Check again. ATV's overtook snowmobile sales a couple of years back with A/C.

 

OK Fact Check -

According the the AC 2004 annual report Snowmobiles, ATV's and Parts and accessories sales were reported at 40%, 45% and 15% of revenue and it was the first year that ATV's generated more revenue then snowmobiles,

Source: http://media.corporate-ir.net/media_...cat_2004ar.pdf

 

Good work. I stand corrected. It was indeed revenue from ATVs that was greater than snowmobiles. That hardly makes snowmobiles their main line of products anymore, however. The rate of growth for ATV sales will probably mean a flipflop of the unit sales figures either this year or next.

 

I think you are right about the future of ATV's taking over a larger revenue share. I think this is true for all of the manufactures.
With snowfalls so limited here in MN this year Snowmobile sales are in the ditch. Good time to buy one right now.
What that report doesn't show is the number of units sold. I'd like to see that.
But the 3 year trend certainly indicates that ATV sales are on the move up in market share.
I beleive Polaris picked up a huge contract with the military that will push them into being the sales leader for now.
That could change as I'm sure all of the manufactures will line up for a shot at that market.

 

AC seems to be a very strong company for now, yet, it is indeed not something that can be assumed to exist forever. YES, they have to stay innovative, and why shouldnt they? If Polaris or Yamaha (or others) make better machines for a better price that is capitalism and ultimately people have to chose their ride. Indeed, AC could be bought up at some point... but I would not think that would happen anytime soon.
Why, well, Suzuki owns 6.7 MILLION shares already out of around 20 million total shares. This is around 30%.

On a different note, AC gets its engines from Suzuki and as such, directly speaking that means they do not have to invest in the research and development required for in house production and design. That is one way of doing business and it is probably smart on their part because they can focus their resources on other things. It is a world market out there.
And although my local Nissan (dealer) parts guy tells me that nissan makes nissan brake pads because they come in a box that is stamped "nissan", clearly it can be assumed they come from one or more companies hired to make them to nissans specs. This is not a bad thing.



> Stock price and company health are totally unrelated.

I must say "Totally unrelated." Yep... its all just gut instinct on wall street and if you win, you win, if not, not.
Dozens of factors play into a company's stock price and perceived value is just one of them - and since it is no longer the 90s, and the dotcom era has passed where stocks doubt/triple and more overnight... this is really a little silly.

Making Enron comparisons is even more tiresome. Sometimes companies go out of business because of competition and changing markets and other factors (kmart has had troubles in the not to distant past) and sometimes they run into troubles because of the people running them doing bad things and trying to hide the real numbers (Worldcom comes to mind as well).


Dave

'05 AC 500 auto

 

[quote]
Originally posted by: ethernut
Fellas, AC isn't going anywhere. Shonk I think you're overreacting a bit. To each his own though. I side with you on the matter Bear.

I only buy American machines.

AC largest share holder by far is Suzuki. Which when the rubber hit the road Mr. Motoo Murakami Executive Vice President of American Suzuki Motor Corporation and director of Arctic Cat calls the shots. Will there be a merger, will the plant go China or will everything be OK.

Shonk

 

Motoo Murakami is only a director of AC. He isn't even part of the management team or a corporate officer.
His position is freewill.

 

[quote]
Originally posted by: Theshonk
[quote]
Originally posted by: ethernut
Fellas, AC isn't going anywhere. Shonk I think you're overreacting a bit. To each his own though. I side with you on the matter Bear.

>I only buy American machines.

Does this seem you would buy a Honda or the like made in the states, or a GM made in mexico?


>AC largest share holder by far is Suzuki. Which when the rubber hit the road Mr. Motoo Murakami Executive Vice President of American Suzuki Motor >Corporation and director of Arctic Cat calls the shots. Will there be a merger, will the plant go China or will everything be OK.


Indeed, I suppose it is more likely the the moon crashing into the ocean, but what is your evidence AC will close factories here? Are you aware that Mercedes, BMW, toyota, honda, and others are allmaking products in the usa (yahama atvs too, I think).

And the latest news I have become aware of is this: Hyundai's $1B Plant Alabama Bound After.

Alabama recently broke ground on its fourth major automotive plant in less than 10 years, a feat many said would be a long shot for the state. Gov. Don Siegelman says the decision of Korea-based Hyundai Motor Co. to build its new $1 billion automotive plant in Alabama will have a tremendous impact on the state. The Hope Hull plant, located on more than 1,600 acres, will create approximately 2,000 direct jobs and between 4,000 and 5,000 indirect jobs.

The bottom line is that foreign companies ARE investing in America. I am pretty sure some of the tahoes and suburbans out there are made in mexico. What is more American? Truthfully, I am not completely sure anymore.

regards,

Dave

 

i know alot of family and friends that work at arctic cat and there hasn't been anything at all about the company being in trouble that i have heard. the snowfall up here has been the most we have had in a few years so that helped the local sales and to get the used snowmobile market more stable. and minnesota is such a small portion of the snowmobile market from what i remember michigan is the biggest seller. the way that company is run you won't see arctic cat or polaris going anywhere anytime soon.

 

In reality anything made in the western hemisphere, that's North and South America is made in America. Now made in the United States is a different thing all together. So a Mexican built car is American made as is a car from Canada. A Brazilian gun is American made. American made is not a correct term. Try "US made" or "Made in the USA".