Arctic Cat voluntarily recalls all ATVs from 2008 model year
News release
Arctic Cat Inc. (Nasdaq: ACAT) announced today that it is voluntarily recalling its all-terrain vehicles (ATVs) manufactured in 2008 and a portion of the models produced in 2009; a component in the front gear box may not meet the company’s standards. There are no confirmed reports of serious injuries traced to the front gear case.
“Consumer safety is at the top of Arctic Cat’s values,” said Chairman and Chief Executive Officer Chris Twomey. “We ask ATV owners of affected models to stop riding their vehicles and to bring them to one of our dealers, so we can make the necessary repairs free of charge, and allow users to ride their ATVs again as soon as possible.”
This recall affects an estimated 35,386 ATVs from the 2008 model year and 4,495 ATVs from the 2009 model year. All registered owners of the affected ATVs will be notified by direct mail. A toll-free number is available for consumers to call with any questions: US 1-800-279-6851, CANADA 1-800-373-0717.
The company will record a charge of approximately $5.4 million pretax (about $3.5 million after-tax, or $0.27 per diluted share) to cover warranty expense for the ATV repairs. Arctic Cat plans to take the non-recurring charge in the 2015 fiscal second quarter ending today, September 30, 2014.
