Yamaha Unveils UMAX Rally 2+2 Light UTV

Posted on January 29, 2019 by Marc Cesare

The new Yamaha UMAX Rally 2+2 light utility vehicle with convertible rear seating.

Yamaha Launches UMAX Rally 2+2 at PGA Show

Using the 2019 PGA Merchandise Show as a launch pad, Yamaha Golf-Car Company unveiled their new light utility vehicle, the UMAX Rally 2+2. Aiming for a broad swath of the market, the company is marketing the vehicle as crossover model for work or play. The vehicle’s “rugged” styling is less golf car and more closely aligned with the rest of the UMAX line. The UMAX Rally 2+2 features a lifted suspension, front brush guard, wide fender flares and a convertible rear seat. In addition, customers can choose between a electronic fuel injected gas engine or AC electric powertrain.

UMAX Rally 2+2 Features & Specs

Additional features and specs include:

Powertrain Options: Yamaha 402cc, single cylinder EFI gas engine or 48V, 6.7 hp AC electric motor with 350 amp controller
Rear coil suspension system with individual coil springs with dual compressions for standard or heavier loads
Front bucket seats
Basket storage area behind the front seats
Sealed under-hood storage compartment
In-dash storage pockets with anti-slip rubber mats
LED headlights
HybriCore steel chassis
Tru-Trak II fully independent automotive-style strut front suspension
Mechanical drum front and rear brakes
23″ tires
15 mph top speed

This model will be available at authorized Yamaha dealers in Spring 2019.

Learn more: Yamahagolfcar.com

SVR’s Take

Similar to many other UTV manufacturers, Yamaha is building out their utility vehicle line to drive sales growth. Marketed as a ‘work or play’ vehicle, this model is also trying to tap into the growing PTV market. The UMAX product line now includes four different models with most offering an option of gas or electric powertrains. Essentially, the UMAX Rally 2+2 adds a crew version to the lineup. The product line is versatile and can appeal to a wide range of commercial and consumer end users. The line offers varying levels of cargo and passenger capacity as well as light off-road capabilities.

Tracker & Textron Partner on UTVs/ATVs

Posted on January 28, 2019 by Marc Cesare

The Tracker Off Road ATV & UTV model lineup

Partnership Overview

Tracker, a leading boat manufacturer, and Textron Specialized Vehicles are forming a partnership to produce UTVs and ATVs and sell them under the new Tracker Off Road brand. Tracker is part of the White River Marine Group that includes Tracker, Triton, and Ranger boats, as well as Bass Pro Shop and Cabela’s. The Tracker Off Road vehicles will be sold through select Ranger, Triton, and Tracker, and other independent dealers, as well as at Bass Pro Shops and Cabela’s locations. They will be built at the Thief River Falls, Minnesota plant that produces Arctic Cat vehicles.

Tracker Off Road Product Lineup

The Tracker Off Road lineup includes four ATVs and four UTVs. The ATV line includes entry level youth and adult models and two more models with more features and capabilities. This lineup should be able to target a wide swath of the ATV market. The UTV lineup includes a personal transportation vehicle (PTV), and three models currently sold under the Prowler nameplate: the Prowler EV, Prowler Pro and Prowler Pro Crew. The corporate presentation also mentioned the potential of selling the Wildcat XX and even snowmobiles through the same distribution network.

Learn more: Businesswire.com

SVR’s Take

The Textron Tracker partnership continues the trend in the UTV market of brands expanding beyond their traditional distribution networks. Typically, an established UTV brand partners with a traditionally non-UTV brand. They either re-brand existing models or develop similar but unique models to sell through the partner brand’s distribution network. Previously, major UTV brands have used this approach to gain access to farm equipment and outdoor power equipment distribution networks. In this case, Textron is tapping into marine distribution and outdoor apparel networks. In a similar vein, Polaris and Can-Am have recently acquired boating manufacturers. Primarily these acquisitions diversify their powersports portfolio. However, it would not be surprising to see them sell a select range of off-road vehicles through these marine networks. If the dealers believe they can make a profit and there is no territorial conflict with the traditional powersports dealers then these networks expand their geographic footprint and reach.

Marc Cesare, Smallvehicleresource.com

Polaris Launches New PRO XD UTV Line

Posted on January 8, 2019 by Marc Cesare

Polaris PRO XD 2000D is part of a new work-oriented UTV line.

