because polaris moved their ATV assembly plant over the boarder your just going to disown them and never buy another product? wow... if only we were like that for the rest of the stuff we buy...

 

[mountainhorse]

How is this different from buying a Canadian made product?

Or a product with Canadian made parts in it?

Would you pay more for a USA built sled over a sled built in Canada?... oh wait.. the free ride already costs $13,500 USD... That would be pretty hard to sell.

HMM.

Outsourcing is outsourcing regardless: Mexico, Malaysia, Montreal or Mongolia...
And besides... The sled mfg at Polaris... at least for the time being remains in Roseau, MN... USA...

Would you sell your GM/Ford/Dodge truck because it is either built in Mexico or has a large portion of parts made in Mexico?

I can see both sides of the coin... mentioned it in another thread here.

Not as simple as it might look.

Yamaha is a Japanese company.
Arctic Cat uses Suzuki motors in most of their products.
Ski Doo... Canadian... Rotax originally a German company. I believe that their engines are built in Gunskirchen, Austria

Does this mean you are giving up snowmobiles because there is not a single snowmobile that has 100% Domestic USA mfg'd content?

At least we didn't fight the Mexicans in WWII. (grin)

Loosing the manufacturing jobs in the US seems to be a modern day reality

 

[r.a.]

Polaris
Every since the Liberty has bragged about being American Built. I bought into it.Not anymore JMO Thanks They should atleast move to Arizona. Keep a little $ in the U.S.A. Thanks

 

[mountainhorse]

I didn't see in the articles written and posted here... that any part of the snowmobile mfg was moving south... sounds more like UTV's and Victory assembly.

I think all the snowmobile/related mfg is staying in the states.

I could be wrong though.

 

[MARV1]

Don't let the door hit you in the azz. . . Guess you can't read for yourself.

 

[mountainhorse]

Ouch Marv,

I did read, what I thought was, the information out there (below) and did not see where the Snowmobile assembly, or component mfg was moving to Mexico.

Obviously I'm missing something as I have respect for you Marv.

Please point me to better information...Sincerely.

News Release
Polaris Industries Media Contact: Marlys Knutson
2100 Highway 55 Phone: 763/542-0533
Medina, MN 55340-9770 marlys.knutson@polarisind.com
Investor Contact: Richard Edwards
Phone: 763/513-3477
richard.edwards@polarisind.com

POLARIS TO REALIGN MANUFACTURING OPERATIONS

Realignment expected to improve long-term competitive positioning resulting from logistical and production cost savings while expediting delivery times

MINNEAPOLIS (May 20, 2010) – In an effort to improve its long-term competitive positioning, increase operational efficiencies and position the company for future growth, Polaris Industries Inc. (NYSE: PII) today announced plans to realign its perations and refocus on its core strategic manufacturing processes. The Company will create manufacturing centers of excellence for Polaris Products by enhancing the existing Roseau, Minn. and Spirit Lake, Iowa, production facilities and establishing a new facility in Mexico. The Company is currently evaluating several possible locations in the Monterrey/Saltillo area of Mexico for the new facility. The realignment will lead to the eventual sale or closure of Polaris’ Osceola, Wisconsin manufacturing operations over time. The realignment allows the Company to dedicate capital for strategic investments in painting, welding and assembly operations by outsourcing certain non-strategic component manufacturing processes. The Mexico facility is expected to maintain Polaris’ industry leading quality while improving the Company’s on-time delivery to customers and provide significant savings in logistical and production costs.

“While this was a difficult decision for us, given the impact on our employees at the Osceola facility, we believe the creation of these manufacturing centers of excellence will strengthen our company over the long-term and enable us to maintain our lead in a competitive market,” said Scott Wine, CEO, Polaris Industries Inc. “Pursuing opportunities in new markets outside the United States, while concurrently evaluating our cost structure to improve our long-term competitive positioning are key components to our growth strategy. This decision was based on a thorough review of our worldwide operations and will allow us to improve our ability to meet the quality, delivery and cost standards desired by our dealers and customers.”

