Polaris Unveils New RZR XP Turbo Models

The 2017 RZR XP Turbo EPS raises the bar with 168 hp.

The 2017 RZR XP Turbo EPS raises the bar with 168 hp.

RZR XP 4 Turbo EPS

The four passenger RZR XP 4 Turbo EPS.

Polaris announced their new model year 2017 RZR XP Turbo EPS and RZR XP Turbo 4 EPS. Both models feature the new ProStar Turbo H.O. engine with 168 hp, which is 15% more than last year’s models and the most of any model on the market. In conjunction with the increased horsepower, Polaris improved engine cooling with a more powerful fan, larger front grill and larger radiator, and strengthened the driveline. Other key features include:

  • FOX Podium Internal Bypass Shocks (3″ in front, 2.5″ in rear) with five compression zones and three rebound zones
  • Front and rear stabilizer bars
  • Electronic power steering with a new 1.5-turn steering rack
  • 248-mm Hydraulic disc brakes with triple piston front calipers and double piston rear calipers
  • 29″ Maxxis Bighorn wheels
  • 14″ cast aluminum wheels
  • Both models will be available in late 2016 in Titanium Matte Metallic and Cruiser Black
  • MSRPs:  Two-seater – $24,999; Four-seater – $27,499

Polaris also lowered the prices for the model year 2016 RZR XP Turbo and RZR XP 4 Turbo.  Learn more:  Polaris.com

Comment:  The horsepower battles continue as Can-Am recently released their Maverick X3 with a 154 hp turbocharged engine. While the battle is most prevalent in the sport/high performance segment, it is prominent in other segments as well. One question is if there is a limit to how much horsepower can be put into these vehicles given the terrain and type of riding for which they are used.

Polaris Issues Another Large UTV Recall

2014 Ranger XP 900 EPS White Lightning

The Ranger XP 900 EPS White Lightning is a part of another large Polaris recall that include three-passenger and crew versions of the 2014 Ranger 900 models.

2014 Ranger XP 900 Polaris Pursuit Camo

2014 Ranger XP 900 Polaris Pursuit Camo

2014 Ranger Crew 900 Solar Red

2014 Ranger Crew 900 Solar Red

On the heels of a string of large recalls of UTVs, Polaris Industries has issued a recall of approximately 42,500 model year 2014 Ranger 900 vehicles. The heat shield on the vehicle can fall off and create fire and burn hazards to riders. The recall includes Ranger XP 900, Ranger XP 900 EPS and Ranger Crew 900 vehicles, which come in various colors. The following information is from the Consumer Products Safety Commission.

Recall Details

Units:  About 42,500

Description:  This recall involves all model year 2014 Polaris Ranger XP 900, XP 900 EPS, and CREW 900 recreational off-highway vehicles (ROVs). The recalled ROVs were sold in a variety of colors and have either three or six seats and a rear box. “Ranger” is printed on the rear box, and “900” is printed on the hood of the ROVs. All 2014 Ranger 900 models and Vehicle Identification Numbers (VINs) are included in this recall. To check for recalled vehicles by VIN, visit www.polaris.com.

Incidents/Injuries:  Polaris has received 36 reports of the recalled ROVs overheating and catching on fire, including reports of three minor burns and one sprained wrist.

Remedy:  Consumers should immediately stop using the recalled ROVs and contact Polaris to schedule a free repair. Polaris is contacting all known purchasers directly.

Sold at:  Polaris dealers nationwide from April 2013 through June 2014 for between $13,200 and $16,200.

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

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

Manufactured in:  U.S. and Mexico

Learn more:  CPSC.gov

Comment:  Polaris just lowered their financial guidance for the rest of the fiscal year because of existing recall issues and I’m sure this won’t help the situation. I think the larger issue with these recent recalls is that they potentially point to an underlying design flaw in the vehicles. In turn, this may reveal an underlying problem in their product development process that allowed the design issue to make it into production.

In the long term the sheer number of vehicles and recalls could have a negative impact on the brand. In the short and medium term, depending on how long it takes to clean up the problem in the product development process, there may be an impact on the rate of new vehicle introductions by Polaris. This has been a competitive advantage for Polaris as they produce a large range of vehicles in terms of price points and feature sets. Management frequently refers to their “armada” of models. This is important in the UTV market where an extensive and differentiated product line can target a diverse range of end use applications at a range of price points.

