Kubota Recalls Over 23,000 UTVs

Posted on May 13, 2016 by Marc Cesare

The Kubota RTV400 being recalled.

The Kubota RTV500 being recalled.

Kubota has issued a large recall of their model year 2013, 2014, and 2015 RTV400 and RTV500 utility vehicles. Approximately 23,400 vehicles are being recalled because the steering shaft can break and cause loss of vehicle control. Kubota has received nine reports of shafts breaking and one injury as a result. Owners should immediately stop using the recalled utility vehicles and contact an authorized Kubota dealer for a free inspection and free repair. The following recall information is from the Consumer Product Safety Commission.

Recall Summary

Name of product: Utility Vehicles

Hazard: The steering shaft can break and cause the operator to lose control of the vehicle, posing an injury hazard due to risk of collision.

Consumer Contact: Kubota Tractor Corporation at 800-752-0290 between 8 a.m. and 5 p.m. PT Monday through Friday, or online at www.kubota.com and click on More, then Safety, then Safety Notices for more information. Kubota is contacting known customers directly.

Recall Details

Units: About 23,400

Description: This recall involves model year 2013, 2014 and 2015 Kubota RTV400 and RTV500 series gas-powered utility vehicles. Recalled utility vehicles come in orange and camouflage and have serial numbers ranging from 10001 to 22042 for the RTV400 and 25083 to 40991 for the RTV500. The model is on the side of the unit and on the data plate on the back of the cab, between the cab and the bed. The serial number is also on the data plate.

Incidents/Injuries: Kubota has received nine reports of shafts breaking, including one in which a consumer lost control of the vehicle and collided with a barbed wire fence, resulting in a cut on the arm.

Remedy: Consumers should immediately stop using the recalled utility vehicles and contact an authorized Kubota dealer for a free inspection and free repair.

Sold at: Authorized Kubota dealers nationwide from 2010 to 2015 for between $21,000 and $22,000.

Distributor(s): Kubota Tractor Corporation, of Torrance, Calif.

Manufactured in: United States

Learn more: CPSC.gov

Comment: This is a large recall. Even though the sales period stretches over several years, anything over 10,000 units let alone 23,000 is a sizable number. I would also surmise that this repair might be a more involved and thus more expensive than most recall repairs.

Honda Recalls 2016 Pioneer 1000 UTVs

Posted on May 13, 2016 by Marc Cesare

The 2016 Honda Pioneer 1000 EPS being recalled.

The 2016 Honda Pioneer 1000-5 Deluxe being recalled.

Honda has recalled approximately 3,300 model year 2016 Pioneer 1000 utility vehicles due to the front door potentially opening unexpectedly and posing an injury risk. The recall involves both 3 and 5 passenger models. (See specific model information below) Only one incident has been reported and no injuries have been reported. Vehicle owners should contact their local Honda dealer for free replacement of the front door striker plates. The following is recall information from the Consumer Product Safety Commission:

Recall Summary

Hazard: The front door can open unexpectedly while the vehicle is in use, posing a risk of injury to occupants.

Consumer Contact: American Honda toll-free at 866-784-1870 from 8:30 a.m. to 4:30 p.m. PT Monday through Friday or online at www.powersports.honda.com and click on Recall Information at the bottom of the page for more information.

Recall Details

Units: About 3,300

Description: This recall involves model year 2016 Honda Pioneer 1000 side-by-side recreational off-highway vehicles. The ROVs are motorized off-road vehicles with a steering wheel, a gas pedal, a brake pedal, bucket or bench seats, seat belts and an occupant protection structure. The recalled ROVs were sold in three-seat and five-seat models in red, silver or camouflage color. “HONDA” is printed on the front grill and rear tail gate. “Pioneer 1000” is printed on the sides of the vehicle near the tailgate. The model and serial numbers are on a certification label located at the top rear of the left front wheel well. The following model/types and serial number ranges are included in this recall:

Incidents/Injuries: Honda has received one report of an unexpected door-release incident during a dealer set-up of the vehicle. No injuries have been reported.

Remedy: Consumers should immediately stop using the recalled vehicles and contact their local authorized Honda dealer to schedule an appointment to have the original front door striker plates removed and replaced, free of charge.

Sold at: Authorized Honda Powersports dealers nationwide from February 2016 through April 2016 for between $14,000 and $17,200.

Manufacturer(s): American Honda Motor Company Inc., of Torrance, Calif.

Manufactured in: U.S.A.

