The Future of the Bushmaster / Remington ACR

There has been a lot of speculation about the future of the Bushmaster / Remington ACR. The rifle has not been selling well, but neither have any other non-AR-15 semi-automatic rifles. A company that supplies parts to many rifle manufactures told me today that about 70% of their business is now supplying AR-15 components. Non-AR-15 rifles are simply not selling.
Some have suggested Magpul now has the capital to start manufacturing their owns firearms.
The rights to the ACR design revert back to Magpul only if Rem/Bushmaster do not meet a minimum sales requirement. The minimum number of rifles they are required to sell is low and, I am told, they will easily meet the target. In the unlikely event Remington thought they could not meet the target, they would simply lower the price in order to increase sales.
Remington has invested a lot into the ACR. They took Magpul’s prototype and turned it into a production gun. Their latest military model will be entered into the Army’s carbine competition.
Watch the VIDEO
If the ACR wins and becomes the next Army carbine the company will have a guaranteed revenue stream for the next 20 years. Consumers, LEO enforcement and foreign-militaries would all want to own the same gun used by the troops. I suspect the Freedom Group would then resume efforts to go public.
Magpul has designed a few firearms and has a powerful brand. If they wanted to, they could easily sell firearms. On the other hand, why would they produce low-margin firearms when they are selling high-margin accessories. My prediction is that they will instead start producing more and more high-end aluminum and steel rails, mounts and accessories.

 

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