You’d have to be dead from the ears up to have missed the surplus of opinions, questions and wild observations involving Arctic Cat’s current state of affairs – all being served up by social media. Today we have news sure to tantalize a legion of Greenies while being of interest to the industry.
First, Why Have We Been Quiet?
The past two months we’ve been clearing rumors and speculative op-eds from our hard drives while waiting to bring you real info and not just opinion. Our viewers and readers have come to trust us for the straight goods on important topics.
This particular situation revolving around the future of Arctic Cat has been the most talked about issue in the sno-mo-media in the last ten years. I will attempt to bring some clarity by identifying what is likely happening and what is actually happening. We’ve waited until now to name names due to the sensitive nature of this important issue.
What’s With Textron?
Textron is a multi-billion dollar US Corporation with huge ties to the US military and – believe it or not – a formidable foot print in both the private aviation and golf cart/electric vehicle market. What Textron does not do is market or sell its products to the retail marketplace. It is a self-admitted Business to Business (B2B) focused entity.
This means Textron knows little about selling snowmobiles and offroad motorized recreational products. If there ever is a reconciliation of how this situation ended up as it is today, this one reality – Textron’s lack of experience with retail marketing – will be the best answer.
You don’t need to be Kreskin to realize Textron isn’t committed to the recreational powersports manufacturing business. Its communication with dealers and the enthusiast marketplace the past two months has been nothing short of dismal and all of it underlines the problem I just spoke of.
The powersports industry requires deep understanding of the target consumer and his/her expectations. We’re a complicated demographic but are loyal, dedicated and committed to our brands. When I say committed I mean way beyond common sense or practicality. Simply put, many snowmobilers are rabidly brand loyal.
So here’s what we think might be going on as the industry reels from the news Arctic Cat will be shut down for at least three months with no indication or most certainly no promise it will be back. For sure we shouldn’t assume the faithful devoted employees of Arctic Cat in Thief River Falls are not battle hardened. They are and this situation right now is impacting a lot of good people who know how to build great snowmobiles.
The Straight Goods
There are numerous rumors floating around the Powersports Industry right now. For sure there is no lack of speculation about what will happen to Arctic Cat moving out three months, six months and one year from now. John Deere – the agriculture giant that’s been in and out of the sno-mo biz more than once was spotted in TRF last summer. Immediately they were thought to be looking at Arctic Cat.
In the ensuing time Bobcat was painted with the same rumor. When CFMoto signed on as an ISOC Sno-X masthead sponsor the grass caught on fire under the telephone lines. In some ways this move seemed the most believable amongst some pretty wild speculation. We’re prepared to say none of the aforementioned candidates hold much water.
Except…
Argo, the maker of Argo XTVs, ATVs and SXS vehicles has been making moves which go back more than 2 years. It is no secret things at Arctic Cat have been in turmoil for at least that long. For the past three years Textron has been showing the door to some immensely talented, even iconic, dedicated staff.
In almost lock step with these moves by Textron, Argo opened a full-on, fully staffed engineering and design facility in TRF. Guess who works for Argo now? You got it – fifty of the best minds in the recreational powersport industry.
There’s More
One of the most aggressive and talented CEOs in this business – Brad Darling – has led Argo to huge success – increasing sales of the company 4 fold in less than seven years. Who is Brad Darling? He is the former Vice President of Arctic Cat and served as such until the end of the Chris Metz era. Over the years I’ve interviewed Brad Darling. He is savvy and possesses infinite knowledge of what it takes to be successful in the powersports biz. Oh yeah. He bleeds green.
Draw A Line Through This
While we don’t have boilerplate confirmation Argo is positioning itself to take over Arctic Cat, it is undeniable something’s going on – with Brad Darling at the controls. For sure he knows the time line necessary to make this a reality is pretty short. If our thoughts here are correct, things may happen quickly.
There’s no doubt Arctic Cat is a 100% viable business proposition – when run by the right people. Clearly, the company needs to implement a substantial reversal of policy and procedures, moving forward. What does “moving forward mean”?
Is there, or was there ever a line up of companies ready to buy Arctic Cat? From what we’ve picked up using our top secret, Artificial Intelligence, there is and/or was interest – and we’ve verified it is serious. Know this – Arctic Cat remains much loved by a legion of green under-wearing enthusiasts. In my opinion? Arctic Cat is not done.
Here’s a twist perfectly suited for Read/Valve. The SnowTrax crew is planning to capture some Arctic Cat content with a best-before date of Spring 2025. Ask yourself why Arctic Cat would do this if they weren’t going to sell new snowmobiles?
Here’s more. Arctic Cat’s brand-new engine – the 858 in the CATALYST platform is ready for prime time offering truly competitive performance in a very competitive market. Something this desirable is too good to waste.
Finally, one more thing. Have you heard the fat lady sing?
We haven’t.