The new PRO XD 4000D AWD from Polaris Commercial is the lines crew version.

PRO XD Overview

Last month Polaris Commercial launched their new PRO XD utility vehicle line. The line includes the PRO XD 2000D 2WD, the PROXD 2000D 4WD and the PRO XD 4000D 4WD. All three vehicles are purpose-built for work and are powered by a 898cc, 3-cylinder Kubota diesel engine. Polaris is engineered features to target three key areas they believe are necessary for work vehicles: durability, serviceability and safety.

Durability

For durability they designed a rigid chassis, a rust and dent resistant composite bed that can fit a full-size pallet, a heavy-duty sealed driveline, a reinforced seat with heavy-duty seat material and 26″ job site tires.

Serviceability

To improve serviceability Polaris:

Extended the maintenance intervals to 200 hours
Improved vehicle fault alarms for low oil, parking brake engagement, belt burn and engine overheat to identify problems earlier
Designed side access for dipstick and air filter servicing
Use front air intake for cleaner air and longer filter life
Integrated Polaris Pulse Connector to simplify accessory installation and improve uplift possibilities

Safety

For safety the PRO XD vehicles include:

Orange seat belts and vehicle decals to improve work site visibility
Backup alarm, horn and parking brake
System where the vehicle starts only in Park with brake enabled
Wide foot wells for easier entry and egress
Speed limited to 26 mph or as low was 15 mph
Engine Braking System for hill descending
Fully sealed cab

Features and Specs

Common features and specs across all three vehicles include:

24.5 hp, 898cc, 3-cylinder Kubota diesel engine
Engine Braking System
Automatic PVT transmission
1,250 lb. cargo box
2,500 lb. towing capacity
11″ of ground clearance
9″ of front and rear suspension travel
26″ Duro DI-2042 Power Grip tires
4-wheel hydraulic brakes
55W low/ 60W high, LED Tail
Kevlar backed seat material
Tilt steering
Digital Gauge

The PRO XD 2000D AWD adds an all-wheel drive Ultra Turf drive system while he PRO XD 4000D AWD is the same but seats four and comes equipped with electronic power steering. The PRO XD 2000D 2WD starts at $14,599 the 2000D AWD at $16,099 and the 4000D AWD at $17,749. In addition, Polaris offers two standard accessories packages. The Work Package adds a poly roof, poly windshield, strobe light, air filter restriction gauge and wide angle rearview mirror. The Work Package with Cab System includes the same package plus doors, engine block heater, heater defrost kit and rear panel.

SVR’s Take:

The new PRO XD vehicles are an improved version of basic work UTVs and replace the lower priced and lesser equipped Brutus vehicles. Last year Polaris Commercial discontinued the lower priced and less featured vehicles of their Brutus line, another work oriented UTV line, due to lagging sales, . In contrast, they kept Brutus HD PTO Deluxe, a fully equipped vehicle with a starting price of $24,099 which apparently sold well compared to the lesser equipped vehicles. According to earnings calls, the Brutus line did not quite live up to high sales expectations. In part because in the commercial UTV segment there is a different type of customer, sales process and sales cycle. Typically, a powersports dealer network does not serve this segment well.

Also, the Brutus uses a Kohler diesel engine and the PRO XD vehicles a Kubota. In the past Polaris did not have as much success developing their own diesel engines. They eventually switched to outside vendors. This makes sense since their volume of diesel powered UTVs is small compared to their overall sales. Development resources are better used elsewhere, and their diesel vehicles are improved by using an outside vendor specializing in developing high quality diesel engines.

Honda Launches Talon 1000R/X Sport UTVs

Posted on December 3, 2018 by Marc Cesare

The Talon 1000R and 1000X are Honda’s entry into the sport UTV segment.

The Honda Talon 1000X is designed for tighter and rockier trails.

The Honda Talon 1000R is for dunes and more wide open riding.

Honda Launches Talon Sport UTVs

Honda recently introduced the Talon 1000X and Talon 1000R UTVs. They are Honda’s long awaited entry into the sport UTV market. The Talon 1000X targets tighter wooded trails and rockier environments while the Talon 1000R aims for more wide-open dune riding. The models should be available in early 2019. I’ve seen sources mention January while others mentioned March. The first date might be production and the second could be arrival at the dealerships. In any case, the following specs are common to both versions.