Learn more: CPSC.gov

Comment: This recall happened relatively quickly as the vehicles were only sold in the last few months. It is not a very large recall, and not that recalls ever happen at a good time, but, since Honda has been making a stronger push into the side-by-side market in the last few years it’s not the best timing from a marketing standpoint. On a positive note, they seem to have identified the problem fairly quickly.

Polaris Reports Q1 2016 Earnings

Posted on April 22, 2016 by Marc Cesare

One of the Polaris RZR models involved in the large first quarter vehicle recall.

Polaris reported earnings for the first quarter 2016 fiscal year with sales and earning declining for the second consecutive quarter. Revenue was down 5% to $983 million driven by inventory management and currency impacts. Earnings per share was down a significant 45% with currency, volume and mix and considerable legal and warranty costs more than offsetting leaner operations. The following are some of the highlights related to the small, task-oriented vehicle market.

Polaris is recalling more than 160,000 RZR vehicles to address fire and other thermal risks. This figure appears to include vehicles outside the US as the CPSC reported a figure of 133,000.
Management expects to “…address all of the recalled vehicles within the quarter…” and emphasized their commitment to resolving the issue quickly.
Side-by-side dealer inventory declined upper single digit percent in the quarter.
Year-over-year (YOY) North American side-by-side retail decreased slightly in an industry up mid to high single digits, so some market share was lost.
Management is positive about the performance of the new GENERAL product line and reports cannibalization of Ranger and RZR lines is not significant.
Side-by-side market remains weak in oil producing states but overall management is optimistic about the ORV (ATV & side-b-side) industry.
Management reports higher variability from month to month and regionally in the ORV market.
The Global Adjacent Markets business unit saw a 8% decrease in revenue with strength in Aixam, national accounts and GEM offset by weakness in Bobcat and Brutus. Defense business (MRZR and Dagor) declined “significantly” due to tough comparables but the order backlog is up.
The European ORV industry grew low single digits in the first quarter, with Polaris retail outperforming, up mid-single digits.
Multix retail and distribution, while still relatively small, are on plan through the first quarter. Multix is a small multi-purpose vehicle for the Indian market.
Ranger production will begin in the second quarter at the new Huntsville, AL plant, which should provide significantly better operating efficiencies and better inventory and retail flow management.
Management expects Global Adjacent Markets to be up in the high single digits percent range, reflecting the recent acquisition of Taylor-Dunn and ORV/Snowmobile sales to be down low to mid single digits.

Learn more: Seekingalpha.com (earnings call transcript)

Can-Am Launches 6-Passenger Defender Max Models

Posted on April 14, 2016 by Marc Cesare

The new 2017 Defender MAX DPS HD8 from Can-Am in Mossy Oak Break-up Camo.

The new 2017 Defender MAX XT HD10 from Can-Am in Intense Red.

Can-Am has expanded their line of Defender utility-recreational side-by-side vehicles with the addition of four 2017 Can-Am Defender Max models. The six passenger Defender Max model is available with either a 72-hp HD10 or 50 hp HD8 Rotax V-twin engine and as an XT version with factory installed accessories. Key standard features for all Defender MAX models include:

PRO-TORQ transmission with Quick-Response System
Three driving modes and a four-mode traction system with Visco-Lok QE front differential
1,750 lb. payload capacity
2,000 lb. towing capacity
1,000 lb. dumpable cargo bed
Cargo bed tie-down points and recesses for five gallon buckets
Removable toolbox
Dynamic Power Steering (DPS)
10″ of front and rear suspension travel
10″ of ground clearance
Integrated front steel bumper
Central skid plate
2″ hitch receiver
Adjustable tilt steering

The four models introduced by Can-Am include the Defender MAX DPS HD8, Defender MAX DPS HD10, Defender MAX XT HD8 and Defender MAX XT HD10. The XT versions add the following:

14″ rather than 12″ aluminum wheels
27″ Maxxis Bighorn 2.0 tires instead of 26″ Maxxis M923/924 tires
4,500-lb. winch with roller fairlead
Full skid plate
Full hard roof
Adjustable driver seat
XT seat skin

The MSRPs for the new models are as follows:

Defender MAX DPS HD8 – $14,399
Defender MAX DPS HD10 – $16,299

These models are available in Green, Yellow or for $800 more Mossy Oak Break-up Country Camo.

Defender MAX XT HD8 – $17,199
Defender MAX XT HD10 – $19,099

The XT models are available in Pure Magnesium Metallic, Intense Red or for $100 more Mossy Oak Break-up Country Camo. BRP is targeting “global tradesman, hunters and farmers” with these new models. Learn more: Can-am.brp.com

Club Car Accessory Packages for Carryall Models

Posted on April 12, 2016 by Marc Cesare

Club Car is targeting the commercial market with the Carryall 700 and other vehicles.

