Colt Forum banner
1 - 11 of 11 Posts

·
Registered
Joined
·
639 Posts
Discussion Starter · #1 ·
From Colt's Facebook page:

We're excited to announce the merger of
Colt
Defense LLC and New Colt Holding Corp., the parent company of Colt’s Manufacturing Company LLC. After 10 years of operating separately, we will now develop, manufacture and market firearms as one company, united under the Colt name. We look forward to continuing our 176 year legacy as the world's highest quality firearm manufacturer.
http://reut.rs/18hJajz

I
never really understood the separation. In many ways, it seemed to cause double the work for Colt. I'm glad to see this change for the better!
 

·
Registered
Joined
·
3,564 Posts
I'm not sure of all the particulars that kept the entities separated, but I, for one, sure am glad to see any deal that strengthens the good name of Colt.
 

·
Registered
Joined
·
376 Posts
I wonder what prompted the change?
The way I understood it, and please correct me if I am mistaken, was Colt was on the ropes back in the late 90's/early 2000's. Colt was trying to come out of chapter 11 bankruptcy it had declared in 1992. Colt, like many other arms manufactures during the Clinton Administration were slammed with numbers of state and private law suits related to miss use of their product. Also, a lot of the shooting public were boycotting Colt because of the comments of then CEO Ron Stewart and later the "smart gun" project. Combine that with the fact Colt initially dropped all DA production in late 1999 I think they may had all but decided if things got much worse they maybe forced to leave the civilian arms market altogether. Colt Defense was spun off so the civilian arms section Coltsmfg could basically be allowed to fail and go bankrupt so Colt Defense could continue with producing for the military contracts. With the two companies merging back again I think it's about a good a sign as there can be that Colt has no plans to leave the civilian market anytime soon.
 
  • Like
Reactions: oldedawg

·
Banned
Joined
·
7,709 Posts
Gunbroke, that's probably as close to the events as one can come without delving into accounting and actuarial tables.

With the combination of the two entities, what estimate can be given to factory employee census or that matter total employee numbers? However that adds up it's a good move.
 

·
Registered
Joined
·
1,655 Posts
I Could Be Entirely Off Base, But If I Understand Correctly Didn't Colt Lose The Military Ar15 Contract? That Could Explain The Coming Back Together. Course I Could Be Wrong.
 

·
Registered
Joined
·
205 Posts
you are correct kingcobb.i read somewhere in the American rifleman or guns an ammo that the conract was won by freedom arms group I believe....
 

·
Registered
Joined
·
1,522 Posts
The way I understand things is this - the sole-source clause for using the Colt Technical Data Package for M4 manufacturing expired in 2009. That means that the Army can seek other (cheaper) manufacturers, but Colt will receive a 5% royalty for each M4 made by anyone else.
The latest contract for the M4A1 was awarded to FN.
Did I get this right?
 

·
Premium Member
Joined
·
20,790 Posts
The way I understand things is this - the sole-source clause for using the Colt Technical Data Package for M4 manufacturing expired in 2009. That means that the Army can seek other (cheaper) manufacturers, but Colt will receive a 5% royalty for each M4 made by anyone else.
The latest contract for the M4A1 was awarded to FN.
Did I get this right?
I think you got it right!


Plus with the two Colts back as one it will make it easier for them to move to Lorain, Ohio!:rolleyes:
 
1 - 11 of 11 Posts
Top