104-hp, 999cc, twin-cylinder, 4-stroke, SOHC engine
Six-speed dual clutch transmission
Power steering
Hill Start Assist
Hydraulic brakes with two 250mm discs;
Electronic Brakeforce Distribution (EBD) system
LED High/Low Headlights
About 1,500 lbs in weight
Tire sizes: 28x9x15; 28x11x15
Bolstered seats with harness pass throughs
Roof is standard

See the Talon in action: Official Honda Talon 1000 video

Talon Model Differences

The two models have different widths, wheelbases, slightly different suspension systems with different suspension travel. a slight difference in suspension travel and different color options. The following specs are some of the key differences between the vehicles.

Pricing Update

In early January 2019 Honda announced pricing for the vehicles.

Talon 1000R — MSRP: $20,999; Availability: Spring 2019

Talon 1000X — MSRP: $19,999; Availability: Spring 2019

Talon 1000x Key Specs

Double-wishbone front suspension, Fox Podium 2.0 shocks with Quick Switch 3
3 Link rear suspension with high-clearance trailing arm, Fox Podium 2.0 shocks with Quick Switch 3
Front/Rear suspension travel: 14.5″/15″
Red/Gray with red suspension accents
Gray/Blue with silver suspension accents
Width: 64.0
Wheelbase: 87.6

Talon 1000R Key Specs

Double-wishbone front suspension, Fox Podium 2.5 shocks with Quick Switch 3
4+ Link trailing-arm rear suspension with toe link, Fox Podium 2.5 shocks with Quick Switch 3
Front/Rear suspension travel: 17.7″/20.1″
Red with red suspension accents
Green/Silver with silver suspension accents
Width: 68.4
Wheelbase: 92.7

Initial Reviews

The following are some initial reviews and analysis of the Talon from around the industry.

UTVonDemand

First Look Review (video). Provides fairly in-depth analysis of the engine and drive train and highlights many of the key features that the reviewer likes.

999cc twin cylinder SOHC engine should provide good low-end torque
270 degree firing order makes it run like a single cylinder
Based on Pioneer engine but bigger throttle bodies, bigger injectors, different heads and more flow
Claiming 104 hp but may have higher torque than other UTVs with more hp
Rubber mounted engine to dampen vibration
3 Driving Modes: Sport, Normal and Manual with paddle shifters
Hill Assist – Push dash button and it holds the vehicle from rolling back for 3 seconds
“Big deal” for this vehicle is the transmission has a dual high and low range so you can go rock crawling without changing the gear set out
Claim extra strong driveshaft and axles
i-4WD system with electronic braking control to transfer power up front from a spinning wheel to the wheel with traction
68.4 1000R Front/rear wheel travel 17.7/20.1
64″ 1000X Front/rear wheel travel 14.6/15.1- this may be a little short compared to competitors
Can use 30″ tires – 28″ are standard and custom designed by Maxxis
15″ rims for bigger brakes
1000X has 3 link system podium 2.0
1000R has a 4 link for added strength and Podium 2.5;
More suspension tuning with 3 mode QS3 compression on both models
Power steering sport tuned for feedback and speed sensitive
Standard roof is designed with rain gutters and air vents for trailering backwards
Good seat sliders
Holders in doors and t-bar has nice latching system
Seats have pass throughs for harnesses
Pedals laid out for two or one foot driving and passenger has different places to place feet at speed or more relaxed driving
Cupholders with rubber for holding in drinks
Good cargo capacity and design
1 yr warranty

Hondaprokevin

Provides specs in a nice layout and plenty of pictures

UTV Action

General overview of key specs and some commentary.

Probably will competitively priced around $20,000
Trail riders anywhere will like it but sand riders may wait for turbo option

UTV Driver

They provide a top ten feature list for the vehicles

Bolstered seats with harness pass throughs and harness bar
15″ rims for larger brakes and 30″ tires
Sizable cargo bed with tie-downs
Dual Clutch six-speed transmission
Paddle shifting
FOX shocks
Hill Start Assist
4-link trailing arm system on 1000R
Engine
Strong, durable build

SVR’s Take

Honda’s entry into the sport market has long been rumored so this isn’t much of a surprise. People may not have expected two different models, but targeting the main sport sub-segments makes sense. The initial reactions are very positive and Honda’s reputation for quality and performance have riders expecting a good vehicle.

