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Redline deal dropped

August 18, 2003
Filed under Features

Just six days into a negotiation extension, Redline Performance Products Inc. and Global Electric Motorcars (GEM) have terminated talks on an assembly contract.
Redline, of Vista, Calif., and GEM were attempting to come to an agreement on an assembly contract, where the Fargo, North Dakota-based GEM would produce the 800 Revolt snowmobile. The original non-binding letter of intent expired on July 31, but was extended to August 15. The talks were terminated on August 6.
GEM recently layed off 100 of its 185 workers due to a slow electric car market. Reports had stated that the company may hire people back to do snowmobile assembly, though the lay-offs were classified as permanent.
As for the snowmobile contract, the parties were “unable to come to terms on key issues regarding a definitive contract assembly agreement,” according to a Redline statement.
“We are actively engaged in conversations with other companies that have the capabilities to assemble our 800 Revolt snowmobile,” said Mark Payne, president and CFO of Redline.
“We continue to expect to introduce the 800 Revolt snowmobile in time for the 2003-2004 snowmobile season and anticipate reaching a decision regarding where assembly will take place within the next 60 days,” Payne said, adding: “It is important to note that Redline has the basic infrastructure to assemble the 800 Revolt snowmobile at our Vista (San Diego) facility, if necessary.”
Payne emphasized that Redline is currently in the final stages of product testing and has commenced purchasing parts.
Lambeau May Host Snocross
On July 30, the Green Bay/Brown County Professional Football Stadium District Board voted unanimously to draft a contract and pursue negotiations with the World Snowmobile Association (WSA) to hold a Snocross Worldwide Championship race at Lambeau Field in Green Bay, Wisc.
The tentative date for the race is February 28-29, 2004. Scott O’Malley, WSA’s chief executive officer, said the stadium board will vote whether to accept the contract at its next board meeting on Aug. 26. If it becomes a reality, the race would be the first event other than football held at the legendary stadium since 1982.
Haydays Debuts
Two new race-series snowmobiles will make a Haydays debut. Polaris will show its Pro X and Arctic Cat will unveil its Sno Pro, both on Sept. 6. According to Polaris race manager Tom Rager, the major changes on the Pro X are in the front and rear skid. The Sno Pro changes include a higher, more forward seating position, a new suspension calibration and engine modifications.
Sled ban nixed
Snowmobiling in Yellowstone and Grand Teton National Parks was spared yet again as an amendment to ban the machines from the two areas was narrowly defeated on July 17.
The amendment, sponsored by Rep. Rush Holt (D-N.J.) and attached to the the Interior Appropriations bill, called for a ban of snowmobiles in the park, as well as the elimination of funds to control bison populations in the park through hunting.

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