Category Archives: Sales figures

Kubota Recalls Thousands of Utility Vehicles

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Kubota is recalling approximately 11,500 RTV-X1100C utility vehicles due to a potential fire hazard.

Kubota is recalling approximately 11,500 RTV-X1100C utility vehicles due to a potential fire hazard.

Kubota has issued a recall for model year 2013, 2014 and 2015 RTV-X1100C diesel-powered utility vehicles. Debris can make contact with the exhaust manifold on the vehicles and potentially catch fire. There have been seven reports of debris-related fires but no injuries. The recall involves approximately 11,500 vehicles sold from October 2013 to October 2015. Consumers should stop using the vehicle and contact their local Kubota dealer for free inspection and repair.

Comment:  This is a significantly larger recall than most utility vehicle recalls which typically involve one thousand to four thousand vehicles. However, the fire hazard due to debris interacting with hot parts of the vehicle has been a fairly common cause for recalls in the industry.

 

The recall notice from the Consumer Product Safety Commission follows:

Recall Summary

Name of product:  Utility Vehicles

Hazard:  Combustible debris can make contact with the exhaust manifold and ignite, posing a fire hazard.

Remedy:  Repair

Consumer Contact:  Kubota Tractor Corp. toll-free at 800-752-0290 between 8a.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 consumers directly.

Recall Details

Units:  About 11,500

Description:  This recall involves model year 2013, 2014 and 2015 Kubota RTV-X1100C series diesel-powered utility vehicles. Recalled utility vehicles come in the colors orange and camouflage and have serial numbers ranging from 10001 to 23172. The model number 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 seven reports of debris-related fires. No injuries have been reported.

Remedy:  Consumers should immediately stop using the recalled utility vehicles, park them away from combustible materials and contact an authorized Kubota dealer for a free inspection and free repair and should follow their directions. Kubota is contacting consumers directly.

Sold at:  Authorized Kubota dealers nationwide from October 2013 to October 2015 for between $21,000 and $22,000.

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

Manufactured in:  United States

Learn more:  CPSC.gov

GEM Director John Stockman Talks About the New Model Year

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The new GEMs for model year 2016.

The new GEMs for model year 2016.

I recently interviewed GEM Director John Stockman about the changes to the GEM lineup for model year 2016, the vision for the brand and how it fits within the overall small vehicle portfolio of Polaris. Here is an excerpt from the larger article posted in our Buying Guide section:

Polaris has made extensive changes to the GEM lineup for the 2016 e2, e4, e6 and eL XD models. Stylistically the iconic “bubble” design is still noticeable from a side view, but a frontal view reveals significant changes. The new design was in large part based on customer research. According to Stockman, in the neighborhood of 10 different designs were vetted by customers and consumers before a final design was chosen.

Even more important than stylistic changes, were the engineering changes made under the skin in direct response to several phases of customer research, including multiple ride clinics with dozens of customers and consumers, feature and finish related research, as well as feedback from dealers. The research focused the product development process on a number of key areas. One was the comfort of users as they ingress and egress from the vehicles all throughout their day. Towards that end, more legroom and headroom has been created. A past complaint about hot seats was also addressed as well as items as minor as having self-canceling turn signals.

A second issue highlighted by the research was vehicle safety. Stockman states that, “We are hearing more and more from corporate campuses, colleges and universities, hotel and resorts, that they are moving away from the traditional golf carts towards LSVs because of their safety features.” With that in mind the safety features the GEM is known for were kept but also improved. This included better brakes, vehicle handling in evasive situations and seatbelts. “We really focused on making sure that this was the safest LSV you could get”, remarked Stockman.

Another focus… View Full Article

I will be following up this article with some impressions from GEM dealers on the changes for the 2016 model lineup. For detailed vehicle specifications for the 2016 and past GEMs, search the SVR vehicle database.

 

Bureau of Reclamation Goes Green with e-Ride Industries

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The e-ride Industries EXV4 for people transport.

The e-ride Industries EXV4 for people transport.

An e-Ride Industries EXV2 Patriot configured with a sliding cargo tray and roof rack.

An e-Ride Industries EXV2 Patriot at Grand Coulee Dam configured with a sliding cargo tray and roof rack.

