ASV loaders are similar to both crawler loaders and skid steer loaders, but with rubber crawler tracks. They are still capable of traversing moist terrain, but unlike older crawler tractors they do not damage the ground they drive on. They are therefore capable of working on both hard and soft surfaces.
The company's vehicles are popular with a wide range of markets including construction, utility, landscaping, agriculture, and the military. The name ASV is an acronym for “All Season Vehicle.”
As of March 4, 2008 ASV Inc. was acquired by the construction segment of the Terex Corp.
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[edit] History
[edit] Snowmobiles & Tractors
Co-founders of ASV Edgar Hetteen and Gary Lemke both had successful careers in the snowmobile market, but after two years of sparse snowfall in Minnesota during the early 1980s they were ready to try something new. By combining the technology of the snowmobile with the tractor, they were able to open up a whole new industry for themselves. ASV was incorporated in July 1983.
Edgar Hetteen was evolutionary in the snowmobile industry, often referred to as the “godfather of snowmobiles.”[1] Before ASV, Hetteen founded snowmobile pioneers Polaris Industries in 1945 and Arctic Cat in 1961.
Gary Lemke built a small snowmobile shop in 1968 in Grand Rapids, Minnesota. It grew to become one of the biggest Arctic Cat dealerships in the entire USA.
Minimal snowfall in the early 1980s, combined with high interest rates, forced Lemke and Hetteen into financial instability. Lemke’s dealership filed for bankruptcy while Heteen’s Arctic Cat was suffering its own economic misfortunes. They decided to make use of their mechanic skills and move out of an industry so reliant upon weather conditions.
[edit] Track Truck and Posi-Track
Together Hetteen and Lemke developed a new vehicle that would be functional for a variety of markets. The “Track Truck,” as they called it, was the size of a pick-up truck with rubber crawler tracks allowing the vehicle to traverse all types of terrain. The rubber tracks differed from crawler tractors of the past because they didn’t cause any damage to the surface they worked on. This meant the vehicle would be useful on groomed, landscaped, and paved surfaces.
They showcased their new all-terrain vehicle to investors and received $70,000 to set up shop in Marcell, Minnesota.[2]
The Track Truck quickly carved out a market for itself. It was smaller, more maneuverable, and about $30,000 less expensive than the competition.[3] It also had two other unique features: front wheels capable of stabilizing it on steep hills and a steering wheel instead of joysticks and levers. However, despite ASV’s attempt to move out of the winter industry, the Track Truck was only popular with those responsible for grooming snowmobile and cross-country skiing trails. Other customers wanted a more versatile machine. So, ASV researched and introduced the Posi-Track vehicle, which finally opened them to a whole new market.
The key additions to the Posi-Track vehicle from the Track Truck were the inclusions of a quick-attach mechanism and three-point hitch. This allowed the new machine to do the job of a bulldozer, mower, brush cutter, auger, backhoe, snow remover, plow, and more. Also, the rubber tracks provided a ground pressure of only 1.5 pounds per square inch (10.3 kPa), making the 5,800-pound (2,610-kg) vehicle virtually weightless.[4] This new machine retailed for $34,000. [5]
With its vehicle’s new versatility ASV decided to branch out to new markets. A dealer network of independent construction and farm equipment retailers opened up ASV to new customers. By 1994, ASV’s annual sales had reached $5 million.[6]
ASV moved into a new, larger manufacturing facility in Grand Rapids, Minnesota in 1995. However, the new 40,000-square foot (3,600 m2) facility soon had to be expanded to 100,000 square feet (9,000 m2) to meet growing demands for Posi-Track vehicles.
Growing income not only allowed ASV to build a new facility, but invest money into research and development of new technology. ASV released larger, more versatile models of the Posi-Track vehicle. It also introduced the “Maximum Traction and Support System” undercarriage. It offered “improved traction, power, and reliability and further lessened ground pressure.”[7] The new system caught the attention of Caterpillar who, in turn, decided to acquire part of ASV.
[edit] ASV, Caterpillar, and Terex
In 1998, Caterpillar bought 8.7 percent of ASV stock for $18 million.[8] The deal allowed Caterpillar to diversify into the lighter machinery industry and opened ASV to a much larger dealer network. Co-founder Lemke commented on the deal: "It's just an immediate access to all the things that Caterpillar has."[9]
After this initial investment, Caterpillar and ASV developed a close relationship. Cat increased it ownership of ASV to 15 percent in 2000 and ASV began developing rubber crawler tracks for many Cat vehicles. Together they designed a line of rubber tracked skid steer loaders called MTLs, or multi-terrain loaders.
ASV introduced its own R-series all-surface loaders in 2000, which were capable of digging, lifting and hauling.
Annual sales grew exponentially from $43.8 million in 2000 to $96.3 million in 2003.[10]
As of March 4, 2008 ASV Inc. was acquired by the construction segment of the Terex Corporation.
[edit] The Company Today
Recently acquired by the international construction conglomerate Terex Corporation, ASV will open up to brand new markets.
With net sales of $9.1 billion, Terex is a diversified global manufacturer operating in five sectors: Terex Aerial Work Platforms, Terex Construction, Terex Cranes, Terex Materials Processing & Mining, and Terex Roadbuilding, Utility Products and Other.[11]
Terex ranked No. 314 on the 2007 Fortune 500 list, and No. 9 amongst industrial and farm equipment manufacturers. It trades on the New York Stock Exchange under the “TEX” symbol. [12]
[edit] Equipment List
[edit] References
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ ASV. Funding Universe. 2008-09-09.
- ↑ Press Release. ASVI. 2008-09-09.
- ↑ Fortune. Money CNN. 2008-09-09.
