New Polaris Recalls

The 2020 General XP 1000 Deluxe is part of the recent Polaris recalls.

Polaris Recalls Summary

In July Polaris announced two recalls involving vehicles from different product lines. The first involved model year 2019-20 Ranger XP 1000 and model year 2020 General XP 1000 vehicles. The second recall covers model year 2020 Ranger XP 1000 and Ranger Crew XP 1000, MY2019 – 2020 PRO XD 4000D UTVs, MY2019 PRO XD 2000D UTVs and MY2020 Bobcat UV34 and UV34XL UTVs. In the first recall the throttle can fail to return to the idea position after the engine stalls and is restarted in gear. In the second recall an improperly manufactured clutch component can cause engine braking to fail. The two recalls cover about 42,000 vehicles.

Polaris Recalls Details

The following details are from the Consumer Products Safety Commission.

First Recall

Name of product: Model Year 2019 – 2020 Ranger XP 1000 & Model Year 2020 General XP 1000 Utility Vehicles (UTVs)

Hazard: The throttle can fail to return to the idle position after the engine stalls and is restarted in gear without switching the key to the off position due to a software problem, causing the vehicle to accelerate suddenly, posing a crash hazard to the user.  

Recall date: July 2, 2020

Units:  About 26,730 (In addition, 1,330 units were sold in Canada)

Consumer Contact: Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.comand click on “Off Road Safety Recalls” for more information.  In addition, check your vehicle identification number (VIN) on the “Product Safety Recalls” page to see if your vehicle is included in any recalls.

Description: This recall involves Model Year 2019 Polaris Ranger XP 1000 EPS, Ranger CREW XP 1000, and Model Year 2020 Polaris Ranger XP 1000, Ranger CREW XP 1000, General XP 1000 Deluxe and General XP 4 1000 Deluxe.  The vehicles were sold in gray, blue, white, red, green camo, orange, sand and maroon colors and have two or four seats.  “POLARIS” is stamped on the front grille and “Ranger” or “General” is printed on the sides of the rear cargo area.  Vehicle identification numbers (VIN) included in this recall can be found stamped into the left rear vehicle frame below the cargo box.  The following model names  are included in this recall:  

YEARMODEL NAME
2019RANGER XP 1000 EPS RANGER CREW XP 1000
2020RANGER XP 1000 RANGER CREW XP 1000 GENERAL XP 1000 DELUXE GENERAL XP 4 1000 DELUXE
 

 Remedy:  Consumers should immediately stop using the recalled vehicles and contact a Polaris dealer to schedule a free inspection and repair.  Polaris is notifying dealers and contacting registered owners directly.

Incidents/Injuries:  None reported.

Sold At: Polaris dealers nationwide from June 2018 through March 2020 for between $15,890 and $29,000.

Manufacturer(s): Polaris Industries Inc., of Medina, Minn.Manufactured In: United States, Mexico and Poland

Recall number: 20-758

Second Recall

Name of product: Model Year 2020 Ranger XP 1000 and Ranger CREW XP 1000 Off-Road Vehicles, Model Years 2019 – 2020 PRO XD 4000D UTVs, Model Year 2019 PRO XD 2000D UTVs and Model Year 2020 Bobcat UV34 and UV34XL UTVs.

Hazard: An improperly manufactured clutch component can cause the engine braking feature to fail, resulting in unexpected vehicle motion, posing a crash hazard.

Recall date: July 23, 2020

Units:  About 13,200 (In addition, 515 units were sold in Canada)

Consumer Contact: Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.comand click on “Off Road Safety Recalls” for more information.  In addition, check your vehicle identification number “VIN” on the “Product Safety Recalls” page to see if your vehicle is included in any recalls.

Description: This recall involves Model Year 2020 Ranger XP 1000 and Ranger CREW XP 1000 Off-Road Vehicles, Model Years 2019-2020 PRO XD 4000D UTVs, Model Year 2019 PRO XD 2000D, and Model Year 2020 Bobcat UV34 and UV34XL UTVs.  The vehicles were sold in maroon, black, sand, green, orange, blue, camo, gray and white colors and have two or four seats.  For PRO XD and Ranger models, “POLARIS” is stamped on the front grille and “POLARIS PRO XD” or “Ranger” is printed on the sides of the rear cargo area.  For Bobcat models, “Bobcat” is printed on the sides of the rear cargo area.  The VINs included in this recall can be found stamped into the left rear vehicle frame below the cargo box. 

