Polaris Industries Inc. has announced an agreement to acquire Global Electric Motorcars LLC (GEM), a wholly owned subsidiary of Chrysler Group LLC and manufacturer of electric-powered vehicles. GEM is a leader within the low-speed vehicle market, with a well-respected brand and approximately $30 million in sales during the 2010 calendar year.
“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.”
Since the company was established in 1998, they have placed over 45,000
electric-powered vehicles on the road worldwide. 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.
“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.”
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. Following this interim period, Polaris will be in a position to outline specific plans for the GEM business.