-more

The realignment of Polaris’ manufacturing footprint will strengthen the Company’s position in the powersports industry, as it will enable Polaris to have production facilities closer to customers in the southern United States and global markets the Company currently serves or expects to serve in the future.
When the manufacturing realignment is completed the Company will have capabilities to manufacture ORVs (both ATVs and side-by-side vehicles), which represents more than two-thirds of the Company’s sales, in multiple locations depending on customer demand.

Snowmobile assembly will remain in the Roseau facility and Victory motorcycle assembly will remain in the Company’s Spirit Lake facility. As part of the manufacturing realignment, certain Osceola manufacturing processes will be moved into the Roseau, Spirit Lake and Mexico facilities to more effectively utilize Company resources. In addition, certain manufacturing processes and equipment are intended to be sold to suppliers whom will continue to supply components to Polaris. Other non-strategic component manufacturing operations currently performed in the Osceola facility will be outsourced. The realignment will begin immediately and is scheduled to be complete in 2012. The Company will look to have the new production facility in Mexico operational beginning in the first half of 2011.

Polaris is currently in negotiations with several suppliers to sell certain non-strategic component manufacturing processes and equipment in the Osceola facility. If successful, Polaris’ intent is that the suppliers will continue to manufacture these components in the current Osceola location. Polaris will operate the Osceola manufacturing facilities during the transition period. Upon completion of the transition, Polaris will provide the affected employees severance benefits and work closely with the Wisconsin Department of Labor and other state and local agencies to offer employment assistance and other services.

The Company expects to record pretax transition charges to its income statement in the range of $20 million to $25 million and incur capital expenditures up to $35 million over the next few years related to the implementation of the manufacturing realignment. The Company expects the Osceola facility exit costs, comprising largely of one-time employee termination benefits, to amount to approximately a third of the total
transition charges, while the start-up costs related to the new Mexico facility and their centers of excellence will comprise the balance. Transition charges to be incurred in calendar year 2010 are expected to be in the range of $8 to $10 million. The Company’s current earnings guidance of earnings per share of $3.48 to $3.60 for the full year 2010 will not change as a result of this announcement. The realignment is expected to generate pre-tax costs and expense savings in excess of $30 million on an annual basis when the transition has been completed. The Company expects to begin realizing some of the cost savings as early as 2011.

OSCEOLA, Wis. (AP) -- Polaris Industries Inc. says it will shut down its parts plant in the western Wisconsin city of Osceola.

The Medina, Minn.-based maker of snowmobiles, ATVs and Victory motorcycles says it's moving many of the operations to a new facility in the Monterrey-Saltillo area of Mexico.

Polaris will continue to make snowmobiles in Roseau, Minn., and motorcycles in Spirit Lake, Iowa. Some operations will be moved to Roseau and Spirit Lake.

Polaris also says it's negotiating to sell some of its parts manufacturing processes and equipment in Osceola to suppliers who'd continue making components there.

Spokeswoman Marlys Knutson says the plant currently employs 515 people, who will be allowed to apply for jobs at the other Polaris facilities or with companies that continue producing parts in Osceola.

 

[mountainhorse]

Just to be clear...I do NOT support the move on part of Polaris.

Profit maximization by publicly traded companies is part of the main concept behind US capitalism.... required actually.

More and more of own people are lost in the cracks of society as we loose the ability to manufacture items in our own borders that are viable in the Global wage market.

Here is a copy of my post in another thread.

Sad to see it, but our country is, and has been for many years, going Back to the Pre-WWII equilibrium of "Owners and Renters/workers" and not much middle class.

In the SEC regulations, that large Corps and lobbyist helped to draft, Publicly traded corporations are REQUIRED to maximize profits for the shareholders...There is no element in these regulations for long term stability or Nationalistic loyalty. If companies are not looking to drop costs and increase profits for shareholders... they are in breach of their fiduciary responsibility to the shareholders and can be held accountable ...

Sad IMO as these regulations do not require any responsibility on the part of the corporations/shareholders for the long term stability for the people/communities/nation in which they extract their profits from or where they are granted the Privilege of operating and living in.

This is one of the core faults in our corporate/govt tie that takes us farther away from a decent standard of living for our citizens that are hardworking.

And the machine keeps turning...

