VOG Forum banner
1 - 20 of 33 Posts

·
Premium Member
Joined
·
3,850 Posts
Discussion Starter · #1 ·
I'll start this thread by saying upfront that Rumors can be Dangerous. That is NOT the intent of this thread. The intent, is just for discussion purposes. Nothing more, nothing less.

With that said, I've heard some various communications about topics surrounding Victory and Polaris and I'll attempt to put the pieces together. But I'll state, there's no factual basis behind these thoughts...just assumptions. And yes, we all know what "Assume" means. We also know not to believe everything we read on the Internet.

So, here goes: Polaris is a public company and they are in business, like any company, to make a profit. They are not a public service.

We also know that due to an unstable economy and the resulting instability of the credit markets as well as consumer confidence in the economy is at a very low level, that the sales of new motorcycles have seen much better days.

On the other hand, Polaris seems to be doing very well with its Military business. But, that business seems to be centered around ATVs/Side-by-Sides and not motorcycles.

We also know that Polaris is now pursing the Neighborhood Vehicle/Golf Cart business with its new battery-powered Breeze product. It's been reported that a new sales staff is being incorporated for this mission. And, Polaris recently announced its first electric ATV.

Another factor to consider is the closing or the loss of the Victory line at a few dealerships with few if any announcements of new Dealers opening. This situation is not limited to Victory as all Motorcycles Manufacturers are feeling much more than just a pinch in the current market.

The latest Rumor I heard was...and yes, this is a rumor, was that Victory Motorcycle Dealers would soon be receiving new signage and the name Polaris would not be a part of the new logo.

Hmmm? IF this is true, what does this mean?

Could this mean that Victory could soon be owned by another company? Could Polaris be selling Victory? Could a merger of two motorcycle companies be on the horizon?

Again, there is no fact to this, it's just a compilation of unsubstantiated rumors.

Since this is an open forum, let's hear your thoughts. Personally, I don't think that Victory is going anywhere, but I don't see a sale of Victory out of the realm of possibilities in this day and economic age.
 

·
Registered
Joined
·
4,895 Posts

Someone has been talking.
Yes I did purchase Victory from Polaris.
When I find out who leaked this info they will be fired.
 

·
Premium Member
Joined
·
3,850 Posts
Discussion Starter · #3 ·
Trekwolf164 said:
Someone has been talking.
Yes I did purchase Victory from Polaris.
When I find out who leaked this info they will be fired.
Whew! And I thought it was Clubford!

Does that mean I'm Fired? Can we start talking about the Severance Package?
 

·
Registered
Joined
·
2,719 Posts

Very interesting. So many maybes involved it's mind boggling. From all the market manuvering lately it would almost appear that (and this is my take on this) that Vic will be spun off to stand on it's own. I would think the debt/losses are detrimental to Polaris overall. Will they be purchased by another manufacturer or just go it alone and look for investors?
 

·
Registered
Joined
·
53 Posts
Trekwolf164 said:
Someone has been talking.
Yes I did purchase Victory from Polaris.
When I find out who leaked this info they will be fired.
Congrats Trekwolf164!

I would have thought that Mike would have been the logical buyer for Victory!!!!! I'm glad it's you.

Now, can we talk about the popping?

All jokes aside, I don't think it is that far fetched that Polaris could be divesting itself of Victory as it doesn't seem to be fitting into the direction Polaris is headed.

I wouldn't be surprised if one of the other brands picks up Vic.
 

·
Registered
Joined
·
4,895 Posts

I have contacted my people and the deal is off.
Polaris assured me confidentiality in this matter.
 

·
Registered
Joined
·
4,500 Posts

If I ran the company, I would want to divorce my brand from the Polaris name at this point in their growth. Ilike to think that Victory now has a brand of their own and does not need big Daddy's brand to help them. Actually I think at this time it can hurt them. The consumer should not think of Snowmobiles and ATV's when thinking about a Victory motorcycle.
It's all about marketing and brand IMO.
 

·
Registered
Joined
·
53 Posts
bubba said:

If I ran the company, I would want to divorce my brand from the Polaris name at this point in their growth. Ilike to think that Victory now has a brand of their own and does not need big Daddy's brand to help them. Actually I think at this time it can hurt them. The consumer should not think of Snowmobiles and ATV's when thinking about a Victory motorcycle.
It's all about marketing and brand IMO.
The only problem with that theory is that with motorcycle sales what they are, can Victory afford to be independent? Isn't Polaris currently funding the shortfalls?

If the bike business was strong, I would fully support your concept.

I can only guess that Vic's business is just like all the other manufacturers are are operating under a deficit and hoping to hang on until the business returns.
 

·
Premium Member
Joined
·
3,850 Posts
Discussion Starter · #9 ·
Polaris's Quarterly Earnings are due out tomorrow (10/15/09) and it will be interesting to see what surfaces from the announcement of earnings for the various divisions.

Personally, I don't know if Victory could stand on its own as a line...yet. Some Victory buyers, who have owned Polaris ATVs and Snowmobiles in the past have stated that knowing that a major manufacturer is behind Victory was a factor that made them more comfortable with their purchase.

Again, this thread is speculative.
 

