Category Archives: Regulation & policy

Road Use Regulation Roundup: November 2016

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golf cart signThe following is a summary of some of the road use regulations for golf cars, LSVs, ATVs and UTVs that have been passed or are being considered at the state, county and city levels since August 2016.

Some trends in this latest regulation roundup:

  • Almost all of the regulation activity is occurring at the city level
  • Most of the ordinances are being considered but have not been passed yet.
  • Most of the ordinances concern allowing UTVs on city streets and a few concern golf cars or low-speed vehicles.
  • One city repealed an ordinance allowing utility vehicles on city streets because of safety concerns.

Nashville, TN – Elkhart County Commissioners passed an ordinance which would allow golf carts on all non-numbered county roads. The ordinance as proposed would allow the use of golf carts in all of the unincorporated areas of the county with the exception of numbered county roads, which for the most part would restrict their use to residential subdivisions. Vehicles could be used only from sunrise to sunset. The ordinance also regulates LSVs.

Kearney, MO – The city is considering a citizen’s request to allow the use of ATVs within the city. UTVs are already allowed. There is some concern by officials about the safety of ATVs being operated among larger vehicles such as trucks.

Fort Scott, KS – City officials are drafting an ordinance that will allow UTVs to be used on city streets. The police chief researched similar UTV ordinances in nearby communities and recommended that they be operated by licensed drivers at least 18 years of age and restrictions in place for certain city streets. There was some discussion on the speed of UTVs and whether tires on the vehicles are strictly for off-road use and would have proper traction on city streets. The city already has a golf car ordinance in place.

St. Augustine, FL – The City Commission passed new definitions and standards for low-speed vehicles like golf cars. They also discussed safety issues of using low-speed vehicles, golf cars and ScootCoupes (3-wheeled vehicles that can travel up to 40 mph) on certain roads. They are planning on analyzing the use of these same vehicles on a for-profit basis.

Hapeville, GA – The city is considering regulations to promote the use of low-speed vehicles and/or golf cars.

Sault Ste. Marie, Ontario, Canada – The city is considering the use of ATVs and UTVs on municipal roads similar to other nearby municipalities.

Jasper, IN – The Jasper Police Department plans to increase enforcement of golf cars on city streets.

Landis, NC – The North Carolina Department of Transportation denied town requests to change the speed limits on two streets. In August, Landis made the request to lower the speed limit on both roads — along with several others — from 45 mph to 35 mph in order to allow golf carts and other low-speed vehicles to travel within the city limits.

Garner, IA – The City Council is considering an ordinance that will allow the use of ATVs and UTVs on city streets.

Kansas – The Department of Wildlife, Parks and Tourism commission is considering regulations that will allow golf cars and UTVs to be used on state park roads between sunrise and sunset.

Great Bend, KS – The City Council passed ordinances that would allow ‘micro-utility’ trucks on city streets. These vehicles are defined as any motor vehicle which is not less than 48 inches in width, has an overall length, including the bumper, of not more than 106 inches, has an unloaded weight, including fuel and fluids, of more than 1,500. Golf cars or all-terrain vehicles are not included.

New Hampton, IA – The City Council is likely to pass an ordinance that will allow golf cars and utility vehicles.

Festus, MO – Citing safety issues, the City Council repealed an ordinance passed last year that allowed utility vehicles to be used on city streets.

Nashville, TN – The Metro Transportation Licensing Commission voted to restrict pedal taverns, pedicabs and other pedal carriages as well as low-speed vehicles from operating between 7 a.m. and 9:30 a.m. and between 4 p.m. and 6:30 p.m. Congestion and safety concerns were the reasons.

 

Polaris Announces Q3 2016 Results

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The Polaris RXR XP Turbo is being recalled because of a potential fire hazard.

Recalls of vehicles like the Polaris RXR XP Turbo were a drag on the company’s financial performance for the quarter.

Polaris Industries announced their financial results for Q3 2016 with third quarter sales down 19% to $1.18 billion as impacts of massive vehicle recalls are still being felt. CEO Scott Wine stated that the company is prioritizing “…recall execution and quality validation and delay the launch of many of our model year 2017 Off-Road Vehicles.” The following are highlights from the earnings call as they relate to the small, task-oriented vehicle market.

