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Arctic Cat to Transfer Production to Brazil

 

How soon will XF models roll off the Brazillian assembly line?

 

APRIL FOOLS!   APRIL FOOLS!   APRIL FOOLS!   APRIL FOOLS!

 

Arctic Cat to Produce Snowmobiles in Brazil???

I suppose it was just a matter of time, but Arctic Cat may soon join competitors Polaris and Ski-Doo by moving some of its production south of the United States, to take advantage of the less expensive labor and relaxed environmental laws available in Latin America.

But unlike Polaris and BRP, who located (or are relocating) their ATV production to Mexico, Arctic Cat has accelerated the race-to-the-bottom, leapfrogging the competition southward to possibly settle in even less-expensive Brazil.

Orange countries work well together

The purchase of 50 acres of land outside of an industrial park in Sao Paulo, Brazil, caps a year-long effort aimed at finding a suitable low-cost production region and labor source capable of Arctic Cat’s current and future production needs. With an estimated population of 170 million people, Sao Paulo has a slightly more robust workforce than that available in Thief River Falls and surrounding communities.

Plus, the fact that both countries are coded “Orange” by the International Monetary Fund eases the burdens of currency exchange and shipping requirements.

Sao Paulo, Brazil

An official at Arctic Cat acknowledged to me that the company’s decision to transition away from Suzuki engines did in fact directly influence the desire to move production to Brazil. Some of the companies currently doing business in this region of Latin America include Honda, Kawasaki, Briggs & Stratton and SanRevco. Whether any of these companies might have some future involvement with Arctic Cat’s snowmobile engine supply is only speculation at this point.

The announcement of Arctic Cat’s intention to produce snowmobiles in Brazil will not materially impact their previous decision to produce engines at their St. Cloud, Minn., facility.

I must admit to feeling both shock and confusion regarding Arctic Cat’s most recent venture.

I understand that despite what many customers SAY about their allegiance to North American-made products, that their true buying habits are geared towards whatever product is least-expensive, which in today’s world means out-sourced goods from Latin America or Asia-Pacific. It all comes down to saving dollars, and Arctic Cat is doing EXACTLY the same thing its customers are doing: buying their stuff at the cheapest location. Some call it “globalism,” and others call it “resource exploitation.”

(If you’re protesting my point, ask yourself when was the last time you bought products at your local hardware store vs. Home Depot or Lowes? Are Mexican-built BRP and Polaris ATVs selling?)

On the other hand, I can’t help but lament the loss of domestic jobs and the impact that will have on Thief River Falls. At the very least it seems as if Arctic Cat could have waited until after the 50th Anniversary Celebration before announcing its intentions to move production away from TRF, as this news might ferment into a combustible situation in the beer tent on that fateful weekend.

Arctic Cat hasn’t indicated when it will move snowmobile production to Brazil, or when it will break ground on the new factory, but it’s believed to be directed at its NEXT snowmobile platform that will follow the recent 2012 ProCross/ProClimb. Common sense suggests 2017.

I did learn that Arctic Cat management recently purchased a half-dozen Rosetta’s Stone learn-to-speak Portuguese kits, presumably for the handful of manufacturing and engineering positions that will require fluency in the common language of Brazil.

Check back here for more details in the coming days.

 

UPDATE: It’s April Fools Folks!

UPDATE: It’s April Fools Folks!

My very sincere apologies to anyone who got derailed by the phony news report. My intention was to have a bit of harmless fun. Based on some feedback I’ve gotten, I now know that it wasn’t quite so harmless, and for that I truly am sorry. – John Sandberg

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36 COMMENTS

  1. This is great news!! Hopefully production costs come down enough that Arctic Cat could stock some repair parts. Back orders in the middle of winter really suck. Still waiting on parts to put a 2010 Crossfire back together. Silver upper a-arm and left side frame brace to be exact. Should be coming soon, but what good is that now? Having said that, is my F1100 LXR built yet!! I ordered it like 2 weeks ago!!

  2. Cant wait to tour the new facility. I will plan my next vacation around it. Latinas and sleds!! Saweet! Maybe I can convince the old lady to get a Brazillian while there. Or maybe I will just bring the girlfriend.

  3. Just another nail imn the coffin of the Amnerican (USA) economy…more jobs shipped out of the country.Shame!!

  4. It just won’t be the same sled made in Brazil. The history and atmosphere of Thief River Falls is amazing. I will pay extra to buy a snowmobile made in Minnesota.

  5. 2013 Arctic cat will have powerful briggs & stratton motors in there snowmobiles as the emissions getting to expensive to keep down on there 2 stokes. there will be 3 options, 4,5 hp, 6,6hp and the powerful 10.5hp

  6. Must be true! I saw dingle balls, spinners, and velvet seat covers in the new catalog. Oh wait… that was the Polaris catalog. My bad.

  7. If this is not an april fools joke I am cancelling my order on the (was going to say mine) pro cross. This country is selling out! Now Arctic Cat or sould I say soon to be arctic cr*p!!! American Greed

  8. Whew! Call off the dogs… It’s April 1.

    Welcome to the long standing American tradition of playing a little April Fools Day joke.

    So don’t cancel your new sled orders, and quit playing your Rosetta’s Stone Portuguese tapes!

  9. GOOD, Maybe this will lower the cost of the sleds. The technology is less then the competors and the cost is more. They probably have over paid union workers that need to learn we just cant afford this level of pay, benefits and retirement costs.

  10. Again, this story was an April Fools joke. Please accept my apologies for any confusion/problems this might have caused.

  11. Can’t believe the “Plus, the fact that both countries are coded “Orange” by the International Monetary Fund eases the burdens of currency exchange and shipping requirements.” Didn’t give it away!

    Along with “On the other hand, I can’t help but lament the loss of domestic jobs and the impact that will have on Thief River Falls. At the very least it seems as if Arctic Cat could have waited until after the 50th Anniversary Celebration before announcing its intentions to move production away from TRF, as this news might ferment into a combustible situation in the beer tent on that fateful weekend.”

    Good One John! Good April Fools are hard to come by.

  12. It’s OK John. I thought it was funny. Of course I had already been “April Fooled” by both my kids before I read it! Keep up the good work!

  13. C’Mon now, how could anyone really believe this story was true? Sue with other brands moving south of the border it was a believable story but do you really think Cat would move production to Brazil? John this was well written and obviously there are some people out there that will believe anything that is posted online. So if you were 1 of those people that didn’t think this was funny because you were foolish and believed every word of this, LIGHTEN UP!!! Its April fools day, have some fun with it

  14. “I did learn that Arctic Cat management recently purchased a half-dozen Rosetta’s Stone learn-to-speak Portuguese kits”

    this was the best!!!!!!!

  15. Will,

    Get it over it – the sleds are priced where they’re at – do you want to go back to 1979 technology, with leaf springs, premix gas, carbs?

    Margins are thin enough to try and sell the sleds, and make a small profit in this environment – stop bellyaching and decide – do you want a cheap sled at a cheap price, or technology?

  16. Thanks John
    Since I cancelled my order and my check,I am going to have to wait for the 13’s to come out. Did A/C call you about this delema I am in now?

  17. Wow! To think some would not have picked up on this being a 4/1/_ _ classic,,,,,?

    Vince, i’m with you on this,, LMAO!

  18. Agree with Dave Nehring 100%

    Its called keeping up with the Jones’s! Every one is doing it!

    If cat was still building a ZR 600 EFI with 99 technology for $6299 MSRP Will would be complaining of the lack of features. Cant please everyone!

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