Category Archives: Sales figures

Textron Recalls Arctic Cat Wildcat Trail & Sport UTVs

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2014 Arctic Cat Wildcat Trail

This 2014 Arctic Cat Wildcat Trail is part of the recall.

Textron Specialized Vehicles, which acquired Arctic Cat earlier this year, has announced the recall of model year 2014 to 2017 Arctic Cat Wildcat Trail side-by-sides and model year 2015 to 2017 Arctic Cat Wildcat Sport side-by-sides. Heat from the vehicle’s exhaust can melt the plastic panels behind the operator and passenger seats and pose a fire hazard. The recall involves approximately 14,100 units in the US, 5,300 in Canada and 100 in Mexico of the two seat side-by-sides. Consumers should stop using the vehicles and contact Arctic Cat to schedule a free repair.

This is a large recall compared to what we usually see in the market, which is typically several thousand and less frequently more than 10,000 vehicles. Textron only recently acquired Arctic Cat and is still integrating the business into their Textron Specialized Vehicles division. They are keeping the Arctic Cat name for the Wildcat products under their newly formed Textron Off Road brand. Management is probably not thrilled with this unanticipated and added expense related to the acquisition.

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

Name of product:  Arctic Cat recreational off-highway vehicles (ROVs)
Hazard:  Heat from the exhaust can melt the plastic panels behind the operator and passenger seat, posing a fire hazard.
Recall date:  October 27, 2017
Recall number:  18-017
Consumer Contact:  Arctic Cat 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 Product Recall for more information.

 

Recall Details

Description:  This recall involves all model year 2014 through 2017 Wildcat Trail and 2015 through 2017 Wildcat Sport models of Arctic Cat ROVs. The recalled vehicles were sold in multiple colors, have four wheels and side-by-side seating for two people. “Wildcat Trail” or “Wildcat Sport” is printed on each side of the vehicle.

Remedy:  Consumers should immediately stop using the recalled ROVs and contact Arctic Cat to schedule a free repair. Arctic Cat is contacting all known purchasers directly. If you need assistance locating an authorized dealer to conduct this repair, contact Arctic Cat.

Incidents/Injuries:  The firm has received 444 reports of the plastic panels melting, with five resulting in fires. No injuries have been reported.

Sold At:  Arctic Cat dealers nationwide from December 2013 through August 2017 for between $10,500 and $19,500.

Manufacturer(s):  Arctic Cat Inc., of Thief River Falls, Minn., a subsidiary of Textron Specialized Vehicles, of Augusta, Ga.

Manufactured In:  U.S.

Units:  About 14,100 (In addition, 5,300 were sold in Canada and 100 in Mexico)

Learn more:  CPSC.gov

Textron Q3 2017 Earnings Report

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Textron Off Road Wildcat X LTD

The 2018 Wildcat X LTD now under the Textron Off Road brand rather than Arctic Cat.

Textron reported third quarter revenues of $3.5 billion, up 7.2% from the third quarter 2016, while profit decreased $15 million for the quarter to $295 million. “Growth in the third quarter was the result of strong commercial demand at Bell, increased deliveries at Textron Systems and higher revenues at Industrial due to the acquisition of Arctic Cat,” said Textron Chairman and CEO Scott C. Donnelly.

Textron has folded Arctic Cat into their Specialized Vehicles division which also includes E-Z-GO, Cushman and other brands. They recently merged their Stampede, Bad Boy Off Road and Arctic Cat lines under the Textron Off Road brand. This includes a pared down lineup of previous Arctic Cat models and the introduction of Bad Boy electric vehicles under the Prowler model name. The following are highlights from the earnings call that relate to STOV vehicles.

  • Management reports putting a lot of resources into the integration of Arctic Cat and the process is proceeding on plan
  • The plan involved moving dirt manufacturing to Thief River and centralizing engine manufacturing in St. Cloud, as well as, clearing dealer inventory and educating them about the new lineup of vehicles under the Textron Off Road brand
  • The launch of the lithium ion battery powered golf products has gone “extremely well”
  • Side-by-side sales year over year did well, in part from clearing out inventory
  • Management reports good uptake by dealers of non-Arctic Cat products such as the Stampede and the recently announced Prowler EVs

Learn more:  Seekingalpha.com (Earnings call transcript)

Polaris Q3 2017 Earnings Report

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2018 Polaris Ranger XP 1000 EPS

The new 2018 Polaris Ranger XP 1000 EPS helped drive sales in the third quarter for Polaris.