The following model names are included in this recall:

YEARMODEL NAME
2019PRO XD 4000D
2019PRO XD 2000D
2020PRO XD 4000D
2020Ranger XP 1000
2020Ranger XP 1000 Crew
2020Bobcat UV34
2020Bobcat UV34XL

 Remedy:  Consumers should immediately stop using the recalled vehicles and contact a Polaris dealer to schedule a free inspection and repair, if needed.  Polaris is notifying dealers and contacting registered owners directly.

Incidents/Injuries:  The firm has received 14 reports of unexpected motion or drive clutch locking, including one report of a crash resulting in property damage.  No injuries have been reported.

Sold At: Polaris dealers nationwide from September 2019 through April 2020 for between $14,600 and $26,300.

Manufacturer(s):  Polaris Industries Inc., of Medina, Minn.

Manufactured In:  United States and Poland

Recall number: 20-765

Report an Incident Involving this Product 

SVR’s Take

Despite Polaris’ efforts to improve their quality they continue to have recall that effect a large number of vehicles. They are the largest manufacturer in the market so they should have the most recalls, all else being equal. But they seem to have a disproportionate number of vehicles recalled. They had large recalls in April of this year as well. SVR tracks UTV recalls on an ongoing basis.

CFMoto Recall

Some 2020 CFMoto ZForce 950 are being recalled.

CFMoto Recall Summary

In September CFMoto announced two recalls involving their ZForce 950 side-by-sides. The first recall affected the 2020 model year vehicles. A fuel line issue could potentially create a fire hazard. This recall covered about 500 vehicles. The second recall pertains to model year 2020 and 2021 vehicles and overlapped with the first recall. In the second recall the gas pedal could fail to return quickly to idle and potentially create a crash hazard. This recall includes approximately 627 vehicles.

CFMoto Recall Details

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

First CFMoto Recall

Name of product: 2020 ZFORCE 950 Sport Recreational Off-Highway Vehicles (ROVs)

Hazard: The fuel line fitting on the vehicles can fail to securely lock onto the fuel injector inlet.  This can allow fuel to spill onto the hot engine parts and ignite, posing a fire hazard. 

Recall date: September 3, 2020

Units: About 500

Consumer Contact: CFMOTO toll-free at 888-823-6686 from 8 a.m. to 5 p.m. CT, Monday through Friday, email info@cfmotousa.com or online at www.cfmotousa.com and click on Customer Care, then Vehicle Safety for more information.  

Description: This recall involves the 2020 ZFORCE 950 Sport ROV with a 963cc 4-cycle engine.  Vehicles colors are red or gray with the CFMOTO logo in the center of the front grille.  The model name is located on each side of the vehicle doors.  The model year 2020 ROVs will have the L in the 10th position of the vehicle identification number (VIN).  The VIN number is stamped on the right side frame rail, behind the right rear tire.           

Remedy:  Consumers should immediately stop using the recalled ROVs and contact a CFMOTO dealer to schedule a free repair.  CFMOTO is contacting all registered owners and dealers directly.

Incidents/Injuries:  CFMOTO has received two reports of the fuel injector connection not fully secure and locked in place, causing a fuel leak.  One of the incidents resulted in a vehicle engine fire.  No injuries have been reported.

Sold At: CFMOTO dealers nationwide from June 2020 through August 2020 for about $13,000.

Importer(s):  CFMOTO Powersports Inc., of Plymouth, Minn.

Manufactured In: China

Recall number: 20-776

Second CFMoto Recall

Name of product: 2020 and 2021 ZFORCE 950 Sport Recreational Off-Highway Vehicles (ROVs)

Hazard: The throttle gas pedal can fail to return quickly to the idle position which can create a crash hazard if the vehicle does not slow down as quickly as expected by the driver when the gas pedal is released. The throttle gas pedal can fail to return quickly to the idle position which can create a crash hazard if the vehicle does not slow down as quickly as expected by the driver when the gas pedal is released.

Recall date: September 24, 2020

Units: About 627 (2020 ROVs were previously recalled for a fire hazard on 09/03/2020)   

Consumer Contact: CFMOTO toll-free at 888-823-6686 from 8 a.m. to 5 p.m. CT, Monday through Friday, email at info@cfmotousa.com or online at www.cfmotousa.com and go to Customer Care, then Vehicle Recall for more information.

