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***********PRESS RELEASE***********
September 6, 2018 at Polaris Headquarters, Medina, Minnesota
Unfortunately, due to unforeseen circumstances resulting in numerous delays on the production line, delivery of the 2019 Polaris 850 RMK and Assault product lines have been cancelled, effective immediately.
We say this with heavy hearts as this was a record year for Polaris snowchecks. We understand there will be much disappointment from our loyal customers, but we also understand that our customers demand a product that meets their standards and ours. We also understand that our shareholders expect steady growth on their ROI.
The circumstances leading to this situation were indeed unforeseeable. In spring 2018, it was discovered through internal investigations and the subsequent aid of a joint task force comprised of Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), and Medina Police Department, that illegal Canadian immigrants were working at the Polaris factory. Upon further investigation, it was revealed that these alien spies were employed by BRP to sabotage our production line and steal trade secrets. We expect prosecution of these individuals to the full extent of the law. At this time we are unable to address any questions regarding a pending civil action against BRP in Federal District Court, but we expect to be compensated appropriately, and as always, we will pass these savings on to the customers for 2020.
In addition to the above-mentioned sabotage, there were a few other VERY MINOR incidents leading to further MINOR delays this year. For the last 14 months, the Environmental Protection Agency (EPA) would not approve the 850 Patriot motor as being in compliance with federal environmental mandates. Former EPA chief Scott Pruitt all but assured us in 2016, and again in 2017, that we would be able to produce whatever motor (and emissions) we saw fit going forward, which we took to heart. We deposited the $250,000 into his personal bank account as agreed on July 1, 2018. It was supposed to be a done deal. However, we have since learned that Mr. Pruitt resigned from EPA on July 5. Again, at this time we are unable to address any questions regarding a pending civil action against Mr. Pruitt in Federal District Court, but we expect to be compensated appropriately, and as always, we will pass these savings on to the customers for 2020. Finally, our rivet supplier filed bankruptcy in late July 2018. It is unlikely we will receive any compensation in Federal bankruptcy court, but as always, we will pass on any savings to the consumer.
Polaris appreciates all customers' understanding in this matter. All snowcheck customers will be issued full refunds via cash credit at their local dealer or a "golden ticket" of same value for a 2020 MY 850, although we cannot guarantee that 2020 850s will not have a MSRP price of $1000-$2000 more. Any snowcheck customer should contact their dealer immediately. If any customer is denied this request by their dealer, after asking three separate times, we encourage them to contact Polaris directly to resolve this.
Sincerely,
Michael Dowerty
CEO, Polaris Industries
September 6, 2018 at Polaris Headquarters, Medina, Minnesota
Unfortunately, due to unforeseen circumstances resulting in numerous delays on the production line, delivery of the 2019 Polaris 850 RMK and Assault product lines have been cancelled, effective immediately.
We say this with heavy hearts as this was a record year for Polaris snowchecks. We understand there will be much disappointment from our loyal customers, but we also understand that our customers demand a product that meets their standards and ours. We also understand that our shareholders expect steady growth on their ROI.
The circumstances leading to this situation were indeed unforeseeable. In spring 2018, it was discovered through internal investigations and the subsequent aid of a joint task force comprised of Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), and Medina Police Department, that illegal Canadian immigrants were working at the Polaris factory. Upon further investigation, it was revealed that these alien spies were employed by BRP to sabotage our production line and steal trade secrets. We expect prosecution of these individuals to the full extent of the law. At this time we are unable to address any questions regarding a pending civil action against BRP in Federal District Court, but we expect to be compensated appropriately, and as always, we will pass these savings on to the customers for 2020.
In addition to the above-mentioned sabotage, there were a few other VERY MINOR incidents leading to further MINOR delays this year. For the last 14 months, the Environmental Protection Agency (EPA) would not approve the 850 Patriot motor as being in compliance with federal environmental mandates. Former EPA chief Scott Pruitt all but assured us in 2016, and again in 2017, that we would be able to produce whatever motor (and emissions) we saw fit going forward, which we took to heart. We deposited the $250,000 into his personal bank account as agreed on July 1, 2018. It was supposed to be a done deal. However, we have since learned that Mr. Pruitt resigned from EPA on July 5. Again, at this time we are unable to address any questions regarding a pending civil action against Mr. Pruitt in Federal District Court, but we expect to be compensated appropriately, and as always, we will pass these savings on to the customers for 2020. Finally, our rivet supplier filed bankruptcy in late July 2018. It is unlikely we will receive any compensation in Federal bankruptcy court, but as always, we will pass on any savings to the consumer.
Polaris appreciates all customers' understanding in this matter. All snowcheck customers will be issued full refunds via cash credit at their local dealer or a "golden ticket" of same value for a 2020 MY 850, although we cannot guarantee that 2020 850s will not have a MSRP price of $1000-$2000 more. Any snowcheck customer should contact their dealer immediately. If any customer is denied this request by their dealer, after asking three separate times, we encourage them to contact Polaris directly to resolve this.
Sincerely,
Michael Dowerty
CEO, Polaris Industries