Polaris Industries reported third quarter 2017 sales of $1,478.7 million, up 25 percent from $1,185.1 million for the third quarter of 2016. Off-Road/Snowmobile segment reported sales of $1.01 billion up 12% and Global Adjacent Markets, which includes GEM, Taylor-Dunn and Aixam among other brands, increased 17% to $91.5 million.

It was a strong quarter for Polaris, in part, because it is being compared to a weak third quarter in 2016 and aided by higher promotional spending. On the other hand, management reports that the quarter also compared favorably to their 2015 third quarter, which was the last quarter before recall issues hit them hard. Looking behind the numbers a more accurate description may be a solid quarter that shows Polaris has stemmed the tide and gaining momentum again in the side-by-side and ATV markets. The following are highlights from the earnings call related to side-by-sides and other small, task-oriented vehicles.

  • Side-by-side wholesale sales were strong worldwide
  • ORV retail sales in North America were up mid-teens percent with both side-by-sides and ATVs up mid-teens
  • Management reports gaining market share in RZR, Ranger and ATV segments
  • ORV industry sales in North America increased high single digits percent for the quarter
  • The oil & gas and farm markets improved but are neither a drag or driving industry growth
  • ORV retail was up double digits in September as momentum carried through the quarter
  • RZR retail sales were very strong in the quarter as well as ATV sales
  • The Ranger XP 1000 was launched during the quarter
  • Strong promotional spending helped drive sales during the quarter but Polaris performed well relative to other manufacturers with similar spending.
  • Promotional spending was also used to help clear out inventory before new model year arrivals.
  • Management reports strong dealer orders for the Ranger XP 1000 and the RZR Dynamics products
  • In Europe Aixam quadricycles and Goupil light utility vehicles grew 17% for the quarter at the wholesale level
  • Guidance:
    • Total company sales are expected to be up in the range of 18% to 19% with increased guidance for ORV/Snowmobile sales, which are now expected to increase in the mid-single digit range year-over-year
    • Global Adjacent Markets guidance is increased to low double digits due to strong sales across the portfolio
    • Lower promotional spending is expected in the 4th quarter compared to previous year and quarter

Learn more:  Seekingalpha.com (Earnings call transcript)

Marc Cesare, Smallvehicleresource.com

Polaris Recalls ACE 325 Vehicles

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Polaris ACE 325 recall

The 2014 Polaris ACE 325 is part of the recent recall.

Polaris recently announced a recall of approximately 6,300 ACE 325 off-road vehicles. The exhaust header pipe can crack and release hot exhaust gases into the engine compartment, posing fire and burn hazards. The recall involves model year 2014 through 2016 vehicles. Owners should stop using the vehicles and contact Polaris (800-765-2747) to schedule a repair.

This recall continues a string of recall involving Polaris off-road vehicles. Although much smaller than the previous very large recalls from Polaris the past three years it is sizable compared to the more typical recalls in the market. With this recall Polaris has now recalled vehicles across all their side-by-side product lines including RZR, Ranger, General and ACE in the past two to three years.  While management reports implementing stricter quality standards and a more robust system for tracking vehicle issues, there are a large number of older model Polaris vehicles still in use and manufactured under their previous processes. Polaris could be still be facing additional recalls from older models already in the market, and the improved tracking system may also be more likely to bring any issues to light. As difficult as it has been for the company to address the underlying issues, in the long term, the changes should produce safer and better products.

The following recall information is from the Consumer Product Safety Commission

Name of product:  Polaris ACE 325 recreational off-highway vehicles (ROVs)
Hazard:  The exhaust header pipe can crack and release hot exhaust gases into the engine compartment, posing fire and burn hazards.
Recall date:  October 17, 2017
Recall number:  18-011

Recall Details

Description:   This recall involves all model year 2014 through 2016 Polaris ACE 325 recreational off-highway vehicles (ROVs). The recalled ROVs have a single seat and were sold in white, green and red. For model year 2014 and 2015 ATVs, “Polaris” is printed on the front grill and “Ace” is printed on the rear panel. For model year 2016 ATVs, “Polaris” is printed on the front grill and “Polaris Ace” is printed on the rear panel. The VIN is printed on the right front frame of the vehicles.

