Category Archives: Sales figures

Arctic Cat Recalls Prowler 500 HDX Side-by-Sides

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The 2014 Arctic Cat Prowler 500 HDX is being recalled due to a fuel leak issue.

The 2014 and 2015 Arctic Cat Prowler 500 HDX is being recalled due to a potential fuel leak issue.

Arctic Cat is recalling approximately 2,700 model year 2014 and 2015 Prowler 500 HDX side-by-sides due to an issue with the fuel fitting at the throttle body than can cause a fuel leak and create a fire hazard. Owners should stop using the vehicles and contact a local dealer for a free repair. For more information Arctic Cat can be contacted at (800) 279-6851 from 8 a.m. to 5 p.m. CT Monday through Friday or online at www.arcticcat.com and click on Customer Care, then Product Recall and List of Safety Bulletins for more information. The following information is from the Consumer Product Safety Commission.

Recall Details:  About 2,700 units

Description:  This recall involves model year 2014 Arctic Cat Prowler 500 HDX and model year 2015 Prowler 500 HDX models. The recalled vehicles include vehicle identification numbers (VIN) from 303194 through 305166. The VIN number is located on the rear frame tube under the rear of the box. The vehicles are green, red, vibrant red metallic, or emerald green metallic. “Arctic Cat” is printed on each side of the hood. Also 500 is printed on each side on the front fenders, HDX on each side of the rear cargo box, and “Arctic Cat” on the cargo box tail gate.

Hazard:  Fuel can leak from the fuel fitting at the throttle body, posing a fire hazard.

Incidents/Injuries:  None reported.

Remedy:  Consumers should immediately stop using the recalled Prowlers and contact an Arctic Cat dealer to schedule a free repair. Arctic Cat is contacting its customers directly.

Sold at:  Arctic Cat dealers nationwide from August 2013 to July 2015 for between about $11,000 and $12,400.

Manufactured in:  United States

Learn more:  CPSC.gov

Comment:  While this isn’t a large sized recall in the context of the side-by-side industry, it isn’t helpful for Arctic Cat as the management is in the middle of turning around their ATV/ROV business. Most of their issues have happened on the ATV side of the business, and the Prowler 500 HDX has been a solid performer. What is also notable is that many of the recalls in the side-by-side industry involve potential fuel leaks and fire hazards.

Polaris Recalls Youth Side-By-Side Due To Fire Hazard

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The Polaris Youth RZR 170 EFI in blue that is part of the recall.

The Polaris Youth RZR 170 EFI in blue that is part of the recall.

The Polaris Youth RZR 170 EFI in red that is part of the recall.

The Polaris Youth RZR 170 EFI in red that is part of the recall.

Polaris has issued a recall of approximately 4,300 2015 model year Youth RZR 170 EFI side-by-sides because an issue with the fuel pump poses a fire hazard. Consumers should stop using the vehicles and contact their local dealer for a free repair. Polaris can be contacted toll-free at (888) 704-5290, from 8 a.m. to 5 p.m. CT Monday through Friday or online at www.polaris.com and click on Product Safety Recalls for more information.

The following recall information is from the Consumer Products Safety Commission.

Recall Details

Units:  About 4,300

Description:  This recall involves Model Year 2015 Polaris Youth RZR® 170 EFI recreational off-highway vehicles with model number R15YAV17AA/AF and VINs between RF3YAV170FT000076 and RF3YAV17XFT005141. To see the complete list, visit the firm’s website. The VIN is on the left-hand front frame tube. They were sold in both blue and red. The blue models have a “170 EFI” decal on the right and left side of the hood and an “RZR” decal on the right and left front fenders. The red models have a “170 EFI” decal on the right and left front fenders and a “RZR” decal on the right and left rear fenders.

Incidents/Injuries:  None reported

Remedy:  Consumers should immediately stop using the recalled Polaris RZR vehicles and contact their local Polaris dealer to schedule a free repair. Polaris is contacting its customers directly and sending a recall letter to each registered owner of an affected product.

Sold at:  Polaris dealers nationwide from October 2014 through June 2015 for about $4,600.

