Yamaha Announces 6-Passenger Viking Side-by-Side

The new Yamaha Viking VI EPS side-by-side.

The new Yamaha Viking VI EPS side-by-side.

Yamaha Motor Corp., U.S.A., announced their new 2015 Viking VI EPS six-person side-by-side. Assembled in Newman, GA the Viking VI EPS features Yamaha’s Ultramatic™ fully automatic transmission, On-Command® four-wheel drive system, Electric Power Steering (EPS) and a 700cc-class engine. The new UTV can haul up to 600 lbs and tow up to 1,500 lbs.

All six passengers have bucket seats with headrests, dedicated handholds and foot rests and the middle seats are purposefully reclined five degrees providing more shoulder room for all occupants. The driver has an adjustable seat. Conveniences for all occupants include eight cup holders throughout the cab, a sealed storage container under the center front seat, additional storage under the remaining front seats, a large glove box on the front panel, and two DC power outlets – one in front and another in back. Other features include:

  • On-Command drive system with: 2WD, 4WD or 4WD with a fully locked front differential selections.
  • Specially designed Maxxis Big Horn tires.
  • 686cc 4-stroke, liquid-cooled, SOHC, single-cylinder, 4-valve, fuel-injected engine
  • Pallet size cargo bed with one-touch tilt assist.
  • Steel skid plates across the entire undercarriage: front-to-back and side-to-side.
  • Row crop friendly track width.

The Viking VI comes in Hunter Green, Red, and Realtree AP® HD camo. MSRP for standard versions starts at $12,799 for non-EPS and $13,799 for EPS models. A Viking VI EPS Special Edition in Matte Silver with Soft Suntop comes with an MSRP of $14,999 and incorporates aluminum wheels, overfenders, mud flaps, a soft sun top, a sealed storage compartment under the left rear seat and Yamaha’s bed rail accessory mounts. Learn more:  Yamahamotorsports.com

Comment:  The competition in the UTV market continues to remain strong. First Honda and now Yamaha have followed up important new product launches with additional new models to keep their momentum going. Yamaha is breaking new ground with this six passenger vehicle. Marketing material points to a range of potential users from hunting groups to ranch crews. It will be interesting to see how much demand there is for a higher passenger capacity vehicle and if other manufacturers follow suit with their own versions.

Polaris Boosts 2015 Ranger XP 900 Power By 13%

For 2014 the Polaris Ranger XP 900 receives a power boost.

For 2014 the Polaris Ranger XP 900 receives a power boost.

ThePolaris Ranger Crew 900 will be updated for 2015.

ThePolaris Ranger Crew 900 will be updated for 2015 as well.

Polaris announced updates for some 2015 side-by-side models including a 13% power increase for the 2015 Ranger XP 900. The 2015 model will feature a recalibrated, high output ProStar 900 engine with 68 horsepower. New intake openings, on the pillars behind the driver and passenger, allow for improved airflow for the engine and clutch air intake systems. The vehicles also feature edgier headrests, and new graphics packages and colors. Similarly the 2015 Ranger Crew 900 will feature improved air intake openings, edgier headrests and new graphics packages and colors. The Ranger XP 900 and Ranger Crew 900 will be available in Sage Green and Solar Red, with the Ranger XP 900 also available in Polaris Pursuit® Camo. The Ranger XP 900 EPS will be available in Sage Green, Solar Red, Sunset Red, Super Steel Gray, White Lightning, Black Pearl and Hunter Edition. The Ranger Crew 900 EPS will be available in Sunset Red, Super Steel Gray, White Lightning and Polaris Pursuit Camo. All vehicles will be in dealerships in June. Learn more:  Polaris.com

Can-Am Announces Updates To UTV Lines For 2015

The Can-Am Maverick 1000R X mr with the new digital camo and green manta color scheme and new Fox shocks for 2015.

The Can-Am Maverick 1000R X mr with the new digital camo and green manta color scheme and new Fox shocks for 2015.

The Commander 100 DPS showing off new wheels for 2015.

The Commander 1000 DPS showing off new wheels for 2015.