 

Year Model Description
2014 A14BH33AJ Ace 325 in white
2015 A15DAA32AA Ace 325 in green
2015 A15DAA32AJ Ace 325 in white
2016 A16DAA32A1 Ace 325 in green
2016 A16DAA32A7 Ace 325 in red
Remedy:   Consumers should immediately stop using the recalled ROVs and contact Polaris to schedule a free repair. Polaris is contacting all known purchasers directly.
Incidents/Injuries:  Polaris has received six reports of cracked exhaust pipes, including two reports of seat damage due to melting. No fires or injuries have been reported.
Sold At:  Polaris dealers nationwide from December 2014 through July 2017 for about $7,500.
Manufacturer(s):  Polaris Industries Inc., of Medina, Minn.
Manufactured In: U.S.
Units:  About 6,300
Consumer Contact:  Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.com and click on “Off Road Safety Recalls” for more information. In addition, check your vehicle identification number (VIN) on the Product Safety Recalls page to see if your vehicle is included in any recalls.
Learn more:  CPSC.gov

BRP Announces FY18 Q2 Quarterly Results

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Maverick X3 X RS Turbo R

The Maverick X3 X RS Turbo R helped drive strong sales in the second quarter.

BRP, manufacturer of Can-Am products, recently announced their financial results for the second quarter of their 2018 fiscal year which ended July 31, 2017. (All dollar amounts are in Canadian dollars.) Revenues increased 20% for the quarter to $1,027 million driven by strong demand in side-by-side and personal watercraft. Net income increased $168.9 million to $100.1 million.

It was a strong quarter for BRP and they continue to make solid gains in the UTV market and continue to take market share. The Defender line continues to meet with success on a quarter to quarter basis. The company has built out their dealer network and are looking to improve dealer performance. Look for them to introduce additional models on a regular basis.

The following are additional highlights from the earnings call and presentation that relate to the utility vehicle market.

  • Company introduced the 172hp Can-Am Maverick X3 Turbo R model during the quarter
  • North American retail sales for side-by-sides increased 50% for the quarter in an industry that grew low teens %.
  • North American ATV retail sales grew high teen % in an industry that grew low single digit %.
  • For side-by-side model year ending June 30, Can-Am retail sales grew mid-thirties % in an industry up mid-single digit %.
  • The X3 and the Defender line are particularly strong performers.
  • Side-by-side sales are driving parts, accessories and clothing revenue hire
  • Management is seeing results from improving dealer performance and is concentrating on that area rather than looking to add new dealers. Nearly 300 dealers were added in the last four years.
  • Side-by-side sales outside of North America are very strong as well.
  • Management reports that promotional activity in the ATV and side-by-side market is high with many new models being introduced and OEMs looking to reduce inventory.

Polaris Issues Recall of 1,600 General UTVs

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2017 Polaris General Base

The 2017 Polaris General Base model in red is part of the recall.

2017 Polaris General Hunter

The Hunter version is recalled as well.

Polaris Industries recently announced the recall of approximately 1,600 2017 General utility vehicles due to inconsistent tire pressure information which could result in improperly-inflated tires, posing a crash hazard. The affected models are the Base model in red and the Hunter model in camo. No injuries have been reported related to this recall. Owners should immediately stop using the recalled vehicles and contact Polaris for a new tire pressure label and addendum to the owner’s manual. Polaris can be contacted at 800-765-2747 or at www.polaris.com for more information.

This is a relatively small recall compared to many of the industry recalls. In addition, the cost to Polaris for addressing the issue would appear to be minor. SVR tracks industry recalls and has compiled an ongoing list.

The complete recall information from the Consumer Safety Product Commission follows.

Recall Details

Description:  This recall involves all model year 2017 Polaris GENERAL Base and GENERAL Hunter two-seat, side-by-side recreational off-highway vehicles (ROVs). The GENERAL Base was sold in red and the GENERAL Hunter was sold in camo. “Polaris” is printed on the front grill, “GENERAL” is printed on the rear panel and “1000” is printed on the front panel. The VIN is printed on the left rear vehicle frame below the cargo box.
Remedy:  Consumers should immediately stop using the recalled vehicles and contact Polaris for a new tire pressure label and addendum to the owner’s manual. All known purchasers are being contacted directly by the firm.
Incidents/Injuries:  None reported
Sold At:  Polaris dealers nationwide from June 2016 through July 2017 for between $16,300 and $19,000.
Manufacturer(s):  Polaris Industries Inc., of Medina, Minn.
Importer(s):  Polaris Industries Inc., of Medina, Minn.
Manufactured In:  U.S. and Mexico
Units:  About 1,600
Learn more:  CPSC.gov
Marc Cesare, Smallvehicleresource.com

New SVR Market Study Predicts Solid Growth For STOVs

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In a new market study on the small task-oriented vehicle (STOV) market in the US and Canada, Small Vehicle Resource (SVR), LLC predicts growth over the 2017-2021 period. The market research reveals four trends coming together that will result in market gains of mid to high single digits in the forecast period and an industry value in the range of $15.8 billion at retail including parts and accessories.

