GPS Industries Reports Strong Start For Telematics In 2015

Posted on May 7, 2015 by Marc Cesare

One of the Visage system’s screen views. GPS Industries has partnered with Club Car to provide the Visage system for fleet management and content delivery.

GPS Industries reports that they have signed more than 100 installation contracts to date to provide telematics and fleet tracking technology. Properties now using the technology include The Phoenician (AZ), Turnberry Isle Resort (FL), Omni Interlocken (CO) and Journey at Pechanga (CA).

GPSI has an exclusive partnership with Club Car whose Connected Precedent i3 golf car showcases the Visage Mobile Golf Information System and recently-launched Visage Media Network. The mixture of technology and software allows properties from golf courses to master-planned communities to track, control and deliver promotional content.

According to GPSI, “The Visage system offers hole-by-hole graphics and flyovers, scoring and gaming, on-course food and beverage ordering, and addressable promotional messages on high-resolution 10-inch touch screens mounted to Club Car Precedent golf cars. Featuring in excess of 75 million-plus page views monthly, the Visage Media Network represents the largest connected global audience of golfers.” The company is also working on new applications to leverage the platform for social media and user generated content.

The appeal for golf courses and the like is that they can reduce costs through better fleet management, increase revenues from food service and promotions and provide a better experience for their customers. Learn more: GIuser.com

Polaris To Build Factory In Huntsville, Alabama

Posted on January 14, 2015 by Marc Cesare

The site for the new Polaris factory in Huntsville, AL.

Polaris Industries has announced that they will begin construction on a new factory in May of this year in Huntsville, AL. The the 600,000-square-foot plant on a 453-acre site is expected to be completed in the second quarter of 2016 and will manufacture Ranger, RZR and Ace utility vehicles. According to reports, operations at the $142 million will include vehicle assembly, chassis and body painting, welding, fabrication and injection molding and employ an estimated 1,700 people full-time when fully operational and potentially 2,000 over time. The average wages are expected to be approximately $18/hr with some highly skilled positions earning $30/hr. Learn more: Al.com

Comment: This clearly indicates that Polaris believes their strong growth in the UTV market to continue. I expect one of the reasons they chose Alabama is the strong market for UTVs in the Southeast and in the Southern tier of the US in general. The location is also puts them closer to the Central and South American markets they have been trying to expand as well, although they also have Mexican facilities to serve these markets. Given that they could have expanded operations in Mexico, I suspect the proximity to the Southeastern US markets might be the primary geographical reason for the location. In addition that area of Alabama has an established manufacturing base and the related skilled work force they need.

Polaris Opens Manufacturing Facility In Poland

Posted on September 29, 2014 by Marc Cesare

Polaris’s new manfuacturing facility in Opole, Poland. (Photo: Business Wire)

Polaris announced the opening of their new 345,000 square foot manufacturing facility in Opole, Poland. The company will manufacture ATVs and utility vehicles at the site for Europe, Middle East and Africa (EMEA) region. Opole will also house research and design for the Europe, Middle East and Africa markets allowing vehicles to be tailored to local needs. The building features include a 2,500 meter product test track and energy saving paint systems. Products should begin shipping from the facility in early 2015. Learn more: Seekingalpha.com

Comment:

Polaris Industries continues to lead the small, task-oriented vehicle (STOV) industry in an aggressive and highly effective strategic vision. This could not be better demonstrated than by its groundbreaking initiative to put engineering and manufacturing assets in Poland and to tie Opole-based production to a logistics and marketing strategy for the entire EMEA region. Management has made increasing international sales a long term strategic goal and has steadily been taking steps towards that end over the last few years. The new facility is testament to the growth they have experienced in the EMEA region.

