We are pleased to announce that Polaris has signed an agreement to acquire Global Electric Motorcars LLC (GEM), a wholly owned Fargo, N.D. based subsidiary of Chrysler Group LLC and manufacturer of premium electric-powered vehicles.
GEM is the recognized leader within the low speed vehicle market in the US, with a well-respected brand, approximately $30 million in sales during the 2010 calendar year, and more than 45,000 electric-powered vehicles on the road worldwide.
Established in 1998, GEM has developed business-to-business sales expertise within the fleet and government vehicle markets, as well as core competencies of make-to-order vehicle fulfillment and mobile service support.
GEM provides Polaris with an established position in the low-emission small vehicle market and supports Polaris' strategy of penetrating on-road markets poised for growth. Awareness of the lower cost and maintenance benefits of electric-powered vehicles continues to grow across multiple customer groups. Polaris is excited about the future growth outlook within this $1.6 billion on-road market space, and is looking forward to enabling even stronger future growth prospects for the GEM business.
The vision is to accelerate profitable sales growth for GEM with new product innovation from the leading and most-recognized brand in the low speed vehicle market space. These new product efforts for GEM will be supported by an expanded distribution presence within select domestic and international markets and GEM vehicles and customers will help strengthen Polaris' position within the market.
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. With GEM, Polaris will maintain a level of leadership and continue to make the business a stronger, more competitive global company.