Polaris to acquire Fargo-based Global Electric Motorcars
FARGO - Global Electric Motorcars, based in Fargo, will be purchased by Minnesota-based Polaris, The Forum learned late Monday from a news release posted on GEM's website.
GEM is a wholly owned subsidiary of the Chrysler Corp. known for making low-speed, electric-powered vehicles.
"GEM provides Polaris with an established position in the low-emission small vehicle market and supports Polaris' strategy of penetrating on-road market segments poised for growth," said Scott Wine, Polaris chief executive officer, in the news release. "We are excited about the outlook for growth within this market space and are looking forward to developing even stronger growth prospects for the GEM business."
The agreement of Polaris to purchase GEM from Chrysler will close in the next 60 days.
During that time, since Polaris will not yet have officially acquired GEM, operations will proceed as usual in Fargo, the release states.
Polaris made the GEM acquisition just days after taking over the Indian Motorcycles brand of North Carolina last week.
Polaris said Indian would continue to run as an autonomous business unit and would complement Polaris' Victory cruiser and touring bikes.
Polaris, based in Medina, Minn., near Minneapolis, makes snowmobiles, all-terrain vehicles, motorcycles and other leisure vehicles. It said strong demand for its products and market-share gains in North America, as well as growing international sales, contributed to a soaring earnings performance this year.
The company's shares shot up 16 percent a day after the Indian acquisition.