Polaris Recalls Summary

In July Polaris announced two recalls involving vehicles from different product lines. The first involved model year 2019-20 Ranger XP 1000 and model year 2020 General XP 1000 vehicles. The second recall covers model year 2020 Ranger XP 1000 and Ranger Crew XP 1000, MY2019 – 2020 PRO XD 4000D UTVs, MY2019 PRO XD 2000D UTVs and MY2020 Bobcat UV34 and UV34XL UTVs. In the first recall the throttle can fail to return to the idea position after the engine stalls and is restarted in gear. In the second recall an improperly manufactured clutch component can cause engine braking to fail. The two recalls cover about 42,000 vehicles.

Polaris Recalls Details

The following details are from the Consumer Products Safety Commission.

First Recall

Name of product: Model Year 2019 – 2020 Ranger XP 1000 & Model Year 2020 General XP 1000 Utility Vehicles (UTVs)

Hazard: The throttle can fail to return to the idle position after the engine stalls and is restarted in gear without switching the key to the off position due to a software problem, causing the vehicle to accelerate suddenly, posing a crash hazard to the user.  

Recall date: July 2, 2020

Units:  About 26,730 (In addition, 1,330 units were sold in Canada)

Consumer Contact: Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.comand 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.

Description: This recall involves Model Year 2019 Polaris Ranger XP 1000 EPS, Ranger CREW XP 1000, and Model Year 2020 Polaris Ranger XP 1000, Ranger CREW XP 1000, General XP 1000 Deluxe and General XP 4 1000 Deluxe.  The vehicles were sold in gray, blue, white, red, green camo, orange, sand and maroon colors and have two or four seats.  “POLARIS” is stamped on the front grille and “Ranger” or “General” is printed on the sides of the rear cargo area.  Vehicle identification numbers (VIN) included in this recall can be found stamped into the left rear vehicle frame below the cargo box.  The following model names  are included in this recall:  

 Remedy:  Consumers should immediately stop using the recalled vehicles and contact a Polaris dealer to schedule a free inspection and repair.  Polaris is notifying dealers and contacting registered owners directly.

Incidents/Injuries:  None reported.

Sold At: Polaris dealers nationwide from June 2018 through March 2020 for between $15,890 and $29,000.

Manufacturer(s): Polaris Industries Inc., of Medina, Minn.Manufactured In: United States, Mexico and Poland

Recall number: 20-758

Second Recall

Name of product: Model Year 2020 Ranger XP 1000 and Ranger CREW XP 1000 Off-Road Vehicles, Model Years 2019 – 2020 PRO XD 4000D UTVs, Model Year 2019 PRO XD 2000D UTVs and Model Year 2020 Bobcat UV34 and UV34XL UTVs.

Hazard: An improperly manufactured clutch component can cause the engine braking feature to fail, resulting in unexpected vehicle motion, posing a crash hazard.

Recall date: July 23, 2020

Units:  About 13,200 (In addition, 515 units were sold in Canada)

Consumer Contact: Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.comand 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.

Description: This recall involves Model Year 2020 Ranger XP 1000 and Ranger CREW XP 1000 Off-Road Vehicles, Model Years 2019-2020 PRO XD 4000D UTVs, Model Year 2019 PRO XD 2000D, and Model Year 2020 Bobcat UV34 and UV34XL UTVs.  The vehicles were sold in maroon, black, sand, green, orange, blue, camo, gray and white colors and have two or four seats.  For PRO XD and Ranger models, “POLARIS” is stamped on the front grille and “POLARIS PRO XD” or “Ranger” is printed on the sides of the rear cargo area.  For Bobcat models, “Bobcat” is printed on the sides of the rear cargo area.  The VINs included in this recall can be found stamped into the left rear vehicle frame below the cargo box. 

The following model names are included in this recall:

 Remedy:  Consumers should immediately stop using the recalled vehicles and contact a Polaris dealer to schedule a free inspection and repair, if needed.  Polaris is notifying dealers and contacting registered owners directly.

Incidents/Injuries:  The firm has received 14 reports of unexpected motion or drive clutch locking, including one report of a crash resulting in property damage.  No injuries have been reported.

Sold At: Polaris dealers nationwide from September 2019 through April 2020 for between $14,600 and $26,300.

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

Manufactured In:  United States and Poland

Recall number: 20-765

Report an Incident Involving this Product 

SVR’s Take

Despite Polaris’ efforts to improve their quality they continue to have recall that effect a large number of vehicles. They are the largest manufacturer in the market so they should have the most recalls, all else being equal. But they seem to have a disproportionate number of vehicles recalled. They had large recalls in April of this year as well. SVR tracks UTV recalls on an ongoing basis.

