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Another recent article on Polaris

19K views 198 replies 62 participants last post by  robsvision 
#1 · (Edited)
This article is a couple of days old, but I had to share it here after reading it. I did a quick forum search and it looks like this hasn't been shared.

Polaris Hopes New Focus Will Rev Up Motorcycle Sales
7:00 am ET February 7, 2017 (Dow Jones) Print

By Bob Tita

The race for young riders is posing a major test to Polaris Industries Inc.'s motorcycle business after years of rapid growth.

The Minnesota-based maker of snowmobiles and all-terrain vehicles emerged in 2014 as a fierce competitor to industry leader Harley-Davidson Inc. for nostalgia-prone baby boomers who want to buy motorcycles made in America. Polaris's motorcycle revenue was $708.5 million last year, up from $146 million in 2011.

But retail sales of motorcycles industrywide in the U.S. fell 2.7% in 2016, forcing both companies to work harder to entice new riders. Last month, Polaris abruptly discontinued its money-losing Victory brand to focus on its Indian line and a niche-market, three-wheel motorcycle known as the Slingshot.

Polaris's 2016 motorcycles sales were up 1% from 2015. But with the loss of Victory, the company expects 2017 sales to be down at least 10%.

Launched in the late 1990s, Victory was Polaris's first attempt at building motorcycles. The line mostly featured midsize bikes with middle-of-the-road prices. Its sales shrank after the Indian brand hit the market in 2013, but its younger customer base remains key, especially as baby boomers age. Polaris must now convert Victory buyers into Indian riders, or risk losing them to Harley.

"The gap left by Victory is an opportunity for both companies to gain share," said Trevor Young, an equity analyst at investment firm Jefferies LLC.

From the early years of the 20th century, the Indian Motorcycle Manufacturing Co. and Harley were intense competitors in a U.S. motorcycle market popularized by barnstorming racers and daredevil exhibition riders. But Springfield, Mass.-based Indian went bankrupt in 1953.

In the decades that followed, several companies tried to revive the Indian name. Polaris bought the brand from a private-equity firm in 2011 and launched the line two years later. It emphasized Indian's heritage by developing a lineup of big, powerful bikes that feature fender skirts, whitewall tires and an Indian-head-shaped running light.

While the biggest Indian models sell for close to $30,000, the best-selling bike lately is the smaller Scout. At $8,999, the low-frills bike attracts young, urban riders.

"That hit right at the early 30s-type customer who's wanted to get into riding and had some disposable income," said Nick Schittone, general manager for an Indian dealership in Austin, Texas.

Motorcycles account for about 15% of Polaris's revenue, but the gross margin for the motorcycle business is less than half that of the company's off-road vehicles. Analysts say pulling Victory's sales numbers into the Indian brand is critical for Polaris to keep up production volumes and make up for the lower margins on cheaper bikes like the Scout.

Harley has lost some market share since Polaris began selling Indian bikes. Polaris's Victory and Indian motorcycles make up about 6% of the U.S. market today, compared with Harley's 50% share. Milwaukee-based Harley is renowned for big bikes that riders affectionately call "hogs," but demand is waning as baby boomers age. The company has also introduced more midsize models in recent years that can sell for less than $8,000.

"Harley knows it needs to go after younger riders," said Robin Farley, an analyst for UBS Securities. "Its core rider is aging."

A Harley spokeswoman declined to comment.

Polaris plans to introduce more midsize Indian models this year aimed at Victory customers and younger riders.

"We owe it to Victory and its die-hard fans," Polaris Chief Executive Scott Wine said in a recent conference call. "We will invest more in Indian to accelerate and expand our product introductions and innovations." Last year, Polaris added touch-screen systems to some Indian bikes for riders to access information about restaurants and gas stations along their route.

Polaris must also reaffirm its commitment to existing Indian customers after nearly 23,750 high-end models were recalled last year for a fuel-system fault that could cause an engine fire. Harley models also have been recalled in recent years. Steve Menneto, president of Polaris's motorcycle business, said he didn't expect Indian's recall to drive customers away.

Todd Gaines, co-owner of an Indian dealership in Libertyville, Ill., said customers are attracted to the brand's distinctive styling and its heritage. "They get a lot of attention on these bikes," he said.

Gabriel Rheaume, a longtime Harley rider and former Harley salesman in Tennessee, planned to buy a new hog last year before his brother suggested he check out Indian bikes. The 38-year-old ended up buying a Springfield, a large Indian bike that features side saddlebags and a windshield.

"The Indian blew me away," Mr. Rheaume said. "The power and the engine really impressed me."