Club Car is targeting the commercial market with the Carryall 700 and other Carryall models.

Club Car continues their targeting of commercial markets with the launching of commercial accessory packages for their Carryall utility vehicles. They are offering model specific packages for the Carryall 300, 500, 550 and 700. The packages are available for gas or electric models. The package for Carryall 300 utility vehicles includes:

A cargo box
Tailgate tethers
Heavy-duty trailer hitch
Tail lights, brake lights, turn signal and horn

The package for the Carryall 500 utility vehicle includes:

A cargo box
Tailgate tethers
Improved ride quality
Tail lights, brake lights, turn signal and horn

The package for the Carryall 550 utility vehicle includes:

A cargo box
Tailgate tethers
Heavy-duty trailer hitch
Tail lights, brake lights, turn signal and horn
Heavy-duty brush guard
Improved ride quality

The package for the Carryall 700 utility vehicle includes:

A flat bed
Heavy-duty brush guards
Tail lights, brake lights and horn

According to Club Car the packages are less expensive compared to purchasing each accessory separately. The accesory packages for each model are “…based on a detailed analysis of buying patterns of commercial companies, so it includes the accessories most commonly ordered for that vehicle by customers…”. Learn more: Clubcar.com

Comment: Club Car has been rolling out a number of products and services over the past year or so specifically targeting commercial segments. They have launched the new Carryall vehicles, new accessories, fleet management and maintenance services and now these accessory packages. With the decline and now stagnation in the golf car fleet market, the golf car manufacturers are looking to commercial and other non-fleet markets to boost sales of vehicles as well as parts, accessories and related services. Club Car is marketing to specific verticals, which they have defined as Resorts, Education, Non-Industrial Rentals, Industrial Rentals and Government.

$230 Million for California’s Clean Vehicle Rebate Program (CVRP)

Posted on April 7, 2016 by Marc Cesare

Source: SVR based on CVRP data.

The California Air Resources Board (ARB) is proposing $230 million in funding for the California Clean Vehicle Rebate Program (CVRP) for fiscal year 2016-2017.

CVRP offers vehicle rebates on a first-come, first-served basis for light-duty ZEVs, plug-in hybrid electric vehicles (PHEVs), zero-emission motorcycles, and neighborhood electric vehicles. Rebate amounts are $2,500 for battery electric vehicles (BEVs); $1,500 for PHEVs; $5,000 for fuel cell electric vehicles; and $900 for zero-emission motorcycles and neighborhood electric vehicles. As of February 1, 2016, the CVRP has rebated over $291 million, covering 137,000 vehicles.

NEVs have been a small portion of these vehicles, totaling only 147 vehicles and just over $151,000 in rebates from 2010 to 2016, according to the CVRP statistics. One issue is that there have been only four brands that have been eligible for the rebates including GEM, Miles, Vantage and EVI eMega. By far GEM has been the most prevalent NEV in the program, accounting for 111 of the 147 vehicles. However, the model year 2014 and 2015 vehicles have not been eligible because the do not meet CVRP performance requirements. According to the CVRP website there are no current model year NEVs eligible for the rebate. As the above chart shows, there has been a significant drop-off in NEV rebates since 2013.

Source: SVR based on CVRP data.

Only 35% of the NEV rebates went to businesses, 34% to federal, state or local governments and 22% to individuals with the remainder to non-profits. These figures are not that surprising as GEM sells mostly to commercial customers. Learn more: Cleanvehiclerebate.org

Cub Cadet Adds Challenger 750 Crew UTV

Posted on March 29, 2016 by Marc Cesare

Cub Cadet expands their Challenger UTV line with the 750 Crew, which seats four.

Cub Cadet has introduced a crew version to their Challenger utility vehicle product line with the new Challenger 750 Crew. The model seats four and features a 735cc, 4-stroke EFI engine, on-demand 4WD, CVT transmission and power steering. Outfitted with 26″ offroad Carlisle tires with aluminum alloy wheels, the Challenger 750 Crew offers 11″ of ground clearance, a 350 lb. cargo box, 1,200 lbs of towing capacity and a front mounted 3,500 lb. winch standard. As with the rest of the Challenger series, which is targeting the value segment, the 750 Crew includes additional standard features including a roof, a quick release two-piece windshield, bumper guard, bucket seats, headrests, mirrors, turn signals and a digital dashboard. The Challenger 750 Crew is available in Red, Yellow, Blue or Camo and has an MSRP of $10,999. Learn More: Cubcadet.com

Comment: The new addition shows the ongoing commitment of Cub Cadet to their utility vehicle offerings. The utility vehicle market has become so competitive in both the work and recreation segments that it requires a continuing investment in new product development and new models. A crew version in a product line is almost a necessity in order to maintain a solid presence in the market. The amount of resources needed to maintain a sufficient level of product development and new product introductions can be substantial for smaller volume manufacturers.