Here is a post I made a while back that seems relevant to this discussion

Then again, my bikes aren't made in America by Americans who take no pride in their work yet require large American wages.

There are plenty of Americans that take pride in their work. And some that don't as well.

It takes a "large American wage" to live in the USA...even more so now with the price of EVERYTHING going up.

I'm not sure if it is a lack of pride on the part of the factory worker or the fact that corporate orders mandate that the assembly line be run in such a fashion that the worker has no time to setup this stuff correctly at the factory.

This is coupled with the pressures for wage cuts in the face of global outsourcing that eliminates many jobs in our country every year. The consumer votes with their dollars on what they TRULY prefer... or want to believe. Many may not like that the majority of our consumer products in the USA are made in foreign lands, but they will still buy their stuff at Wallmart every week.

Many members on this forum are very frustrated by the cost of the aftermarket parts for our sleds... I'd bet more than 95% of them are made in the USA and that is why the cost is so high... I dont see the owners of Edgeworks or Fire N Ice driving around in New Escalades and putting a new 10,000 sq ft addition on their homes....It's the cost of making things in the USA...

We all want it "CHEAPER and BETTER".... or we want to belive that the quality can be maintained or improved for less cost.... It's just human nature!

I grew up in the Detroit area... lots of auto workers in my neighborhood... some of them were lazy SOB's that would not put a bolt in a fender correctly... but others who took great pride in their work but were not allowed by time constraints dictated by the management do the good work they wanted to do. It is super frustrating for a line worker when the time allotted for performing their task is not made by someone who actually knows how to do the task... and I'm talking about quality minded, apple pie eatin survivors of the depresion that know what pride in their work and our country is all about.

All of these decisions are made in an environment, our laws, that require public owned companies (like Polaris, Exxon, Blue-Cross, etc...) to maximize profits for their share holders. It's a pretty complicated "tangled web" in our society. A multi-variable equation if you will that is upset greatly when you change the different factors that affect the system.

These are the same profit-margin pressures that prevent the factory from making a recall or free service on obvious flaws in a design.

Profit maximization should be REQIRED by the S.E.C. to include a component of sustainability (for our country's economy and security) as well as maintaining the quality of a product. If a company is expected to increase profits when the costs are skyrocketing [check the cost of copper, plastic, steel and fuel lately] and still turn out a quality product and increase their shareholders earnings... that is a recipe for disaster...not just for Polaris, Cat and Ski-Doo... but for our USA as a society.

 

[rmk727]

As a dealer /share holder and American I apologize for my actions of a few years ago by liking Pat Buccanons reterick but not supporting him. I shutter everytime i here this Global stuff, it will bring this country down. Polaris could just as well put this plant in Texas or Arizona and just hire mex's to work for less. I wonder maybe Polaris should move corporate down there and hire them in the office, I bet the salaries would be less than half of the guys in now. I can't continue as I really like the Polaris products but continue to dislike management.

 

[63nova]

Snow engines will be built in Roseau

If you put togther all the pieces, it looks like snowmobile engine assembly will move from Osceola to Roseau to be right alongside the sled assembly. I don't see any downside to that.

 

[winter brew]

I believe them moving ANY aspect of their business to Mexico is a bad move long term....sure, they will save some labor and haz-mat disposal costs short term, but how will their customers react? Will quality suffer? How many American jobs lost?
I think if we tracked all the parts going into any brand of sled we will find they are build in many countries.....a TRA clutch alone has Canadian, French, Austrian and US parts .
Where is Mikuni mfg'd? Where are the cylinders cast? Bearing mfr's?...I think you'll find it typically goes to the lowest bidder regardless of location.
Would you pay more for a sled if the majority of parts and assembly was in the US? How much more?

 

[PowderMiner]

I'd like to support American parts and assembly for my use...

With that said and as a small PII stock owner as well as a husband of a DOW company executive contracts manager; it is responsive and forward thinking for Polaris (and other companies) to expand their manufacturing to other countries/regions.

Think about it if you want to sell a product in another country, make it there. The market is saturated here, there are way less regulations on the use of the ATVs in other countries and compared to the price of a car, relatively inexpensive.

