It’s shaping up to be a tough end of the year for Canadian powersports dealers. First, we had news earlier in the fall about collapsing Harley-Davidson sales. Then, KTM went into a self-induced financial death spiral, with ever-worsening bad news coming out weekly. Now, it appears that Arctic Cat is in the middle of its own misery, with news that the powersports giant is going to indefinitely pause its own production, at two Minnesota factories.
This news comes from a letter posted in various spots online, reportedly sent out to dealers earlier this week.
A similar letter had been posted about a month ago. At that point, Arctic Cat had said it planned to resume production in the first quarter of 2025, so it was bad news, but not really bad. But this latest update looks like the situation is rougher than first expected.
Why does this matter?
At first glance, jaded motorcyclists might not care much, as Arctic Cat hasn’t made motorcycles since the minibike days of the 1970s. But the reality is that companies like Arctic Cat kept Canadian motorcycle dealerships in business in the lean times, when bikes weren’t selling. Honda actually introduced its earliest ATVs to the US market as a response to dealership requests for a product to sell in the winter. Decades later, not much has changed; it’s snowmobiles and ATVs that help keep the lights on at your local powersports emporium. This is especially true with UTVs; side-by-sides come with greater profit margins, and that makes a big difference to the dealer’s bottom line.
Now, we’re hearing of a pinch across the entire powersports industry, and if Arctic Cat is talking about an indefinite shutdown at two factories, perhaps it’s worse than we thought. Let’s hope that we don’t see a massive crash in our already-weak Canadian dealership scene this winter; it’s already getting hard to find a good place to do business.
Can’t justify the price and had to leave the sport. I just want a little 400cc to put around the country in, go ice fishing. I think there is a whole undeveloped part of the market manufacturers are missing. We need a Toyota Corolla of snowmobiles.
This is tough news for Canadian powersports dealers. The Arctic Cat shutdown will surely have a ripple effect on the industry and enthusiasts alike. It’s a reminder of how quickly things can shift in the powersports market. I hope dealers and riders alike find ways to adapt during this challenging time. Thanks for keeping us updated on such important developments in the industry.
Sled Head from Birth… but at 53 paying over 20K for a sled then adding an other 10k in accessories… let’s reverse to the 80’s and 90’s era sleds.. two stroke for life…
Anything Powersports as gone $$$ mad..
I newest sled is a 2016 M8000 snopro and that’s the way she be.. older is better and the greasiest wins..
Who can afford 30 grand for a sled same with Harley 60 , 70 grand
I’m a big cat fan and always will be but I have to say I’ve seen this coming. When I bought my first sled there was 3 dealers within an hours drive now there’s only 4 in the whole province of Saskatchewan and two push other brands over cat
Theres more then 4 AC dealers in Sask.
It seems like “paraprashe” might be a word or expression you’re using, but I’m not sure about its meaning. Could you clarify it for me? I’d love to understand more!
Great advice! Consistent maintenance is often the key to enjoying smooth rides and avoiding unexpected breakdowns.
nice
Let’s hope for a turnaround soon, local dealerships are the backbone of our powersports community, and their survival is crucial for all of us who love the ride!
It’s a reminder of the vital role snowmobiles and ATVs play in keeping dealerships afloat, especially in tough times.
Arctic Cat’s production pause, alongside challenges faced by other major brands, highlights how intertwined the industry truly is.