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

Manufactured in:  Taiwan

Learn more:  CPSC.gov

Arctic Cat Reports Quarterly Earnings For Q1 FY2016

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The 2015 Wildcat Sport XT, a recent addition to the Arctic Cat side-by-side lineup.

Models like the 2015 Wildcat Sport XT help make the side-by-side business a bright spot for Arctic Cat.

Last week Arctic Cat reported earnings for the first quarter of their 2016 fiscal year with the company losing $1.1 million on sales of $134 million. The following is a summary of the highlights from the earnings call with a focus on side-by-sides.

  • Sales of Wildcat recreational vehicles helped drive recreational off-highway vehicle (ROV) sales.
  • Sales of ATVs and ROV side-by-sides decreased 17% to $52.9 million from $63.8 million in the year ago quarter. Retail sales increased significantly but shipments to dealers decreased in order to substantially reduce dealer inventory.
  • Management believes side-by-side retail sales outpaced the industry in North America.
  • ATV sales were down as the management continued to reduce ATV dealer inventory. Inventory was reduced by approximately 4,000 units.
  • Plant investment in a new paint line and automated assembly started in the quarter
  • Management has set goals of improving and expanding the Arctic Cat dealer network, emphasizing end-user focused product development, making strategic acquisitions and partnerships and creating a brand marketing powerhouse.
  • Management estimates that ATV-ROV retail sales for the quarter were up high teens.
  • For the fiscal year ending March 31, 2016, Arctic Cat estimates full-year net sales in the range of $690 million to $705 million with ATVs and side-by-side sales to rise 9% to 12%.

Learn more:  Seekingalpha.com (Earnings call transcript)

Comment:  The relatively new management team appears to be on plan in executing their turnaround of the ATV business while investing in initiatives for future growth.  The side-by-side business continues to be strong. How well they can continue to execute on dealer network relationships and expansion will be a key to continued success.

Polaris Reports Strong Quarterly Earnings For Q2 2015

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Beauty shot of the new Sportsman ACE from Polaris.

The Sportsman ACE from helped drive Polaris ORV sales in the 2nd quarter.

Last week Polaris reported record 2nd quarter sales of $1.124 billion. While the company missed Wall Street expectations, they continued to experience growth across product categories including ORVs and small vehicles. The main problems for the quarter stemmed from very high demand for their motorcycles and issues with a new paint system exacerbated by the greater than expected demand. The following is a summary of  key points related to ORVs and small vehicles.

  • The new Huntsville plant is on budget and on time for a Q2 2016 start
  • ORV revenue (UTVs and ATVs) increased 2% in the quarter driven by strong RZR sales globally but offset by reduced shipments to dealers to lower inventory levels
  • Year to date ORV revenue is up 6%
  • Management reports gaining North American market share in side-by-sides and ATVs
  • Side-by-side retail sales increased high single digits which slightly outpaced the industry
  • Full-size Rangers and the ACE showed strength while there was some weakness in value and entry offerings
  • Sales promotion pressures were strong in the 2nd quarter
  • Management reports continued strong competition in the ORV market with ongoing product innovations from competing brands.
  • Global Adjacent markets decreased 3% in the 2nd quarter but are up 2% year-to-date and up high single digits in constant currency measurement
  • North American work and transportation revenue grew high teens percent driven by expansion and success in direct national account business and the Ariens partnership but there was weakness in the BRUTUS Channel caused by distribution, transition and erosion.
  • GEM revenue increased driven by double-digit retail growth
  • European work and transportation decreased high teens percent due primarily to currency weakness and some softness in the European quadricycle industry, which  is flat year-to-date.
  • Second quarter defense sales increased low single digits primarily due to timing of orders but the outlook remains strong with increasing DAGOR and RZR and international demand.
  • In international sales Latin America and Asia Pacific sales were strong while EMEA revenue suffered from currency issues and a weak Russian market.
  • Polaris launched their multi-purpose vehicle the Multix in India. The partnership with Eicher will start with 30 dealers and build to 200 by 2020.
  • Revenue guidance for the year is narrowed but essentially unchanged.

