SPIRIT LAKE, Iowa — Polaris Industries Inc. on Tuesday temporarily stopped making Indian Motorcycles in its Spirit Lake plant as part of a broader plan to suspend production for a week at five U.S. plants and two overseas in response to the COVID-19 pandemic.
The Twin Cities-based company said pandemic concerns are expected to reduce demand for its powersports vehicles and have a “significant impact” on its first-quarter revenues.
“While broad-based economic uncertainty is creating headwinds, I am confident that we have the foundation and team we need to withstand these challenges,” CEO Scott Wine said in a statement. “We are taking action to further enhance our financial flexibility and adjust operations in light of the reduced demand, and we will think critically and act judiciously to keep Polaris strong in both the near- and long-term.”
Polaris will continue to ship finished vehicles to dealers, as well as produce products that are considered essential by the Cybersecurity and Infrastructure Security Agency (CISA), including vehicles built or upfitted for the U.S. military; federal, state or local governments; or customers who are critical to shipping and delivery services.
The Spirit Lake plant, the sole production site for iconic Indian Motorcycles, employed around 650 people at the time of the company’s most recent report.
Polaris said it has set up a program that allows employees to choose to receive up to 10 days of pay to replace their income in the event of COVID-related quarantine, illness, or suspension of plant operations.
In addition to Spirit Lake, plants where production will be idled for a week include Roseau, Minnesota; Osceola, Wisconsin; Huntsville, Alabama; Battle Ground, Washington; Monterrey, Mexico; and Opole, Poland.
Other steps Polaris said it was taking during the pandemic were to suspend its share repurchase program, postpone capital expenditures and explore access to additional capital. The company also withdrew its financial guidance.
Source:Sioux City Journal
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