  • Off-road vehicle industry retail declined modestly (down low single digits%) for the quarter with oil/gas and agriculture segments remaining weak
  • ORV and Snowmobile segment sales declined 23% in Q3 to $923.4 million driven by weak industry dynamics and delayed model year 2017 shipments as products were revalidated
  • RZR retail dropped precipitously in the first two months of the quarter but improved significantly in the third month along with overall side-by-side retail driven by promotions and better product availability
  • Management reports that RZR recalls have now passed the 50% penetration rate for both the RZR 900/RZR 1000 recall and the more recent Turbo recall and the majority of the recalls should be completed by year end
  • Gross margins were negatively impacted by higher promotional and customer appreciation costs to bolster confidence and credibility with our Off-Road Vehicle owners
  • The Ranger 1000 has shown good early signs for sales
  • Management reports that RZR market share is nearly 2.5 times all competitors combined and Ranger share over 2 times the next largest competitor
  • Global Adjacent Markets segment revenue increased 6% to $78.5 million in Q3 driven by the prior Taylor-Dunn acquisition
  • Sales in the Defense business and Work and Transportation businesses were lower quarter-over-quarter due to delayed military orders and weak rental and B2B sales
  • RFM inventory management system will be aggressively rolled out next year and should improve ORV dealer’s ability to replenish vehicles, manage inventory and make models available to customers
  • Guidance for full year 2016:
    • ORV and Snowmobile sales are expected to be down high single digits to low double digits percent but should show some retail growth in Q4
    • Defense and Work and Transportation segment sales are expected to be up high single digits for the year

Learn more:  Seekingalpha.com (earnings call transcript)

Polaris Issues Another Large UTV Recall

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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.

Road Use Regulation Roundup: August 2016

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The following is a summary of some of the road use regulations for golf cars, LSVs, ATVs and UTVs that have been passed or are being considered at the state, county and city levels since May 2016.

Some trends in this latest regulation roundup:

  • The ordinances were roughly split half and half between those dealing with golf cars and LSVs and those related to ATVs and UTVs.
  • ATV/UTV ordinances allow for higher vehicle speeds compared to golf car and LSV ordinances.
  • Regulatory activity is happening primarily at the town or city level, but there is some action at the county level as well.
  • Most of the regulations are in favor of allowing golf car, LSV, UTV or ATV access. Those towns restricting or prohibiting use tend to be concerned about vehicle congestion on particularly high use roads.

Georgia Tech University, Atlanta, GA – A new low speed vehicle and golf car policy was passed requiring that any Georgia Tech unit owning or purchasing LSVs or golf carts must ensure these vehicles are street legal and register each of them with Georgia Tech Fleet Services. LSVs must not be driven on high-speed streets (above 35 mph), and golf carts must not be driven on streets with speed limits above 25 mph.

Grayson County, TX – Grayson County Commissioners approved a resolution Tuesday to allow golf carts or similar utility vehicles to operate on some roadways in unincorporated areas of the county. Licensed drivers will be allowed to operate the carts on public roadways with speed limits of 35 mph or less. The resolution is only for unincorporated areas of the county, not inside city limits. Utility vehicles are defined as being designed for off-highway utility work, not for recreation.

Poth, TX – The City Council is considering adopting an ordinance currently being used in Rockport, which requires annual inspections of neighborhood electric vehicles at a cost of $10, and insurance coverage. Each vehicle must have headlamps, tail lamps, reflectors, parking brakes, rear view mirrors, turn signals, seat belts, and a flag, mounted on a 6-foot pole, attached to the rear.

Panama City Beach, FL – A regulation was passed in May preventing the registration of LSVs unless they can prove they had ordered them before May 12. The city is concerned that the increasing number of LSVs, which grew from 93 to 194 in the past year, will become a road hazard on Front Beach Road. Many of the LSVs are from LSV rental businesses.

Canton, IL – A new ordinance allowing golf cars and UTVs generated more interest than expected as the city quickly went through the original 20 permit stickers they purchased in the first month. Utility vehicles must be issued a $50 annual permit by the city, renewable mid-year, and provide proof of liability insurance that has at least the same limits of coverage required by law for regular cars. Operators must also be at least 16 years old and licensed drivers.

Landis, NC – The town board passed ordinances that would allow low-speed vehicles on public roadways. Lowering the speed limit on a key roads for LSV travel was required. The Police Chief supported the ordinance.

China Grove, NC – The town passed an ordinance that would allow golf cars and low speed vehicles to travel between China Grove and nearby Landis. Insurance, drivers license and permit are required to the drive the vehicles on local streets but an operator would not need a permit from both towns. Lights are needed to drive the vehicles at night.

Wake Forest, NC – Town leaders are considering allowing golf cars on some city streets at the urging of local residents. The local police department is against the ordinance for safety reasons.