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  While the the UTV market may not be growing as fast as previous years, it is still showing signs of strong growth and is outpacing the economy in general. This is despite weaknesses in oil and agriculture driven markets. Competition continues to remain at a high level as exhibited by elevated promotion levels, numerous product introductions and continued product innovation.

What’s Cooking on the STOV: LSV Car Sharing Program

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Highlighting some of the many applications for small, task-oriented vehicles

Mike Lolley of SUMO which has started an LSV based car-sharing program. Photo Credit: Michael Woods, NWA Democrat-Gazzette

Mike Lolley of SUMO which has started an LSV based car-sharing program. Photo Credit: Michael Woods, NWA Democrat-Gazzette

Fayetteville, AK entrepreneurs with a green bent has started a low-speed vehicle based car sharing program. Mike Lolley and Robert Munger of Sustainable Urban Mobility (SUMO) recently started the business after two years of development. Currently 25 people have signed up to share SUMO’s fleet of fourteen vehicles which operate within a radius of five miles of downtown. The LSVs are reserved via text message and can be picked up at one of six locations. Lolley points to saving money and the environment as the two main reasons customers are interested in the service. The city managers see the service as increasing mobility options for residents as well and may make arrangements for SUMO to use certain public parking spaces as pick-up/drop-off locations. A typical parking space can fit three LSVs. An interesting aspect of the program is that there are no keys or fobs since the cars are started by a text message sent to the system. Rates start at $1.50 for a five minute ride and Paypal is the payment system. There is a $20 application fee.  Learn more:  NWAonline.com

 

Comment:  This could be the start of a potentially large market for LSVs and a way for potential buyers to get exposed to LSVs. While there has certainly been an increasing number of LSV based taxi services and rental companies that have popped up around the country, they tend to cater to summer visitors or tourists. This type of car sharing program will attract long-term residents and therefore greatly expands the potential geographical market for LSVs beyond the typical summer vacation communities. Such programs may also provide an opportunity for Google to do some real-life testing of their self-driving LSVs.

E-Z-GO Recalls Gas-Powered Golf, Shuttle and Utility Vehicles

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E-Z-GO has recalled approximately 8,000 vehicles covering a number of gas-powered golf cars, shuttle and utility vehicle models under the E-Z-GO and Cushman brands. The recall involves E-Z-GO gas-powered TXT Fleet golf cars, E-Z-GO Freedom TXT, TXT2+2 and Valor golf cars, E-Z-GO Express, E-Z-GO Terrain and Cushman Shuttle vehicles with bench seats for the driver and passengers. The vehicle gas tanks can potentially leak and pose a fire hazard. Some of the models involved in the recall are pictured below:

E-Z-GO Terrain

E-Z-GO Terrain

Cushman Shuttle

Cushman Shuttle

E-Z-GO TXT

E-Z-GO TXT

The following are the details from the Consumer Safety Product Commission.

Recall Summary

Name of product:  Golf cars, shuttles and off-road utility vehicles

Hazard:  The gas tank can leak, posing a fire hazard.

Remedy:  Repair

Consumer Contact:  E-Z-GO toll-free at (844) 725-7212 between 8 a.m. and 5 p.m. ET Monday through Friday, or online at www.ezgo.com or www.cushman.com and click on Recall Information at the bottom of the page for more information.

Units:  About 8,200

Description

This recall involves E-Z-GO gas-powered TXT Fleet golf cars, E-Z-GO Freedom TXT, TXT2+2 and Valor golf cars, E-Z-GO Express, E-Z-GO Terrain and Cushman Shuttle vehicles with bench seats for the driver and passengers. The E-Z-GO Terrain and the Cushman Shuttle have a cargo bed on the back. The recalled vehicles have date codes ranging from G2015 through L0515. E-Z-GO or Cushman and the model name are printed on the side and front panels of the vehicles. Date codes are printed on a plate or label inside the cab below the driver’s seat. The first letter of the date code identifies the month of production in sequence, with G corresponding to January and L to May. There is no letter I. The first two numbers in the date code identify the two-digit day of production and the final two numbers identify the two-digit year of production.

Incidents/Injuries:  None reported

Remedy:  Consumers should immediately stop using the recalled vehicles and contact E-Z-GO or an authorized dealer for a free repair. E-Z-GO and E-Z-GO dealers are contacting known owners.