CFMoto Recall Summary

In September CFMoto announced two recalls involving their ZForce 950 side-by-sides. The first recall affected the 2020 model year vehicles. A fuel line issue could potentially create a fire hazard. This recall covered about 500 vehicles. The second recall pertains to model year 2020 and 2021 vehicles and overlapped with the first recall. In the second recall the gas pedal could fail to return quickly to idle and potentially create a crash hazard. This recall includes approximately 627 vehicles.

CFMoto Recall Details

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

First CFMoto Recall

Name of product: 2020 ZFORCE 950 Sport Recreational Off-Highway Vehicles (ROVs)

Hazard: The fuel line fitting on the vehicles can fail to securely lock onto the fuel injector inlet.  This can allow fuel to spill onto the hot engine parts and ignite, posing a fire hazard. 

Recall date: September 3, 2020

Units: About 500

Consumer Contact: CFMOTO toll-free at 888-823-6686 from 8 a.m. to 5 p.m. CT, Monday through Friday, email info@cfmotousa.com or online at www.cfmotousa.com and click on Customer Care, then Vehicle Safety for more information.  

Description: This recall involves the 2020 ZFORCE 950 Sport ROV with a 963cc 4-cycle engine.  Vehicles colors are red or gray with the CFMOTO logo in the center of the front grille.  The model name is located on each side of the vehicle doors.  The model year 2020 ROVs will have the L in the 10th position of the vehicle identification number (VIN).  The VIN number is stamped on the right side frame rail, behind the right rear tire.           

Remedy:  Consumers should immediately stop using the recalled ROVs and contact a CFMOTO dealer to schedule a free repair.  CFMOTO is contacting all registered owners and dealers directly.

Incidents/Injuries:  CFMOTO has received two reports of the fuel injector connection not fully secure and locked in place, causing a fuel leak.  One of the incidents resulted in a vehicle engine fire.  No injuries have been reported.

Sold At: CFMOTO dealers nationwide from June 2020 through August 2020 for about $13,000.

Importer(s):  CFMOTO Powersports Inc., of Plymouth, Minn.

Manufactured In: China

Recall number: 20-776

Second CFMoto Recall

Name of product: 2020 and 2021 ZFORCE 950 Sport Recreational Off-Highway Vehicles (ROVs)

Hazard: The throttle gas pedal can fail to return quickly to the idle position which can create a crash hazard if the vehicle does not slow down as quickly as expected by the driver when the gas pedal is released. The throttle gas pedal can fail to return quickly to the idle position which can create a crash hazard if the vehicle does not slow down as quickly as expected by the driver when the gas pedal is released.

Recall date: September 24, 2020

Units: About 627 (2020 ROVs were previously recalled for a fire hazard on 09/03/2020)   

Consumer Contact: CFMOTO toll-free at 888-823-6686 from 8 a.m. to 5 p.m. CT, Monday through Friday, email at info@cfmotousa.com or online at www.cfmotousa.com and go to Customer Care, then Vehicle Recall for more information.

Description: This recall involves the 2020 and 2021 ZFORCE 950 Sport ROV with a 963cc 4-cycle engine.  Vehicles colors are red, silver or gray with the CFMOTO logo in the center of the front grille.  The model name is located on each side of the vehicle doors.  The model year 2020 ROVs will have the letter L in the 10th position of the vehicle identification number (VIN).  The model year 2021 ROVs will have the letter M in the 10th position of the vehicle identification number (VIN).  The VIN number is stamped on the right-side frame rail, behind the right rear tire. 

Remedy:  Consumers should immediately stop using the recalled ROVs and contact a CFMOTO dealer to schedule a free repair.  CFMOTO is contacting all registered owners and dealers directly.

Incidents/Injuries: CFMOTO has received two reports of the throttle pedal assembly malfunctioning.  No injuries have been reported.

Sold At: CFMOTO dealers nationwide from June 2020 through September 2020 for about $13,000.

Importer(s):  CFMOTO Powersports Inc., of Plymouth, Minn.

Manufactured In: China

Recall number: 20-781

Report an Incident Involving this Product 

SVR’s Take:

CFMoto has only had one other recall in the last five years. SVR tracks recalls on an ongoing basis. They had a recall in 2018 that also involved a problem with the gas pedal. Throttle and fuel line problems are fairly common issues behind recalls.

