Indian Motorcycle Cuts 70 Jobs: Why the Iowa Plant Comes Out Ahead

• Around 70 positions cut, up to 70 to be newly created or refilled
• Up to 60 additional jobs at the Spirit Lake (Iowa) plant, up to ten in finance and administration
• Which departments are affected and how much will be saved remains open

After around 14 years under the Polaris umbrella, Indian Motorcycle has been majority-owned by Los Angeles investment firm Carolwood LP since February 2026. Polaris now holds only a small stake. On October 28, Indian announced the next step toward becoming a standalone company from its new headquarters in Golden Valley, Minnesota. The workforce is being restructured, the plant in Iowa is getting more staff, and tasks that Polaris previously handled for Indian are moving in-house.

Why is Indian Motorcycle cutting jobs?

Indian wants to get rid of duplicate structures dating back to its time under Polaris. Around 70 positions in various parts of the company have therefore been eliminated.

This was preceded by a review that lasted seven months. Indian looked for tasks that were covered twice and for processes that no longer suit a standalone motorcycle company. The new organization is meant to be simpler and respond faster to dealers and customers.

On balance, however, headcount is supposed to remain the same. On the other side of the ledger are up to 60 new manufacturing jobs and up to ten positions in finance, administration and other areas. If all are filled, cuts and additions balance out exactly at 70 positions each. Indian therefore describes the changes as headcount-neutral.

It does, however, change the weighting considerably. Roughly six out of seven new positions are in production. Measured against the roughly 900 employees who moved to Indian with the takeover in February, the cuts affect just under eight percent of the workforce. CEO Mike Kennedy openly acknowledges that tough cuts are part of this: “That said, we are also making some difficult organizational decisions that are reducing some positions.” He stresses that those affected have contributed to the brand for years and are to be treated with respect throughout the entire process.

Why is Indian expanding the Spirit Lake plant?

Spirit Lake is now Indian’s most important manufacturing site, because engines have recently been built there as well. In addition, the plant’s paint shop has been expanded, and Indian needs more people for both.

Engine production moved to Iowa from Osceola, Wisconsin. That plant belongs to Polaris and previously supplied engines and powertrains for Indian as well as parts for off-road vehicles and snowmobiles. Polaris announced the closure in January, citing the sale of Indian. Initially, around 200 employees were mentioned. In the required notice to Wisconsin’s labor authority, Polaris lists 189 positions to be eliminated in stages between July 27, 2026 and January 31, 2027. These jobs belong to Polaris and have nothing to do with the 70 positions cut at Indian.

For Kennedy, the Iowa plant is the core of the whole plan: “Spirit Lake is strategically foundational for our future.” A second US site remains Monticello, Minnesota, where aluminum is cast and machined.

At the same time, manufacturing is withdrawing from abroad. According to a mandatory filing with the US Securities and Exchange Commission (SEC), Polaris intends to divest the motorcycle plant in Vietnam’s Phu Tho province. It only began operating in 2023 and was designed for 10,000 motorcycles and 30,000 large-displacement engines per year. Back in February, Kennedy had announced plans to close plants abroad and consolidate global motorcycle production in Spirit Lake.

Which tasks is Indian now taking over from Polaris?

Indian is setting up its own departments for finance, corporate administration and other areas. This work was previously done by Polaris employees, including for a transition period after the sale.

Up to ten existing positions will be filled for this purpose. Responsibility for day-to-day operations is thus gradually passing entirely to Indian. For dealers, this means that manufacturing and corporate functions will in future sit directly with the manufacturer rather than being split between two companies.

A visible sign of the separation is the new headquarters in Golden Valley. In February, Indian signed a seven-year lease there for a building of around 37,832 square feet (around 3,515 square meters). In addition to leadership, operations and brand development, it houses industrial space for product development and prototype building. Design and engineering also continue at the development centers in Burgdorf, Switzerland, and in Wyoming, Minnesota.

What course is Carolwood setting for Indian Motorcycle?

At the time of the takeover, Carolwood set out three goals: strengthen manufacturing in the USA, build its own structures and make Indian and its dealer network profitable in the long term. The current restructuring contributes to all three.

Before joining Indian, Kennedy worked at Harley-Davidson, Vance & Hines and RumbleOn, among others. In February, he named four priorities for the brand: preserve Indian’s heritage and character, build quality motorcycles, focus on US manufacturing and strengthen the dealers. The goal is market leadership in cruisers, mid-size and heavyweight baggers and tourers. Kennedy ruled out an entry-level model and electric motorcycles. Instead, he announced an entry into trikes and a more streamlined model lineup.

The brand is also in the middle of an anniversary year: Indian is celebrating its 125th birthday in 2026.

What is still open in Indian’s restructuring?

Indian has not revealed many details. It remains unclear which departments and sites are affected by the cuts, when the new positions will be filled and how much money the restructuring is supposed to save.

New models or major updates are not part of the announcement either. The additional jobs in Spirit Lake are primarily meant to support the engine production and paint shop that have newly been added there. Whether the plant will also build more motorcycles as a result is not clear from the information provided. Part of the background is also that Indian’s retail sales in North America declined slightly in 2025, by a low single-digit percentage.

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