New Models Reveal Market Trends

While the growth of the small, task-oriented vehicle market (STOV) may not be as strong as a few years ago, the proliferation of new models since the beginning of the year indicate a competitive and still growing market. The STOV market includes utility vehicles(UTVs)/side-by-sides, golf cars and LSVs. UTVs make up the largest share of the STOV market and not surprisingly that is where much of the action is. The UTV segment is also where much of the growth opportunity is as well.

A review of over 25 brands and product lines including all of the major players in the UTV market, as well as smaller ones, shows that approximately 80 new models were launched since the end of 2015. These have included completely new entrants, product line extensions, special edition models customized for specific applications and product line upgrades.

2017 Wolverine EPS

Yamaha continues to build out their UTV line with models like the 2017 Wolverine EPS.

A major factor in this large number of new models has been the re-entry of established powersports brands into the market over the last several years. For example, Honda after being somewhat dormant after their Big Red UTVs pursued the market with their Pioneer line. Meanwhile Yamaha had built out the work oriented Viking line, the Wolverine crossover line and more recently attacked the pure recreational/sport segment with their YXZ line.

The Ranger XP 1000 EPS in Nara Bronze.

The Ranger XP 1000 EPS in Nara Bronze features more horsepower than the XP 900.

An analysis of recent model introductions illuminates important trends in the market including the continued push for higher horsepower vehicles, targeting ‘value’ buyers with lower price point models, developing models with accessory packages for specialized applications, and shifts in the electric UTV segment. These trends and others are discussed in an article a I recently posted in our buying guide section.

 

 

 

 

Polaris Ranger vs. Kubota Comparison

The Polaris Ranger 4×4 570 being put to the test. Credit: Horticulture Week

Horticulture Week out of the UK features a comparison of the Polaris Ranger 570 to the Kubota RTV-X900 by several testers as they put the vehicles through their paces on varied terrain that included fields, college grounds and a quad bike training facility with steep hills. The three testers included a groundskeeper, gardener and forester.

As is noted in the review, the vehicles are both UTVs but quite different with the diesel powered Kubota geared more towards heavy duty work and the Ranger providing more speed. Some key specifications for comparison.

________________Kubota RTV-X900          Polaris Ranger 570

Engine                  21.6 hp Diesel                44 hp Gas

Top Speed            25 mph                         50 mph

Transmission        Hydrostatic                    Variable Transmission

Steering               Hydrostatic Power         No Power Steering

Cargo Capacity   1,102 lbs.                       1,000 lbs.

Towing Capacity  2,204 lbs.                       1,500 lbs.

Ground Clearance    10.4″                          10″

Drive System

Kubota:  Front: limited-slip differential; Rear:
foot-operated differential lock

Polaris:  On-demand true AWD/2WD/VersaTrac Turf Mode

Some of the testers’ takes on the Kubota:

  • The hydrostatic transmission may require a learning period but works well once you’ve adapted
  • Smooth riding and feels safe
  • Feels durable
  • Can go anywhere
  • Dynamic engine braking most impressive
  • Hydraulic dump bed works quickly
  • Good protection for vulnerable parts of the vehicle
  • Wide range of applications

In general the Kubota received positive reviews.

The reviewers testing of the Ranger 570 produced the following reaction:

  • Most noticeable is the speed of the vehicle, a result of the 44 hp ProStar engine. One tester easily reached 80 km/hr.
  • Seat belt sensors that govern the vehicle’s speed until the seats belts are engaged was a well received feature.
  • Easy to use multiple drive settings – 2WD/4WD/Turf
  • Smooth and responsive
  • Feels light and not always secure particularly in tight turns
  • Perhaps too much plastic to remain durable in really rough terrain and driving
  • Easy access for typical maintenance
  • Good for use in applications that requires the operator to cover a large area where its’ speed could save time. A good replacement for quads on farms and such where more hauling capability and/or the ability to carry a passenger is needed.

In general the Ranger received positive reviews as well. The most important determinant in choosing one vehicle over the other would be how the vehicle would be used. If you have heavy duty hauling in difficult terrain but in a more limited area then the Kubota would be more appropriate. If you need to use a vehicle over a wider range and with not as much heavy duty hauling then the Ranger would be the best.