Sold at:  E-Z-GO and Cushman dealers nationwide from January 2015 through May 2015 for between $5,300 and $12,100.

Manufacturer(s):  E-Z-GO, a division of Textron Inc. and Textron Specialized Vehicles Inc., of Augusta, Ga.

Manufactured in:  United States

Learn more:  CPSC.gov

Comment:  This is a larger recall than most. While a recall of two to four thousand vehicles is typical, this one is over eight thousand. Luckily there have been no reported incidents or injuries to date. Not sure how much a repair costs, but anything over $100 per vehicle and this could cost E-Z-GO close to $1 million or more.

Yamaha Recalls Golf Cars and Personal Transportation Vehicles

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The Drive PTV from Yamaha is involved in the recall.

The Drive PTV from Yamaha is involved in the recall.

The Adventurer One is another Yamaha model involved in the recall.

The Adventurer One is another Yamaha model involved in the recall.

Yamaha has recalled five 2015 and one 2016 model-year golf cars and Personal Transportation Vehicles (PTVs) because of potential cracking of the front wheel hubs, which can cause the front wheels to detach. The recall involves approximately 2,000 vehicles. To date no injuries or incidents have been reported. The following details are from the Consumer Product Safety Commission.

Recall Details

Units:  About 2,000

Description

This recall involves five 2015 and one 2016 model-year golf cars and PTVs. Recalled models include 2015 “The DRIVE PTV”, “The DRIVE EFI”, “Adventurer One”, “The DRIVE”, “The DRIVE Electric” and 2016 “The DRIVE A.C.” The Yamaha logo is printed on the front of the vehicle. The vehicles were sold in various colors including blue, green, red, white, tan and silver. The serial number can be found on a label under the driver’s seat on the left or right side.
Model Names Model Numbers Serial Numbers
The DRIVE PTV YDRAX5 PTV JC0-606306 through 606698
The DRIVE EFI YDRAX5F JC2-209964 through 210300
Adventurer One YTF1AX5F JW6-700581 through 700600
The DRIVE YDRAX5 JW8-513800 through 514310
The DRIVE Electric YDREX6 AC JW9-515401 through 516300

2016 Model
The DRIVE A.C. YDREX6 AC JC3-001701 through 001900

Incidents/Injuries:  None reported

Remedy:  Consumers should immediately stop using these recalled Golf Cars and PTVs and contact their local Yamaha Golf Car dealer to schedule a free repair.

Sold at:  Yamaha Golf Car dealers nationwide from April 2015 through June 2015 for between $5,900 and $7,500. Yamaha is contacting all registered owners directly.

Distributor(s):  Yamaha Golf Car Company, of Newnan, Ga.

Manufactured in: United States

Comment:  While this is not a particularly large recall the hazard of the wheels potentially detaching is more serious than in many recalls. Given that the vehicles involved were sold only starting in April of this year and no incidents have been reported, Yamaha seems to have identified the problem pretty quickly.

New Zealand Department of Conservation Switching To UTVs

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UTVs like the Honda Pioneer 500 will be replacing ATVs at New Zealand's DOC.

UTVs like the Honda Pioneer 500 will be replacing ATVs at New Zealand’s DOC.

The New Zealand Department of Conservation (DOC) announced that they will be phasing out their fleet of ATVs in favor of UTVs by year end. A key reason of the change is safety, as the organization reported 11 accidents last year on ATVs. The UTVs also can two people, travel across a wider range of terrain and more easily carry or tow gear. Management also likes that the vehicles drive like cars, have rollover protection, lower center of gravity and seat belts. The 200 ATVs the DOC currently has in its fleet will be replaced by 80 UTVs. One vehicle being considered is the Honda Pioneer 500, which is not much wider, 50 inches, than the existing ATVs. Learn more:  Stuff.co.nz

Comment:  The transition from ATVs to UTVs has been one of the drivers the past few years in the growing UTV market, although it has often been discussed in terms of older ATV riders looking for a more comfortable riding experience. The safety aspect is a different perspective but one that can be very important for commercial and institutional buyers. Given the numbers discussed in this situation, 200 down to 80, the cost savings could be significant as well depending on what types of ATVs and UTVs are involved.

