floor plan is diff than consumer financing . pretty sure Sheffield has been with cat for north of a decade. I know in 04 they were . they gave me 0% for 18mo in 04
Big news!! Textron buys cat!!!!
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floor plan is diff than consumer financing . pretty sure Sheffield has been with cat for north of a decade. I know in 04 they were . they gave me 0% for 18mo in 04
Yes, Sheffield has been doing the consumer financing since earlier that '05.
Regarding floorplaning:
Cat gives dealers a specific interest free timeframe on new inventory. When I was a dealer, typically a minimum of 30 days for a no program level ATV dealer up to 180 days for the highest level ATV dealers. Snow dealers have no interest until Dec 1st for no program level dealers up to April 1st for the highest level dealers (because sleds ship starting in July & no dealer would accept one with 30 days). I'm sure these interest free periods may have changed a bit but I'm sure they are still close. In the past, Cat paid Textron or GE the interest during these periods (at a reduced rate compared to dealers I assume). So now, that expense stays in house. So, those payments may still come off Cat's books but really it's like moving money from 1 pocket to another.
Regarding floorplaning:
Cat gives dealers a specific interest free timeframe on new inventory. When I was a dealer, typically a minimum of 30 days for a no program level ATV dealer up to 180 days for the highest level ATV dealers. Snow dealers have no interest until Dec 1st for no program level dealers up to April 1st for the highest level dealers (because sleds ship starting in July & no dealer would accept one with 30 days). I'm sure these interest free periods may have changed a bit but I'm sure they are still close. In the past, Cat paid Textron or GE the interest during these periods (at a reduced rate compared to dealers I assume). So now, that expense stays in house. So, those payments may still come off Cat's books but really it's like moving money from 1 pocket to another.
EXCESSIVE FORCE
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CrossfireLOW
Member
http://www.startribune.com/analysts-textron-might-have-the-deep-pockets-arctic-cat-needs/411816586/
I am curious what the behind the scenes true story is with Textron buying Cat and Cat buying out Suzuki's stake in Cat a few years ago. It always seemed better to me for Cat that a big company like Suzuki had an interest in Arctic Cat.
Whatever the truth is, only a handful of people know it, and they are not about to tell anyone any time soon.
Off topic, but does anyone else watch Cat sled promo videos and try to recognize where at Togwotee each shot may have been filmed at?
I am curious what the behind the scenes true story is with Textron buying Cat and Cat buying out Suzuki's stake in Cat a few years ago. It always seemed better to me for Cat that a big company like Suzuki had an interest in Arctic Cat.
Whatever the truth is, only a handful of people know it, and they are not about to tell anyone any time soon.
Off topic, but does anyone else watch Cat sled promo videos and try to recognize where at Togwotee each shot may have been filmed at?
Cat is close to becoming insolvent-
Also look at their stock history. Was as high as 60, now down in the teens as the stock market is setting record highs..the writing is on the wall.
For the future of Cat, this sale needs to happen...I dont necessarily view being bought by an investment firm as good for Cat..
snobuilder
Well-known member
Maybe Yamaha will end up with them in a fire sale.
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Nice
Both Yamaha and Textron will need to make public statements in Feb regarding their OEM partnership with Yamaha. Textron has bailed on the snowmobile industry before so prolly not very interested in AC or Yamaha snowmobile biz. Most likely Textron would like to sell their snowmobile division to Yamaha is my best guess...BUT does Yamaha want to continue on their own and merge the 2 snowmobile brands???
I don't think Textron buying A/C has anything good in it for Yami, nor was that the intent. Corp's like Textron don't operate that way. They may continue the engine deal for awhile but that will be as far as it goes. Perhaps Yami will now get the 800 C-TEC??? Textron did this for Textron, and no one else. Enter the BadBoy thing. They now have a complete power sports mfg, with plenty of new projects to come. A/C is moving forward in their own engine development, and production. That is big. If Yami wanted A/C, they missed the boat, as it has left port. I have nothing good to say of Textron, as I remember the Polaris days with them.
snobuilder
Well-known member
I think the biggest question still remains....Why buy Cat?....how does it benefit Textron and its holders? These things aren't impulse buys like when I bought a bag jerky in the check out line, or a Polaris at the snow show....LOL
Yamaha didn't/doesn't want AC...they aren't making money themselves in the snowmobile division either, in fact prior to the AC partnership they were losing money. Taking two businesses that don't make money and combining them is a bad idea.
Let's face it, the snowmobile business is tough and the recent warm streak was a reminder of how tough it really is...
No idea why Textron wanted Cat but perhaps they can leverage suppliers for bigger discounts and feel there is a ROI potential here..
Let's face it, the snowmobile business is tough and the recent warm streak was a reminder of how tough it really is...
No idea why Textron wanted Cat but perhaps they can leverage suppliers for bigger discounts and feel there is a ROI potential here..
sweeperguy
Active member
Reading all posts I was just saying stuff already been said
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they now have a ready built dealer network they now are back in the financing of units they now have a modern engine manufacturing plant in st cloud . they have assembly factory . **** if they only care about bad boy the price they had to give was prob worth all that
C
Cirrus_Driver
Guest
I do a lot of investing, and I don't see that Textron wants AC for it's snowmobile market. If they did it for that reason, it's a massive risk, with no huge gross margin reward. There's a larger plan.
G
G
Guest
AC ATV's are junk. Pol has all the govt. contracts. For a reason.
because they were smart and started a whole department for going after government contracts. the government dose not care if they buy junk that has been proven over and over again . but yeah I would not buy a cat atv .but then I would not buy a poo atv.
G
G
Guest
I don't think you can buy a Pol ATV right now anyway. They are all recalled because they burn up. That said they are still better than an AC ATV. You are right - the Govt. doesn't care. They probably run them until they are out of gas and then just throw them away.