Write to Bob Tita at robert.tita@wsj.com

(END) Dow Jones Newswires
February 07, 2017 07:00 ET (12:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
____________________________________

Scott is off his damn rocker and clearly is not a motorcycle enthusiast
. He's a straight up business man that talks out of the side of his neck when it comes to motorcycles. I truly wish he would stop acting like he gives two turds about us. Victory riders have seen your true colors Scott, there is no going back! This coming from a Victory fan who has been listening to Scott's lip service for years. Scott no longer has my benefit of the doubt when it comes to the things he spews. That went out the window when he turned his back on everything Victory had become in 18 years of pushing the boulder up the hill.

From the article: Polaris's 2016 motorcycles sales were up 1% from 2015. But with the loss of Victory, the company expects 2017 sales to be down at least 10%. Hold the damn phone! By discontinuing Victory Polaris expects motorcycle sales to be down 10%? If that isn't a slap in the face to everything Victory had become I'm not sure what is?

At first I thought it was a good business decision, killing Victory that is. However, after reading this article and stewing on my previous thinking, I'm starting to question if it really was a good business decision. Nobody is ever going to forget what happened to our beloved brand. Of those, several will never forgive Polaris for doing it. If Polaris is counting on people that were interested in Victory bikes to help grow Indian, they best produce some RESULTS and fast! How many recalls has the entire Victory line had since the introduction of Indian? [Jack squat when compared to their other brand.] How solid was the production Freedom 106, any sump issues? [Yeah it's a loaded question.]

I believe Scott and the board of directors have positioned Polaris into a make it or break it situation when it comes to the motorcycle industry. If all of these new bikes we keep hearing about do not attract buyers (in part because they made the entire industry leery of their long term commitment) they are going to be in a world of hurt. Likely far worse off than what they would have been by keeping Victory around with a wee-bit of innovation. Only time will tell how things work out long term, but I do not have a good vibe about the short term.
 
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#2 ·
@Known1 Thank you for sharing this. Pretty good read. I have thoughts on this, but I have to go do a cut-over now.
 
#4 · (Edited)
Incredible article. Where to even start? Bike sales up a percent, now down 10%.

Expectation that Vic owners will volunteer to possibly have another pole crammed up their crack, just a 30k one this time?

Dumbasses lost the Vic rider potential business with the sneak attack ass rape announced with no warning, and expect us to buy them dinner and chocolates?

Arrogant bastards! I should buy a HD just to send a copy of the sales receipt straight to Polaris with a pic of me flipping off an Indian dealer sign with my pale old ass cracking a smile at the same time.

Now we know exactly why they chopped Vic...and why they did not need to. So they could push the Clackers down our throats. Scott Wine can play the "Slobbering Blues" on my skin flute.

Rant over...but that article pissed me off a bit.

Dumbasses won't see a penny from me unless they bring Vic back. I'll chop two wheels off a Kia first and ride that around.
 
#21 ·
You are a word smith son, two thumbs up.
 
#7 · (Edited)
No man, glad you posted it. But it did rile me. Polaris execs can can blow me a tune on the Meat Whistle after reading that. Piss on Polaris and Indian.
 
#6 ·
So, Kurbs, Just wondering. How you feel about this whole thing?

No longer worried about dealer support or service. I have found the solution.......I'm going to carry one of these in the trunk as a spare.

 
#10 ·
250 bucks and doesn't clack or start on fire either. Great choice.
 
#14 ·
Thinking I should mention my Big Mac at this point... but I won't!
 
#19 ·
A different perspective (obviously not written by a ride or rider audience), but the numbers are interesting...

trust is easy to break; and near impossible to rebuild

...I don't have any trust in Polaris and if they can dump a product stream like Victory, why would I trust them not do dump Indian?

fool me once
- shame on you
fool me twice
- mofo gets a punch in the nose
 
#24 ·
Wine is obviously reading some of this **** and realising he has **** a lot of peoples beds. A through away line about the hardcore vic fans and so on , trust baby, you blew it.
 
#26 ·
You guys are killing me.....
I read the article and was pissssed...

Let me see....
both brands and sales are up 1%
Dump Vic and sales are expected to drop by 10%
WTF!!
Is Indian sales down that much all ready??

And known1 we need to keep these posts going?
The more people that know about this the better.

Now kurbs
I laughed so hard I had tears running down my cheeks.....

And if anything happens to my Vic (hope not) because if it did I will buy a Harley and I will take a pic of me giving a Polaris dealer the finger.
And I will send it so Scott.
I will post it on all the forums I can find....

I can be a hateful bastardd

Also
I have a strong feeling these new indians that will be released in the near future were supposed to have Victory on the tank...
Wanna lay a wager?
These are the bikes that are for us poor abandoned Victory owners !!

Cause they owe us that much right...

Is this guy that stupid??? Or is this just to look like Polaris is the type of company that gives a shiit about there customers??

Now I am pisssssed again..

Kurbs I need more funny posts!!
 