Learn more:  Hortweek.com

Polaris Introduces 2017 Side-by-Sides

Polaris announced new model year 2017 side-by-sides along with their new Ride Command technology.

New RZRs

MY2017 RZR XP 1000 Gold Matte Metallic LE

The new MY2017 RZR XP 1000 Gold Matte Metallic LE from Polaris.

Polaris is introducing the new RZR XP 1000 EPS Gold Matte Metallic Limited Edition with a new 55-percent-lower low gear, all-new Xtreme Performance All-Wheel Drive (AWD) system, and a factory-installed, and turnkey accessory package with premium trail and rock accessories such as high clearance A-Arms and rear radius rods, rock sliders, a premium HMW skid plate and Pro Armor Crawler XG tires with beadlocks. The MSRP for this Limited Edition model is $23,999.

At a lower price point is the new RZR S 570 EPS in Indy Red.

At a lower price point is the new RZR S 570 EPS in Indy Red.

For those on a smaller budget there is the new RZR S 570 EPS, a 60″ wide side-by-side with a 45 hp engine, electronic power steering and a $12,999 MSRP.

The Ride Command display for the new Ride Command technology from Polaris.

The Ride Command display for the new Ride Command technology from Polaris.

Polaris is also offering their new Ride Command technology as standard equipment on the RZR XP 1000 EPS Velocity Blue Limited Edition model. Ride Command uses an app and a weather-resistant Ride Command 7-inch display to connect people to their machines and people-to-people for a more social off-road experience. Users are able to map rides in advance and transfer waypoints from their phones to the display via Bluetooth, plan and share their ride stats and track their friends’ locations while riding. In addition, drivers can integrate devices such as mobile phones to receive messages and play music, control their go GoPro and sync Sena headsets to talk to passengers all through the Ride Command 7-inch display. The Ride Command display is available as an accessory for other models for $1,499.99

New Rangers

The Ranger XP 1000 EPS in Nara Bronze.

The Ranger XP 1000 EPS in Nara Bronze.

The Northstar special edition version of the new Ranger XP 1000 lineup features EPS and a full cab with HVAC.

The Northstar special edition version of the new Ranger XP 1000 lineup features EPS and a full cab with HVAC.

Polaris has added new 80 hp Ranger XP 1000 and Crew XP 1000 models. There is one Ranger XP 1000 base model priced at $13,999, three EPS models at $15,999 and four special edition models with MSRPs ranging from $16,999 for the Hunter Edition to $23,699 for the Northstar HVAC Edition. The latter comes with a full cab and a heating, ventilation and air conditioning system. There is also High Lifter Edition model for mud riding and a Ranch Edition for work.

The High Lifter special edition Ranger Crew XP 1000 EPS for mud riding in Titanium Matte Metallic.

The High Lifter special edition Ranger Crew XP 1000 EPS for mud riding in Titanium Matte Metallic.

The base model Ranger Crew XP 1000 in Sage Green.

The base model Ranger Crew XP 1000 in Sage Green.

Similarly there is a new lineup of Ranger Crew XP 1000 models including one base model priced at $15,199 MSRP, three EPS models at $16,999 and High Lifter and Northstar HVAC Editions priced at $20,499 and $25,999 respectively.

New Generals

The new four passenger General 4 1000 EPS.

The new four passenger General 4 1000 EPS.

Also new for model year 2017 is the General 1000 EPS Hunter Edition in Polaris Pursuit Camo.

Also new for model year 2017 is the General 1000 EPS Hunter Edition in Polaris Pursuit Camo.

For model year 2017 the General lineup adds the four-passenger General 4 1000 EPS with a $20,999 MSRP and a Hunter Edition in Polaris Pursuit Camo priced at $18,999. Other two-passenger models are upgraded with VersaTrac Turf Mode.

New Polaris ACE

At the high end of the ACE lineup is the new 900 XC with a 78 hp engine.

At the high end of the ACE lineup is the new 900 XC with a 78 hp engine.

At the entry level is the Polaris ACE 500 with a 32 hp engine.

At the entry level is the Polaris ACE 500 with a 32 hp engine.

