Polaris Industries Plans Outsourcing to Mexico

Polaris Industries Inc. announced Thursday it has begun to phase out its Osceola, Wis., manufacturing operations; today the plant is home to Polaris’ Victory Motorcycle development, and ATV and snowmobile engine manufacturing. About 500 people work at the plant, according to RiverTowns.net.

The real kicker is that Polaris plans to outsource some of the work being performed in Osceola to Monterrey, Mexico, near the southern tip of Texas. Some of the work performed in Osceola will head to Polaris’ plants in Spirit Lake, Iowa, and Roseau, Minn. Euphemisms of choice paint a picture of “realigning” operations to Mexico and “enhancing” the lucky plants of Minnesota and Iowa. (The author here is a Wisconsin resident, after all.) This should all be completed by 2012.

“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,” said Polaris CEO Scott Wine. “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.”

Snowmobile assembly will remain in the Roseau facility and Victory motorcycle assembly will remain in the Company’s Spirit Lake facility. Polaris also intends to sell certain manufacturing equipment to suppliers who will continue to make components for Polaris; still other manufacturing processes will be outsourced, and Polaris hopes the buyers will continue to do work in the Osceola plant.

Polaris expects this whole process to cost it about $35 million “over the next few years,” and it’s still planning to post from $3.48 to $3.60 earnings per share on the year. When the transition is completed, Polaris aims to save an annual $30 million pre-tax.

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4 Responses to Polaris Industries Plans Outsourcing to Mexico

  1. Bridget Bachetti says:

    I think you are a disgrace to Americans, I hope no one ever buys another Polaris product again if you should lay off Americans and move to Mexico. If you look my name up, you will find I am a Polaris owner and many other off road vehicles, that I have purchased threw Chaparral in California. I will make it my mission every time my Family and I go to the Dunes and that’s many times a year, and I will make sure to spread the word about your betrayal to America. And you can bet the word will spread fast. I’m glad my daughter and son-in-law didn’t by the new polaris, I will make dame sure they buy a different brand. Sincerely Bridget disgusted owner of a polaris.

  2. steve wojcik says:

    One of the top level people at the Osceola plant tried to put an interesting spin on the plant closure by saying that they will be positioning the company for the international market as well as the southern area. Perhaps there is something to this climate change if thats where they plan on selling their snowmobiles.
    This strategy will be profitable in the short term. If manufacturing continues to leave this country,very few people will be in a position to buy their products , even if the product costs less to make elsewhere. But we all know that “The Strategy” is really charge the same, but pay other people less to make it and increase profits. Some companies,like Toyota, have brought manufacturing into our country.They provide jobs for our guys and girls and still make a decent profit.Granted the “profit” goes back to Japan, but at least it’s a decent job. Where and who will benefit from all the profit made by manufacturing in Mexico. Not us!

    This needs to stop. We need to have policies in effect that will tax their products if they go abroad.Everything that we have fought for is being dismantled and given away. It appears that both sides are equally responsible,politically speaking. It seems that our votes don’t mean anything. We need to speak with our wallets. Do not buy any products from this company. Why should you. They are hurting us by leaving. Let’s hurt them where it matters. In there profit and loss statements.

  3. Mike Dorsael says:

    So what brand ya gonna buy now Bridget? Yamaha? Ski-Doo?

    They already are out of America. Face it, we really kicked ourselves in the teeth by allowing countless companies to outsource to foreign land. Apparently, it was just too important for us to visit Walmart and pay $1.00 for our favorite product. The job losses were not relevant as long as we can buy our stuff as cheap as crap. And BTW, much of it is crap.

    Us Americans NEED to wake up and start putting a little effort to support USA made products. I for one think though that it will be too little too late. You can already see what has happened to our economy recently. What really is scary is that in all times throughout history, our manufacturing base is the one that brings us out of recessions.

    But we don’t have much of one anymore…..

  4. One of the top level people at the Osceola plant tried to put an interesting spin on the plant closure by saying that they will be positioning the company for the international market as well as the southern area. Perhaps there is something to this climate change if thats where they plan on selling their snowmobiles.This strategy will be profitable in the short term. If manufacturing continues to leave this country,very few people will be in a position to buy their products , even if the product costs less to make elsewhere. But we all know that “The Strategy” is really charge the same, but pay other people less to make it and increase profits. Some companies,like Toyota, have brought manufacturing into our country.They provide jobs for our guys and girls and still make a decent profit.Granted the “profit” goes back to Japan, but at least it’s a decent job. Where and who will benefit from all the profit made by manufacturing in Mexico. Not us!
    +1

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