Eicher Polaris JV Launches Multix: A Personal Utility Vehicle for Indian Market

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The Multix utility vehicle, the first offering from the Eicher-Polaris joint venture.

The Multix utility vehicle, the first offering from the Eicher-Polaris joint venture.

Eicher Polaris Pvt. Ltd., a 50:50 joint venture between Eicher Motors Ltd and Polaris Industries Inc., launched the Multix India’s  first personal utility vehicle. The Multix, available in two versions and four colors, is targeting the “independent businessman”. The Multix is being positioned as a versatile vehicle that can be used for both business and family purposes. Management estimates the market size to be 60 million households. From initial idea to launch took Eicher and Polaris about five years and $60 million. Extensive consumer testing was performed to identify the market and test the concept. The Multix is being viewed as launching a new vehicle category. Initial production is expected to be 5,000 vehicles per month and the manufacturing facilities can expand to handle twice that volume.

Key features of the Multix include:

  • 500cc Diesel engine
  • Cabin space that can comfortably seat a family of five along with luggage
  • Multix can be adapted to create large storage space of 1918 liters.
  • X-PORT a unique power-take-off point, which can generate power of up to 3 KW that can be used for lighting homes and powering professional equipment
  • Pro Ride Independent suspension system
  • Ground clearance of 225mm,
  • Mileage of 28.45 kmpl.
  • Tubular frame structure and Roll-Over Protection System (ROPS) 
  • Flexituff body

The two Multix versions are priced at 3,620 USD or 2.32 Lakh and 4,245 USD or 2.72 Lakh. The vehicle will be launched in 30 cities with test drives starting in July and deliveries in August. Learn more: Equitybulls.com

Comment:  In contrast to the US market where a crossover utility vehicle means a vehicle for work and play, in the Indian market it means work and family use. This utility vehicle/mini-truck market is very dynamic. Not only do you have new entrants like Eicher-Polaris with the Multix, but there are also a number of startups receiving venture capital that are targeting the independent delivery/shipping market that utilize these vehicles. These companies are using software and other technology to make the process of locating and quickly accessing a shipper much more efficient. This could prove to be another catalyst for the vehicle market.

BRP Announces FY2016 First-Quarter Results

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New for 2016 is the Commander Mossy Oak Hunting Edition

New for 2016 is the Commander Mossy Oak Hunting Edition which is targeting the hunting segment, an untapped segment for Can Am according to management.

BRP, manufacturer of Can-Am side-by-sides, announced their first quarter results for fiscal year 2016 which ended April 30, 2015. The following is a summary of the earnings call as it relates to the STOV market. Financial figures are in Canadian dollars and comparisons are between first quarter FY2016 and first quarter FY2015 unless otherwise noted.

  • Revenues for the quarter increased 18% to $898.1 million compared to the first quarter in FY2015 and were slightly better than planned
  • Revenue from Year-Round Products that include side-by-sides, ATVs and the Spyder increased 8.9% from $365.4 to $398.1
  • Year-Round Products was driven by the introduction of the Maverick X ds side-b-side models and overall industry growth
  • NA side-by-side retail sales up mid-single digits % for the first 10 months of the model year starting last July
  • Management estimates the NA side-by-side market increased model year to date mid-teens % with growth in the utility and sport categories but the recreation/utility segment (Can-Am Commander) is shrinking
  • Can-Am is behind plan in the the sport category but 2016 model year includes a higher horsepower models including one that fills in a lower price point
  • Management reports increased competition in the NA side-by-side market in the last six months
  • BRP is targeting the hunting segment, an untapped potential market for Can-Am, with both ATVs and UTVs and their new partnership with Mossy Oak which produces camouflage designs
  • Mossy Oak will be using Can Am products when showcasing their designs
  • Management estimates that there are 15 million hunters in NA and a high percentage use ATVs and UTVs
  • Comments by management indicate that BRP will enter the utility side-by-side segment in the relatively near future
  • Management expects Year-Round Products to grow revenue by 7-11% for FY2016

Learn more:  BRP.com