For model year 2017 the Polaris ACE lineup adds a more powerful and affordable entry-level model and a new 78 hp Polaris ACE 900 XC. The latter is priced at $12,999 and includes electronic power steering, Walker Evans compression adjustable needle shocks, 27″ GBC Commander tires, performance tilt steering wheel, blue tooth capable instrumentation, and a cut and sew seat. The Polaris ACE 500 features a 32 hp, 500 cc EFI engine and has a $6,999 MSRP.  Learn more:  www.polaris.com

Polaris Industries Voluntarily Issues Stop-Ride/Stop Sale Advisory For MY2016 RZR Turbo Off-Road Vehicles

2016-Turbo-RZR-e1469541717288From Polaris press release:

MINNEAPOLIS, MN (July 25, 2016) – Polaris Industries (NYSE: PII) is issuing a stop-ride/stop-sale advisory, pending a formal recall, for MY2016 RZR Turbo off-road vehicles, due to a potential fire hazard.

Polaris is currently evaluating a comprehensive repair solution. Once validated, repair instructions will be issued to Polaris dealers and vehicle owners will be notified that they can contact their dealer about scheduling a free repair. Until then, owners should not ride, and dealers should not sell, MY2016 RZR Turbo models.

All owners of affected vehicles are being contacted directly. In addition, updates will be posted on the RZR Recall page: http://www.polaris.com/en-us/company/rzr-recall.

Owners can also contact Polaris at 800-765-2747 or online at www.polaris.com.

About Polaris
Polaris Industries Inc. (NYSE: PII) is a global powersports leader with annual 2015 sales of $4.7 billion. Polaris fuels the passion of riders, workers and outdoor enthusiasts with our RANGER®, RZR® and POLARIS GENERAL™ side-by-side off-road vehicles; our SPORTSMAN® and POLARIS ACE® all-terrain off-road vehicles; VICTORY® and INDIAN MOTORCYCLE® midsize and heavyweight motorcycles; SLINGSHOT® moto-roadsters; and Polaris RMK®, INDY®, SWITCHBACK® and RUSH® snowmobiles. Polaris enhances the riding experience with parts, garments and accessories sold under multiple recognizable brands, and has a growing presence in adjacent markets globally with products including military and commercial off-road vehicles, quadricycles, and electric vehicles. www.polaris.com

Polaris Reports 2016 2nd Quarter Earnings

2015-RZR-XP-4-1000-eps

The very large recall of RZR vehicles impacted Polaris 2nd quarter side-by-side revenue.

Polaris Industries reported fiscal year 2016 second quarter earnings with sales increasing 1% from the same quarter last year to reach $1,130.8 million. Net income was down 29% to $71.2 million, reflecting approximately $25 million in warranty, legal and recall costs. Here are some of the highlights of the earnings callrelated to small, task-oriented vehicles.

  • ORV (ATV and UTV) sales decreased 6% in the quarter with Ranger shipments flat and RZR/ATV shipments down
  • RZR retail was down significantly more than RANGER and that was anticipated given the impact from the recall
  • North American (NA) ORV inventory was down 8%
  • Demand for the new General line of UTVs is exceeding company expectations
  • The Huntsville, AL plant is ramping up Ranger and Slingshot production
  • NA retail market for side-by-sides was flat and declining for ATVs
  • Management reports losing a few points of side-by-side market share attributable more to their product lineup in the utility segment in a competitive environment
  • NA retail market for side-by-sides was flat and declining for ATVs
  • Polaris NA retail was down double digits for ORV for the quarter impacted by the large product recall as well as weakness in the oil  and ag markets with side-by-side retail down high single digits
  • Product recall costs have been approximately $27 million for the first half of the year. The company has had a 30% response rate so far and the Consumer Product Safety Commission is targeting a response rate close to 80%
  • Global adjacent market sales increased 14% in the second quarter to $91 million including PG&A, driven by market share gains in Aixam and the added sales from the Taylor-Dunn acquisition.
  • Management reports that Taylor-Dunn’s “performance out of the gate, it’s been one of our best acquisitions yet” and they like what is essentially a made to order model along with synergies for the people mover segment with other global adjacent brands
  • The defense business was up over 30% and our PG&A related sales for the global adjacent division increased 21%.
  • Defense sales were up with the DAGOR vehicle gaining traction
  • Multix early sales have been disappointing but transmission issues were fixed during the 2nd quarter and the distribution network is expanding
  • Polaris will begin transitioning their RZR and Ranger lines to their retail flow management system to improve lead times and inventory management
  • ORV and Snowmobile sales are expected to decrease mid-single digits
  • Global Adjacent markets which includes GEM, Aixam, Goupil, etc. is expected to be up mid teens for the year with strength across brands

Learn more:  Seekingalpha.com (Earnings call transcript)

Polaris Recalls 43,000 Ranger 570 UTVs

The 2016 Polaris Ranger Crew 570 Mid-Size is one of the range of model year 205 and 2016 Ranger 570 models being recalled.

