ICYMI: Arctic Cat to Close Two Minnesota Plants—Impacting Hundreds of Local Jobs
Arctic Cat’s decision to shut down two plants by mid-2025 will leave hundreds of Minnesota workers without jobs. 🌐 #News #ThiefRiverFallsMN #Minnesota #Business
THIEF RIVER FALLS, MN – Arctic Cat, the Minnesota-based snowmobile and all-terrain vehicle manufacturer, will halt production at its Thief River Falls and St. Cloud facilities after 2025’s first half. The company’s decision marks the end of an era for two major production sites, raising questions about the future of Arctic Cat’s operations under Textron’s ownership.
Arctic Cat’s Production Shutdown
Arctic Cat announced it will cease operations at both the Thief River Falls and St. Cloud facilities following their planned production schedule for the first half of 2025. While manufacturing will stop after these orders are completed, the company will continue to sell snowmobiles from the 2025 model year throughout the remainder of the year.
This decision is part of broader efforts to cope with ongoing challenges in the power sports industry, primarily driven by inflation and shifting consumer demand. As of now, production at the two locations is scheduled to wrap up once the current commitments are met.
Workforce and Layoffs Amid Financial Struggles
The closure will affect hundreds of employees across both locations. The Thief River Falls plant, which currently employs 530 people, and the St. Cloud facility, home to 30 workers, will both see operations end by mid-2025. Earlier in November, Arctic Cat had already made cuts by laying off 65 employees and furloughing others at the Thief River Falls site, citing a drop in consumer demand for its products.
Despite the closure, Textron, which acquired Arctic Cat in 2017, emphasized that key functions, including customer service and sales support, will continue. Affected workers will receive severance packages when their respective duties conclude. Arctic Cat is committed to maintaining its aftermarket support and services for existing customers, ensuring ongoing access to parts and support.
Textron Explores Future Plans
Textron has signaled its intent to explore potential changes for Arctic Cat’s future, including strategic alternatives within the power sports market. This follows disappointing sales trends and rising inflationary costs.
In the third quarter of 2024, Textron reported a drop in profits, falling from $270 million to $208 million compared to the previous year. The company also allocated $215 million for share repurchases during the quarter.
The shutdown marks a significant reorganization for Arctic Cat, which has long been a major player in snowmobiles and all-terrain vehicles. While no new vehicles will be manufactured after the first half of 2025, the company remains dedicated to providing services and selling existing inventory to customers.
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