Earlier this month Can-Am announced updates for their 2015 Commander and Maverick UTV lineups. The updates focus mainly on new wheels and paint/graphic schemes. New 14-inch cast-aluminum wheels will accent the 2015 Commander models, with the Commander 800 DPS and Commander 1000 DPS getting updated silver-colored cast-aluminum wheels for 2015 while the Commander 1000 XT-P will receive updated beadlock wheels.

For paint and graphics updates the Commander 800R and 1000 DPS will have a new option of Light Grey with Can-Am Red graphics while the 2015 Commander 800R XT and Commander 1000 XT each have a painted pearl white finish option. The 1000 XT also offers a new, optional brushed aluminum color with Can-Am red highlights. A new, black-and-orange color scheme will be the sole choice for the Commander 1000 XT-P side-by-side. The Can-Am Maverick 1000R X mr is offered in the standard painted black-and-yellow X-team finish or the digital camo and manta green finish. Other updates to the lines include a 4,500-pound WARN winch kit with a roller fairlead, wired remote control and integrated remote storage. The winch is designed to compliment all Can-Am side-by-side vehicles with an XT package.  The Maverick 1000R X mr will feature large-diameter, 47-millimeter aluminum FOX piggyback shocks that are fully adjustable with high- and low-speed compression, rebound and multi-position preload adjustment. Learn more:  Off-road.com

 

Honda Unveils New 2015 Pioneer 500 Side-by-Side

15_Pioneer500_Red

The new 2015 Pioneer 500 from Honda.

Steering column mounted paddle shifters on honda's Pioneer 500

Steering column mounted paddle shifters on Honda’s Pioneer 500

This month Honda announced their new 2015 Pioneer 500 side-by-side. Marketed as a crossover vehicle good for work duties or trail riding, the Pioneer 500 is a two passenger vehicle featuring a 475cc four-stroke engine and a five-speed gearbox with an electric shift system and steering column mounted paddle shifters. The side-by-side is designed for trail access/use or working in tight confines with a width of only 50 inches, 73.1 inch wheelbase and 13 ft. turning radius. The side-by-side can fit in a full-size pick-up, has 450 lb. payload capacity and nearly 10 inches of ground clearance. With an MSRP of only $8,499 the Pioneer 500 is targeting entry level and price conscious buyers.  Learn more:  Honda.com

Comment:  After several years of not aggressively pursuing the UTV market, Honda now seems to be putting resources behind their efforts as they follow up last year’s introduction of the Pioneer line with a new addition. They are also continuing two trends we have seen in the overall UTV market. First the Pioneer 500 is being positioned as a crossover type vehicle, albeit at the lower price/performance levels. Second, this is a narrow width model designed to provide access to trails for which more traditional UTVs are too wide. We have seen this in higher performance, more recreational riding oriented models from a number of manufacturers but this vehicle is clearly targeting more of a casual trail rider than a high speed trail jockey. Nevertheless, the narrowness of the vehicle could be important for customers in the eastern part of the US where trails are more narrow and/or have narrow gates that restrict access.

Polaris To Offer Non-Pneumatic Tire For Consumer Side-by-Sides

Polaris Non-Pneumatic Tire Technology

Polaris Non-Pneumatic Tire Technology

Polaris will be bringing their non-pneumatic tire technology from the battlefield to the recreational trails and work environments in the second half of 2014. While originally targeting military applications and available since December on a limited number of ATVs, the tires will now be an option on a wider range of vehicles including side-by-sides by the end of the year. The non-pneumatic tires (NPT) consist of a rubber tread similar to a pneumatic tire that surrounds a polymetric web with a honeycomb design. The technology produces a tire with lateral stiffness for less tire roll while cornering and better grip over rocky or rough terrain since the web part of the tire allows the tire to deform while traveling over an obstacle. The main characteristic is that the tire cannot go flat. In testing the tire has withstood 50 caliber bullets and railroad spikes and remained operable for thousands of miles.

