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Further questions on Polaris Mexico move
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lonestarmedic
Posted 2010-06-07 4:42 PM (#61681)
Subject: Further questions on Polaris Mexico move


Puddle Jumper

Posts: 45
San Antonio Texas
So, it has been a couple weeks since Polaris announced their plans to move ATV manufacturing to Mexico. This will cause the loss of about 500 jobs in Osceola, Wisconsin. All Victory production will be consolidated at Spirit Lake, Iowa. (Recap for those who just found this out through this thread).

I stated that I needed to re-think my decision on purchasing a Victory from a company that drops the hammer on workers in favor of out of country jobs. Well, I have scoured the internet and cannot find why Polaris made this decision. I do not think it was a quick decision. It will cost them a lot of money to build a new plant etc. Did they go to the workers and ask for concessions to avoid this closing? Do the workers have a union? Did the work force turn down the offers? I cannot find answers to theses questions. CEO of Polaris stated that this was a decision about 5 months in the making.

Is it possible that Wisconsin and the work force were both so unreasonable that Polaris decided to pack it up and move? Victory may be doing well, but sleds and ATV sales are probably down. This would lead to a re-alignment and streamline. Wisconsin is listed as the 10th worst state for business. Texas is in the top 3 if I am correct.

Polaris has promised help for employment and severence packages. Also the ability to be hired at Spirit Lake, which is about 220 miles south. Not a commute but not across the country either. Also they are trying to sell manufacturing at Oceola to someone who will continue manufacturing certain parts. This would save jobs. The CEO of Polaris stated that they have hired about 79 people at Spirit Lake so far this year. And they are looking to hire more people as time goes on.

Is Polaris the bad guy that everyone says they are? I have only found the blogs, posts, and articles of the people who are outraged at the announcement.

As you can see, I have not decided to blindly yell "I will never buy a Polaris product again". The Vision is still my favorite bike hands down. And I think victory has an excellent future. My decision is still open as to what brand of motorcycle I will purchase.

Thanks for reading and I welcome all information and constructive comments/dialog.

JB
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Man314
Posted 2010-06-07 7:39 PM (#61694 - in reply to #61681)
Subject: Re: Further questions on Polaris Mexico move


Tourer

Posts: 575
Spirit Lake IA "Birthplace of Victory Motorcycles"
There are huge benefits from creating a manufacturing center of excellence (ie all production under one roof). Just the cash tied up in inventory by having product in two locations (Spirit Lake and Osceola), logistics and shipping costs, etc make this a potentially lower cost option. Also, it is quite possible that the local community offered incentives to bring jobs to the area. Overhead costs allocated to 2 facilities is also much higher than a single plant. Spirit Lake has a very flexible production system and can build to order with minimal inventories. Quality has a potential to become even higher and rework lessens as there is no question, plant to plant, as to quality standards. Overall, nice move Polaris!
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lonestarmedic
Posted 2010-06-08 9:02 AM (#61726 - in reply to #61681)
Subject: RE: Further questions on Polaris Mexico move


Puddle Jumper

Posts: 45
San Antonio Texas
Man314-
Thank-you for the response. I realize the benefits of moving under one roof. However, Polaris is not doing that. They are building a new roof in Mexico. My line of questioning pertains more to the other branches of Polaris. Why not build a new facility in a manufacturing friendly state near the Gulf of Mexico? Go ahead and put Victory under one roof. Then move the various products around. Why did they not build a new facility in Osceola or the United States.

Honda closed its Marysville, Ohio motorcycle plant and moved all of the manufacturing back to Japan. All of the workforce from the motorcycle plant was sent over to the car plant. Very few job losses.

I am trying to learn more about U.S. manufacturing and the global market as I ask questions. This country is losing jobs to foreign soil. Where do we draw the line? What can we do to stop the moves? One way is to support those manufacturers who keep the American workforce employed. However, if the workforce is so greedy in their demands that the manufacturer cannot make a profit, I can understand. Then we, the people, need to make a few concessions. Also, if the manufacturer makes all but one item/line outside the country just so they can capitalize on the patriotism of the people that is not right.

Automobile manufacturers are not far behind in my studies. I would like to purchase vehicles that at least came off of a U.S. assembly line put together by Americans.

Thanks for reading and listening
JB
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mnshift
Posted 2010-06-08 8:19 PM (#61751 - in reply to #61726)
Subject: RE: Further questions on Polaris Mexico move


Puddle Jumper

Posts: 12
S/W Minnesota
Latin america is a huge fast growing market in the ATV segment. Makes sence to move manufacturing closer to your market have southern production and northern production. The Roseau plant to my understanding has added well over 200 employes and is still on the rise. All viable buisness have to make adjustments. don't get me wrong I feel bad for the Wisconsin employees but if a company doesn't adjust some times they cease to exist entirely!
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Man314
Posted 2010-06-08 9:18 PM (#61758 - in reply to #61681)
Subject: Re: Further questions on Polaris Mexico move


Tourer

Posts: 575
Spirit Lake IA "Birthplace of Victory Motorcycles"
Wage rates, local incentives and tax breaks, access to pool of skilled labor, shipping costs and access to market, etc all play into these decisions. I think Polaris is a pretty well managed company . . . think they need to fire their PR team as the announcement was botched as it related to Victory.
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baadawg
Posted 2010-06-08 9:55 PM (#61762 - in reply to #61681)
Subject: Re: Further questions on Polaris Mexico move


Tourer

Posts: 499
Chattanooga, TN
As a small business owner, I don't blame them one bit for moving. We are taxed to death, because people fail to realize the service we are providing the community. We provide jobs, which keep the people employed by us with the things they need to support themselves, which grows the general economy in an area. We keep youth employed by us from mischief. Many people feel that a business controls so much money, they should give more back to the community. I have heard people say that all businesses care about is money. The fact is, as a small business owner I pay far more in various fees and taxes to the federal, state, and local governments than I keep. I only have 5-7 employees at any given time. I also know that I pay less in taxes than a larger business would, but when it seems I am working only to support those on welfare, and give my employees a larger paycheck than myself; if I could relocate somewhere else, I would if it allowed me to have as good a standard of living as my employees. Forgive me for my rant, but anyone who hasn't been self-employed and kept fair and honest books just wouldn't understand.
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yoyo
Posted 2010-06-08 10:02 PM (#61763 - in reply to #61681)
Subject: RE: Further questions on Polaris Mexico move


Cruiser

Posts: 62
ESCALON CA.
yeah,seems the right way is always the hardest way
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