Polaris and KTM announce partnership

Manufacturing News, Source : TheManufacturer.com
Published : 19 Jul 2005 17:24

Polaris Industries will purchase a 24 percent interest in KTM and cooperate on product, technology, manufacturing, and distribution projects.

Polaris Industries Inc., a leader in the snowmobile and ATV industry; and Austrian motorcycle manufacturer KTM Power Sports AG, formerly known as Cross Holding AG, will partner on several important strategic projects. The goal of the partnership is to strengthen the competitive position of both companies.

During the first phase of the partnership, each company will continue to be run separately, but will work together on several specific cooperative projects involving new product development, engine technology sharing, distribution, manufacturing, and purchasing.

"I believe this partnership will provide substantial benefits to both Polaris and KTM, and both company's dealers, employees, suppliers and shareholders for many years to come," said Polaris CEO Tom Tiller. "We have long admired the success of KTM, and are excited about working together to strengthen both companies. Polaris can benefit from KTM's substantial experience in motorcycles, an outstanding brand, leading technology, and a solid manufacturing presence and dealer network in Europe. Moreover, this relationship complements nearly every aspect of Polaris' five-year strategic vision, which is a roadmap to make Polaris the most dominant brand in the powersports industry. Further, we believe the two-step approach we have outlined significantly lessens the cultural and execution risk associated with a partnership of this magnitude."

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