Description: This recall involves the 2020 and 2021 ZFORCE 950 Sport ROV with a 963cc 4-cycle engine.  Vehicles colors are red, silver or gray with the CFMOTO logo in the center of the front grille.  The model name is located on each side of the vehicle doors.  The model year 2020 ROVs will have the letter L in the 10th position of the vehicle identification number (VIN).  The model year 2021 ROVs will have the letter M in the 10th position of the vehicle identification number (VIN).  The VIN number is stamped on the right-side frame rail, behind the right rear tire. 

Remedy:  Consumers should immediately stop using the recalled ROVs and contact a CFMOTO dealer to schedule a free repair.  CFMOTO is contacting all registered owners and dealers directly.

Incidents/Injuries: CFMOTO has received two reports of the throttle pedal assembly malfunctioning.  No injuries have been reported.

Sold At: CFMOTO dealers nationwide from June 2020 through September 2020 for about $13,000.

Importer(s):  CFMOTO Powersports Inc., of Plymouth, Minn.

Manufactured In: China

Recall number: 20-781

Report an Incident Involving this Product 

SVR’s Take:

CFMoto has only had one other recall in the last five years. SVR tracks recalls on an ongoing basis. They had a recall in 2018 that also involved a problem with the gas pedal. Throttle and fuel line problems are fairly common issues behind recalls.

Three-wheeled PTVs Progressing

Arcimoto and ElectraMeccanica recently reported progress in bringing their three-wheeled electric vehicles to commercial success. The Fun Utility Vehicle (FUV) from Arcimoto and the SOLO from ElectraMeccanica could potentially make inroads into the PTV market now dominated by golf car manufacturers.

SOLO Begins Production

SOLO EV production line.

ElectraMeccanica announced the start of production of their three-wheeled Solo electric vehicle. The company’s manufacturing partner and strategic investor Zongshen Industrial Group is producing the vehicle. According to management, the single-occupant vehicle fills a “…niche between last-mile micro-mobility solutions and larger, under-utilized passenger cars.” According to a company presentation the three target markets are urban mobility, vehicle share programs and deliveries/utility fleets. The SOLO distribution will start on the coast beginning with three existing ElectraMeccanica retail locations in Los Angeles, CA, Scottsdale, AZ and Portland, OR. Management expects initial deliveries to occur in late November or early December.

SOLO Specs

The SOLO is highway capable with a range of 100 miles and a top speed of 80 mph. The vehicle features front and rear crumple zones, side impact protection, roll bar, torque-limiting control, as well as power steering, power brakes, air conditioning and a Bluetooth entertainment system. The SOLO’s price is $18,500.

Arcimoto Plans Progressing Despite COVID

Arcimoto Fun Utility Vehicle - FUV
The electric powered Arcimoto Fun Utility Vehicle (FUV) is in the market.

Arcimoto continues to make progress with their Fun Utility Vehicle (FUV) and is slightly ahead of the SOLO. Arcimoto has already produced or have in production over 110 vehicles and have nearly 4,400 pre-orders. In a recent earnings call (seekingalpha.com) the CEO outlined ambitious plans to increase annual production capabilities from about 5,000 at their current facility to 50,000 in 24 months. While COVID restrictions caused suspension in manufacturing the company is currently hoping to ramp up production to three vehicles a day by the end of the year. They have also enlisted the engineering expertise of Sandy Munro of Munro & Associates. The aim is to improve quality, lower costs and enable scalability to higher production volume. They have already been able to identify nearly 400 “low handing fruit” improvements.

FUV Specs and Target Market

The FUV is more a platform rather than one specific vehicle. The initial FUV is a two passenger version for people transport. Since then the company has rolled out the Deliverator version for last mile deliveries and the Rapid Responder for emergency response such as EMT, police and fire use. The two-seat FUV has a 75 mph top speed and 102 mile range. Other features include hydraulic and regenerative assist brakes, heated seats and hand grips, lockable rear storage, bluetooth speakers and half doors. Full doors are under development. Target markets include urban/suburban commuting, vacation rental fleets, last mile delivery, emergency response and gated communities. For the latter, a speed limiter can make the vehicle available for use on golf courses. The FUV is assembled in Oregon. The FUV’s price is $19,900. A key moving forward is producing at much higher volumes to lower the price point.

