Monthly Archives: February 2018

Massive Yamaha Golf Car & PTV Recall

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Yamaha Drive2

The 2018 Yamaha Drive2 is one of the models being recalled over a brake cable issue.

Yamaha Golf Car has issued a recall for over 160,000 golf cars, personal transportation vehicles (PTVs) and utility vehicles due to potential failure of the brake cables and subsequent crash hazard. The recall involves model year 2015 through 2018 gas and electric powered golf cars, PTVs and utility vehicles. Note that the utility vehicles from Yamaha Golf Car are different than those from the power sports manufacturer Yamaha Motors which makes the YXZ, Wolverine and Viking utility vehicles. This recall involves Yamaha Drive and Drive2 branded vehicles made by Yamaha Golf Car. For a detailed list of the model numbers and serial number ranges included check the CPSC.gov website. Owners can also contact Yamaha at 800-962-7926 or at www.yamahagolfcar.com.   Owners should immediately stop using these recalled Golf Cars and PTVs and contact a local Yamaha Golf Car dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

The following recall details are from the Consumer Product Safety Commission.

Name of product:  Yamaha Golf Cars and Personal Transportation Vehicles (PTVs) Hazard:  The brake cables on the golf cars and PTVs can fail, posing a crash hazard.

Recall date: February 22, 2018
Units:  About 161,000

Description:  This recall involves the following model year 2015 through 2018 gas and electric-powered golf cars , PTVs and utility vehicles. The vehicles were sold in various colors including blue, green, red, white, tan and silver. The model and serial numbers can be found on a label under the seat on the left or right side.

Remedy:  Consumers should immediately stop using these recalled Golf Cars and PTVs and contact a local Yamaha Golf Car dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

Incidents/Injuries:  The firm has received 285 reports of brake cables failing. No injuries have been reported.

Sold At:  Yamaha Golf Car dealers nationwide from November 2014 through December 2017 for between $5,900 and $7,700.

Manufacturer(s):  Yamaha Motor Manufacturing Corporation of America, of Newnan, Ga.

Distributor(s):  Yamaha Golf-Car Company, of Kennesaw, Ga.

Manufactured In:  Assembled in United States
Recall number:  18-725

SVR’s Take:  This is a very large recall and on par with the relatively recent large recalls from Polaris. This will likely cost Yamaha millions of dollars to remedy. More importantly, this might put a dent in Yamaha’s progress in gaining market share against Club Car and E-Z-GO. In the last few years, Yamaha has been touting how many thousands of golf courses have switched to their golf cars. The golf car market has always been highly competitive, and even more so in the last several years as golf course growth has declined or remained stagnant.

Marc Cesare, SmallVehicleResource.com

Kubota Updates UTV Lineup

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Kubota RTV-XG850 Sidekick utility vehicle

The new Kubota RTV-XG850 Sidekick utility vehicle, gas-powered and with a 40 mph top speed.

Over the last few months Kubota has unveiled two significant model additions to their utility vehicle lineup that will be available at dealers in the first part of 2018. The first reveal was the all new RTV-XG850 Sidekick. The Sidekick is a gas powered UTV being marketed as fast, strong and agile with a 48 hp engine, 40 mph top speed, a CVT with centrifugal clutch and speed sensitive electronic power steering.

Kubota is clearly trying to expand their more work-oriented customer base with the faster, crossover oriented Sidekick. However, the RTV-XG850 still maintains solid work specs with a 15.2 cu. ft. and 1,000 lb. capacity steel cargo box and a 2,000 lb. towing capacity. The cargo box has an optional electric hydraulic lift.