NFMT Trade Show

Posted on March 28, 2016 by Marc Cesare

Last week I visited the NFMT trade show in Baltimore at the invitation of Andy Kaplan of Dominion Utility Vehicles, a Polaris commercial dealer who carries the GEM, Brutus and Gravely vehicle lines. The National Facilities Management and Technology Conference & Exposition (NFMT) brings education, networking and new products to facilities professionals nationwide. While a host of products and services from lighting, energy, air systems, roofing, HVAC, etc are on exhibit, I was there to check out the handful of utility vehicle brands on display including the GEM and Brutus from Polaris, Club Car, Taylor-Dunn and Vantage Vehicle.

The Polaris Brutus HDPTO Deluxe with an angle broom attached on display at the NFMT expo.

The Polaris display had one of the larger footprints on the NFMT expo floor and had on display the GEM eL XD, Polaris M1400 and Brutus HDPTO Deluxe. The latter probably received the most attention on the day I was visiting. (The NFMT ran for three days) The Deluxe is an impressive vehicle with a factory installed cab with heat and A/C standard, integrated front PTO, 24 hp Kohler diesel engine, hydrostatic drive, and 1,250 lb. cargo box. The model also has a treadle pedal so you don’t have to shift gears back and forth during tasks like plowing snow, and with the hydrostatic drive the hydraulic fluid absorbs the changing forces rather than gears. The display model had an angle brush attachment mounted on the front. Starting at around $24,000 with the attachments extra the vehicle may appear to be pricey, but the Brutus HDPTO Deluxe is a commercial level work utility vehicle and the versatility provided by the attachments allow the Brutus to do the work of several vehicles on all types of terrain.

An interior view of the Brutus shows the joystick for controlling attachments.

For example, with the finishing mower attachment you can mow even on steep terrain and do so in a climate controlled cab. The angle brush can sweep sidewalks of dirt and debris in the summer and snow in the winter. For other snow removal applications there is a snow blade or snow blower. The attachments can be controlled from the cab and can be moved up, down, left, right and tilted forward or backward. A cargo box spreader attachment was added last year with cab controls for adjusting the area of the spread, the volume of material, and the vibration of the auger to prevent clogging. The PTO also has a separate throttle control so the vehicle can be operated at a slower speed but the attachment can be operated at higher power. Other attachments include a landplane, grapple, pallet forks and materials bucket. According to recent Polaris earnings calls the higher end Brutus vehicles have been selling well.

The recessed bed in the new 2016 GEM eL XD.

A shot of the interior of the GEM eL XD on display at the NFMT expo.

I was also able to see the new 2016 GEM eL XD up close. As advertised the new doors feel really solid. I met another GEM dealer who expressed optimism about sales for the new line in the coming year. The recessed bed on the eL XD is one of the new features for 2016. I sat in the cab and the overall look and feel of the vehicle is solid and gives the impression of a quality build.

A Club Car Carryall with the VersAttach system installed.

At the Club Car display they had their relatively new Carryall 500 and 700 on display but were focusing more on their VersAttach Bed System, a configurable and removable track-based bed attachment system for carrying tools and equipment. The commercial focused team was representing Club Car at the event. They are focusing products and services on specific vertical market segments such as education, resorts and government.

The electric powered Vantage Vehicle is proving to be a popular alternative to pickup trucks in certain applications.

Werres Corporation, a distributor of Vantage Vehicles, had one of the vehicles on display at their booth. The electric powered vehicle features a long truck bed and an enclosed cab with a design similar to mini-trucks. The Vantage Vehicle has been a big seller for Werres, and often displaces pick-up trucks for campus applications.

The electric powered Taylor-Dunn Bigfoot has a 3,000 lb. load capacity.

Taylor-Dunn was featuring one of their relatively new vehicles, the Bigfoot. The Bigfoot features 48V AC power, hydraulic brakes, 12 mph top speed, a 44″x77″ flatbed and a 3,000 lb. load capacity. Other amenities include dual USB charging ports, LED lighting, adjustable seats, tilt steering and recessed tie-downs. The Bigfoot has a range of up to 40 miles and can be configured with a cab, stake sides or aluminum drop-down sides.

Should Polaris Target Garia Next?

