Well-known snowmobile manufacturer to end production in 2025

American snowmobile and all-terrain vehicle manufacturer Arctic Cat will stop producing its vehicles in the first half of 2025. This event will be the latest round of the crisis that has engulfed the motorcycle industry.


In a statement, parent company Textron said "exploring strategic alternatives" had forced production to be halted at two key U.S. plants.

All planned models will be discontinued, after which employees will receive severance pay. Arctic Cat, known for its snowmobiles and side-by-side ATVs, has faced difficult conditions: declining consumer demand and rising product prices have hit the market hard. Authorized dealers will continue to sell 2025 models.


Arctic Cat's closure is not an isolated incident. World leaders in motorbike manufacturing are also experiencing serious difficulties. Canada's Can-Am BRP reported a 17,5% decline in profits for the third quarter of 2024, while American Polaris lost about 80% over the same period.

Even the European giant KTM is on the verge of bankruptcy. The main reason is the decline in demand: modern motorcycles have become too technologically advanced and, as a result, excessively expensive for the mass buyer.

In the US and Europe, dealer warehouses are overflowing with models from previous years, which has a negative impact on production volumes. Arctic Cat has cut snowmobile production in 2025, and internal reorganizations have led to significant staff reductions. However, the manufacturer assures that all current orders will be fulfilled, and customers will receive equipment on time.

Despite the bleak outlook, Arctic Cat continues to support owners: sales, customer support, and parts delivery remain active. Almost all 2025 snowmobiles have already been sold, and models for the U.S. and European markets are scheduled to be delivered on time.


Arctic Cat's closure raises many questions about the future of motorcycling. Experts believe the segment is set to undergo a restructuring, perhaps with an emphasis on electrification or the development of more affordable models. However, outside the U.S., particularly in China, manufacturers are already looking for solutions to maintain their market share.

The company has left a significant mark on the industry, and its closure will be a serious blow to both motorcycle enthusiasts and the market as a whole. However, there is hope that such challenges will stimulate innovation and a new wave of development in this industry.