Increased Competition

Not surprisingly, Honda’s entry makes the sport end of the market now quite crowded. As a result, the competitive landscape raises the question of how Kawasaki will respond. They have been focusing more on the utility side of the market with their recent model introductions and have not made any really big changes with their more recreationally oriented Teryx product line. I would suspect they might come out with a new high-end sport vehicle in the next year and probably as a separate product line.

Cub Cadet Recalls Challenger 400 4×4

Posted on November 29, 2018 by Marc Cesare

The Cub Cadet Challenger 400 4×4 is being recalled due to possible cracks in the fuel tank neck.

Challenger 400 4×4 Recall Overview

Cub Cadet is recalling their 2018 Challenger 400 4×4 utility vehicle because the fuel tank neck can crack, potentially leak fuel and create a fire hazard. The recall involves approximately 350 vehicles. Consumers should immediately stop using the recalled utility vehicles, store outside and contact an authorized Cub Cadet dealer or customer service representative to arrange for a free repair.

This is a very small recall but for a smaller manufacturer like Cub Cadet it represents a larger percentage of their overall vehicle sales. The Challenger 400 4×4 was launched earlier this year. SVR tracks recalls of golf cars, PTVs, LSVs and utility vehicles. The following detailed recall information is from the Consumer Product Safety Commission.

Challenger 400 4×4 Recall Details

Name of product: Cub Cadet Challenger 400 utility vehicles

Hazard: The fuel tank’s neck can crack and cause fuel to leak, posing a fire hazard.

Remedy: Repair

Recall date: October 24, 2018

Units: About 350

Consumer Contact: Cub Cadet toll-free at 888-848-6038 from 9 a.m. to 7 p.m. ET Monday through Friday, 9 a.m. to 6 p.m. ET Saturday and Sunday, or online www.cubcadet.com and click on “Product Recalls” for more information.

Recall Details

Description: This recall involves Cub Cadet model year 2018 Challenger 400 4×4 utility vehicles with model number 37BV3BHK010. The yellow utility vehicles have four-wheel drive with side-by-side seating for two people. “Challenger 400” and “4×4” is printed on both sides of the utility vehicle’s bed. “Cub Cadet” is printed on both sides of the front fender. The recalled vehicles were manufactured between May 2018 and August 2018. The model number and manufacture date in MM/YYYY format can be found on a label located on the seat frame under driver’s seat.

Remedy: Consumers should immediately stop using the recalled utility vehicles, store outside and contact an authorized Cub Cadet dealer or customer service representative to arrange for a free repair. Cub Cadet is contacting all known purchasers directly.

Incidents/Injuries: None

Sold At: Independent Cub Cadet dealers nationwide from May 2018 through August 2018 for about $7,500.

Manufacturer(s): Cub Cadet, of Cleveland, Ohio

Manufactured In: United States

Recall number: 19-707

Yamaha Golf Car Recalls 145,000 Vehicles

Posted on November 29, 2018 by Marc Cesare

Yamaha Golf Car’s model year 2016 to 2018 Adventurer vehicles are being recalled.

The Adventurer Sport 2+2 is also part of the recall.

Yamaha Drive 2 is being recalled.

Yamaha Golf Car Recall Overview

Last month Yamaha Golf Car announced the recall of approximately 145,000 golf cars, personal transportation vehicles (PTVs) and utility vehicles. The accelerator pedal return spring can break on the vehicles, posing a crash hazard. The recall involves model year 2016 through 2018 gas and electric-powered golf cars, personal transportation and specialty vehicles. Model names include the Drive, Drive2, Adventurer and Adventurer Sport 2+2. Owners should immediately stop using the recalled vehicles and contact a Yamaha golf car dealer to schedule a free repair. There have been no reports of injuries related to the recall but 417 spring failures have been reported.

This is an extremely large recall and rivals those of Polaris from the past several years. Yamaha had a slightly larger recall earlier in the year involving many of the same models for a brake cable issue. SVR tracks recalls of golf cars, PTVs, PSVs and UTVs. In general, the small, task-oriented vehicle industry appears to have a recall problem. A significant number of vehicles are being recalled every year. The following detailed information on this recall is from the Consumer Product Safety Commission.

Yamaha Golf Car Recall Information from CPSC

Name of product: Yamaha golf cars, personal transportation and specialty vehicles

Hazard: The accelerator pedal return spring can break, posing a crash hazard.

