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screw polaris
Posted: Fri May 21, 2010 11:52 pm
by djfisher22
Just saw this story tonite. Anyone cosidering a polaris product should reconsider. I'm stopping by my local dealer to let them know I think they should dump the Polaris franchise or I'll go elsewhere for my Honda and Kawasaki purchases too. Maybe if their dealer network gets some heat they'll reconsider the stupid move. Save a couple hundred in production costs and lose a market. ***** em. I'd rather buy a Japanese product than theirs now.
Polaris to move Osceola operations to Mexico; Obey blasts decision as 'unpatriotic'
Pioneer Press
Updated: 05/20/2010 07:10:16 PM CDT
Polaris Industries Inc. announced today it would close its plant in Osceola, moving much of the work to Mexico.
Based in Medina, Polaris makes snowmobiles, all-terrain vehicles and Victory motorcycles. According to a company official, it employs more than 500 people at the western Wisconsin plant.
The plant, established in 1991, makes engines and other components that supply the company's Roseau and Spirit Lake, Iowa, operations. The company plans to move many of the operations to the Monterrey area of Mexico.
Some of the work, though, will be moved to Polaris operations in Roseau, where it makes snowmobiles, and Iowa, where it makes motorcycles.
No immediate timeline was given on when the plant would be closed, but the company's realignment will begin immediately and is scheduled to be complete in 2012.
The company said it might sell some of the equipment and operations to suppliers, who could continue operating in Osceola.
The closing was blasted as "unpatriotic" by U.S. Rep. David Obey, a Democrat whose district includes Osceola.
It's bad enough that they are eliminating hundreds of jobs in the area, but it's absolutely outrageous that they are doing it because they are moving to Mexico," he said in a prepared statement. "They owe better than that to every American who has ever bought their products and they owe better than that to the U.S. taxpayers since millions of taxpayer dollars have been used by the government to purchase their products
over the years."
Polaris saw its profits and sales jump dramatically in the first quarter of this year.
But sales of snowmobiles have been hit by an industry-wide slump over the last decade, tied to lack of snowfall.
Last year Polaris reported total sales of $1.6 billion, a 20 percent decrease from 2008, as consumers cut back on purchases of big-ticket items in the depths of the recession.
The company bounced back in the first quarter of 2010, reporting revenues of $361.7 million, up 16 percent year-over-year. First-quarter earnings of 59 cents per share marked a 127 percent increase.
Posted: Sat May 22, 2010 10:57 am
by H2RICK
DJ, sadly Polaris is only one of, literally, thousands of US-based companies that have done the same. In their search for higher quarterly profits to impress the stock market analysts, they've made a very dumb decision, IMO.
Laying off their employees in the US means there are less potential customers to buy their products because the ex-employees will be spending their money on groceries and rent/mortgages ONLY......instead of buying non-essentials like motorcycles/sleds/ATV's. Maybe Polaris can sell their products to the Mexicans instead.
Another fine example of short term gain for long term pain, as their customer base disappears slowly because of lack of manufacturing jobs in the US.....
but I'm sure the high-speed, low-drag business majors have this all figured out.....for now. The chickens, however, WILL come home to roost eventually.
Posted: Sat May 22, 2010 8:35 pm
by tz375
Polaris have to do the sensible thing and in times of diminishing sales and tighter margins they have to do the smart thing.
Given that their Q1 profits were better than expectations, it begs the question of how much profit is enough.
It would appear, without doing an in depth analysis that the board has decided to reduce costs and boost profits at a time when US manufacturing jobs are needed to keep the economy moving.
They would appear to be acting on behalf on their short term stakeholders - financial analysts and ignoring all their other stakeholders. As I said, I have not looked at their published data but it sure looks that way.
Admittedly, they are not making a ton of money and need to grow export sales and decrease manufacturing costs and pipeline, but that was politically dumb and insensitive move and one that is likely to hurt them.
What an opportunity for them to have expanded in the US or at least modernize the plants here, but their management is still fiddling like Nero while Rome burned. They are ignoring the new frugal reality and are still doing business as usual and looking after shareholders at the cost of everyone else.