  • Growing appreciation in a highly diverse market for the effectiveness of STOVs specifically designed to meet individual segment needs;
  • Increasing competition that will drive new product development as manufacturers seek to strengthen current market strongholds and stake out additional market segments with new and/or expanded product lines;
  • Continuing focus on accessories and attachments to enhance the versatility and value of STOVs, boost revenues and supplant other vehicle types such as pick-ups and tractors for work and full-size vehicles for transportation;
  • Golf manufacturers emphasizing non-fleet markets over the continuing slow/negative growth golf car fleet market.

Steve Metzger, SVR Managing Director, states that, “While the fleet market remains in a downsizing mode, it is a marginal decline. It will remain a significant component of the golf car-type vehicle market. On the other hand, SVR forecasts continued sizable gains in the non-fleet market, including light utility and transporter vehicles and personal transportation vehicles.” Metzger also notes, “SVR anticipates that important new opportunities lie ahead, including self-driving technology applications, as well as potential for a much broader market on a global basis.”

Marc Cesare, SVR Managing Director adds, “The off-road utility vehicle market continues to be a competitive vortex for golf car manufacturers seeking new markets, the powersports industry, and traditional manufacturers of work related utility vehicles. While market growth will be slower than the recent high growth years, it remains solid,” Cesare notes, “ and competition will drive product innovation in both base vehicles as well as options and attachments that improve vehicle performance and versatility.”

Approximately a third of the market value is from electric powered STOVs, primarily in the form of golf cars or golf car derived utility vehicles and personal transportation vehicles (PTVs). PTVs are golf cars modified for gated community or low speed public road use and include low speed vehicles (LSVs). Key trends and projections for the market include:

  • In total, demand for electric powered STOVs will increase to over 300,000 vehicles in 2021.
  • The demand for non-fleet golf car type vehicles will more than offset the slight decline in the fleet golf car market, moving from under 50% of the total demand to over 50%.
  • Light utility vehicles produced by golf car and other manufacturers are expected to grow approximately 10% annually to 2021.
  • PTVs will continue to grow low single digits during the trend period and electric powered PTVs will slowly increase to represent nearly 75% of the market by 2021. LSVs will account for about one-fifth of the PTVmarket.

Metzger, states that, “The potential for even greater electric powered STOV growth is there. In the PTV market the combination of market forces and emerging technologies could greatly increase the applicability of PTVs. Increasing urbanization is expected to create congestion and pollution issues, and the search for new transportation solutions. The advent of self-driving vehicle technology along with improved battery technology creates the potential for mobility platforms that can in part be based on small PTVs.” He further notes, “Gated communities with their more controlled environments could prove to be excellent testing grounds and the concepts could then migrate to urban environments that are well suited to low speed vehicle operations.”

The new study, the eighth in the series of studies produced by SVR since 2000, covers utility, off-road, and personal transportation vehicles, and fleet golf cars.

The study is entitled, 2017 Market Report on the Small, Task-Oriented Vehicle Industry: Transition and Growth –Trends from 2012; Forecasts to 2021. 

For additional, detailed information on study content a brochure is available with a table of contents ( Small Task-Oriented Vehicle Study – Analysis & Forecast (PDF)) or contact:

Steve Metzger,  smetzger@smallvehicleresource.com

(914) 293-7577

Polaris Industries Q2 2017 Earnings Results

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RZR XP 4 Turbo EPS

RZR sales showed improvement in the quarter compared to the prior year results hurt by recall issues.

Polaris Industries recently announced their quarterly earnings results for the second quarter of the 2017 fiscal year. The quarter ended June 30, 2017. Management reported second quarter sales of $1,364.9 million, up 21% from second quarter 2016. Net income for the quarter was $62.0 million compared to $71.2 the prior year, and included some one-time expenses.

The following are some of the highlights of the earnings call related to small, task-oriented vehicles:

  • ORV sales increased 6% for the quarter
  • North American ORV unit retail sales for the second quarter of 2017 were down low-single digits percent from the 2016 second quarter as UTV sales increased low single digits but ATVs sale declined high single digits in a weak ATV market
  • Polaris ATVs lost market share in a heavy promotional environment
  • RZR retail turned positive while Ranger retail was flat for the quarter in a highly competitive segment with significant promotional activity
  • The General UTV product line has been good and the segment offers good opportunities according to management
  • Agriculture markets remain weak while oil markets are improving
  • Global Adjacent Markets segment sales increased 7% driven by the Work & Transportation group with good performances from Aixam quadricycles and Goupil light utility vehicles
  • Management expects Global Adjacent Market segment to increase mid-single digits percent for the year
  • Side-by-sides are expected to drive the improved guidance for the ORV/Snowmobile segment, which is now expected to see flat sales year-over-year

Learn more:  Seekingalpha.com (Earnings call transcript)

Cub Cadet Recalls UTVs Due to Brake System Issue

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2016 Cub Cadet Challenger

2016 Cub Cadet Challenger CX500 and CX700 models are being recalled.

2016 Cub Cadet Challenger CX750 Crew

The 2016 Cub Cadet Challenger CX750 is part of the recall as well.