Remedy: Repair

Recall date: October 3, 2018

Units: 145,000

Consumer Contact: Yamaha toll-free at 866-747-4027 anytime or online at www.yamahagolfcar.com and click on the CPSC Recall Alerts tab for more information.

Recall Details

Description: This recall involves the following model year 2016 through 2018 gas and electric-powered golf cars, personal transportation and specialty vehicles. The vehicles were sold in various colors including blue, green, red, white, tan and silver. The model and serial number can be found on a label under the seat on the left or right side.

Model Year	Model Name	Model Prefix	Serial Number Range
Model Year	Model Name	Model Prefix	Serial Number Range
2016	Drive Models YDRA (Gas)	JW8	600101	614300
		JC2	300101	312000
		JC0	700101	706600
	Drive Models YDRE (Electric)	JW9	600101	618100
		JC3	000101	004700
		JC1	700101	703500
	Adventurer Model YTF1A (Gas)	JW6	800101	800600
	Adventurer Model YTF2A (Gas)	JW7	700101	701250
	Adventurer Model YTF2E (Electric)	JW3	100101	100300
2017	Drive² Models DR2A (Gas)	J0A	000101	010100
		J0B	000101	016900
		J0D	000101	007200
	Drive² Models DR2E (Electric)	J0C	000101	011400
		J0E	000101	002900
		J0J	000101	002000
	Adventurer Model YTF1A (Gas)	JW6	900101	900400
	Adventurer Model YTF2A (Gas)	JW7	800101	800750
	Adventurer Model YTF2E (Electric)	JW3	200101	200250
2018	Drive² Models DR2A (Gas)	J0A	100101	110400
		J0B	100101	119200
		J0D	100101	110600
	Drive² Models DR2E (Electric)	J0C	100101	111700
		J0E	100101	102600
		J0J	100101	102700
	Adventurer Model YTF1A (Gas)	JW6	910101	910500
	Adventurer Model YTF2A (Gas)	JW7	900101	900800
	Adventurer Model YTF2E (Electric)	JW3	300101	300250

Remedy: Consumers should immediately stop using the recalled vehicles and contact a Yamaha golf car dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

Incidents/Injuries: Yamaha has received 417 reports of incidents involving spring failures. No injuries have been reported.

Sold Exclusively At: Yamaha golf car dealers nationwide from June 2015 through August 2018 for between $5,500 and $12,300.

Manufacturer(s): Yamaha Motor Manufacturing Corporation of America, of Newnan, Ga.

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

Assembled in: U.S.

Recall number: 19-701

Tariff Questions Dominate Polaris Earnings Call

Posted on October 25, 2018 by Marc Cesare

Polaris 2019 Ranger XP 1000 EPS 20th anniversary

The 2019 Ranger XP 1000 EPS 20th Anniversary edition helped drive sales despite tariff concerns.

Financial Results Overview

Tariff questions dominated the Polaris Industries earnings call to discuss their Q3 financial results for fiscal year 2018. The manufacturer of the RZR, Ranger and General side-by-sides reported adjusted revenue of $1,653 million, an increase of 12% from $1,480 million from third quarter 2017. Net income increased 21% from $98 million to $118 million. (Financial figures are compared to Q3 2017 unless noted)

STOV Segments Perform Solidly

Overall ORV/Snow segment revenue increased 3% from $1,007 million to $1,036 million. Lower snowmobile revenue was more than offset by a 12% increase in ORV revenue. ORV includes UTVs and ATVs. North American (NA) retail sales, driven by side-by-side sales, increased 1% in the quarter against a tough comparable. In comparison, management estimated that industry wide NA ORV sales improved low single digits for the quarter. Polaris side-by-side market share for the quarter remained the same.

The average selling price of ORVs overall increased 5%. Management reports that the initial launch of the 2019 model year was successful with good response from consumers and dealers. In particular, the new Ranger XP 1000 variants drove sales. Furthermore, the company’s inventory management system, RFM, is producing results with the best side-by-side delivery performance to date. In addition, lower promotional costs accompanied the stronger sales. Comments on individual markets indicated that the oil and gas customer segment improved while agriculture decreased some.