#27 ·
You guys are killing me.....
I read the article and was pissssed...

Let me see....
both brands and sales are up 1%
Dump Vic and sales are expected to drop by 10%
WTF!!
Is Indian sales down that much all ready??

And known1 we need to keep these posts going?
The more people that know about this the better.

Now kurbs
I laughed so hard I had tears running down my cheeks.....

And if anything happens to my Vic (hope not) because if it did I will buy a Harley and I will take a pic of me giving a Polaris dealer the finger.
And I will send it so Scott.
I will post it on all the forums I can find....

I can be a hateful bastardd

Also
I have a strong feeling these new indians that will be released in the near future were supposed to have Victory on the tank...
Wanna lay a wager?
These are the bikes that are for us poor abandoned Victory owners !!

Cause they owe us that much right...

Is this guy that stupid??? Or is this just to look like Polaris is the type of company that gives a shiit about there customers??

Now I am pisssssed again..

Kurbs I need more funny posts!!
Nope he thinks we are that stupid.
 
#32 ·
Just an observation, the article was dated 02/07, almost 30 days after VD day (Victory Dump Day), think Ol Scotty got a wake-up call from over 50,000 pissed off Polaris customers that aren't lining up for his pet pony. Especially now, as I can't imagine the PR crew happy with the outcome.

Went from had to dump the Red Headed Victory for the better Horse, to we gots to build something for our Victory customers... Hmm, sounds like that awesome crew that has been designing the Vic's, had something on the drawing board he wanted to snatch like he did before with the Octane, slapping an Indian Scout name on it.

I know it is all one big happy family and what he sees moving off the floor at the dealers, is the Horse he shot, not the Horse he wanted.
 
#37 ·
If Scott Wine told me it was a beautiful Sunny day outside I would go outside to look. This is how much I trust this turd. Is THIS the kind of Male Homosapien ( I will not call him a man) that you want to buy a bike from? Not me. I don't care what they dish up. I don't want it.

 
#38 ·
Polaris sure is getting a lot of ink after dropping Victory.


The Octane will be just that more desirable with an Indian badge on it.

I have hopes that a Vision style bike will be coming from Indian.
Imagine the Vision styling with a 111" in it, or maybe a bigger Octane motor. Refined bags, more palatable body design, they will sell like hot cakes.

I still have hope!
 
#40 ·
I have an '11 XC and my wife has an '15 Vintage. They're both great bikes. But as I watch this heavy weight cruiser battle between H-D and PI take place, I see two tired old men having it out in the back yard. Harley just came out with a "new" parts bin bike - the RKS. It does have a multi syllabic paint name.
 
#45 ·
And I notice that statement a LOT on here and other places. "The Vic I own now is the best bike I've had so far". This usually coming from experienced riders. WTH Polaris?
 
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#46 · (Edited)
There's a lot of people on HD bikes strictly because of the marketing; the reputation. Similarly with the Indian in it's past and present lives. It's the "rep" that draws a good portion of the initial purchases. When that crowd is finished buying the sales figures of Indian will stabilize. The riders left looking after that will be the ones basing their decisions on facts, figures and price rather than PR. Sales will drop from starting levels.

For motorcycle purchases from then on the new "rep" isn't fairies and unicorns but rather the characteristics known for performance, reliability, cost, looks, etc. Solid stuff you can count on. Decades of Honda reliability, Yamaha performance, Kawasaki in the dirt. The qualified research that helped most of us make a decision to go with the Victory products in the first place. Smart, experienced people knowing what to look for.

The problem as I see it is Polaris has a big negative on their side. Part of that "rep" is this is a company that will screw you badly over night. That ink they are getting shows they will lie to you with a smile on their face right up to the point they pull the lever for the trap door. And remember, the Vic scenario is not the first time Polaris has done that to a sizable number of their customers.

People taking a good look at the marketplace will be wary of Indian because of that and it will factor into their spending. Hey, it's happened to Indian before too with prior owners but it's still there. A a couple of serious nagging questions in the back of people's minds about something they are being asked to spend some major cash on. It will sway their final decision and push some elsewhere.

The brass on the motorcycle side of the business have shown they don't have a firm grasp on motorcycling. They had a great product to run with but chose to let it languish after they bought the Indian name purely for marketing purposes. As sales figures slide over the coming years the people at Indian won't have any more excuses for their bosses at Polaris and it will be chopped just as easily as they've done in the past. They have no qualms what so ever about leaving their customers and dealers high and dry.

I don't know how long it will take, less than 18 years, but I think this will turn into the last swan song for Indian and it will be left in the realm of nostalgia. Finally.

 
#49 ·
Polaris will be out of the motorcycle industry before to long. I wish Harley would buy Indian and put it out of it's misery forever.;
That would be poetic justice.
 
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