While these characteristics obviously appeal to recreational users, Polaris is initially rolling out the technology for work applications since the company has been getting a lot of feedback from that market according to management. Another issue that hinders a quick and broad roll-out of the NPT is that matching a NPT tire to a given vehicle is complicated. The characteristics of the web design, web material, tread design and material and lug pattern must be adjusted for each vehicle and application. The company has received interest from mining, turf, agriculture, construction and even the aviation markets. Rail industries are also very interested.  Learn more:  Powersportsbusines.com

Comment: This could grow into a nice sized adjacent business for Polaris. It will be difficult for competitors to enter the market. Not only does Polaris own patents for this technology but they are also developing expertise in understanding the complexities of matching different tire characteristics to specific vehicles and end-use applications. Competitors will have a difficult time both acquiring or developing a similar technology as well as the related engineering expertise. Polaris also has the advantage of being the leading brand with a large installed base of potential customers. The tire technology could also provide a differentiator in the commercial UTV market which Polaris has been making a more determined push.

Eicher-Volvo Joint Venture May Enter Mini-Truck Market

eicher-volvo-joint-venture-ve-commercial-vehicle-studying-plans-to-enter-mini-trucks-segment

Eicher is considering a mini-truck offering to enter the small commercial vehicle market through their joint venture with Volvo.

A joint venture between Eicher Motors Ltd. of India and Volvo, VE Commercial Vehicle, may enter the growing small commercial vehicle market in India. The small commercial vehicle market consists of the vehicles of 5 tonnes or less. The joint venture is considering a mini-truck offering in the 1-3 tonne range. This segment already features vehicles like the Ashok Leyland Dost, Tata Ace and Mahindra’s Maxximo Plus. The decision to enter the market will be made within the next six months with a potential product launch in 2016-17.

The small commercial vehicle market represents over 50% of the commercial vehicle market with an estimated 359,000 vehicles sold every year and growth to over 500,000 expected by 2019. The market is driven by the hub and spoke distribution system in India where large trucks transfer goods to or between hubs and smaller vehicles deliver the goods the last few miles. Learn more:  Economictimes.com

Comment:  For regulatory reasons, mini-trucks have not been a major market in the US although farmers often purchase used mini-trucks coming out of Japan and use them as of-road work vehicles. In some areas they are being allowed more access to public roads, but this is often in the context of agricultural use rather than the general public. Eicher, which also makes motorcycles, has a joint venture with Polaris that started in 2012. This joint venture is focused more on a range of personal vehicles with reports of a four-wheeled vehicle to be launched in 2015. At the same time, there could be opportunities for the companies to work together in the small commercial vehicle space given Polaris’s acquisitions in the past few years of GEM, Aixam and Groupil.

E-Z-GO Acquires Tug Technologies Corporation

The TUG Technologies Corp. M1A tow tractor is used at airports.

The TUG Technologies Corp. M1A tow tractor is used at airports.

E-Z-GO recently announced the acquisition of Tug Technologies Corporation, a manufacturer of ground support equipment for the aviation industry. TUG Technologies Corporation, based in Kennesaw, Georgia, manufactures ground support equipment servicing airlines, air-freight companies, ground handlers, government agencies and airports worldwide. TUG’s extensive product line includes cargo tractors, belt loaders, tow tractors, pushback vehicles, air-starts, ground power units, and mobile heating and air-conditioning units. The company was acquired from a New York based private equity firm but their manufacturing is based in Kennesaw, GA along with approximately 200 people. The terms of the acquisition were not released. Learn More:  Marketwatch.com

Comment:  The acquisition makes sense for E-Z-GO on a number of fronts. They already serve the same markets with E-Z-GO and Cushman vehicles but for different applications with minimal overlap and they are also both Georgia based companies. The greater resources that E-Z-GO has at it’s disposable in terms of product development, manufacturing expertise, sales force and existing relationships should help grow the company. Tug Technologies is a strong brand in their markets that can be leveraged for new products and new markets.

NHTSA Final Rule For Rear Visibility Technology Impacts LSVs

Garia LSV In NYC

In the future LSVs such as this one from Garia will need to have rear visibility technology.

In March, 2014 NHTSA finalized a rule requiring  rear visibility technology in all new vehicles under 10,000 pounds by May 2018. The final rule

“…requires all vehicles under 10,000 pounds, including buses and trucks, manufactured on or after May 1, 2018, to come equipped with rear visibility technology that expands the field of view to enable the driver of a motor vehicle to detect areas behind the vehicle to reduce death and injury resulting from backover incidents. The field of view must include a 10-foot by 20-foot zone directly behind the vehicle. The system must also meet other requirements including image size, linger time, response time, durability, and deactivation.”

