Close on the heels of a positive earnings report which saw Polaris stock gain significant value, approximately 500 employees of the Minnesota based powersports manufacturer were informed they would be losing their current jobs due to a Osceola, Wisconsin plant closure/sale. According to Polaris CEO Scott Wine, the decision was a difficult one but is designed to improve the long-term competitiveness of the company while also reducing costs and improving operational efficiencies. The Osceola facility started operation in 1991 and currently employs approximately 500 employees. The facility is primarily responsible for the manufacturing of Polaris engines, seats, substructures and various paint applications. That work will now be divided between it's Roseau, Minnesota; Spirit Lake, Iowa and yet to be constructed Mexico based facilities.

According to a Polaris news release, snowmobile assembly will remain in Roseau and Victory motorcycles will continue to be manufactured in Spirit Lake. As part of the plant closure, other processes currently executed in Osceola will be sold to suppliers who will continue to supply those components to Polaris. The closure and realignment will begin immediately and is schedule to be completed by 2010. The company hopes to have a new production facility in Mexico operational beginning in the first half of 2011.