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Polaris Industries Acquire GEM

Late last week we were reporting on the acquisition of Indian Motorcycle by Polaris Industries, the company that also manufactures the Victory cruiser and touring bikes. Now, the same company announced it has also bought Global Electric Motorcars LLC (GEM), a subsidiary of Chrysler Group LLC and manufacturer of premium electric-powered vehicles.

GEM was born in 1998, and since then has sold over 45,000 electric-powered vehicles. During the 2010 calendar year only, the company has reported approximately $30 million in sales.

GEM has developed business-to-business sales expertise within the fleet and government vehicle markets, and has created a competitive advantage with core competencies in make-to-order vehicle fulfillment and mobile service support.

The agreement to acquire GEM will officially close within the next 60 days once Polaris secures the required state sales certifications to sell GEM products. During this interim period, since Polaris will not yet have officially acquired GEM, operations will proceed as usual and Polaris will continue to learn and understand the GEM business through information exchange. Following this interim period, Polaris will be in a position to outline specific plans for the GEM business.

“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. “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.”

“Our vision is to accelerate profitable sales growth for GEM, by combining Polaris’ strength in new product innovation with the most-recognized brand in the low speed vehicle market space,”
said Mike Jonikas, Vice President of the On-Road Vehicle Division. “These new product efforts for GEM will be supported by an expanded distribution presence within select domestic and international markets.”
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