Seems logical to me. They are both the industry leaders in EFI, Cat could source the engines to the Orient to save money. Cannondale could be Arctic Cat's sport line which they want [and need]to expand into. They could call the line simply AC or CAT to differentiate it from the utilities which would remain Arctic Cat. They got enough dough to do it? What do you loyalists think. I'd like to see a watercooled 440 or 500 twin in a Cannondale(ish) frame. Just call it the El Tigre and I'm a buyer.

 

It isn't a logical decision. Arctic Cat buys their motors from Suzuki. They are planning on introducing a sport quad with the same motor as Suzuki and Kawasaki. Cat is also in the R&D stage of developing a EFI motor for ATV's. Cannondale is new to the ATV industry and doesn't have the market share. So, what does Cannondale have to offer Arctic Cat except DEBT? Really nothing!!! Besides I don't think Cannondale wants to sale out!! Chapter 11 is a restructuring of debt. It doesn't mean they are closing their doors. It just means they have too much debt and they want to government to assist them and help secure financing to reduce and eliminate their debt.

 

It appears that chapter 11 is keeping the bicycle business alive, while the motorsports division is in the hands of a liquidator.

I'd agree that it makes little sense for Cat to take this on, even if they could pick up the tooling and design at a bargain, which they probably could. Most of the expense of the 'dale motorsports division was in developing the powerplant, and Cat already has not only a reliable source of engines, but a parts distribution network as well. Changing all of that over to a newly developed engine that is good, but not markedly better than what is being developed with Suzuki, probably can't be cost justified. If anyone picks up 'dale, it'll probably be someone who has no current access to a small high performance powerplant.

 

I think it would be good for AC, and benifical as well. But there is one problem, Suzuki. Suzuki owns a % of AC. They do more than just sell them engines. They have the rights to anything that AC develops. That is where Suzuki got the 500 engine now used in the Vinson. Cat developed it as the 454 back in 95 and used it for 2 years as a 454 then punched it to a 500 in 98 as well as a 400 in 98. I believe Suzuki started using it in 98 in the Quad runner 500. AC is doing very well in quads, they made more money on quads this year than on sleds. I would like to see it but have my doubts.

 

It all depends on how, not how much, Pegasus Holdings is willing to sell the motorsports division of Cannondale for. If you could structure a deal that is heavy on the backside and dependent on future growth and earnings, it could be easily done. I owned a little penny stock a while back that tuned around and purchased Smith & Wesson firearms for next to nothing. They were saddled with debt but the holding company structured the deal as to provide incentive to another like-industry company to purchase it and pay of the reduced debt over time. They are doing very well now, thank you very much. -RT

 

[img]i/expressions/face-icon-small-smile.gif[/img] The reason that Cat uses Suzuki is that when Cat was out of bussness in early 80s Suzuki bought close to 50% of it. Thats why Cat went from Kawasaki engines to Suzuki.

 

yes cat dumped ther wet bike line due to no money they sure dont have enought to buy out annyone else. they really need to catch up in atv department. plus i work for a place thats makes ac parts and there engineers have to much time on there hands. can never make up there minds.