The rule would also apply to LSVs. According to NHTSA, on average, there are 210 fatalities and 15,000 injuries per year caused by backover crashes with more than half of those involving children under 5 or adults over 70.

Learn more:  NHTSA.gov

Comment:  While rear view technology is becoming more common in full-size vehicles, it will be more expensive to put into LSVs relative to their overall price. On the other hand, certain market segments such as the college/university market, which already purchase LSVs in part for their safety features, may be willing to pay for this additional feature. Consumers purchasing LSVs for personal transportation may not be as willing.

You could argue that many LSV models offer much more visibility than trucks or buses and full-size cars. Here are some come comments from NHTSA regarding this issue.

Like all other vehicle types covered under today’s final rule, LSVs are required to provide the driver with a rearview image meeting the requirements specified in the regulatory text at the end of this document regardless of whether the vehicle has any significant blind zone. However, like other manufacturers, low-speed vehicle manufacturers can petition NHTSA for an exemption or for rulemaking.

 

NHTSA did receive some comments regarding the difference in blind spots between LSVs and other vehicles. This is the agency’s response.

…the latest agency research indicate that low-speed vehicle blind zones vary greatly within this vehicle class. Some also contain significant blind zones similar to other passenger cars and light trucks. However, some others may have very small blind zones.  As low-speed vehicles may have a GVWR of up to 3,000 lbs., these vehicles are also fully capable of causing injury and death to vulnerable pedestrians. As backover crashes do not typically occur at speeds above 25 mph (the top speed of low-speed vehicles), we believe it is appropriate to include low-speed vehicles in today’s final rule. Further, the agency requested comment on low-speed vehicles in the NPRM and sought information as to whether the agency could reasonably conclude that low-speed vehicles present no unreasonable risk of backover crashes, but nocommenter provided any substantive information on this point. Therefore, the agency cannot reasonably exclude, as a category, low-speed vehicles from the requirements of today’s rule because the available information

The agency estimates the cost per vehicle of such a system will be $132 to $142. However, this includes some assumptions of manufacturing efficiencies and volumes which are more likely to accrue to high volume full-size vehicle manufacturers than lower volume LSV manufacturers. For LSV manufacturers the best approach to this issue may be to petition the agency for specific models or hope that they may share some in some of the cost reductions the rest of the market creates or that future technology becomes less expensive.

Another market response may be for consumers to switch to golf cars or utility vehicles. From SVR’s scanning of road use regulations, more municipalities are allowing golf cars and UTVs varying access to public roads, not just LSVs. This regulation will only add to the cost differential that consumers consider between LSVs and these other vehicles, especially new or used golf cars and lower priced UTVs.

Road Use Regulation Roundup – April 2014

Some trends in this latest regulation roundup:

  • There appears to be less ordinances being passed than in the past.
  • Iowa experienced the most activity in this latest review.
  • The trend towards more inclusive ordinances is continuing as allowing golf cars, UTVs and ATVs are the focus of many of the ordinances.
  • There appears to be more regulatory activity with regards to UTVs and ATVs than low speed vehicles.
  • While people are still expressing safety concerns about these vehicles being used in mixed traffic situations, they seem to be in the minority and most municipal boards are passing ordinances.

Britt, IA – The city council passed a low speed vehicle ordinance after considerable discussion on whether or not to include golf cars and utility vehicles. The ordinance allows any low-speed or utility type vehicle to be operated on any city street as long as the operator has a driver’s license and obey traffic laws and police. The vehicle must also have approved working lights and other safety features and be registered with the Britt Police Department. The ordinance also covers motorized carts, motorized scooters and electric scooters, although they have a few more restrictions.

