Polaris goes on a buying spree

Minnesota-based manufacturer Polaris has enjoyed a massive few weeks, not only purchasing famous American motorcycle marque Indian but also announcing an agreement to buy Global Electric Motocars from Chrysler.

The Polaris-owned Victory and Indian, America’s first motorcycle company founded in 1901, will continue to operate as two separate brands, each with their own models and designs.

And eventually we’ll be seeing Indian sold Down Under, according to Victory Australia’s sales and marketing manager, Peter Harvey.

“There’s still a reasonable amount of Indian stock (across eight models) which will continue to be sold while Victory begins production of its own Indian, which will remain true to the bike’s heritage,” said Harvey. “And we expect to be selling Indian in Australia some time in the future although it’s difficult to put a time line on it at this particular stage.”

The decision to purchase Indian falls into line with Polaris’ growth strategy, focusing on three main elements: acquisitions, organic growth and partnerships with other businesses.

Harvey confirmed reports that Polaris will be shutting down Indian’s manufacturing plant in Kings Mountain, North Carolina almost immediately and moving the company to Iowa, under the same umbrella as Victory Motorcycles.

Meanwhile, Polaris has also snapped up Global Electric Motorcars and its low-speed EV models from Chrysler, giving it an instant foothold in the so-called LSV (Low Speed Vehicle) market.

GEM, based out of Fargo, North Dakota (yes, the same Fargo as the cult Coen brothers film), currently produces six EV models, claiming a 40km/h top speed and range of up to 50km.

A Polaris press release states the GEM purchase “will officially close within the next 60 days”.

“Our vision is to accelerate profitable sales growth for GEM, by combining Polaris’ strength in new product innovation with the most-recognized brand in the low speed vehicle market space,” said Mike Jonikas, Vice President of the On-Road Vehicle Division. “These new product efforts for GEM will be supported by an expanded distribution presence within select domestic and international markets.”

As if opening the cheque book wasn't’t enough, Polaris has also made other headlines in recent weeks by announcing a barnstorming quarter one result for 2011, up 49 percent on the same period in 2010, and its share price has also ballooned as the market makes a positive statement about the company’s future.