Arctic Cat will transition its snowmobile engine manufacturing from Suzuki Motor Corp. to its own St. Cloud, Minn., operations.
Arctic Cat will start building its own engines after the 2014 model year, according to a company press release.
The new agreement calls for Suzuki to continue supplying Arctic Cat with engine parts to service existing engines after the 2014 model year.
Suzuki has been an engine partner for more than 25 years and “remains a significant shareholder in Arctic Cat,” said Arctic Cat CEO Christopher Twomey. “We are changing our engine strategy in order to gain more control over our products, and enhance our ability to meet regulatory and performance requirements. This also will enable us to better utilize our current engine manufacturing capacity, resulting in potentially better costs.
“Our St. Cloud engine facility has been a great addition for the company since we began manufacturing our ATV engines there in 2007,” Twomey said.
The St. Cloud facility currently employs 41 people, and Arctic Cat plans to use existing plant capacity and personnel during the transition. The company expects snowmobile engine production to begin in St. Cloud in fiscal 2015.