SVR’s Take on Three Wheeled Vehicles

Three-wheeled vehicles have the advantage of being classified as motorcycle type vehicles in most states rather than cars. This reduces the need for more expensive safety features and allows them to be highway capable as well.

I believe Arcimoto’s approach to the market will be more successful in the long run. The FUV appears to be a more flexible platform for addressing multiple end-uses. This approach has proven successful for golf car manufacturers in the small, task-oriented vehicle market. The FUV is both tangential to that market and will be directly competing with those manufacturers in some markets. The Deliverator could certainly be used for some on campus and light utility applications. The highway capability of the FUV makes it much more versatile than a PTV or LSV in a gated/golf community setting. On the other hand, the SOLO design seems to be more locked into the urban commuter niche and is more like an enclosed a car.

Price points and Market Opportunities

For either manufacturer, a key will be getting the price point down. If the FUV price point can be reduced to around the $12,000 range, the vehicles can be competitive with LSVs and PTVs and light utility vehicles. Consumers may pay a significant premium for the ability to transition from their gated community to public roads.

Bigger opportunities may lie in Europe and Asia where smaller vehicles for transport and last mile delivery are more prevalent. However, the COVID induced changes in mobility habits in US urban centers may increase opportunities in the US as well. They could be a remedy to increases in car usage and subsequent increases in pollution, CO2 emissions and traffic. Three-wheeled vehicles are more protected, offer greater performance and more versatility than bikes and scooters, but are smaller, less expensive and less polluting than cars. The next 1 to 2 years should give us a good idea of how successful three-wheeled electric vehicles can be.

Marc Cesare, Smallvehicleresource.com

Can-Am Q2 Earnings

The new 2020 Maverick X3 X rs Turbo RR with a 195 hp engine
The new Maverick X3 X rs Turbo RR is one of several 2020 Maverick models that are powered by the new 195 hp Turbo RR engine.

Can-Am recently reported their earnings for Q2 fiscal year 2021. North American retail sales were stronger than expected across all categories given the COVID pandemic. Management reported revenues of $1,233.3 million, a decrease of $226.2 million or 15.5% which was primarily related to the COVID related temporary suspension of production. Revenues for the North American Year Round segment, which includes side-by-sides and ATVS, decreased by $113.4 million, or 15.4% to $621.2 million. Revenues decreased despite strong retail sales because sales were drawn from existing dealer inventory while production was lowered because of Covid.

Retail Exceeds Expectations

Similar to reports from Polaris, Can-AM Q2 earnings had very strong sales for side-by-sides and ATVs. Consumers turned to off-road riding as a socially distant alternative activity during the pandemic. In addition, discretionary income from money not spent during Covid inactivity drove sales. Similar to Polaris, Can-Am also attracted a lot of new powersports customers, but lost market share as dealer inventory was depleted while production greatly reduced.

Can-Am Q2 Earnings Highlights

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

  • Can-Am powersports retail sales were up 40% in North America (NA) and were strong in all categories
  • Company is constructing a new facility in Juarez, Mexico to meet side-by-side vehicle demand – should be online in fall 2021
  • Management reports doing  better than expected when first going into Covid
  • Can-am NA side-by-side retail up high 50% compared to industry up low 70%
  • Lost market share because high product demand and production shutdown depleted inventory.
  • NA dealer powersports inventory was down 51%
  • People turned to powersports in their free time under the restrictions of the pandemic
  • Can-Am attracted new powersports customers and customers from other brands with off-road vehicles leading the way – new to BRP customers up 51% overall for the quarter with up 74% for off-road
  • Usually around 10-15% are new customers
  • For the season, NA off-road retail increased low 20% for industry with Can-Am side-by-side up low 40%
  • Side-by-side retail strong internationally up almost 50% in EMEA and ~30% in Asia Pacific
  • Total NA dealer inventory down 51% and this represents down $1 billion of inventory
  • Management reports loss of maybe 1-2 points of market share as depleted inventory drove customers to other brands

Learn more: Seekingalpha.com (Earnings call transcript)

SVR’s Take

This was a good quarter for Can-Am and the industry in general. New customers with money to spend and in search for Covid safe activities turned to powersports and off-road riding in particular. The large portion of new to powersports customers gives the companies a chance to create more lifetime off-road customers as well as cross sell them other powersports products. It will be interesting to see if the strong consumer demand can be maintained going forward.