yamahauler
Active member
Title says it all....another large group of jobs not coming back! Sad.
Polaris Plant from Osceola WI heading to Mexico
- Thread starter yamahauler
- Start date
Firecatguy
New member
yep just seen that on the news..700jobs poof...gone
PRESS RELEASE FROM POLARIS:
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 operations 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."
The realignment of Polaris' manufacturing footprint will strengthen the Company's position in the power sports 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 other 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.
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 operations 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."
The realignment of Polaris' manufacturing footprint will strengthen the Company's position in the power sports 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 other 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.
It sucks but it appears they are sending a clear message. Basic labor costs are too high here so they are heading south. The suppliers in the area have the opportunity to heed the warning and make changes or they will be dust too.
Perfect example of sign of the times. At least they held out this long before dropping the bomb. I feel for these workers but I would have to imagine they had an opportunity to make concessions to prevent this.
Products manufactured for use in this market should be unaffected (for now). It appears clear to me they want to jump on the relatively new market of UTV's and pile as much cash as possible to make sure the long term bread and butter lines will survive.
Not trying to piss anybody off but, it is what it is.
Perfect example of sign of the times. At least they held out this long before dropping the bomb. I feel for these workers but I would have to imagine they had an opportunity to make concessions to prevent this.
Products manufactured for use in this market should be unaffected (for now). It appears clear to me they want to jump on the relatively new market of UTV's and pile as much cash as possible to make sure the long term bread and butter lines will survive.
Not trying to piss anybody off but, it is what it is.
thunderstruck88
New member
my ? is why should we great AMERICANS stoop to the lower paying jobs of any country ? makes my blood boil when I see this our government sure don't work for us at all any more 
This just deems so odd to me from a marketing perspective. I'm not privy to Polaris' customer demographics, but I'm guessing most of the customers of all three segments of their business are the same...blue collar, working man, hunting, fishing, proud to be an American type. I mean, when I hang around with my in-laws in Alexandria MN man it is all Polaris...made in America and proud of it. Chevy trucks, Miller beer, Polaris machines.
The press release said that the ATV segment is now 2/3 of their business and growing. So, they are going to take 75% of their business which is sold to flag waving hunters and fisherman who have suffered most from NAFTA and illegal immigration and move it to Mexico?
What?
And they want to do this to support the southern US market, which is ground zero of the illegal immigrant fight?
I just can't see a bunch of guys in my brother in laws garage going "**** yeah, I bought me one o' them Mexican machines.' Nope, no way, this is the best thing that ever happened to Arctic Cat.
Arctic Cat will now be the only American made ATV, and these ATV's are sold to Americans.
Marketing blunder.
The press release said that the ATV segment is now 2/3 of their business and growing. So, they are going to take 75% of their business which is sold to flag waving hunters and fisherman who have suffered most from NAFTA and illegal immigration and move it to Mexico?
What?
And they want to do this to support the southern US market, which is ground zero of the illegal immigrant fight?
I just can't see a bunch of guys in my brother in laws garage going "**** yeah, I bought me one o' them Mexican machines.' Nope, no way, this is the best thing that ever happened to Arctic Cat.
Arctic Cat will now be the only American made ATV, and these ATV's are sold to Americans.
Marketing blunder.
I don't think it was done as a marketing move. It seems obvious it was done with a long term survival motive. Nobody here will be happy about it now but we will all be happy when the is still a Polaris in the market years from now.
By the way, we'll never see a government bailout for any recreational product based company. It is going to be up to us, the consumer, to put our support in all of them to ensure their survival.
Don't give up on any of them. Regardless of where they contract their work to, they need us now more than ever.
By the way, we'll never see a government bailout for any recreational product based company. It is going to be up to us, the consumer, to put our support in all of them to ensure their survival.
Don't give up on any of them. Regardless of where they contract their work to, they need us now more than ever.
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dave b,
I don't think the employes had any chance to make concessions. Polaris is strongly non union. I think the eployees were as surprised as anybody, one of the news reports said they had the local police at the factory to prevent violence once the employees were told.
It's a sad day for many people. I used to work at that plant so I know many people who are affected by this.