Buchanan County, IA – According to the new ordinance, registered ATVs or Off-road Utility vehicles may be operated on gravel roadways in Buchanan County. The main section of the ordinance states, “In the event that a person residing on a county blacktop wishes to operate an ATV or Off-Road Utility Vehicles on the gravel roadways, said person may operate on the shoulder of the county blacktop for a reasonable distance to reach the permissible county gravel roadway. Such operation may begin one hour after sunrise and must cease one hour before sunset. …”

Washington County, IA – Washington County Board of supervisors approved an ordinance to allow all-terrain and off-road utility vehicles on county graveled roadways and Level B roadways. The ordinance does not affect the current use of such vehicles for farming purposes. Only those 16 years and older and holding an Iowa driver’s license will be allowed to operate the vehicles and the vehicles must also be registered by the Iowa Department of Natural Resources and by Washington County and will not be allowed to carry more passengers than they were designed for. Such vehicles can only travel on the shoulder of a paved county highway until they reach the next gravel road and can only be used between sunrise to sunset. Those opposing the ordinance cited the Specialty Vehicle Institute of American (SVIA), a not-for-profit association representing ATV manufacturers and dealers, which has a strong policy statement against the use of ATVs on public roads. The SVIA states that ATVs are not designed for use on paved surface because of the negative affect on handling and control.

Bronson, KS – Bronson City Council approved an ordinance allowing special purpose vehicles to operate within the city. The special purpose vehicles include all-terrain vehicles, work-site utility vehicles, micro-utility trucks and golf carts. The board also approved picking up general purpose liability insurance in conjunction with the special purpose vehicle ordinance.

Leesburg, FL – City commissioners voted unanimously to allow golf carts, utility vehicles and low-speed vehicles on city-owned and maintained streets in the downtown area. Commissioners are concerned about safety though, so they are requiring that drivers be at least 18 years old in order to have more driving experience.

Polaris Posts Strong First Quarter 2014 Results

Beauty shot of the new Sportsman ACE from Polaris.

The new Sportsman ACE from Polaris is one of the reasons for the company’s strong financial results for Q1 2014.

The following are some of the highpoints of the Polaris earnings call discussing their first quarter 2014 financial results with a focus on aspects relevant to the STOV market.

  • Polaris first quarter sales increased 19% to $888 million.
  • Net Income increased 7% to $80.9 million.
  • Management is raising their expectations for full year revenue and earnings to increases of 14%-16% and 17%-18% compared to 2013.
  • Off-Road Vehicle sales which includes UTVs and ATVs increased 11% and market share improved with good demand for the RZR XP 1000 and the new Sportsman ACE.
  • In North America management estimated that side-by-side sales retail grew upper single digits in an industry that grew similarly.
  • The new Sportsman ACE has gotten off to a good start.
  • PG&A momentum remains very strong with first quarter sales up 20%, parts accessories and apparel all grew strong double-digits led by strength in both ORV and Motorcycle related products.
  • First quarter Polaris commercial revenues increased by over 60% with sales to Bobcat Polaris national accounts and BRUTUS up notably year-over-year. Commercial segment has grown more slowly than expected by management but they will continue to put resources into this segment.
  • Small Vehicle first quarter revenue increased by 248% as all three brands, GEM, Goupil and Aixam grew year-over-year. The increase includes the addition of revenue from recently acquired Axiam, which also increased market share in Q1, and an increase of over 20% from the GEM product line.
  • International business had another strong quarter with sales increasing 44% led by nearly 50% and 60% growth in the EMEA and Asia Pacific regions respectively. Small Vehicles, PG&A and side-by-side sales all grew over 30%.
  • ORV is now expected to grow 9% to 11% in 2014.
  • Small Vehicles guidance is unchanged up 25% to 30% which includes the full year of the Aixam acquisition.
  • ACE orders in both North America and internationally have been better than expected with only minimal signs of cannibalization of either ATVs or side-by-sides.
  • There is broad based strength across many ORV products.
  • Management is seeing increased competitiveness and promotions in the side-by-side market.
  • Management is disappointed in Brutus sales into the commercial segment so far but expect to see improvement over the next 12 months as dedicated sales staff, partnership with Ariens and other efforts help them adjust to the longer B2B and B2G selling cycles in this segment.

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  The early signs that the ACE is not cannibalizing ATV and UTV sales is an indicator that Polaris is creating another vehicle category. More time will be needed to see how sales play out over the next 12 months to see if this theses remains true. It’s not only a question of cannibalization but how buyers are actually using the vehicles – what market segments, what applications, etc.