Colonville, Michigan. A spokesman for the Chrysler company announced today that the Chrysler Corporation has completed a preliminary agreement with Polaris Corporation for the acquisition of the snowmobile manufacturer. Polaris, based in Grommet, PA, has previously announced planned layoffs from its state-of-the-art throttle grip plant.

“We view this as a win-win situation” said Polaris CEO Olivier Nuggoit. The extensive dealership network is viewed as a plus for the Polaris brand.

Not everyone is enthusiastic. Chrysler Dealer Association president Robert Vinton warned that dealers in the southern states fear that their snowmobile inventories would just sit in their show rooms and crowd out the latest automobile models.

“Not to worry” Nuggoit responded, “There will be substantial factory incentives for dealers along the Gulf coast and southwest”.

Chrysler stock rose 50 % in response to the news, from $0.40 to 0.$60 per share.