Viper Motorcycle Plant Moving To Auburn

[AUChizad]

http://www.tradingmarkets.com/news/stock-alert/bik_motorcycle-maker-viper-moving-to-auburn-100-new-jobs-planned-in-next-two-years-1102766.html

Motorcycle maker Viper moving to Auburn: 100 new jobs planned in next two years
Posted on: Wed, 11 Aug 2010 03:55:38 EDT

Aug 11, 2010 (Columbus Ledger-Enquirer - McClatchy-Tribune Information Services via COMTEX) --

A Minnesota motorcycle manufacturer is revving up plans to relocate its headquarters to Auburn, Ala., and begin production at a new plant there next year.

Viper Motorcycle Co., now based in Hopkins, Minn., said Tuesday it expects to create 100 jobs within two years at a 63,000-square-foot facility it will construct in Auburn Technology Park West.

Costs and the timeline for the new facility were not disclosed and company officials could not be reached for comment Tuesday.

John Silseth, chief executive officer of Viper Powersports Inc., parent company of the motorcycle firm, said in a release from Alabama Gov. Bob Riley's office that Viper aims to hit an annual production rate of 2,000 bikes and 2,000 aftermarket engines within five years.

"The market is ready for a new original equipment manufacturer to be a leader in the super cruiser niche," Terry Nesbitt, Viper Motorcycle president, said in a statement.

The company said access to Auburn University was a key in its choice of the area, which should help it with research and development of the high-performance, super cruiser motorcycles it will make.

Viper, according to its website, said its products are "designed and manufactured for the affluent enthusiasts seeking uncompromising performance and cutting edge 21st century technology." Aside from a touring bike, the Viper models will include Diablo, Diamondback and Mamba.

Jim Johnston, a partner with Ghost Riders Inc., a motorcycle shop located in Lakeville, Minn., about a half-hour drive from Hopkins, said he is familiar with Viper. He understands the company has been in research and development nearly three years, with the company first fielding the Diamondback.

"I believe their intention is to come in under $30,000," he said of the Viper pricing. "The one I did have here for a little bit was really well built."

Johnston was surprised to learn Tuesday that Viper is heading south to Alabama. But he expects them to do well in the long haul.

"I think that they're going to be a real strong player when this whole economy shakes out," he said.

Viper apparently has been pouring money and energy into the company during its developmental stage.

An April 15 filing with the U.S. Securities and Exchange Commission shows the firm spent about $353,000 on research and development in 2009 and $165,000 the year before.

The company posted an operational loss of about $2.3 million in 2009 and $1.9 million in 2008, the filing said, with a large chunk of that connected to engine development.

Viper reported revenue of $342,000 last year, which was an improvement from a negative revenue stream of $60,283 in 2008.

The company's shares are traded on an over-the-counter bulletin board under the ticker VPWI.OB. They closed at $1.11 per share Tuesday.

[AuburnChopper 3.0]

Awesome!!!   

[GH2001]

Hey, adding new jobs is always good news. This is really cool. Notice how many manufacturers of Cars, Motorcycles, etc are moving into Alabama and into the South in general? Good business sense.....get away from the North with the unions and high costs of productions (tax rates, etc). I also heard Harley is getting totally out of Milwaukee too for the same reason.