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Arctic Cat fires CEO, will it effect Yamaha Joint Venture

Reg2view

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Well.
This certainly ties in with our previous discussion about Arctic Cat's financial woes.

Wonder if this will have ANY impact at all on the relationship with Yamaha??

Likely to strengthen it for awhile. It's a very good thing for ACAT, at least for now. Twomey and Delmore know they need to hand this off with as much momentum as possible. Twomey was also the principal driver to get out from under Suzuki, so I'd really doubt they would do any merger deal with either of the Asian partners for some time/never. With no debt and decent cash flow, ACAT isn't facing financial hardship for the forseeable future. But they've lost momentum on a number of fronts while competitors are striding, and that can of WhoopA doesn't just get opened when needed. It will be a grind for awhile.
 
M
Jan 14, 2004
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I don't see any upside for Yamaha to do anything with Cat, 75% of Yamahas profits come from their manufacture of musical instruments and electronics the snowmobile portion of their business in the big scheme is like a hobby to them. I still find it surprising that they shared tech at all. My bet is that they probably were going to get out of the mountain sled business then had a change of heart hence the Yamacat experiment. I just don't see them maintaining the merger for any long period of time but I've certainly been wrong lots of times before. If Cat begins to struggle it would be akin to when BMW bought out British Leyland that just ended up costing BMW money with the exception of the Mini division. I don't see the numbers making sense.

M5
 

Reg2view

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No Joke.
Imagine what the last Board of Directors meeting must have been like that resulted in the CEO getting the can!

It was all decided and figured out before the board met. And that's normal for the way these situations are addressed. Certain other non-board advisors would also be 'in the know'.
 
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