Red River, NM – The town repealed an ordinance allowing ATVs and UTVs to access certain roads because of concerns over safely operating ATVs at high speeds on road rather than off-road. Manufacturers state that ATVs shouldn’t be operated on paved roads. The town expects to pass a new ordinance that will prohibit ATVs but allow UTVs on certain roads and at speeds up to 45 mph.

Ames, IA – The town started issuing ATV and UTV licenses in August. ATVs/UTVs are able to travel on gravel roads during daylight hours but cannot exceed 45 mph. The vehicles must have front and rear lights and the owner/operators must be insured, over 16 and have a valid driver’s license.

Peosta, IA – The City Council shelved an ordinance regarding the use of golf cars, ATVs and UTVs on city streets . There is concern over vehicle congestion on the already highly trafficked streets that the vehicles would most likely use.

Girard City, KS – The City Council voted down a ordinance that would have allowed the use of golf cars, ATVs and UTVs on city streets.

Squamish, British Columbia, CA – District of Squamish staff is drafting a bylaw, which, if passed by council, would see low-speed, zero-emissions vehicles allowed on Squamish neighborhood streets. Staff is also investigating the possibility of a future bylaw to allow medium-speed vehicles. A low-speed bylaw would allow the vehicles to travel as slow as 40 kilometers per hour, while a medium-speed bylaw would cover vehicles that travel 60 kilometers per hour.

Qualicum Beach, British Columbia, CA – Premier Christy Clark has announced a pilot project that will allow golf carts on local roads (but not major highways) in the Township of Qualicum Beach on Vancouver Island and the Village of Chase in the southern Interior. The move, which starts in September, is intended to give senior citizens another method of transportation around town to run errands.

Arctic Cat Recalls Arctic Cat 700 HDX UTVs

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2016 Arctic Cat 700 HDX

The 2016 Arctic Cat 700 HDX Hunter Edition is part of the recall.

2016 Arctic Cat 700 HDX XT TAG

The XT models like the 2016 Arctic Cat 700 HDX XT shown in Team Arctic Green are included as well.

2016 Arctic Cat 700 HDX XT

The 2016 Arctic Cat 700 HDX XT in black.

The 2017 Arctic Cat 700 HDX Crew model is also part of the recall.

The 2017 Arctic Cat 700 HDX Crew model is also part of the recall.

Arctic Cat announced a recall of approximately 4,500 utility vehicles involving all model year 2016 Arctic Cat 700 HDX and model year 2017 Arctic Cat 700 HDX Crew models. This includes the 2016 Arctic Cat 700 HDX XT variations as well. The throttle cable can stick and prevent the throttle mechanism from returning to an idle position upon release of the throttle and cause the rider to lose control, posing a crash hazard and risk of injury. So far only one injury has been reported, a wrist injury. The following information is from the Consumer Product Safety Commission.

Recall Details

Units:  About 4,500

Description:  This recall involves all model year 2016 Arctic Cat 700 HDX models and model year 2017 Arctic Cat 700 HDX CREW models within the vehicle identification number range of 300001 through 301280. The recalled utility vehicles have four wheels with side-by-side seating for three or six people. They were sold in a variety of colors including green, black, fire red, true timber camo and other colors. “Arctic Cat” is printed on the sides, front and rear of the utility vehicles. “HDX” is printed on the sides of the front fenders. The vehicle identification number on the 700 HDX CREW models is stamped into the upper frame tube under the rear of the cargo box.

Incidents/Injuries:  Arctic Cat has received 14 reports of the throttle cable malfunctioning, including one report of a wrist injury.

Remedy:  Consumers should immediately stop using the recalled side-by-sides and contact an Arctic Cat dealer to schedule a free repair. Artic Cat is contacting all known purchasers directly.

Sold at: Arctic Cat dealers nationwide from April 2015 through July 2016 for between $14,500 and $16,000.

Manufacturer(s):  Arctic Cat Inc., of Thief River Falls, Minn.

Manufactured in:  U.S.

Learn more:  CPSC.gov

John Deere Recalls RSX860i Gators

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The RSX860i utility vehicle being recalled by John Deere.

The RSX860i utility vehicle being recalled by John Deere.

John Deere has announced a recall of their RSX860i Gator utility vehicles. The fuel hose could leak or separate when the fuel system is pressurized, posing a fire hazard. No injuries have been reported related to this issue. The recall is small, involving only about 240 vehicles manufactured in June 2016.

The following recall information is from the Consumer Product Safety Commission

Recall Summary

Name of product:  Utility vehicles

Hazard:  The fuel hose could leak or separate when the fuel system is pressurized, posing a fire hazard.

