MINNEAPOLIS – Off-road vehicle manufacturer Polaris Industries Inc. said it has agreed to acquire Global Electric Motorcars LLC (GEM), a wholly owned subsidiary of Chrysler Group LLC and a manufacturer of electric-powered vehicles.
GEM, based in Fargo, N.D., is a leader within the low-speed vehicle market. The company had approximately $30 million in sales during the 2010 calendar year.
Since GEM was established in 1998, the company has placed over 45,000 electric-powered vehicles on the road worldwide. GEM has also established itself within the fleet and government vehicle markets.
“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 CEO. “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 to acquire GEM will officially close within a couple months, 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. Following this interim period, Polaris will be in a position to outline specific plans for the GEM business, Polaris said.
“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.”