Redline Performance Products today announced that it has signed a definitive contract assembly agreement with Interstate Companies based in Bloomington, Minnesota to assemble and ship to Redline's dealers the 800 Revolt snowmobile. Assembly of the 800 Revolt snowmobile will take place at Interstate's ISO 9001:2000 certified Power Products & Services center (IPPS), which is located in West Fargo, North Dakota. IPPS leads the industry in supplying "Just In Time" parts, kits and assemblies to OEM's throughout the United States and Canada, including, but not limited to, the leading bus and coach OEM's. The contract term is through April 30, 2006 and may be extended by agreement of the parties; other terms of the agreement were not disclosed.
Mark A. Payne, President and Chief Financial Officer of Redline, commented, "Outsourcing the assembly of the 800 Revolt is a key component of Redline's business strategy. We are very pleased to enter into this important relationship with such an experienced and well-respected company. IPPS has developed and practices some of the highest quality standards in the industry. With this agreement in place, we expect to be able to build and ship approximately 600-700 units of the 800 Revolt snowmobile to our established and growing North American dealer network for the upcoming snowmobile season. The West Fargo location offers significant logistical benefits for the assembly of the 800 Revolt, as we will be able to utilize an existing supply chain that currently serves the snowmobile and ATV industry throughout the Midwestern United States."
He continued, "The level of pre-launch interest by our dealer network and the initial flow of purchase orders we have received is encouraging. As part of our continuing efforts to foster dealer and consumer interest in advance of the 800 Revolt's retail introduction, Redline recently participated in the first 2 trade shows of the season and expects to participate in numerous other industry events over the next two months. We expect to supply our dealers with a detailed production schedule in the next few weeks."
On behalf of Redline, Mr. Payne also expressed his appreciation to the Company's dealer network for their patience and support.
Interstate Companies is the parent company of a diversified group of businesses that provides distribution, assembly, parts, sales and maintenance services for diesel/gas engines and Allison transmissions, power generation systems, bearing technologies, transport refrigeration and power products.
Redline's 800 Revolt is a high-performance, 800cc snowmobile designed for trail riding. It is scheduled for introduction to select dealers for the 2003 - 2004 snowmobile season. The 800 Revolt incorporates patented and patent-pending technology - including a T-15 rear suspension system and clutch isolation drivetrain system -- to produce a snowmobile that Redline believes will provide better handling, a smoother ride, more power, greater durability and more attractive styling.
Redline Performance Products designed, engineered, marketed, manufactured, and sold snowmobiles under the Redline brand name. As of August 24, 2004, the company went out of business.