It has to be said that Polaris is, far and away, the leader in terms of strategic vision, implementation (in engineering, production, and distribution systems), and market development. Moreover, Polaris is not wedded to ICE technology. It’s acquisition of GEM Electric Vehicles, a company long-established, but treading water for years, constituted a strategic move into electric power (along with their investment in Brammo). Polaris immediately upgraded the look of the product line with the eM1400–and gave its dealers more flexible offerings with the gas-powered M1400 series.

Cenntro Motor To Produce Electric Utility Vehicles At Nevada Facility

Posted on June 26, 2014 by Marc Cesare

Cenntro Motors Kombi EV electric utility vehicles to be produced in Nevada.

Cenntro Motor plans to begin production of 1,650 electric vehicles at a Sparks, NV facility by August or September of this year. The $20.1 million, 150,000 square foot facility will also serve as the company’s headquarters. The facility will employ approximately 100 people and training grants along with tax deferrals were part of a $1.2 million incentive package to attract the company.

Cenntro Motors designs and builds lightweight electric commercial and passenger vehicles and their first vehicle is the Kombi EV designed for maintenance, delivery and light cargo transport. The vehicle currently comes in two configurations, the Green Space Version with a cargo bed and the City Version with a van box. Both vehicles are 2WD and use a 10 Stator KLD DC motor with max power of 12.5 kW. The vehicle’s KLD Energy Technologies oneDRIVE™ propulsion system uses a 48V system with a 6.8kW KLD Li-ion battery pack. Other key features include 800 payload capacity, 4-wheel hydraulic disk brakes, a range of 50 miles and top speeds of 31 mph for the Green Space and 25 mph for the City.

Cenntro Motors also recently acquired SITL-Brandt Motors located in Lyon, France, which will be the headquarters for their European operations. The acquisition was valued at $50 million and management plans to invest an additional $20 million. With the acquisition Cenntro’s lineup in Europe will include an all-electric CITELEC commercial truck, a two-person quadracycle and electric scooters. Learn more: Reviewjournal.com and Cenntromotors.com

Comment: The commercial/government market for small electric vehicles is attracting more attention as many companies believe this is where the growth is. From colleges and universities to municipalities and commercial entities organizations are finding these vehicles to be green, safe and cost-effective for applications that do not require traditional passenger vehicles or pick-up trucks. It continues to represent a growth segment for the STOV industry. It is also an international market with arguably better opportunities in European and Asian markets where smaller vehicles are more accepted, prevalent and have been used effectively for many years.

BRP Inaugurates New Mexican Facility

Posted on November 13, 2013 by Marc Cesare

Aerial view of part of the Queretaro industrial park in Mexico. BRP’s new facility is located in the park.

BRP, manufacturer of Can Am side-by-sides, last week inaugurated their new manufacturing facility in Queretaro, Mexico. The facility assembles Rotax engines for its Can-Am off-road vehicles, assembles the Sea-Doo Spark watercraft and manufactures composite hulls and decks for Sea-Doo watercraft. By 2015, a total of $100 million (Canadian) will have been invested in the facility and 1,100 people will be employed. A sister facility in Juarez, Mexico has been assembling Can Am ATVs and side-by-sides since 2001. Learn more: BRP.com

Comment: BRP isn’t the only UTV manufacturer in Mexico. Polaris has a presence there as well. Part of the move is driven by production cost savings but the other reason is geography and distribution. The Southwest US and in general the South are an area of growth for the UTV market. These facilities put manufacturers closer to these markets as well as expanding markets in Latin and South America. As manufacturers try to shorten ordering cycles for dealers and better manage inventory while more closely aligning product supply to market demand these facilities can offer improvements in those areas.

Polaris Q3 2013 Earning Results Summary

Posted on October 23, 2013 by Marc Cesare

Polaris Ranger and RZR lines helped drive 3Q ORV sales

Polaris Industries once again had a strong quarter as sales surpassed $1 billion for the first time in the company’s history. The following are some highlights from the earnings call with a focus on the side-by-side market and small vehicle business.