Additional features of the Sidekick designed to widen the vehicle’s appeal include:

  • Improved ergonomics with a new digital display, steering wheel and shift knob
  • LED headlights
  • Green and Black color options beyond the traditional Kubota Orange and RealTree AP Camo choices
  • Sidekick specific accessories including a premium audio system, sports roof, alloy wheels and bed extender

Other key specs and features of the Sidekick include:

  • Selectable 2WD/4WD with limited slip front differential
  • 4-wheel hydraulic disc brakes
  • Front and rear independent suspension
  • 9″/8.5″ of front/rear suspension travel
  • 9.8″ of ground clearance
  • Tilt steering
  • Front guard (standard on Worksite and Special variations)
  • Optional spray-on bed liner

The Sidekick will come in three different variations:  General Purpose, Worksite and Special. The Special comes with a front guard, alloy wheels, tilt steering and spray-on bed liner standard. The Worksite comes with the front guard and tilt steering standard. The General Purpose does not come standard with any of these options. The Kubota RTV-XG850 Sidekick will be available at dealers in Spring 2018. A quick internet search shows pricing in the $13,000 to $14,500 range.

The other addition to the Kubota UTV lineup is an updated version of the RTV-X1120, a heavy duty work-oriented utility vehicle. The updated model comes with a significantly lower price tag compared to the older version, $13,999 compared to approximately $16,000.

The RTV-X1120 is powered by a 24.8 hp diesel engine and has a Variable Hydro Transmission, a top speed of 29 mph and 4WD with limited-slip front differential and foot operated rear differential lock. Kubota aimed to improve ergonomics and styling with new shoulder restraints, ergonomic 60:40 split bucket seats, digital display, easily accessible parking brake and under seat storage compartments.

Additional key features and specs include:

  • Hydraulic power steering
  • Steel cargo box with optional hydraulic lift
  • Front and rear standard 2″ hitch receivers
  • 1,300 lb. towing capacity
  • Optional machine-polished alloy or black alloy wheels
  • Optional spray-on bed liner
  • Colors:  Kubota Orange or RealTree AP Camo

The RTV-X1120 will be available in General Purpose, Worksite and Deluxe configurations with a starting base price of $13,999 The new RTV-X1120 models will be available at Kubota dealerships in February 2018.

Learn more:   Kubotausa.com

SVR’s Take:  The work and multi-purpose use segment of the UTV market has become more competitive over the last several years as manufacturers have identified the segments as key growth areas. No doubt Kubota has felt the encroachment of this competition on their traditional customer segments of farm, ranch, large area home owners and construction. This has come from larger brands such as Can-Am with their new Defender line, Honda with their expanding Pioneer line and market leader Polaris with their dominant Ranger line, as well as from smaller brands like the value oriented and expanding Cub Cadet Challenger line and the likes of Toro and New Holland that have partnered with larger UTV manufacturers to develop vehicles to sell under their own brands. The most recent in the latter category is the construction oriented Caterpillar.

As the pace of new model development in the UTV market has increased in the last five years, one could argue that Kubota has been at the slower end of the scale among the large manufacturers. The Sidekick in particular may be an indication that Kubota will be accelerating their product development moving forward with an eye towards expanding their appeal. A key difficulty for Kubota in growing their customer base will be how to reach new customers with their existing farm and construction oriented dealership network. They may look to add new types of dealers or partner with other companies to reach new distribution channels.

Marc Cesare, SmallVehicleResource.com

Cushman Introduces New Hauler 800 and 800X Utility Vehicles

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Cushman Hauler 800X

The new Cushman Hauler 800X from Textron Specialized Vehicles.

Cushman Hauler 800

The new Cushman Hauler 800 from Textron Specialized Vehicles.

Cushman, a brand under the Textron Specialized Vehicles umbrella, recently announced new, upgraded versions of their Hauler 800 and 800X utility vehicles. Each vehicle comes in an electric powered or gas powered variant. The electric powered models feature a 48-Volt AC powertrain with a 4.4 hp motor, six 8-volt deep cycle batteries, DC PowerWise QE charger and 235 amp AC controller. The gas powered models feature a 13.5 hp Kawasaki, 4-cycle, 401cc engine.