The Bureau of Reclamation has purchased a fleet of 27 electric vehicles from e-Ride Industries of Princeton, MN for the Grand Coulee Dam Project in Washington state. With the addition of 130 new employees over the last two years, the management required more vehicles but also need to meet the federal government’s greenhouse gas emission goals. The electric powered, zero-emission LSVs from e-Ride Industries fit their needs.

e-Ride Industries has already supplied 16 of the 27 vehicles under a total contract for $900,000. The vehicles will be a mixture of the EXV2 Patriot designed for maintenance and utility duties and the EXV4 which can transport up to four people.  Both vehicles are ruggedly built for industrial applications, have a top speed of 25 mph and are powered by 72-volt lithium-ion battery packs. The utility version features an enclosed cargo area, 1,000 lb. cargo capacity, built-in toolbox on the outside of the cargo area and a roof rack.

Management expects the fleet of vehicles which will be powered by renewable energy produced by the dam to save 10%-15% in fossil fuel costs, which currently run $111,000 annually. They also expect to save money on vehicle maintenance, and reduce pollution as well. Maintenance on the vehicles requires no disposal of hazardous materials such as used oil, antifreeze, or other liquids associated with gas-powered vehicles. The vehicles are made in America. Learn more:  Grandcoulee.com

Comment:  Federal and state vehicle fleet mandates continue to be a factor in the electric vehicle market, and the LSV market in particular. While the growing array of options of highway speed electric vehicles may cut into LSV sales moving forward, LSVs will continue to be a viable option for government agencies that need to meet greenhouse gas and emission standards. In particular, applications where utility vehicle versatility and functionality is needed and/or where vehicle travel is in a limited area and at lower speeds, LSVs will remain a cost-effective choice.

Arctic Cat Reports Q2 2016 Financial Results

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The 2016 Wildcat 4X, a higher priced ($20,999 MSRP) model in the Arctic Cat lineup is expected to improve the company's revenue in the rest of the fiscal year.

The 2016 Wildcat 4X, a higher priced ($20,999 MSRP) model in the Arctic Cat lineup, is expected to improve the company’s revenue in the rest of the fiscal year.

Last week Arctic Cat reported their financial results for the second quarter of fiscal year 2016, which ended on September 30, 2015. Arctic Cat reported quarterly revenue of $211.2 million and net earnings of $11.2 million compared to $262.5 and $15.4 for the prior year quarter. Management noted currency headwinds, especially in Canada, a competitive market and softer than expected retail sales in the ATV/UTV market. Therefore, the company’s management lowered their fiscal 2016 full year guidance. The following are some the highlights from the earnings call related to the side-by-side/utility vehicle market.

  • Sales of ATVs and ROV side-by-sides increased 1.7% to $70.8 million from $69.6 million in the year ago quarter driven by Wildcat side-by-sides.
  • A key marketing initiative was started with a five year product development and marketing agreement with racer Robby Gordon and Todd Romano, and their SPEED RMG brand. The initiative specifically targets technology development for the Wildcat side-by-sides to produce new products and accessories.
  • For full year fiscal 2016 management expects ATV/side-by-sides sales to increase mid-single digits percent.
  • For the quarter, the industry retail sales were flat to up low single-digits for ATVs and side-by-sides and Arctic Cat was similar overall but with more strength in side-by-sides.
  • Year-to-date Arctic Cat was up low double digits for side-by-sides retail sales.
  • Management is terminating under-performing dealerships while adding dealers in open territories.

Learn more:  Seekingalpha.com (Earnings call transcript)

Comment:  Both Polaris and Arctic Cat have reported slower than expected growth in the side-by-side market, as well as, increasing competitiveness. While the market is still expected to grow, the rate of growth may be more mid-single digit percent rather than double digits or even high single digits.

Polaris Reports Q3 2015 Results

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Polaris Industries reported financial results for the third quarter of 2015, with sales increasing 12% to $1.45 billion and income increasing 10% to $155 million. The following are some of the key points from the earnings call related to the utility vehicle market:

  • From CEO Scott Wine “…the off-road vehicle space is quite healthy, as competitive activity is more intense than in any time in my seven years with Polaris.”
  • ORV sales which includes UTVs and ATVs grew only 3% in the quarter
  • Market headwinds from the oil and agricultural sectors as well as Canada
  • ORV sales were led by global RZR shipments and stronger U.S. sales, partially offset by continued weakness in Canada, along with unfavorable international currencies.
  • ORV sales were up 5% year to date
  • Polaris gained share in both UTVs/side-by-sides and ATVs
  • Side-by-side retail grew low single digits which slightly outpaced the industry
  • New product introductions from many manufacturers is intensifying competition
  • The sport utility market has been stronger than the recreational utility market for side-by-sides for Polaris and the industry
  • Global Adjacent Market third quarter revenues increased 10% and year-to-date revenue is up 4%.
    • European Work and Transportation declined mid-single-digits percent, due primarily to currency weakness and some softness in Goupil and Mega.
    • The European quadricycle industry remains flat year-to-date with Aixam retail up modestly and increasing market share.
    • Third quarter defense revenue increased over 50%, driven by strong momentum for MRZRs and increasing international demand.
    • Year-to-date defense sales are up high-20%s.
  • International revenue increased 1% in the third quarter with strong growth in Indian and RZR brands and in the Latin American region, but somewhat offset by weak currencies, which led to revenue declines in Europe and Australia.
  • Multix, the new product through a joint venture with Eicher Motors, is now in market and initial consumer satisfaction is encouraging.
  • Construction of the the Huntsville, AL ORV manufacturing plant is on schedule to start production in Q2 2016 with a focus on creating production capacity for the Ranger product line.
  • From CEO Scott Wine, “While competitive offerings and promotional efforts expand, we anticipate slightly slower growth in the powersports industry in general, and the side-by-side segment in particular.”
  • Global Adjacent Markets will look for appropriate acquisitions.

Learn more:  Seekingalpha.com (Earnings call transcript)

Kubota Commemorates 1 Millionth Vehicle Made in Georgia

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The one millionth vehicle produced by Kubota in Georgia, a RTV1120D utility vehicle.

The one millionth vehicle produced by Kubota in Georgia, a RTV-X1120D utility vehicle.

When a RTV-X1120D rolled off the line earlier this week in Gainseville, GA, it became the millionth Kubota vehicle manufactured in Georgia. The million units includes tractors as well as utility vehicles. That number is sure to increase even faster in the coming years as the company has added facilities, including a new RTV manufacturing facility. The RTV-X1120D features special wheels, a high-end sound system and LED lightbar, and will be auctioned off as a fundraiser at a national dealer event.  Learn moreL  Bizjournals.com

Polaris Recalls 2015 RZR 900 and 1000 Side-by-Sides

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2015 Polaris RZR 900 is part of the recall.

2015 Polaris RZR 900 is part of the recall.

Polaris is issuing a recall of model year 2015 Polaris RZR 900 and 1000 vehicles due to reports of pinched fuel tank vent lines. The recall is related to the vehicle’s fuel tank vent line potentially being incorrectly installed during manufacturing, causing it to become pinched, which may cause the fuel tank to pressurize and leak fuel, posing a potential fire hazard. Management believes the problem has occurred in very few vehicles but wants to inspect all vehicles before further use.

Polaris is taking this action after confirming that, in some reports, a vent line had been pinched during assembly.  In those cases, Polaris has also received reports of the driveline contacting a pressurized and expanded fuel tank, resulting in a fuel leak and a fire hazard.  Polaris also received two reports of small fires, but could not confirm whether the vent line was obstructed during assembly or during subsequent accessory installation or whether the pinched vent line was the cause of the fires.

Owners will be contacted by Polaris and directed to their local dealer for a free inspection and repair, if necessary. A news brief by the Consumer Protection and Safety Commission estimated that 53,000 vehicles are involved. Learn more:  Polaris.com , PRNewswire.gov and CPSC.gov

Comment:  This is a massive recall if the initial CPSC recall estimate is correct. I’ll update the post when more information comes out. Update:  The initial estimate of about 53,000 vehicle is correct. See the CPSC.gov link above. Most recalls in the side-by-side market tend to be around 2,000 to 4,000 vehicles or less. A total of 53,000 is more than ten times as many. Luckily for Polaris they seem to be dealing more with a very large number of inspections as opposed to repairs, but it will still probably be a hit to their bottom line as well as their brand image.

Data Shows Decline In Indian Mini-Truck Market

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The Tata Ace mini-truck

The Tata Ace mini-truck is the leader in the Indian mini-truck market.

Data from the Society of Indian Automobile Manufacturers shows that the mini-truck market is declining as larger pickup trucks are displacing them. Last year’s figures have pickups outselling mini-trucks 140,000 vehicles to 131,000. Estimates for this year put the pickup market at nearly 200,000. Increased urbanization and improving road conditions are driving the pickup trend according to industry executives. The pickup trucks can carry more cargo and have more horsepower than mini-trucks whose sales declined last year by 21% from nearly 167,000 units the year before.  Learn more:  Business-standard.com

Comment:  The decline in the mini-truck market would appear to be a problem for the Polaris-Eicher joint venture which just launched their Multix vehicle. However, the Multix is being positioned as a multi-purpose vehicle that users can easily transition from using for work to using for family purposes to even using for power generation, since the vehicle also has a generator that can be used for operating tools or provide electricity to the home. A primary target for the Multix is the rural and semi-urban independent business person. In contrast, urbanization is cited as one reason for the decline in the mini-truck market. It would be interesting to see the breakdown of where mini-truck sales have been declining, in terms of urban versus rural.