Quarterly sales increased 25% to $1.1 billion
Third quarter net income from continuing operations rose 24% to $116.9 million
Off-Road Vehicles (ORV) which includes side-by-sides and ATVs posted a 23% gain and PG&A jumped 37%
Year to date ORV sales increased 12%
Polaris North American side-by-side retail sales improved low teens percent, and the side-by-side industry was estimated to have grown in the low double digits.
Key drivers included higher demand for the Ranger line, RZR XP 1000 and the new XP 4.
The Polaris ORV Commercial business was up double digits in the third quarter, led by the new Brutus product rollout and sales to Bobcat. However sales were slower than expected and more marketing resources are being put into the effort as dealers have to adapt to the business to business sales process.
Small vehicle revenue increased over $21 million and 188% for the third quarter, due primarily to the Aixam purchase. Year-to-date, revenue was up 136%.
For the GEM line retail sales are up over 50% through the third quarter and year to date as the dealer network and B2B sales efforts gained traction. The company just introduced the new eM1400 electric utility vehicle as well.
Aixam had a good quarter expanding share of the European quadricycle market share lead in the third quarter and year-to-date as retail sales remained roughly flat while the overall market declined upper single digits.
Goupil revenue grew nicely year-over-year, and year-to-date, customer orders are up double digits.
In Europe the ORV industry remains relatively weak, with third quarter and year-to-date sales down about 12%. Polaris is building on its market share leadership position, with third quarter retail sales about flat and year-to-date retail sales down low single digits.

Looking forward:

Management increased the full year sales guidance to up 15% to 16% over 2012.
Sales of Off-Road Vehicles are expected to increase in the 11% to 12% range, up from prior guidance, with retail sales of side-by-side vehicles and ATVs continuing to outpace the overall market in both North America and internationally.
Competition has increased in the ORV market.
Management expects ORV market share to increase in 2013 but at a slower rate than recent years.
For small vehicles, sales are expected to increase over 150% for the full year 2013.
Monterrey, Mexico plant will deliver well over half of Polaris’s side-by-side volume in 2014.
In India the Eicher partnership is moving ahead with a plant under construction in Jaipur, India for a late 2014 launch of a new vehicle solution for that market.
More resources will be put into the Brutus sales efforts as the longer purchase cycle in the business to business market has tempered sales expectations. Efforts will likely focus on “…some of our most capable and committed subset of our existing Polaris ORV channel.”

Learn more: Seekingalpha.com (earnings call transcript)

Polaris Starts Construction on First European Factory

Posted on September 6, 2013 by Marc Cesare

In August Polaris started construction on it’s first European factory located in Opole, Poland within the Wałbrzych Economic Zone Invest-Park. The factory will produce ATVs and UTVs for the European market and is expected to be completed in February, 2014. The facility will include approximately 200,000 square feet of production space, 37,000 square feet of warehouse space and another 42,000 square feet for administrative offices. Learn more: Property-magazine.eu

Bad Boy Mowers Expands: Targets UTV Market

Posted on August 8, 2013 by Marc Cesare

Intimidator multi-terrain vehicle from Bad Boy Mowers

Bad Boy Mowers of Arkansas has announced plans to hire more than 200 people in the next three to five years as the company expands it’s offerings in the UTV market. The manufacturer of lawn mowers also started producing utility vehicles several years back but has moved more aggressively into the UTV market with the launch of the affiliated company and brand, Intimidator in 2011. The company spent $7.5 million to expand their plant for the new product line.