Global Adjacent Markets Gain

The Global Adjacent Markets (GAM) segment made solid gains as well. Sales increased 5% from $92 to $98 million. This segment includes vehicle sales to commercial, government and defense clients in addition to Aixam quadricycle sales in Europe. In addition, the GAM segment includes vehicles like Ranger and Brutus UTVs, military RZRs, GEM electric vehicles, Taylor-Dunn industrial vehicles and Goupil electric vehicles based in France. Management reported solid sales for Goupil vehicles and strong orders from fire and police departments, and other government agencies.

ORV and GAM Drive International Growth

Sales to international markets jumped 10% with a strong showing from the ORV/Snow segment, up 9%, and the GAM segment, up 6%. Looking at sales by region, the Europe and Middle East drove overall international sales while Latin America increased only slightly and the Asia Pacific region decreased.

Full Year Guidance Improves

Polaris increased their guidance for the ORV/Snow segment. They now expect a low double digit increase in sales.The GAM segment should increase sales by low double digits, which is unchanged from previous guidance.

Tariff Impacts

Tariff impacts raised expenses by $8 million for the quarter and are expected to total $40 million for the year. The renegotiated NAFTA deal, the USMCA, is expected to have a neutral effect. However, the 301 tariffs, especially the upcoming List 3 tariffs could have more severe repercussions. Currently, the company is dealing with List 1 and List 2 tariff impacts. Polaris is at a disadvantage related to 301 List tariffs because their main competitors produce their vehicles in Mexico or assemble them in the US using Japanese parts. Therefore, these companies are not subject to the same tariffs.

Tariff Mitigation Plans

Management laid out a three pronged approach to mitigating the potential List 301 tariffs. First, they will try to negotiate with their suppliers to share some of the increased costs. Second, they may increase prices. Thirdly, they hope to lobby the current administration to obtain an exemption from the tariffs. Polaris argues that the tariffs are primarily hurting them, but they are the only US based manufacturer among the major players in the market. Furthermore, the company has been increasing their US based manufacturing. At this time, Polaris is not providing any specific quantitative guidance for tariff impacts for 2019.

Other Future Factors

For the powersports market in general, management expects that there will be a need to increase pricing to offset inflation, tariff impacts and increasing commodity and logistics costs. Furthermore, management stated, “As the industry leader, we’re not afraid to lead on price.”

The newly launched Factory Choice program, which gives the customers and dealers an opportunity to make differentiated vehicles from the factory and has been popular, gives Polaris optimism. The program should help drive sales in the future.

The dealer inventory profiles produced under the RFM program this year for side-by-sides significantly improved product availability. The increased availability bolstered sales, raising similar expectations moving forward.

Learn more: Polaris Earnings Call Transcript (Seekingalpha.com)

SVR’s Take

This was another solid quarter for Polaris. The sales increases for side-by-sides were not gangbusters at first glance, but they are being compared to a really strong third quarter in 2017. The new 2019 vehicle lineup should drive sales more fully in the fourth quarter. The GAM segment is slowly growing into a significant business and could become a $500 billion business in about two years. On a cautionary note, the tariff impacts could slow progress for Polaris, especially in contrast to fast growing and Canadian based Can-Am. Increased pricing could potentially hurt sales, although as a premium brand Polaris can pass on some pricing. The other alternative is that they will take hit to their margins and generate less income.

Textron Off Road Struggles with Arctic Cat

Posted on October 19, 2018 by Marc Cesare

Textron Off Road’s Wildcat XX. Wildcat models were previously sold under the Arctic Cat brand.

Textron 2018 Q3 Earnings Results

Textron, Inc recently reported fiscal year 2018 third quarter earnings. They point to a struggling Arctic Cat brand which was acquired in early 2017. The company embedded the Arctic Cat brand under their new Textron Off Road brand in their Specialized Vehicle business, which is part of their Industrial segment. Specialized Vehicles also includes E-Z-GO golf cars, Cushman utility vehicles, towing tugs among other small, task-oriented vehicles. Management reported that poor Specialized Vehicle results hurt the Industrial segment that in turn reduced overall quarterly performance for the company.

Weak Performance but Faith in the Product

The Q&A part of the earnings call pointed to problems with products formerly sold under the Arctic Cat brand. CEO Scott Donnelly remarked that “…the most fundamental challenge in the business is around particularly the dirt side, the consumer side of that business and that’s the area that where we need the most work”. Furthermore he noted that,

” Industrial, segment profit was breakeven primarily due to unfavorable operating performance in specialized vehicles. Specialized vehicles has undergone significant change over the past two years, as we have expanded the product portfolio. While we’ve seen increasing revenue in the segment, we haven’t seen the planned level of growth or do the operating levers necessary to support the expected returns.”