I don't think the employes had any chance to make concessions. Polaris is strongly non union. I think the eployees were as surprised as anybody, one of the news reports said they had the local police at the factory to prevent violence once the employees were told.
It's a sad day for many people. I used to work at that plant so I know many people who are affected by this.
I don't claim to know all the facts. Just making a presumption.
Your right. It's a sad day and I don't mean to imply that it's something I agree with. It's just a sign of the times and, hopefully, it will all be for the best in the long run.
I still say giving up on any company that has been rooted here is counterproductive.
indy_500
Well-known member
Tell me again why people cross deserts to come to this county?
Sad sad sad day.
Because they jumped the fence and they're running away from the cops. They must feel safe up here.
Makes me sick...What happened to being part of a community and working together to make a great place to work and live? It's all about the money and greed. People are just somthing to use for these fat cats at Polaris. Shame on them!!! Why is it so bad to make a little less in order to provide for your hard working loyal employees. Don't buy Palaris and stick with the american companies, If we have any left.
What happened to being part of a community and working together to make a great place to work and live? It's all about the money and greed. People are just somthing to use for these fat cats at Polaris. Shame on them!!! Why is it so bad to make a little less in order to provide for your hard working loyal employees. Don't buy Palaris and stick with the american companies, If we have any left.
oldguy
Member
Maybe I am missing something, the engines are going to be made in Mexico, the rest of the stuff will still be made here in the states, just as much as any of the other three manufactures. What country is the Ski-Doo and Yamaha profits going? When did Arctic Cat start making their engines here in MN? Let’s face it, this move SUCKS!!!. But let’s be realistic, as far as buying only made in America sleds and ATV’s what are your real choices?
I do agree with Whitedust, Qaulity Control will suffer and if you switch brands, that's should be the reason.
I do agree with Whitedust, Qaulity Control will suffer and if you switch brands, that's should be the reason.
Dsbasecamp
New member
> If you had purchased $1,000 of shares in Delta Airlines one year ago, you will
> have $49.00 today.
> If you had purchased $1,000 of shares in AIG one year ago, you will have
> $33.00 today.
> If you had purchased $1,000 of shares in Lehman Brothers one year ago, you
> will have $0.00 today. But, if you had purchased $1,000 worth of beer one year
> ago, drank all the beer, then turned in the aluminum cans for recycling
> refund, you will have received a $214.00.
>
> Based on the above, the best current investment plan is to drink heavily &
> recycle. It is called the 401- Keg.
> A recent study found that the average American walks about 900 miles a year.
> Another study found that Americans drink, on average, 22 gallons of alcohol a
> year. That means that, on average, Americans get about 41 miles to the gallon!
>
> Makes you proud to be an American
JUST A LITTLE HUMOR ON SUCH A SAD THREAD.....
> have $49.00 today.
> If you had purchased $1,000 of shares in AIG one year ago, you will have
> $33.00 today.
> If you had purchased $1,000 of shares in Lehman Brothers one year ago, you
> will have $0.00 today. But, if you had purchased $1,000 worth of beer one year
> ago, drank all the beer, then turned in the aluminum cans for recycling
> refund, you will have received a $214.00.
>
> Based on the above, the best current investment plan is to drink heavily &
> recycle. It is called the 401- Keg.
> A recent study found that the average American walks about 900 miles a year.
> Another study found that Americans drink, on average, 22 gallons of alcohol a
> year. That means that, on average, Americans get about 41 miles to the gallon!
>
> Makes you proud to be an American
JUST A LITTLE HUMOR ON SUCH A SAD THREAD.....
techsledder
Member
Be sure to call up WI Governor Doyle and thank him for the tax increase he implemented and probably another big reason for this move. I hear H-D is thinking of moving shop for that very reason as well.
Ski-doo is a Canadian company selling Canadian made products.
Yamaha is a Japanese company selling Japanese made products
Arctic Cat is an American company selling American made products
Polaris is an American company that used to sell American made products, in a cost driven move it will now be an American company selling Mexican made products.
Dumb move considering who the customers are. If your customers want to "Buy American" you just alienated them and drove them to the only remaining American made choice.
Dumb move, marketing blunder.