Polaris, the parent company of Victory Motorcycles said today that it's eventual closure of its Osceola, Wis. manufacturing operations in the US won't affect Victory Motorcycles even though it produces the Freedom V-Twin motors at that location.
The Company is, however, evaluating several possible locations in the Monterrey/Saltillo area of Mexico for a new facility which will lead to the eventual sale or closure of Polaris' Osceola, Wis. 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.
Polaris said it will create manufacturing centers of excellence for Polaris products with capital improvements to the existing Roseau, Minn. and Spirit Lake, Iowa, production facilities.
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.