The Intimidator series features a 1,600-pound payload and a 2,100-pound towing capacity. The company will be producing 10 new multi-terrain vehicles, as they like to call them, expanding the total number of models they offer to 16. The Intimidator product line includes diesel, gas and electric versions. Previously, under the Bad Boy Mower brand the company has also offered a range of UTVs including some that are LSV compliant UTVs. Learn more: PBCommercial.com

Comment: And the competition in the UTV market continues, this time in the work UTV segment. Creating a new brand is probably the best way to go as UTVs do not initially come to mind with the name Bad Boy Mowers. There could also be some confusions and possibly even legal issues with the Bad Boy Buggies brand owned by E-Z-GO. However, the company should still be able to leverage the Bad Boy Mower dealer network, which at first glance seems concentrated in the Midwest and East, to grow the Intimidator line. Distribution is key in this market as so many manufacturers entered from adjacent markets like powersports, farming, power equipment, golf, etc. They often can reach parts of the market or certain segments with their traditional distribution networks but then have trouble expanding further.

Honda Starts Pioneer UTV Production in South Carolina

Posted on June 27, 2013 by Marc Cesare

Governor Nikki Haley helps Honda kick-off production of the new Honda Pioneer UTV

Honda held a big event at their South Carolina manufacturing facility to mark the start of production of their new 2014 Pioneer UTV. Governor Nikki Haley of South Carolina was in attendance. The company has added 65 jobs specifically for the new product line and will be investing a total of $27 million over the next few years. The company is also celebrating its 15th year of producing powersports products at the facility where ATVs and engines are also made.

The Pioneer lineup includes the 700 and 700-4 which features convertible seating. Both are a crossover type side-by-side for use in recreation and work applications. The vehicles replace the Big Red UTV and will be available starting in August and September at approximately 900 dealers nationwide compared to 500 for the Big Red. Learn more: Powersportsbusiness.com

Comment: From my point of view the interesting part of this story is the significantly larger number of dealers that will be selling the Pioneer. I speculate that more Honda dealers are seeing the UTV market as a good growth opportunity that they want to take advantage of, and they believe the new offering from Honda will be appealing to their customers. I believe the Pioneer offers some innovations that differentiate it in the market more so than the Big Red model did.

Yamaha Announces New Viking UTV

Posted on June 12, 2013 by Marc Cesare

Yamaha’s new Viking utility vehicle

Three person seating in the Yamaha Viking

Yamaha Motor Corp USA has announced their new side-by-side vehicle, the Viking. A key feature of the Viking is the three person seating. The pass-through bucket seating has an center position set back 5 degrees to improve comfort with maximum shoulder room for all three occupants. The new utility vehicle also features 686cc liquid-cooled 4-stroke, SOHC, single-cylinder, 4-valve fuel-injected engine that delivers a top speed of 50 mph. A crossover vehicle, the Viking is targeted towards work and trail riding applications. Other key features include:

Fuel injection
9.7 gallon fuel tank
Electric power steering
Driver controlled On-Command® system, featuring 2WD, 4WD and 4WD with differential lock selections
Ultramatic™ transmission with dual speed gearing and an automatic centrifugal clutch
12 inches of ground clearance
Full steel/composite smooth skid plate front to back and side to side
Assisted dump bed with 600 lb payload capacity
1,500 lb towing capacity
Maxxis Big Horn 2.0 tires were designed specifically and exclusively for the Viking
4 wheel disc brakes

The Viking will be available in August with standard models coming in Steel Blue, Hunter Green (with sun top), Red (with sun top) and Realtree AP HD camo (with sun top). The non-EPS models start at $11,499 MSRP while the EPS models start at $12,499 MSRP. A Special Edition Tactical Black model will be available in spring 2014. Learn more: Agweb.com

In a related note Yamaha is expanding production at the Newnan, GA facility, in part to build the new Viking utility vehicle. The company will hire 100 people to work on the vehicle. The facilities will also be producing all of the company’s ATVs. The US market represents 70% of their ATV sales. Learn more: AJC.com

Comment: It has been a few years since Yamaha has come out with an entirely new utility vehicle. This is another sign of the strength of this market. In the last few years all the major players are not only upgrading existing lines but pushing into new market segments: Yamaha with the Viking, Polaris with the Brutus, John Deere with their RSX line, etc. The additional marketing dollars and new features coming into the market should help grow the market further and offer good values for customers.

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