Bottom line is that it is a business decision for Polaris. In order to keep the customers at home happy they will primarily need to produce a reliable, desired, and obtain-ably priced product and only secondarily show some consideration to component or build origination.

* Put out a 175hp, 409lb, multi-condition dream sled for $11,000; and most people would buy it from Zimbabwe.

Being a winter sport enthusiast, I’d think about going to Mexico for a no holds barred ATV back country adventure! Once the drug cartels are done killing everyone, of-course.

 

[Cumminszhere]

I think a few of you need to wipe the sleep out of your eyes. Polaris just sold out some American workers. Are they the only ones doing it? Clearly not. But when do people smell the f-ing coffee and wake up. First some minor manufacturing moves south. Then a little bit more. Then, BAM, you're sno-checking a Burrito-Pro RMK with salsa flames on the sides.

I am not trying to pin the USA's entire troubles on Polaris. But this same scenario has happened countless times before with nary a reaction from the sheeple. They say your vote matters. The vote that really does matter is your dollar. I am seriously reconsidering my Pro-RMK purchase.

This topic is far reaching. If all you want to do is ride, so be it. The legacy we are leaving our children is embarrassing. I wont take it lying down.

Rant off.

 

[diggerdown]

I got several of my friends that will be out of work shortly because of this and people around here a pretty upset about it. How would it be different if they moved to Arizona, it would still be the same people working there! ATV's and their new golf carts will be made there. The snowmobiles will be moved into the Mn. plants. I think getting enough good work force in Roseau will be hard to do, but it will save a wearhouse and transportation cost. They made engines, seats, and pipes at Osceola.

 

[rmk727]

I so agree; there's 515 American jobs gone . I know it's the trend but damb when are we guna stop this trend. I'd be happier if the management team moved to mex. Also you think it's just a business move well after it's up and they are all global and huge, maybe sleds will not generate enough revenue to justify being in the business (watercraft) ( utility vehicles), sorry to cry but I hate seeing this country go down like this. Once nothing is made in America who will have control of us. Sometimes the dollar is not that important. IMO

 

[Qreiff]

I too think this move sucks! It is another display of the lack of corporate creatitivity and devotion. Yes, we all know about corporations moving R&D, mfg. and the like to other countries like China, Mexico, Canada and the like.......BUT.....NOW???......WHEN DO WE (YES US THE PUBLIC) STOP THE BLEEDING.????

I know of no other way to sway corporate decisions other than hitting them in the pocket book. They moved whatever operations for their "pocketbooks" and pro-Polaris people should let their opinions be known to the Polaris Brass.

I'm sure people are going to think I'm being hypocritic because Arctic Cat uses Suzuki products and the like. No, I;m not. This happened back in the late 70's and early 80's when I was a kid and didn't know any better.

I'm just saying that in today's economic climate of our country it feels like a slap in the face.........AGAIN.

Just would like to see us employ Americans on American soil, not elsewhere.

 

[clodhopper]

This is my take on it and I wil admit I have long since split ways with polaris:

Yamaha = quality & reliabilty
Suzuki = 2 stroke experience
rotax = cutting edge technology
polaris = something different every few years & lets see if we can fix it later
They should enter some agreement with Honda and make a top
quality product. Thats my opinion ( you can flame me now )

 

[SNOW JW]

I put a post in the GEN section with a poll feel free to visit and vote on the poll.

http://www.snowestonline.com/forum/showthread.php?p=2296014#post2296014

 

[m8magicandmystery]

years ago the AVRO Arrow project was not supported in Canada and the talent went south and the birth of Bo-ing became the out of wedlock child...i feel any talent or resources to leave a country to produce a product that it expects the abandoned child to partake in the feast that is causing its own demise is like a country having a flesh eating disorder..i being Canadian feel more for the U.S when this happens because YOU DO have the expertise and people to do it all...i have to make some excuses for Canada doing what it did because we just did not have the reach or industry depth required at times that Polaris has in its own HOME....well i guess if they want to put the garden in thier backyard in storage and put it in the pantry to rot..and order out fast food instead..they will reap what they sow..

 

[polaris dude]

Well, I don't see why you all find this to be a big deal...We can pay mexicans to make atvs, or we can pay basicly the same people low wages for the same thing :/