Last October, Polaris announced the sale of its Indian Motorcycle business to a California-based private equity firm.
The Minnesota-based company has owned the nearly 125-year-old motorcycle maker since 2011 and has given it a new lease on life. When Polaris struck a deal with Carolwood LP, CEO Mike Speetzen said both Polaris, which will hold onto a small stake in the company, and Indian stood to benefit from the deal.
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According to the Minnesota Star Tribune, the sale is expected in Q1, and Polaris has been forced to make some tough choices as a result.
Last Thursday, Polaris told its team at a manufacturing plant in Osceola, Wisconsin, that the company intends to shut down the facility by the end of the year. The closure will begin this summer, and some 200 employees who make motorcycle engines will be left in the lurch.
Operations at the plant, which also makes components for Polaris's off-road and snowmobile business, will "wind down over the next year." The plan is to move all motorcycle engine manufacturing to a facility in Spirit Lake, Iowa, which was sold in the deal with Carolwood, along with a factory in Monticello, Minnesota, and an industrial design and technology center in Burgdorf, Switzerland.
According to Polaris, Indian will retain the majority of its team, about 900 employees who will move to Carolwood as part of the deal, including engineers and designers.
In October, Speetzen said Polaris will focus "on the areas of our portfolio that offer the strongest growth potential." Last year, Polaris experienced stronger-than-anticipated sales of off-road vehicles, most notably Ranger side-by-sides.
Polaris will shift production of other components to another plant. The company maintains significant manufacturing footprints in Roseau, Minnesota; Huntsville, Alabama; and Monterrey, Mexico. Roseau, the "birthplace of Polaris," seems the likely fit, as Polaris said it is its largest U.S. manufacturing operation, specializing in snowmobiles and off-road ATVs.
Indian accounted for about 7% of Polaris's business, bringing in nearly $500 million in revenue for the 12-month period ending in June 2025.
Last year, Kawasaki became the best-selling motorcycle brand in the U.S., followed by Honda, Harley-Davidson, Yamaha and Indian. While the overall market suffered some historic lows, like the worst first-half sales in 10 years, Indian was a bright spot, posting nearly 5% growth.
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