“Customer research guided the design of the Cushman Hauler, and the new Hauler 800 and 800X provides an excellent go-to, light-duty utility option in our lineup,” said John Collins, Vice President, Consumer for Textron Specialized Vehicles. “A customizable bed, functional dash storage, and increased visibility allow the operator to be more organized and productive on the work site.” New options for the Hauler 800 and 800X include:

  • A floor mount attachment that enables you to transport and secure small equipment in the passenger area of the vehicle
  • An independent radio clip that has been ergonomically designed for easy reach
  • Glove box mat package to prevent movement of items in storage compartments

Additional key specs common for the vehicles include:

  • Seating for two
  • 8.4 cu ft of cargo deck capacity
  • Headlights
  • Brushguard
  • Optional bed divider
  • Welded Steel w/ E-Shield e-coat plus DuraShield™ Powder Coat

Some of the key differences between the Hauler 800 and the 800X include:

  • The Hauler 800 has slightly more cargo bed capacity at 400 lbs vs. 325 lbs and more towing capacity with 900 lbs vs. 500 lbs
  • The Hauler 800X has a faster top speed of 16.5 mph vs. 14.5 mph
  • The Hauler 800X has more ground clearance:  5.5″ vs. 4.3″

The Hauler 800 and 800X are available in Patriot Blue and Forest Green.

Learn more:  Cushman.com

SVR’s Take:  While the changes to the Hauler 800 and 800X are not drastic, they are very focused on the application specific needs of end users. These types of changes are indicative of how competitive the work side of the utility vehicle market has become as manufacturers tailor their vehicle offerings to specific sub-segments of the market. They are accomplishing this by adding new work specific features and offering a wider range of options and accessories for specific applications. In some cases, they are providing a pre-packaged set of options and features for certain end-use applications. This is often in the context of segment specific marketing efforts. For example, Club Car has identified certain market verticals they are strategically targeting, and Cushman is using different marketing material for commercial and golf segments for these Hauler 800 and 800X models.  These approaches demonstrate the functionality and versatility of utility vehicles that serve as a common work platform which can relatively easily be customized for a wide range of work environments and applications. Marc Cesare, SmallVehicleResource.com

 

Ingersoll-Rand Q4 2017 Earnings

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Club Car Tempo 4Fun

The four-person Club Car Tempo 4Fun fills out the new fleet line, which Ingersoll-Rand expects to help maintain momentum in their Small Electric Vehicle business.

Ingersoll-Rand, which makes a range of commercial and industrial products including Club Car golf cars and utility vehicles, recently reported Q4 2017 financial results. For the quarter net revenues increased 8% to $3.6 billion from $3.4 billion and for the year they increased 5% to $14.2 billion from $13.5 billion. Club Car revenues account for only a small portion of the overall revenues. The Industrial segment, which includes Club Car, reported Q4 net revenues of $858 million, a 7% increase from $800 million in Q4 of the previous year.

The following are some of the highlights from the earnings call related to small, task-oriented vehicles.

  • The Small Electric Vehicle portion of the Industrial segment grew low teens percent on strength in both vehicle and aftermarket sales, particularly in North America
  • The Club Car Tempo Connect golf car was just launched at the recent PGA Show.

Guidance for 2018

  • Industrial segment revenue overall is expected to increase 5.5% to 6.0%
  • Golf/Utility/Consumer end markets are expected to increase mid-single digits
  • Golf utility vehicles and consumer vehicles combined are generally expected to be flat to slightly up across the globe.
  • Consumer vehicle continues to grow at a nice clip.
  • Utility vehicles are also expected to have good growth in 2018.
  • The golf market is expected to remain roughly flat

Learn more:  Seekingalpha.com (Earnings Call Transcript)

Textron Reports Q4 2017 Earnings

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E-Z-GO Freedom RXV

The lithium powered Freedom RXV ELiTE helped drive E-Z-GO sales at Textron.

Textron, manufacturer of Arctic Cat and Textron Off Road utility vehicles, E-Z-GO golf cars and other small, task-oriented vehicles recently reported Q4 2017 financial results. Revenues in the quarter were $4.0 billion, up 5% from the fourth quarter of 2016. Textron segment profit in the quarter was $360 million, down $31 million from the fourth quarter of 2016. For the year revenue increased to $14.2 billion up from $13.8 billion. Textron also produces Bell helicopters, Citation jets and various military systems and products. Textron is forecasting 2018 revenues of approximately $14.6 billion, up 3% percent from the prior year.