Nevertheless, management remained positive about future performance and confident of the products they are putting on the market. Donnelly further stated,

“We’ve got great feedback from customers, the performance side we don’t have a product problem I mean we have still gaps which again as I said we’re working on it as we go forward but I think the progress on what the product is and how the product is performing we’re very pleased with.”

The management expects better performance in the fourth quarter.

Sales Channel Issues

Additional management comments indicated other issues in the sales channel may be limiting performance. Management noted the need to manage the channel but that some dealers are doing very well. Overall the retail sell through did not meet expectations. Furthermore, management allocated more funds to product discount programs to reduce inventory. In addition, management expressed a desire to improve the sales tools that help customers get to the product.

Pricing Changes Reflect Sales Issues

The pricing changes across the Textron Off-Road vehicle lineup from 2018 to 2019 reflects the poorer than expected retail performance. Management reduced prices for nearly every model, slashing prices for the Wildcat side-by-sides the most. Wildcat price cuts ranged from $500 to $2,500 with most at least $1,000. In contrast, many other manufacturers maintained pricing or slightly increased pricing by around $200 in most cases.

Textron Earnings Call (Seekingalpha.com)

SVR’s Take:

If management likes the product and some dealers are doing well, it sounds like it may possibly be a dealer issue. Either dealers are in the wrong location or they are not performing well. The management’s comments about getting customers to the product raise additional potential issues.

“I think in general how we manage that channel is something that frankly we just haven’t done as well as we should have. And our sales tools and how easy we make it for perspective customers to figure our product, have access to the dealers, have a natural way to help customers move to our product is just something we didn’t do well.”

This could cover a lot of ground from advertising to website performance to in-store marketing material to how dealership personnel interact with customers from first contact to sale.

Marc Cesare, SVR

Polaris 2019 Ranger Crew XP 1000 Reviews

Posted on October 15, 2018 by Marc Cesare

The 2019 Ranger Crew XP 1000 EPS in Sunset Red Metallic from Polaris.

2019 Ranger Crew XP 1000 Overview

The six-passenger 2019 Ranger Crew XP 1000 from Polaris features a number of improvements compared to the 2018 version including more power, ground clearance, towing capacity and larger tires. The Sage Green base model starts at $16,299 and there are four models in the lineup including a Premium model with automotive paint, a 20th Anniversary Limited Edition with special paint scheme and stitched seats, the Northstar Edition with a full HVAC cab and a High Lifter Edition for mud riding. Some of the key features and specs of the 2019 Ranger Crew XP 1000 include:

82 hp engine
High Performance On-Demand True AWD/2WD/VersaTrac Turf Mode
Engine braking system
Electronic power steering
27″ Maxxis tires on aluminum Black Xcelerator 2.0 wheels
11″ of front and rear suspension travel
13″ of ground clearance
1,000 lbs capacity cargo bed
2,500 lbs towing capacity
4-Wheel Hydraulic Disc with Dual-Bore Front Calipers
Under seat storage and pass through for longer items
New front fascia design

Reviews Summary

These reviews focus on the base and Premium model with some owner added options as noted. In general, the reviews are very positive. Owners like the power, ride and storage of this model. The only common issue is that the response of the vehicle on initial take-off can be “jerky”. The first two videos discuss some of the key features of the vehicles and are from dealers. Actual owners with time on the machines made the latter two and are more informative.

Vehicle Walk Arounds

Video walk around of the 2019 Ranger Crew XP 1000 by Family PowerSports in Lubbock, TX provides a nice overview of key changes from 2018 model. These changes include:

New front fascia
Increase ground clearance from 11″ to 13″
26″ stock tires to 27″ 6-ply tires
Increased horsepower from 80 to 82
Increase towing capacity from 2,000 lbs to 2,500 lbs
Widened front and rear entries for easier ingress and egress
25% thicker seats for more comfort
Cleaner dash design
Added storage under passenger seat

Video walk around of the 2019 Ranger Crew XP 1000 by Leone Polaris in Peru, IL. This video provides more footage of vehicle specifics but is also a little harder sell. The presenter noted similar changes over the 2018 model as in the video above and added the following:

