Polaris Inc. will temporarily furlough some workers and cut pay of others, the company said Tuesday in its latest step to survive the severe downturn resulting from the coronavirus outbreak.
Its chief executive, Scott Wine, said he will forgo his salary for the rest of 2020 as the maker of boats, motorcycles, snowmobiles and ATVs grapples with a pandemic that prompted a plunge in sales and the temporary closure of several plants.
Polaris last week closed all its manufacturing plants — in Roseau and Monticello, Minn; Huntsville, Ala.; Spirit Lake, Iowa; Osceola, Wis.; Battle Ground, Wash.; Mexico and Poland — and said it would re-evaluate after one week.
On Tuesday, it said select manufacturing will restart this week for “products with adequate demand and supply-chain coverage.”
Vehicles made for the government, such as the company’s four-wheel military Ranger, will continue to be produced as the government directs.
While selected production resumes, Polaris will furlough exempt and nonexempt employees for two weeks sometime during the second quarter.
While those employees will not be paid, they will keep health care benefits and may be eligible for unemployment benefits.
Corporate headquarter, engineering and salaried employees not furloughed will have their pay cut 20% starting April 13 and lasting through June.
“This is an unprecedented crisis with a sudden and stark impact on our business, but in difficult times Polaris has always responded with agility and proved our resilience,” Wine said in a statement.
The company also put a halt to hiring and will delay merit-pay increases through the end of the year.
Polaris, which had $6.8 billion in sales last year, postponed nonessential capital expenditures, share repurchases and is drawing down $150 million of revolving credit.
As of Tuesday, Polaris had more than $420 million in cash to help weather the COVID-19 crisis.