The following are some of the highlights of the earnings call and presentation related to small, task-oriented vehicles.

  • Industrial revenues, which includes Arctic Cat, E-Z-GO and other Specialized Vehicles, were $1.1 billion for the quarter, up 20% largely related to the recent Arctic Cat acquisition.
  • Industrial segment profit was up $10 million from the fourth quarter of 2016 due to favorable performance.
  • E-Z-GO sales increased led by the new lithium powered ELiTE golf car which has seen over 21,000 units delivered
  • In December the new Havoc X side-by-side was introduced

Guidance for 2018

  • At industrial, we’re expecting growth in each of our businesses resulting in projected segment revenue of about $4.7 billion and a margin of about 8%.

Learn More:  Seekingalpha.com (Earnings Call Transcript)

Polaris Q4 2017 Earnings

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2018 Polaris Ranger XP 1000 EPS

The 2018 Polaris Ranger XP 1000 EPS helped drive sales for the quarter and the year.

Polaris Industries reported quarterly revenue of $1.431 billion and annual revenue of $5.429 billion, representing increases of 18% and 20% respectively compared to last year. Adjusted earnings per share for the quarter increased 25% driven by higher volume, lower promotional spend and operating expense leverage. For the year a 39% increase in earnings per share was driven by a combination of increased volume, an improvement in gross margins and a lower tax rate.

The following are highlights of the earnings call related to small, task-oriented vehicles.

  • ORV sales increased 14% in Q4 and 9% for the year
  • Average ORV selling price was up 4% for the quarter
  • ORV retail was up for the year but down for the 4th quarter as retail unit sales of Off-Road Vehicles were down just under 1%
  • Ranger sales were up for the quarter with strong demand for the new Ranger XP 1000 lineup
  • RZR sales declined for the quarter driven by “tapped demand and limited product availability”
  • For the quarter the ramp up of Ranger and RZR production was slower than expected in part attributed to the new quality initiative. This manifested as a production issue with a four-wheel drive component on the Ranger XP 1000, which was originally not up to the company’s quality standard.
  • Continued roll out RFM inventory and ordering system for side-by-sides and should be fully optimized by the second quarter
  • North American industry side-by-side growth was strong in Q4 but ATVs down.
  • Utility side of ORV is expected to grow but there is stiff competition on the RZR side which will not grow as much as competition increases
  • Agriculture markets were down in the fourth quarter and oil markets were up slightly, but there was no “substantial shift” in buying patterns.
  • In the side-by-side market decreased pricing is offset somewhat by decreased promotional costs and there is some commodity pricing pressures
  • Australia was a strong market as buyers switch from ATVs to UTVs
  • Global Adjacent Markets sales increased 19% in the fourth quarter, driven by strong growth in Aixam and Goupil, as well as continued strong sales growth in Government and Defense
  • For the year Global Adjacent Markets revenue reached almost $400 million including PG&A
  • Average selling price for Adjacent Markets increasing 14% for the quarter
  • For the full year Global Adjacent Markets sales increased 16% with all business lines growing
  • In Europe there is strong demand for small, inner-city delivery vehicles including electrics and that demand is increasing in the US as well
  • “More autonomous activities with both the military and Taylor-Dunn platforms than anywhere else in the company”

Guidance for 2018

  • Total company sales are expected to be up in the range of 3% to 5% with ORV market expected to be up
  • ORV market share is expected to be stable with continued momentum from Ranger and General product lines
  • ORV/Snowmobile sales are expected to be up low to mid-single digits with Snow about flat and ORV and PG&A sales up
  • Global Adjacent Markets sales are expected to be up mid single-digit percent with growth expected in all businesses.
  • The new long-term strategic targets for the company as a whole are 5% compounded annual growth rate for revenues and 15% for earnings
  • Management will be focusing on cost leadership more while maintaining innovation

Learn more:  Seekingalpha.com (Earnings Call Transcript)