Best crew model on the market
25% tighter turning radius
Highest grade tires and wheels
Tailgate quality similar to a good pickup truck

Owner Reviews

Video review from owner with the 2019 Ranger Crew XP 1000 EPS Premium

First-time UTV owner reviewing after about 800 miles and 75 hours using the vehicle
Use the UTV when camping and added front full glass windshield, rear plexiglass window and roof from Polaris and a bluetooth audio system from a third party provider
Owner is from South Dakota and used vehicle on gravel roads and farmland
Compared to base model this one has different gauge and dashboard along with automotive paint
Would have bought full glass rear window instead of plexiglass which probably won’t last that long
Love the ride: “Drives like a Cadillac” and seats are “top notch”
Takes bumps and river bottoms really well in front and rear seats
Love the look of the front which looks like a pickup truck
Crew size is good for family with three boys
Lot of room for storage
Like the power. Have easily towed trailer with pavers.
Don’t like the dust in the cabin even with half windshield we tried from neighbor; Better without windshield but our area has a lot of bugs
No grab handle for the driver seat which makes it difficult for older person to enter the vehicle
Accessories are extremely expensive e.g. doors would cost $5,000 more
Machine is long. You will need a 14 ft. trailer.
Commenters responding to the video talked about having a “jerky” initial takeoff. Others suggested this lessened with breaking in of the belt and using lower gear at start.
Another commenter noted the “amazing power” of this model

First impression video review by a new owner of the 2019 Ranger Crew XP 1000 in Sage Green which is the base model. The owner drove the vehicle around a duck hunting camp in Alabama checking and pulling game cameras.

First time UTV and Polaris owner with a couple of hours of use on the vehicle
Added front and rear glass. The Plexiglas option when scratched can be difficult to see through in low light.
Sage Model doesn’t have adjustable driver seat and just a digital gauge instead of additional analog gauges.
Like the large amount of storage
Might put in 1/4 doors up front in contrast to the standard side nets
Reached 52 mph top speed
Driving in work mode seems to have a smoother throttle response in contrast to the other modes
2″ higher ground clearance is good for use in the water
Very happy with it

Can-Am Defender XT Reviews

Posted on October 11, 2018 by Marc Cesare

The 2019 Can Am Defender XT in hyper Silver

Defender XT Overview

The 2019 Can-Am Defender XT is a three-seat utility vehicle priced at $15,799. You can choose to power this model with the 50 hp HD8 or the 72 hp HD10 engine option. In either case, the Defender XT features a PRO-TORQ transmission with Quick Response System and a drive train with a lockable rear differential and Visco-Lok QE auto-locking front differential. This model also has electronic hill descent control, three driving modes and dynamic power steering. The Defender Xt is designed for work primarily and therefore can haul up to 1,000 lbs in the cargo box and tow up to 2,500 lbs. Other features include:

Twin Tube Gas Charged Shocks
10″ of front and rear suspension travel
11″ of ground clearance
27″ Maxxis Bighorn 2.0 tires
220mm hydraulic disc brakes
650 W Magneto
Winch
XT Front Bumper
Full HMW Skid Plate
Full Hard Roof
Adjustable Tilt Steering
Multifunction digital/Analog Gauge
Available in Hyper Silver, Intense Red or Mossy Oak break-Up country Camo

Reviews

The 2019 models have not been out that long so there aren’t too many reviews available and they aren’t any based on long term usage of the vehicle. However, the reviews are pretty positive. The amount of interior storage the ability to remove some of the storage bins impressed the reviewers. The reviews are complimentary as one focuses more on the drivability of the Defender XT and the other comments more on the interior and usability of the vehicle.

UTVDriver.com -Trail riding with the Defender XT in the Black Hills of South Dakota

Vehicle had the more powerful HD10 option
Smooth, linear power delivery with no noticeable power loss at 6,500 ft.
Normal driving mode is most responsive
Comfortable seating for larger driver even after many miles
Glove box that doubles as removable tool box and other removable storage is a positive
Handled a variety of terrain well including uphill, downhill and fallen trees
Feels solid

Fisher’s ATV World – Video review of a Defender DPS HD10 which is basically the same as the Defender XT but without a few extras

Quiet ride
Do not feel heat from the engine
Easy in/Easy out
Really like the small turning radius
Plenty of storage
Can haul and tow a lot