The 2016 Polaris Ranger Crew 570 Mid-Size is one of the model year 2015 and 2016 Ranger 570 models being recalled.

One of the 2015 models being recalled.

One of the 2015 models being recalled.

Polaris has announced the recall of approximately 43,000 model year 2015 and 2016 Ranger 570 vehicles due to a potential overheating and fire hazard. The recall covers a range of model variations for the two model years. The vehicles can overheat during heavy engine loading, slow-speed intermittent use and/or high outdoor temperatures and catch fire. No injuries have been reported due to the problem. This is the second very large recall from Polaris, which in April recalled 133,000 RZR UTVs.

The following information is from the Consumer Product Safety Commission.

Recall Details

Units:  About 43,000

Description:  This recall involves 2015 and 2016 model year Polaris Ranger 570 recreational off-highway vehicles (ROVs). They have either two or four seats and a rear box. “Ranger” is printed on the rear box and “570” is printed on the hood. “Polaris” is stamped onto the front grill. The ROVs were sold in several colors. The following models are included in the recall.

Model Year 2015:  Ranger 570, Ranger 570 EPS, Ranger 570 EPS HD, Ranger Crew 570, Ranger Crew 570 EPS

Model Year 2016:  Ranger 570 2×4, Ranger 570, Ranger 570 EPS, Ranger 570 EPS HD, Ranger 570 EPS ZUG, Ranger Crew 570, Ranger Crew 570 EPS

Incidents/Injuries:  Polaris has received seven reports of the recalled ROVs overheating and catching on fire. No injuries have been reported.

Remedy:  Consumers should immediately stop using the recalled ROVs and contact Polaris to schedule a free repair. Polaris is contacting all known purchasers directly.

Sold at: Polaris dealers nationwide from August 2014 through June 2016 for between $10,000 and $12,500.

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

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

Manufactured in:  Mexico

Learn more:  CPSC.gov

Comment:  One very large recall is bad enough but a second in a matter of months could present some significant problems for Polaris. Besides the sheer cost of repairing so many vehicles, there is also the operational difficulties in handling so many repairs in a reasonable amount of time. These are both relatively short term issues, but in the long term the impact on the Polaris brand may be more critical. For a company that prides itself on innovation and engineering prowess, and, in fact, considers such prowess a strategic advantage these recalls may have more of an impact on their brand image. I would imagine they also are generating some internal soul-searching regarding their product development processes as the issues appear to point to an underlying design flaw, as opposed to a faulty part.

Polaris Defense Adds Turbo Diesel MRZR

The new turbo-diesel powered MRZR-D from Polaris Defense.

The new turbo-diesel powered MRZR-D from Polaris Defense.

Another view of the MRZR-D, which will go into production this year.

Another view of the MRZR-D, which will go into production this year.

Polaris Defense, a division of Polaris Industries Inc., announced the addition of the MRZR-D, a high-performance MRZR turbo diesel to their military vehicle lineup. Polaris Defense will publicly debut the MRZR-D at the 2016 Special Operations Forces Industry Conference (SOFIC), in Tampa, Fla., May 24-26, and at CANSEC 2016, in Ottawa, Ontario, May 25-26. While many key features – like the dimensions, payload, towing, ground clearance, accessories, handling and other features – remain the same, Polaris improved occupant seating space, ergonomics and sight lines based on user feedback. The turbo diesel increases auxiliary power, improves range and helps with fuel logistics given the large number of diesel fueled military vehicles. MRZR vehicles are helicopter transportable and come in two, four or six person configurations. The MRZR vehicles are used by US Special Forces and other allied militaries. Learn more: Polaris.com

Comment:  The use of diesel fuel is key. SVR previously conducted research on a specialized UTV with potential military applications. Diesel is not only used in many other military vehicles but is often more readily available in potential combat areas. In addition, if improvisation in the field is needed, vegetable oil can be used as well.

 

Polaris Reports Q1 2016 Earnings

2015-RZR-XP-4-1000-eps

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)