At least that's how it looks.
Posted: Sun May 23, 2010 7:49 am
by advant63
They would appear to be acting on behalf on their short term stakeholders
you're right about that tz. but the only short term stakeholders being considered are the board of directors.
Posted: Sun May 23, 2010 8:53 am
by tz375
Correct. I made reference to Stock Analysts because they have a considerable influence on stock prices. In the end though, it is the major shareholders that benefit.
Stock options have a weighted average of $37 per share and there are 1.6 million available to be issued under compensation plans. With a spread of $20 per share, that's a lot of money someone could be making on the shares.
That is hardly a comprehensive analysis, but provides some insight.
Does anyone doubt that management compensation and motivation is tied primarily to share prices? Something is wrong in the way that executives are compensated in that shares have become such a powerful motivator. They should be in the mix somewhere, but we need a system of compensation that motivates managers to create real value for their community rather than making a few of them rich - and those are not the same thing.
Posted: Sun May 23, 2010 9:24 am
by oldjapanesebikes
advant63 wrote:
you're right about that tz. but the only short term stakeholders being considered are the board of directors.
No one (or at least almost no one
) likes being out of work, but at the same time people do vote with their wallets and at the end of the day, its the customers that pick the winners and the losers. I'll admit I smiled when I read that line about Polaris being 'unpatriotic' - what a load of rubbish ! If the average Joe/Jane really cared at all, then we'd all be prepared to pay top dollar for locally produced items - but we also know that for the most part we don't and we won't.
My two cents worth ? Don't blame the company - look in a mirror.
Posted: Mon May 24, 2010 9:50 am
by H2RICK
Don't blame the company - look in a mirror.
Very true, Ian. We had this discussion 4 or 5 years ago and one member at that time (he's no longer on here) laughed at me for buying North American made brands of clothing, vehicles, tools, etc. I, personally, am a firm believer in buying as locally as possible IF possible. I may pay a few bucks extra for many items.....but I'm helping employ people as close to home as possible. We all know there are SOME things that aren't made locally/regionally/nationally......but we all have to make the effort to buy locally. This is one of the main reasons I do NOT support Wal-Mart, for instance. They have wayyyyy too much offshore made stuff.
When will people finally realize that their purchasing decisions have made their own jobs redundant because of their purchase of offshore manufactured goods ?? I'm not promoting a trade war or anything like it but I do wish people would think a little bit before they make ANY purchase, large or small. Every little bit helps, IMO.
Posted: Mon May 24, 2010 11:49 am
by GT Tim
Contrary to your belief, I still read the posts here regularly.
Rick I have watched you use me as your example several times, and each time you distort the truth more and more...now I am here to set the facts straight.
I have never laughed at you, I shook my head at you for your incredible lack of perception and narrow-mindedness.
When we had our argument, my position was in my depressed county where we live, we have no other choice other than Wal-Mart and the cheap mass merchants to go to. We do not have the strong economy to support the high end merchants that affords you the choices that you have where you live.
For example, for us to go to Sears, it is a 45 mile round trip for a screwdriver, a socket... whatever. All the downtown stores left us, closed up in the '70's. Mom and Pop stores are gone. I needed faucet valves the other day, went to a local independent family owed hardware store in my town, only hardware store left...got 'em. Made in China! Guess I should have driven to Calgary for them?
Our median income here a little over $37000 a year per household before taxes. That means you have two parents making the equivalent of $9.00/hr. We have been in a recession/depression here since...well most of my life. All the stores left US! Long before the flood of Chinese imports hit. There is no place here to make a decent living, when the brickyards and coal mines shut down, the tumbleweeds rolled.
So when I made the point that it made no sense for us to travel @ $3 a gallon for gas, 45 miles round trip to DuBois or 110 round trip to St. College or Altoona to buy a US made shirt, a pair of sneakers or a hammer, you said we deserved what we got because we contributed to the problem. Next time you talk about me or a group of people, you should have your facts straight.
This people is what the fight was about, don't let Rick tell you any different. When he acted self-righteous about having the moral high ground on patriotism over this, I bristled. No, I didn't laugh. I don't find him funny at all.