Arcimoto and ElectraMeccanica recently reported progress in bringing their three-wheeled electric vehicles to commercial success. The Fun Utility Vehicle (FUV) from Arcimoto and the SOLO from ElectraMeccanica could potentially make inroads into the PTV market now dominated by golf car manufacturers.

SOLO Begins Production

ElectraMeccanica announced the start of production of their three-wheeled Solo electric vehicle. The company’s manufacturing partner and strategic investor Zongshen Industrial Group is producing the vehicle. According to management, the single-occupant vehicle fills a “…niche between last-mile micro-mobility solutions and larger, under-utilized passenger cars.” According to a company presentation the three target markets are urban mobility, vehicle share programs and deliveries/utility fleets. The SOLO distribution will start on the coast beginning with three existing ElectraMeccanica retail locations in Los Angeles, CA, Scottsdale, AZ and Portland, OR. Management expects initial deliveries to occur in late November or early December.

SOLO Specs

The SOLO is highway capable with a range of 100 miles and a top speed of 80 mph. The vehicle features front and rear crumple zones, side impact protection, roll bar, torque-limiting control, as well as power steering, power brakes, air conditioning and a Bluetooth entertainment system. The SOLO’s price is $18,500.

Arcimoto Plans Progressing Despite COVID

Arcimoto continues to make progress with their Fun Utility Vehicle (FUV) and is slightly ahead of the SOLO. Arcimoto has already produced or have in production over 110 vehicles and have nearly 4,400 pre-orders. In a recent earnings call (seekingalpha.com) the CEO outlined ambitious plans to increase annual production capabilities from about 5,000 at their current facility to 50,000 in 24 months. While COVID restrictions caused suspension in manufacturing the company is currently hoping to ramp up production to three vehicles a day by the end of the year. They have also enlisted the engineering expertise of Sandy Munro of Munro & Associates. The aim is to improve quality, lower costs and enable scalability to higher production volume. They have already been able to identify nearly 400 “low handing fruit” improvements.

FUV Specs and Target Market

The FUV is more a platform rather than one specific vehicle. The initial FUV is a two passenger version for people transport. Since then the company has rolled out the Deliverator version for last mile deliveries and the Rapid Responder for emergency response such as EMT, police and fire use. The two-seat FUV has a 75 mph top speed and 102 mile range. Other features include hydraulic and regenerative assist brakes, heated seats and hand grips, lockable rear storage, bluetooth speakers and half doors. Full doors are under development. Target markets include urban/suburban commuting, vacation rental fleets, last mile delivery, emergency response and gated communities. For the latter, a speed limiter can make the vehicle available for use on golf courses. The FUV is assembled in Oregon. The FUV’s price is $19,900. A key moving forward is producing at much higher volumes to lower the price point.

SVR’s Take on Three Wheeled Vehicles

Three-wheeled vehicles have the advantage of being classified as motorcycle type vehicles in most states rather than cars. This reduces the need for more expensive safety features and allows them to be highway capable as well.

I believe Arcimoto’s approach to the market will be more successful in the long run. The FUV appears to be a more flexible platform for addressing multiple end-uses. This approach has proven successful for golf car manufacturers in the small, task-oriented vehicle market. The FUV is both tangential to that market and will be directly competing with those manufacturers in some markets. The Deliverator could certainly be used for some on campus and light utility applications. The highway capability of the FUV makes it much more versatile than a PTV or LSV in a gated/golf community setting. On the other hand, the SOLO design seems to be more locked into the urban commuter niche and is more like an enclosed a car.

Price points and Market Opportunities

For either manufacturer, a key will be getting the price point down. If the FUV price point can be reduced to around the $12,000 range, the vehicles can be competitive with LSVs and PTVs and light utility vehicles. Consumers may pay a significant premium for the ability to transition from their gated community to public roads.

Bigger opportunities may lie in Europe and Asia where smaller vehicles for transport and last mile delivery are more prevalent. However, the COVID induced changes in mobility habits in US urban centers may increase opportunities in the US as well. They could be a remedy to increases in car usage and subsequent increases in pollution, CO2 emissions and traffic. Three-wheeled vehicles are more protected, offer greater performance and more versatility than bikes and scooters, but are smaller, less expensive and less polluting than cars. The next 1 to 2 years should give us a good idea of how successful three-wheeled electric vehicles can be.