Polaris India Expects Strong Revenue Growth In India

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Executives at Polaris’ subsidiary in India, Polaris India, expect strong revenue growth over the next three to five years. By 2020 they are targeting a 100% to 200% sales increase at the subsidiary which sells ATVs, UTVs and motorcycles. The long term strategy is to build up enough volume to justify investment in local assembly plants. This would be the plan for motorcycles and off-road vehicles. Currently Polaris India imports all the Polaris vehicles they sell including the complete line of Indian motorcycles.

The management reports good sales of the Ranger EV in certain parts of the country and is exploring adding the GEM line of vehicles to their offering. Off-road vehicle sales are helped by the 39 Polaris Experience Zones, which are off-road vehicle tracks. They have also made sales to the Indian army and police. Polaris India distributes products through 16 dealerships in India and two more in Nepal and Kazakhstan. Export sales are made to Nepal, Bangladesh, Bhutan, Sri Lanka, Kazakhstan and Pakistan. Unrelated to Polaris Inida is the Polaris joint venture with Eicher. Learn more:  Timesofindia.com

Comment:  Of course, having sales targets and meeting them are two different things, but Polaris has consistently hit most of their long term strategic goals across many products. A lot will depend on how well the Indian economy grows but even slower growth in such a large market offers great potential.

American SportWorks Recalls 3,500 UTVs

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One of the UTVs manufactured by Amercican SportWorks that is being recalled.

One of the UTVs manufactured by American SportWorks that is being recalled.

American SportWorks announced the recall of approximately 3,500 utility vehicles because the throttle can fail to return to idle and cause the rider to lose control of the vehicle, posing a risk of injury. The recall includes certain Bulldog 300, Chuckwagon 300, Landmaster 300, Landmaster 400 and Trailwagon 400 UTVs sold between September 2014 and June 2015. Owners should stop using the vehicle and contact American SportWorks at 800-293-0795 to arrange for repairs.

The following information is from Consumer Products Safety Commission.

Recall Summary

Name of product:  Off Road Utility Vehicles

Hazard:  The throttle can fail to return to idle causing the rider to lose control, posing a risk of injury.

Consumer Contact:  ASW toll free at 800-293-0795 from 8 a.m. to 5 p.m. ET Monday through Friday or online at www.amsportworks.com at the top of the page under the SAFETY tab under Recalls click on “TSB167 & TSB168” for more information.

Recall Details

Units:  About 3,500

Description:  This recall includes six models of American SportWorks Four Wheel Off-Road Utility Vehicles. The name of each model is located above each front fender and along the sides of the dump bed. Affected vehicles include:

BullDog 300, ChuckWagon 300 and LandMaster 300 all powered by Kohler 277cc engines with the last 6 Characters of the product identification number between A11746 and A13294, and LandMaster 400, TrailWagon 400 and ChuckWagon 400 all powered by Honda 390cc engines with the last 6 Characters of the product identification number between A24835 and A26806. The product identification numbers can be found on a sticker on the firewall above the accelerator and brake pedal.

Model                          Color
LandMaster 300          Red, Green, Black, White, Camo
LandMaster 400          Red, Green, Black, White, Camo
BullDog 300                Red
Trail Wagon 400         Red, Camo
Chuck Wagon 300     Red, Green, Camo
Chuck Wagon 300     Red, Green, Camo

Incidents/Injuries:  None reported

Sold at:  Atwood Distributing, Rural King, The Home Depot, Tractor Supply Company and other dealers from September 2014 through June 2015 for between $4,300 and $5,300.

Manufacturer(s):  American SportWorks, of Roseland, La.

Manufactured in:  United States

Learn more:  CPSC.com

Comment:  While the size of this recall is typical for the industry, for a smaller manufacturer of UTVs this a significant number. The cost to repair each vehicle will determine how big an impact the recall has on the company. A number of the models were manufactured by American SportWorks and sold under different product line names through retail stores rather than American SportWorks dealers; the Chuck Wagon for Rural King stores, the Trail Wagon for Tractor Supply Co. and the Bulldog for Home Depot.