Recall Details

Units:  About 240

Description:  This recall involves John Deere High-Performance Gator™ RSX860i TB and RSX860i TE utility vehicles manufactured in June 2016 with serial numbers beginning with 1M0860T. The recalled utility vehicles are four-wheel with side-by-side seating for two people and have a green hood and yellow rims. A complete list of serial numbers included in this recall is on the firm’s website. The model number is printed on the hood and John Deere is printed on the cargo box. The serial number is located on the frame at the rear of the machine above the hitch.

Incidents/Injuries:  None reported

Remedy:  Consumers should immediately stop using the recalled utility vehicles and contact a John Deere dealer for a free repair. John Deere is contacting all registered owners of the recalled utility vehicles directly.

Sold at:  John Deere dealers nationwide from June 2016 through July 2016 for between $12,300 and $14,000.

Manufacturer(s):  Deere & Company, of Moline, Ill.

Manufactured in:  U.S.

Learn more:  CPSC.gov

Comment:  This is a pretty small recall compared to typical industry recalls, and it appears they caught the problem fairly quickly. It is another case where a component of the fuel system in a utility vehicle is the issue. The RSX860i was introduced in June 2015.

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

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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

Kawasaki Recalls 28,000 Mule UTVs

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One of the Kawasaki Mule models being recalled.

One of the Kawasaki Mule models being recalled.

One of the Kawasaki Mule models being recalled.

One of the Kawasaki Mule models being recalled.

Kawasaki announced the recall of approximately 28,000 of their Mule UTVs because the front floor cover can be punctured by a foreign object, posing an injury hazard to riders. There has been one report of debris striking an operator’s leg. The recall covers a wide range of Mule models for model year 2015, 2016 and 2017 including the PRO-FX, PRO-FXT, PRO-DX and PRO-DXT models and related configurations. specific models affected are described below. Towards the end of last year Kawasaki recalled a large number of their Teryx recreational UTVs for a similar floor issue.

The following information is from the Consumer Product Safety Commission.

Recall Details

Units:  About 28,000

Description:  The recall involves 2015, 2016 and 2017 model year side-by-side recreational off-highway vehicles. The recalled models are 4-wheel side-by-side seating for three to six people and automotive style controls. The vehicles come in various colors. The model name is printed on the right and left front fender. The vehicle identification number (VIN) is located on the steel frame between the right front lower A-arm mounts.

Screen Shot 2016-07-08 at 9.33.55 AMScreen Shot 2016-07-08 at 9.34.21 AMIncidents/Injuries:  Kawasaki has received two reports of debris coming up from the floor cover, including one report of debris striking an operator’s leg.

Remedy:  Consumers should immediately stop using the recalled vehicles and contact their local authorized Kawasaki dealer to schedule a free repair.

Sold at:  Kawasaki dealers nationwide from July 2014 through June 2016 for between $12,000 and $16,900.

Manufacturer(s):  Kawasaki Motors Corp., U.S.A. of Foothill Ranch, CA.

U.S.

Learn more:  CPSC.gov

Comment:  This is a large recall and combined with the previous Teryx recall for the same reason brings the total number of vehicles involved to 47,500. What is disconcerting is that it seems to be a basic design flaw in that the company did not engineer the front floor boards to be strong enough to withstand normal use. On the heels of major recalls from Polaris, there are now almost a quarter million UTVs being recalled from two of the most prominent brands in the market, most from the last several model years.

Polaris Recalls 43,000 Ranger 570 UTVs

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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.

New Georgia Tech Policy Favors LSVs

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Georgia Tech recently instituted a new policy regarding low speed vehicles and golf cars. According to the policy, as of July 1, all LSVs or golf cars owned or purchased by any department must be street legal and registered with Georgia Tech Fleet Services, which will now only perform maintenance on registered vehicles. Furthermore, LSVs can only be driven on streets with speed limits of 35 mph or lower and golf cars on streets 25 mph or lower. There are a number of streets near the campus that only LSVs will now be able to drive. The new policy will also phase out any non-street legal golf cars and motorized vehicles by July 31, 2016. The policy does not impact landscape and maintenance utility vehicles. Learn more:  GATech.edu

Comment: This policy is likely to push departments to purchase LSVs rather than golf cars as they will require no modifications to be street legal and will have fewer restrictions with regards to driving on public streets. For a number of years the university and college market has been a good market for low speed vehicles. The institutions like the safety features of the vehicles, as compared to a golf car, and the ability to legally drive on nearby public streets, especially if they need to transverse public roads to access different campus locations.