Marc Cesare, Smallvehicleresource.com

Polaris and Bobcat recalled approximately 1,700 utility vehicles in total because of a rear brake line issue. A puncture in the brake line could lead to rear brake failure and potentially crashes. The recall involves 2019 Polaris Pro XD, 2017 to 2018 Brutus and 2017 to 2018 Bobcat 3650 UTVs. Polaris has a product development agreement with Bobcat. Owners should immediately stop using the recalled vehicles and contact a local Polaris or Bobcat dealer to schedule a free inspection and repair. SVR maintains an ongoing list of small, task-oriented vehicle recalls. The following recall information is from the Consumer Product Safety Commission.

Polaris Pro XD Recall Information

Name of product: Model Year 2019 Polaris PRO XD Utility Vehicles (UTVs)

Hazard: The rear brake line can become puncutured causing the rear brakes to fail, posing a collision and crash hazard to the rider.

Remedy: Repair

Recall date: January 30, 2020

Units: About 760

Description: This recall involves Model Year 2019 Polaris PRO XD utility vehicles in two- and four-seat configurations of models 4000D, 2000D and 200D 4X2.  The utility vehicles are gray, black, and orange with “POLARIS” stamped on the front grille, “POLARIS COMMERCIAL” on the sides of the utility bed, and “PRO XD” on the front fenders.  Vehicle identification numbers (VIN) can be found on a label affixed to the vehicle frame in the left front wheel well.

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.  Consumers should also check their vehicle identification number (VIN) on the “Product Safety Recalls” page to see if their vehicle is included in any other recalls.

For more recall details visit cpsc.gov

Polaris Brutus Recall Information

Name of product: Model Year 2017-2018 Brutus Utility Vehicles (UTVs)

Hazard: The rear brake line can become punctured causing the brakes to fail, posing a collision and crash hazard.

Remedy: Repair

Recall date: January 30, 2020

Units: About 340 (In addition, 19 units were sold in Canada)

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 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.

Description: This recall involves Model Year 2017–2018 Polaris Brutus utility vehicles (UTVs) with the following model names: HD PTO DLX and HD PTO( 2017 only).  The two-seated vehicles are gray, black and blue.  The vehicles have “POLARIS” stamped on the front grille, “POLARIS BRUTUS” on the sides of the utility bed, and “DIESEL HD” on the front fenders.  Vehicle identification numbers (VINs) included in this recall can be found on a label affixed to the vehicle frame in the left front wheel well.  Non-sequential VINs ending in 7740364 to 8576615 are included in this recall.

For more recall details visit cpsc.gov

Bobcat 3650 Recall Information

Name of product: Model Year 2017-2018 Bobcat 3650 Utility Vehicles (UTVs)

Hazard: The rear brake line can become punctured causing the brakes to fail, posing a collision and crash hazard.

Remedy: Repair

Recall date: January 30, 2020

Units: About 522 (In addition, 53 were sold in Canada)

Consumer Contact: Bobcat at 800-743-4340 from 7:30 a.m. to 4:30 p.m. CT Monday through Friday or online at www.bobcat.com and click on the For Owners tab located at the top of the page.  Then scroll to CPSC Recalls for more information.  In addition, find a Dealer link at the top of the page or to check your VIN Number. 

Description: This recall involves model year 2017-2018 Bobcat 3650 utility vehicles.  The recalled utility vehicles are white and black with orange decals.  “Bobcat” is printed on the hood of the utility vehicle and “3650” is printed on the rear box.  The vehicle identification numbers (VINs) can be found on a label affixed to the vehicle frame under the seat and storage bin on the passenger side.  The following vehicles are included in this recall.

For more recall details visit cpsc.gov

Squad Launch Summary

Netherlands based Squad Mobility launched their Squad urban mobility vehicle last week. The electric powered Squad features solar cells on the roof, seating for two and a small, rear cargo area. The name Squad is short for solar quadricycle. The vehicle is designed for the European market and falls under the L6e or light quadricycle category. These vehicles are similar to low speed vehicles in the US. They can’t exceed 28 mph or have a battery pack larger than 4 kWh. The L7e category includes heavier vehicles with a top speed up to 50 mph and a 15 kWh battery pack limit. The vehicles have proven to be popular with teenagers and older drivers.

Squad Specs

The Squad is 2000mm long, 1600mm high and 1000mm wide. It has room for two passengers and two children (where legal) if a rear bench seat is used. The vehicle features two in wheel rear wheel drive motors, regenerative braking, 4-wheel independent suspension and two portable lithium-ion batteries. The battery only range is 100 km and the solar cells can add 20-30 km per day. Other features include a tubular roll cage, 4-wheel disc brakes, a lighting package, and seat belts. A cargo version with an enclosed cargo area is available as well.

