Kubota To Invest $80 Million To Expand US UTV Manufacturing

Utility vehicles like the Kubota RTV400Ci will be built in a new manufacturing facility starting in 2017.

Utility vehicles like the Kubota RTV400Ci will be built in a new manufacturing facility starting in 2017.

Kubota Tractor Corporation (KTC) and Kubota Manufacturing of America Corporation (KMA) announced plans to invest approximately $80 million in their Gainesville, GA manufacturing operations to increase production of utility vehicles, sub-compact tractors and turf products. The investment includes a new 502,000 square foot facility close to existing facilities for the production of RTV utility vehicles, as well as, upgrades to their existing facilities to enhance production for sub-compact tractors and turf products. The new facility will have the capacity to produce 50,000 utility vehicles per year. Construction is expected to begin in September 2015 and mass production in spring of 2017. Learn more:  Businesswire.com

Comment:  Kubota joins Polaris and Arctic Cat as the latest utility vehicle manufacturers to announce sizable investments in new and/or upgraded manufacturing facilities. This indicates that manufacturers are optimistic about the overall market in general and their products in particular. It also indicates that competition in the utility vehicle market will continue to be fierce and likely become more intense as these manufacturers will have to increase sales to generate returns on these sizable investments. SVR estimates that Kubota sells approximately 20-30 thousand UTVs a year in North America.

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