Arctic Cat to cease operations at Thief River Falls, St. Cloud plants

Arctic Cat, the iconic Minnesota maker of snowmobiles and other outdoor vehicles, says it will cease manufacturing at its facilities in Thief River Falls and St. Cloud next year.

Brandon Haddock, a company spokesperson, said the actions are difficult but necessary to reduce costs, due to challenging business conditions in the powersports industry.

Operations at the two plants will be suspended indefinitely after planned production in the first half of 2025 is complete. Employees at the two plants who work until their completion date will be offered severance benefits.

Arctic Cat, which was purchased by Textron in 2017 for $247 million, says it will continue selling its current inventory, and providing support and services to dealers and customers.

“We thank our employees, dealers, customers and supporters for their loyalty, patience and understanding as we weather the difficult conditions facing our business and our industry,” Haddock stated.

The powersports industry has been facing a slowdown in demand due to inflation, higher interest rates and changing consumer preferences.