Target Market

The company is clearly targeting the daily urban mobility market and offering the vehicle as a safer, more weatherproof alternative to scooters and electric bikes. Other advantages include avoiding road taxes and congestion pricing, easier to park and maneuver in urban environments, emission free and sustainable and more comfortable for longer commutes. The lack of doors provides easy and quick access. The base model can be pre-ordered for an estimated price of 5,750 euros ($6,365 US) or 6,500 euros ($7,195 US) for one of the first 1,000 Signature models.

SVR’s Take

This vehicle makes more sense for the European market than the US, although it could find some traction in gated communities and vacation locations in the US. The tighter quarters of European urban centers are ideal for the smaller size and lower speed. One question is how will they distribute the vehicles. It will be interesting to see how many pre-orders they receive and what their distribution strategy is after those initial orders.

Marc Cesare, Smallvehicleresource.com

Polaris recently announced Q2 2019 financial results. Sales for the quarter increased 18% year over year to $1,779 million. Off-Road Vehicle/Snowmobile segment sales increased 6% to $1,049 million with ORV increasing 4%.

Polaris Earnings Call Highlights

The following are some of the highlights from the earnings call as they relate to the small, task-oriented vehicle market.

• Polaris side-by-side retail sales for North America increased low single digits
• Polaris side-by-side sales were driven by full-size Ranger, General and RZR XP vehicles that tend to have higher margins
• ORV retail sales for the North American industry were up high single digits
• Tariff and trade costs are still expected to cost $80 to $90 million for the year although the company has been able to mitigate some of the costs
• Global Adjacent Markets segment sales increased 7% to $122 million driven by PG&A for the segment up 17%, strength across all products and strong international sales
• Management increased prices in the first quarter and that hurt sales of lower priced and lower margin products like value priced ATVs
• Average selling prices for ORVs were up 9% from price increases and higher priced product mix
• The side-by-side market remains competitive with companies aggressively using price promotions. As a result there was some weakness in RZR trail product sales.
• Management referred to the heavy use of promotions by competitors as “ridiculous”
• Management improved their guidance for the full year for the ORV/Snowmobile segment based on improved product mix for side-by-sides, PG&A sales and strong international sales

Learn more: Seekingalpha.com (earnings call transcript)

SVR’s Take

While the quarter was not super strong for ORVs, management managed to make progress despite a number of headwinds. They pushed through price increases, continued to suffer from tariff issues and had to battle strong promotional spending by competitors. In the face of these hurdles, Polaris demonstrated the strength of their brand and product lineup by increasing sales of higher priced and higher margin units across their product lines. Moving forward, the trade issues appear to be here to stay for awhile and the economy has shown signs of slowing. On the other hand, consumer spending has remained strong as well as unemployment low.

Strong Non-vehicle Programs Boost Polaris Performance

One of the reasons Polaris continues to perform well is their execution in programs beyond new vehicle development. For example, to mitigate tariff effects they re-negotiated supplier pricing, made supply chain adjustments and successfully lobbied for some tariff exclusions. They have also developed a strong PG&A program across most of their products. In addition, they have focused on cost and operational efficiencies on a focused and ongoing basis. Their RFM program keeps inventory low while providing dealers with a good product mix for meeting customer needs. They have recently started rolling out their Factory Choice program that allows for greater customer customization.

Marc Cesare, Smallvehicleresource.com

Urban Mobility Vehicles & Opportunity

My colleague Stephen Metzger has penned an article on the trend towards urban mobility. The big question he asks is whether the small, task-oriented vehicle industry will take advantage of this opportunity. As the golf car manufacturers have focused more on personal transportation vehicles (PTVs) and non-golf utility vehicles, urban mobility vehicles (UMV) would appear to be a natural progression. In addition, UTV manufacturers have some of the capabilities needed to compete in this space.

New Urban Mobility Vehicles

Currently, startups are aggressively pursuing the UMV opportunity. Uniti from Sweden, BARO from the UK and Arcimoto from the US are some of the companies at the forefront on new vehicles and concepts for urban mobility. However, established auto manufacturer Daimler Benz is one exception to the startups with their Smart for Two small vehicle. The electric version of the vehicle is a foundational platform upon which the company plans to build. The question is where are the STOV manufacturers. In short, they appear to be well positioned for the opportunity but will they pursue it?

Marc Cesare, Smallvehicleresource.com