Posted on March 8, 2016 by Marc Cesare

Are the luxury golf cars and high-end utility vehicles of Garia appealing to Polaris?

With Polaris’ recent acquisition of Taylor-Dunn it made me wonder if Garia might make a good target as well. The European based luxury brand could be appealing to Polaris for a number of reasons.

Brand Value – The Garia brand has been around for ten years, not as established as the recently acquired Taylor-Dunn brand, but still a significant amount of time. More importantly though Garia is a luxury brand. Particularly with their new utility vehicle lineup, a high-end line of utility vehicles could be a nice overlay on the existing Polaris brands.
International Presence – With it’s strong European presence Garia would fit nicely with Polaris’ international expansion efforts. Garia could provide both expanded distribution and manufacturing options for other Polaris small vehicle brands outside the US. At the same time, Polaris manufacturing facilities could be used to reduce the cost of Garia vehicles sold in the US market.
Golf Segment Entry – The golf car segment is a major piece of the global small vehicle market, but Polaris does not have a presence in it except for the small portion of GEM owners using their vehicles for golf. The problem with the golf car segment is that it has been declining or stagnant in the US for several years and will likely remain that way for the foreseeable future. The golf car fleet market is also very price conscious and has its own interwoven distribution channel that funnels used fleet vehicles to golf car dealers. In the private transportation portion of the market used vehicles at various levels of refurbishment provide a range of choices in competition with new vehicles. However, what Garia has the potential to do is offer Polaris an entry into the golf car segment while remaining above the fray. They could avoid the price battles and target just the luxury end of the market which would require only a limited and targeted distribution network. Of course the question is if there is enough of a market there to interest them.
Complementary Vehicles – Garia vehicles would provide Polaris with golf cars and personal transportation vehicles but at the luxury end of the market that could complement the GEM brand in the personal transportation segment. Similarly the new Garia utility line could provide a higher-end vehicles sold through a complementary distribution network.
Electric Vehicles – Similar to Taylor-Dunn, the Garia product line would offer Polaris an opportunity to leverage their electric powertrain expertise and spread development costs among a larger array of vehicles.
Quality – Both companies focus on quality and the customer experience. There could be some good opportunities for knowledge transfer at many different levels for both companies.

What could be some reasons for not acquiring Garia. First, maybe Garia does not want to be acquired or their price could be too high. Second, Polaris may not see the luxury end of the small vehicle market as large enough to pursue. While luxury markets are often global, the luxury end of the small vehicle market may not be large enough even on a global scale to appeal to Polaris. Third, Polaris tends to purchase strong, established brands. Is the Garia brand strong enough and established enough to meet their needs. Fourth, Polaris may want to avoid the slow or no growth golf car segment altogether, even if the luxury end offers some growth opportunities.

2016 GEM Line Looks Like A Success

Posted on March 2, 2016 by Marc Cesare

The new GEM product line for model year 2016.

The new GEMs for model year 2016.

A recent conversation with a GEM dealer indicates that the newly designed 2016 GEM product line will be a success. In November I spoke with John Stockman, Director of GEM about the new 2016 line of GEM vehicles. I wanted to follow-up that article with a dealer’s perspective of the line now that it has been in the market. To that end I spoke with Andy Kaplan of Dominion Utility Vehicles of Bedford, Virginia, which carries the GEM line along with Gravely and Brutus utility vehicles. Polaris manufactures all three of these brands.

While December through February are typically a slow season for Kaplan, he has been selling GEMs at a rapid rate this year. In fact, we conversed while he and his loaded vehicle trailer were calling on customers for test drives and to deliver a price quotes. He is still following up leads from a trade show six weeks ago. Kaplan typically sells vehicles to colleges and universities, hospitals and real estate developments where GEMs are used for security, maintenance and people transport.

Polaris significantly re-engineered the GEM line for 2016. They made changes to the body design, added more cabin space, improved the doors and added more door options, introduced their Smart Power concept, and expanded options and accessories for the utility model. According to Kaplan, the changes have all hit the mark and are winning over customers. The new doors and additional cabin space are probably the most critical changes driving customer interest. As Kaplan observes, these changes give the GEM a more car-like feel. He believes they have helped position the GEM in it’s own market niche between golf car based vehicles and fully functional automobiles.

Kaplan expects to double his GEM sales this year driven by both the new 2016 line, and by virtue of the new line being part of a Virginia state purchasing contract. The latter allows state colleges, universities and other agencies to more easily purchase GEMs without having to conduct a complex purchasing process.

I’ve posted a more in-depth article from my discussion with Mr. Kaplan in our buying guide section.

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