Polaris moving Wisconsin plant to Mexico

[Macgyver55]

Whoda thought?

[jltimm]

Sounds like Ford?

[chasineyes]

http://www.startribune.com/business/9453...Unciaec8O7EyUsl

"Last month, Polaris beat its internal earnings estimates and raised its 2010 outlook for the second quarter and full year. The stock jumped 8 percent to a 52-week high of $64.86 a share. Revenue rose 16 percent during the most recent quarter, to $361 million. The quarter's earnings reached $19.8 million or 59 cents a share, compared with 26 cents a year earlier"

Good to know that wall street is happy with what is going on. Along with all the others that are "invested" in this company. Let's see, if we can close some more plants we can probably boost that stock another 10%!!!

[Dave S]

Based on what I heard last night, it's not only a transfer to Mexico. Some of the work is going to their plant in Iowa and some is going to Roseau.

If I had to choose between foreign soils to send my work to, I would rather it go to Mexico than anywhere else that builds ATVs.

[Dellfin]

I have owned a few Polaris machines over the years and I own one now. When that thing dies, I'll be looking for a new recreation vehicle manufacturer for sure. I think this is a poor decision and one that will have serious consequences...especially considering the timing. Pretty "gutsy" (read, STUPID) move on the part of the CEO, Scott Wine.

Polaris closing its Osceola, Wis., plant and moving jobs to Mexico

By Andy Rathbun

[email protected]

Updated: 05/21/2010 12:49:31 PM CDT

Polaris Industries Inc. will close its Osceola, Wis., plant and transfer much of the work to Mexico.

The announcement Thursday caught employees by surprise and prompted one local congressman to call the move "unpatriotic."

Based in Medina, Minn., Polaris said the decision was made to strengthen the company. Polaris makes snowmobiles, all-terrain vehicles and Victory motorcycles.

The company employs just more than 500 people at the western Wisconsin plant, said company spokeswoman Marlys Knutson, adding that the operation will "ramp down" over the next 18 to 24 months.

Established in 1991, the Osceola plant makes component parts for a variety of Polaris products and is one of Polk County's largest employers. Some of the Osceola jobs will shift to plants in Roseau, Minn., and Spirit Lake, Iowa, while others will go south to a new plant near Monterrey, in northern Mexico.

Polaris CEO Scott Wine said in a statement the decision to shift the Osceola operations to three other plants was difficult "given the impact on our employees," but he added it would strengthen the company over the long term.

U.S. Rep. Dave Obey, D-Wis., said he was "stunned and outraged" and specifically targeted the company's decision to move jobs out of the country.

"It's bad enough that they are eliminating hundreds of jobs in the area, but it's absolutely outrageous that they are doing it because they are moving to Mexico," he said in a statement.

Obey went on to say "they owe better than that" to the Americans who buy Polaris products and asked the company to reconsider "this outrageously unpatriotic decision."

Knutson said the decision to close the plant had been under consideration for two years.

Over the past decade, Polaris has seen its sales shift from snowmobiles to off-road vehicles, Knutson said. A plant in Mexico will better serve its customer base in the Southwest, where off-road vehicles are more popular.

One employee told the Pioneer Press she was shocked to hear the news of the plant closing.

Nancy, who declined to give her last name out of fear of jeopardizing her job, has worked on the assembly line for 16 years and heard the news Thursday at a mandatory staff meeting.

"I'm not sure how to react, really," she said. "(Polaris) is my home, my family, my friends. It's everything I've been working toward, my retirement."

She said management told employees that operations are being "reallocated to other facilities" and that their jobs will be discontinued within two years.

Whether that means she can follow her job to a new site is uncertain, she said, but she does anticipate that her company will help her through the shutdown.

"Polaris has been a great company. They will take care of us," she said. "I don't think they'd ever do anything to potentially hurt employees."

Still, "none of us know exactly what will happen," she said.

Knutson said employees from the Osceola plant will be able to apply for jobs at the other manufacturing plants once they are posted.

"Any employee can apply for any posting that they are qualified for," she said.

Last year, Polaris reported total sales of $1.6 billion, a 20 percent drop from 2008, as consumers cut back on purchases of big-ticket items in the depths of the recession.

But the company bounced back in the first quarter of 2010, reporting revenues of $361.7 million, up 16 percent year-over-year. First-quarter earnings of 59 cents per share marked a 127 percent increase.

[jeffreyd]

The fact that Polaris is using the SW OHV community as it's reasoning is a joke. Granted there are many more OHV in the area than ever thought, pulling out of a community and it has been part of for this long is just a wrong move and with the issues that are going on in AZ right now, I do not think that it will go over as well as they hope. The location they are moving is not the SW either it is south texas. I for one will be selling my polaris quads and not returning to them.

[gr8icefishinmind]

Very sad ordeal and could kick polaris's sales in the you know what!! It will definetly put a damper on that community as well! Just out of curiousity, does the fact that polaris is made in wisconsin and minnesota effect the reasoning for buying a popo for those of you that have them?

[LMITOUT]

It's ironic that Polaris (a U.S. brand) is moving some of it's manufacturing to Mexico, while Yamaha (a Japanese brand) is moving some of their's here.

[Dave S]

Honda, Yamaha, Kawasaki and Suzuki all have assembly or manufacturing here in the US.

[gr8icefishinmind]

On the other hand it may help polaris to concentrate more on the southern states because from what i have heard and read, the other brands such as yamaha and kawasaki are more popular in the south! Where it seems as the polaris rules the northern states such as the dakotas and minnesota and sconsin!

[Rippinlip]

IIWII,

(It is what it is).

Polaris just got highlighted by something that has been going on for years.

How many other companies have done this.

I think it stinks, not for the reason that I am an owner of 3 Polaris ATV's, but for the loss of 500 jobs in a small community that will be devestitated by this move.

To an earlier question about the local manufacturing helping me decide to buy a Polaris, and I have to say "NO".

I bought the best machine for the money I could afford at the time.

I have friends that own just about every type of wheeler and they all have their up's and down's.

[jltimm]

Kinda the same thing as the auto industry with Toyota being built in Georgia and the "big" 3 being built elsewhere.

[harvey lee]

This could be an easy fix.

Maybe its time to tell these corporations that if you would like to move your plants out of the U.S.A., then find your sales elsewhere.

Lets see, I wonder how many in Mexico rides 4 wheelers or for that matter, can afford them.

Real simple, take your plant elsewhere and kiss your U.S. sales away.

Trouble with this is, people will not do that and will continue to purchase their product.

Its about time to stand up and say no.

[Dave S]

Bad thing now is Polaris has been securing military contracts for their machines. I agree Harvey, it's sad to see this happen when they've been reporting very good numbers. Especially considering they have one of the most affordable machines out there.

But if we stand up to say no, then maybe our military should set the precedent and start contracting through Honda, Suzuki, Yamaha and Kawasaki.

[MNexpoler]

Welcome to America, We USED to make things here.

Arctic Cat isn't any better they have machines made in china.

This hits home for me since there are alot of people in this area that work there.

[chasineyes]

The fact that Polaris is using the SW OHV community as it's reasoning is a joke. Granted there are many more OHV in the area than ever thought, pulling out of a community and it has been part of for this long is just a wrong move and with the issues that are going on in AZ right now, I do not think that it will go over as well as they hope. The location they are moving is not the SW either it is south texas. I for one will be selling my polaris quads and not returning to them.

100% agree jeffrey!!! Lets be honest its about being able to pay people 2$ an hour and pay no beneifts and little taxes!