Colt Firearms will no longer produce AR-15 rifles, according to American Military News, as consumer demand for the gun has dried up and the market has become saturated.
Factoring into the situation “may be attributed to Colt rifles’ $1,000+ price tag and a market supplied with lower priced competitors,” the publication noted.
“The fact of the matter is that over the last few years, the market for modern sporting rifles has experienced significant excess manufacturing capacity,” said Colt President and CEO Dennis Veilleux. “Given this level of manufacturing capacity, we believe there is adequate supply for modern sporting rifles for the foreseeable future.”
Veilleux noted that the company is doing well with sales to military and law enforcement clients: “On the other hand, our warfighters and law enforcement personnel continue to demand Colt rifles and we are fortunate enough to have been awarded significant military and law enforcement contracts. Currently, these high-volume contracts are absorbing all of Colt’s manufacturing capacity for rifles.”
Colt’s senior vice president for commercial business, Paul Spitale, also pointed to the cost factor in comments last week regarding the company’s reorganzition.
“What’s true today is that the [modern sporting rifle] market is much more price-driven,” Spitale said. “We’ve seen a pretty sharp decline in rifle sales, given our price points, resulting in significant inventory build-up held by our distributors.”