Today I learned that Colt CZ Group is discontinuing nearly the entire CZ lineup of products and it is rumored they are switching a lot of production to the United States. So what is going on here? I’ve talked to some people that wondered if they are pulling back because of issues with the Colt acquisition or moving production to the United States because they are worried about potential import restrictions, or maybe they are just giving their product line a refresh and coming out with some much needed new product as other companies their size seem to be releasing new products every month.
I don’t want to peddle in speculation so lets stick to facts:
- These are some smart people running the CZ who have a track record of tremendous success since before the pandemic so this isn’t a one-hit wonder company.
- Colt CZ Group has an incredibly strong earnings over the last four years and spins off a ton of cash, on average over $40 million USD per year over the last four years, so they were a cash cow during the Trump slump years. They have also amassed a war chest of over $143 million USD of cash on hand on their balance sheet.
- The CEO of CZ-USA resigned for personal reasons on August 1, 2022 and a successor has not been named as of this post.
- Net Income USD $22.3 in Q1 of 2022, while profit for the first six months of this year are up 87.9% year over year.
So what’s Going On?
This is just an educated guess on my part but with any merger or acquisition between two companies someone is going to lose. It appears from an outsiders perspective that a lot of the CZ employees found themselves on the outside looking in. I believe that CZ will re-release a lot of products at Shot Show in January instead of the slow drip throughout the year that their competitors have been doing. They have a history of discontinuing products and releasing updated versions with mild changes. I also expect for them to release some new products on both the CZ and Colt lines.
As a fan of CZ pistols and an owner of several, I am sad to see some good people leaving CZ USA whether by choice or otherwise but am hopeful that leadership of the Colt CZ Group have some exciting new products in their lineup yet to be revealed.