Cub Cadet recently announced the recall of approximately 4,000 2016 Cub Cadet Challenger CX500, CX700 and CX750 Crew utility vehicles. Air in the brake system can cause brake failure and pose a crash hazard to drivers or bystanders. Cub Cadet has received 80 reports of brake failures but no reports of injuries. Consumers should immediately stop using the vehicles and contact their Cub Cadet dealer for a free repair.

While not a large recall in relation to typical UTV recalls, this recall is large for a smaller volume brand such as Cub Cadet. In addition, these vehicles are part of their newest Challenger line which the company has used to revive their utility vehicle product offerings.

The following is information from the Consumer Product Safety Commission.

Name of product:  Cub Cadet 2016 Challenger utility vehicles

Hazard:  Air in the brake system can cause brake failure, posing a crash hazard to the user or bystander.

Remedy:  Repair

Recall date:  July 6, 2017

Recall number:  17-753

Recall Details

Description:  This recall involves four-wheel drive Cub Cadet 2016 Challenger utility vehicles. Model numbers included in the recall are: CX500 (37AW7CKD010, 37AW7CKD710, 37AW7CLD010, 37AW7CLD710, 37AW7CMD710, 37AW7CND710); CX700 (37AX7CKD010, 37AX7CKD710, 37AX7CLD010, 37AX7CLD710, 37AX7CMD710, 37AX7CND710); and CX750 Crew (37AY8CKD710, 37AY8CLD710, 37AY8CMD710, 37AY8CND710). The utility vehicles were sold in yellow, red, blue and camouflage. The recalled vehicles were manufactured between March 2016 through November 2016. A label located under the driver’s seat lists the model number and the month and year of manufacture.

Remedy:  Consumers should immediately stop using the recalled vehicles and contact an authorized Cub Cadet dealer or Cub Cadet customer service to arrange for a free repair.

Incidents/Injuries:  Cub Cadet has received 80 reports of brake failure. No injuries have been reported.

Sold At:  Independent Cub Cadet dealers nationwide from March 2016 through May 2017 for between $8,500 to $9,500.

Manufacturer(s):  Hisun Motors Corp. U.S.A., of McKinney, Texas

Manufactured In:  China

Units:  About 4,000

Learn more:  CPSC.gov

GEM Recalls Certain 2016-17 Models

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The 2016 GEM e2.

Polaris Industries recently announced a recall of certain model year 2016 and 2017 GEM electric vehicles because lug nuts on the front wheels can loosen and the front wheels potentially detach. The recall pertains to certain GEM E2, E4, E6 and ELXD models with steel wheels. As many as 1,254 vehicles may be affected. GEM will notify owners and is currently finalizing a remedy.

Given their recall troubles in the side-by-side market, this is unwelcome news for Polaris. While the number of vehicles affected pales in comparison to the massive RZR and Ranger recalls, it is a sizable chunk of their total annual sales of GEMs. Only a few thousand GEMs are sold annually. The 2016 model year GEMs represented a major relaunching of the line. Earlier this year there was another recall for these vehicles related to the drive mode switch.

Marc Cesare, Smallvehicleresource.com

The following information is from the National Highway Traffic Safety Administration (NHTSA)

April 26, 2017 NHTSA CAMPAIGN NUMBER: 17V279000

Front Steel Wheel Lug Nuts may Loosen
If a wheel separates from the vehicle, it can increase the risk of a crash.

NHTSA Campaign Number: 17V279000

Manufacturer Polaris Industries, Inc.

Components WHEELS

Potential Number of Units Affected 1,254

Summary

Polaris Industries, Inc. (Polaris) is recalling certain 2016-2017 GEM E2, E4, E6, and ELXD electric vehicles, equipped with steel wheels. The lug nuts on the front wheels may loosen, potentially resulting in a front wheel detaching from the vehicle.

Remedy

GEM will notify owners. The manufacturer has not yet finalized a remedy plan, nor provided a notification schedule. Owners may contact GEM Consumer Service Department at 1-855-743-3436. Polaris’ number for this recall is L-17-01.

Notes

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

8 Affected Products
Vehicles

MAKE MODEL YEAR

GEM E2 2016-2017
GEM E4 2016-2017
GEM E6 2016-2017
GEM ELXD 2016-2017