Image via Arctic Cat/Facebook
It’s not just the auto industry that’s facing increasing uncertainty as iconic brands in the powersports industry are also under threat of complete failure. This has shook many fans of these companies they assumed would always be around as the economic landscape is shifting dramatically and rapidly.
Of course, the big news item it seems everyone is talking about right now is Arctic Cat’s shocking announcement that partway through 2025 it will cease all production of snowmobiles and off-road vehicles. That stoppage will continue “indefinitely” leaving many to wonder if this isn’t the brand’s swan song.
Arctic Cat has been around since 1960 and has become a fixture in the powersports industry, making what many consider some of the finest snowmobiles on the market as well as some impressive ATVs.
But according to parent company Textron, stopping production indefinitely is in response to inflation cutting consumer demand, reports Yahoo News. Everyone is feeling the pinch as even basic necessities are far more expensive than before, leading to people cutting out unnecessary costs, which unfortunately means outdoor toys.
That could also be why motorcycle powerhouse KTM is on the financial brink. With sales down 27% compared to 2023 figures, the company has also been forced to pause production. Just like with Arctic Cat, some anxiously wonder if it’s the beginning of the end for the powerhouse brand.
Even more troubling, KTM is reportedly on the brink of insolvency as it enters a “self-administration” period to try securing funding and continue operations.
Some say KTM’s build quality and customer service have slid recently and blame that for its financial woes. But it seems across the powersports industry, other brands are also suffering as consumers pull back.
During the pandemic and shutdowns, powersports sales soared, including for both adventure and road motorcycles. Some believe that companies which leaned into the sales spike, increasing production dramatically, led to an oversupply as demand dropped once shutdowns ended and inflation began climbing sharply.
Whatever the cause, it seems the landscape in the powersports industry is shifting rapidly and some brands which once were juggernauts might not make it.
Image via Arctic Cat/Facebook
