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Redline ramps up snowmobile production

July 28, 2003
Filed under Features

Fueled with fresh funds from its recent initial public stock offering, Redline Performance Products Inc. Vista, Calif., added a new senior manager, named two new directors and began negotiating a snowmobile assembly contract with a North Dakota company.
Most recently, the company named John Hagen as director of manufacturing. Formerly vice president of manufacturing for Indian Motorcycle Co., Hagen will have responsibility for all manufacturing aspects of the 800 Revolt snowmobile. Prior to working for Indian, Hagen worked in various manufacturing roles at Harley-Davidson, including general manager/operations manager.
“He brings a demonstrated ability to implement manufacturing strategies that produce high-quality products efficiently and on plan,” said Mark Payne, president and CFO for Redline. Much of the technology and business strategy related to the 800 Revolt is similar to that used in motorcycles, Payne noted
In June, the company appointed Harley-Davidson marketing veteran Clyde Fessler to its board of directors, and Bob Korkowski, retired from the financial industry, was added in mid-July. The board now has seven members.
Assembled In Fargo?
Redline also signed a non-binding letter of intent with Fargo, N.D.-based electric vehicle maker Global Electric Motorcars (GEM) for snowmobile assembly and shipping.
“Outsourcing the assembly of the 800 Revolt is a key component of Redline’s business strategy,” Payne said. It’s key, he said, because of the costs involved in setting up the assembly infrastructure. “For now, with a seasonal product, in-house manufacturing is way too costly and doesn’t fit our business model,” Payne added. “Our core competencies are R&D and marketing.”
Should the agreement go through, assembly will take place in Fargo this season, Payne said.
The letter of intent is set to expire on July 30 if the parties don’t come to an agreement. At press time, discussions were still in process and the parties were going through due diligence, said Sam Lacricchio, spokesman for Daimler-Chrysler.
GEM, a wholly owned subsidiary of Daimler-Chrysler, has produced street-legal neighborhood electric vehicles since 1998.

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