·
Registered
Joined
·
657 Posts
I would be very surprised if Polaris dropped Victory unless they received a very good price for it. Despite the brand's problems it has the following things going for it.

1. Growth in market share. (This alone may be enough to keep it around.)
2. Positive brand image. (Even its detractors will acknowledge that Vics are good quality and attractive products.)
3. Relatively small but loyal customers. ( Lots of people have more than one Victory or have purchased one after selling another.)
4. High JD Power ratings. (It is hard to overestimate how important this is.)

I don't know what the upcoming financial reports will say but up to now, Polaris is doing very well. Their last annual report showed a strong cash position and good profits. They knew Victory was a long term project and I believe that they will stick with it.
 

·
Registered
Joined
·
53 Posts
All very good points Putter, but I don't know about the JD Powers rating as wasn't that based on the 08 models? That 90% or 95% satisfaction number they emailed out a few months ago wasn't based on the Powersports Dealer network, not JD Powers?

I did read on another forum that Victory will be testing a program at selected dealers that has to do with some sort of incentives for owners of "other" brands of bikes. In a way, this makes a lot of sense as it can get a rider of a different brand of bike who may be on the fence to buy a new Vic.

But, won't that alienate the current Vic owners?

I've driven Volvos for many years. One thing that keeps me coming back to them is the $1,000 owner loyalty bonus that's only given to current owners when it's time to trade. That incentive is on top of the best deal you can make at a dealer and reduces the price of the new Volvo.

It seems that if this info is correct, that it could tick off some of the current Victory owners who have been the ones who have gotten Victory this far.

Anyone else hear anything about this? We know that Vic is known for making great bikes, not for their marketing expertise. Could this be a blunder of a program?
 

·
Premium Member
Joined
·
3,850 Posts
Discussion Starter · #12 ·
Putter said:
They knew Victory was a long term project and I believe that they will stick with it.
The only fly in the ointment is that Nobody predicted the magnitude of how the sub prime mortgage industry would adversely affect so many different industries.

The motorcycle industry will follow the housing and jobs markets. When they return, then Victory will be in an excellent position to compete in the marketplace.

Polaris is very fortunate to have its Military division to carry it through until the motorcycle market returns to 2007 levels.
 

·
Registered
Joined
·
807 Posts

I'm new to motorcycles, so I'm not much up on history, but wasn't the Star brand once a Yamaha division? And is it not still associated financially with Yamaha?
Of course I'm hoping this is just a name game, but I have to agree that it seems early for Victory to stand on it's own, and I'd hate to see a merger... what, a Wide Glide with decent stock horsepower? A Vegas that leaks? Or would you call it a Gold Country?
 

·
Premium Member
Joined
·
3,850 Posts
Discussion Starter · #14 ·
Dimonback said:
I'm new to motorcycles, so I'm not much up on history, but wasn't the Star brand once a Yamaha division? And is it not still associated financially with Yamaha?
If memory serves me correctly, Star has always been Yamaha. It started with Yamaha looking to enter the larger cruiser market segment that was not covered with its Virago line and they introduced the first RoyalStar around 1997 (or so). There's some rumors about what Yamaha will be doing with the Star line as its sales been hit pretty hard by the economy as well.
 

·
Registered
Joined
·
2,995 Posts
dont forget Suzuki and Boulevard. I think it's more of a name game than anything. Some people may not buy Victory knowing it's Polaris, just as some would knowing it is Polaris.

It will make the brand easier to sell if they go that route at some point, but for now I'm just thinking a name game. ATV's and snowmobiles are recreational vehicles in the same way as motorcycles so I doubt anyone is more of a hindrance than any other thing they make and sell.
 

·
Registered
Joined
·
4,500 Posts

They would be droping the Name Polaris in their identity. Polaris will still own and manage them. So big MOMMA with deep pockets will still be doing the direction and management. Victory's brand should be associated with MC's not the Polaris line. This could take time IMO, they will go through a process to fully get Polaris out of the Brand.
It's like Oreo cookies. What doyou think when you hear the name? Not the parrent company.
 

·
Registered
Joined
·
58 Posts
The Victory brand has only been here in Australia for 12 months and most, when viewing my KP Tour give positive raves but when seeing the tank badge the most common comment is, "Oh, its made by Polaris. But don't they make snowmobiles?" with disappointment on their faces. Why, I don't know the answer but on speaking to one dealer who is into Polaris/Triumph/Suzuki and KTM he claims that out of the brands Polaris is the best to deal with on warranty issues.
 

·
Registered
Joined
·
11,739 Posts
They may drop the name but no different from buying a Lexus. You don't buy a Lexus by Toyota.

I don't think Victory really has a value outside the umbrella. The factory is worth more than the line at this time in the economy.

I doubt they can support the dealer network they have. I see a lot more dealers dying off before it gets better.

I do think they have a great chance at survival. Face it, they are really cool bikes.
 

·
Premium Member
Joined
·
3,850 Posts
Discussion Starter · #20 ·
advntrus said:
Well as Andy pointed out, Polaris reports their earnings tomorrow. It's against SEC rules for CEO's to say much at all during the "Quiet period" before earnings are released. But after the bell tomorrow I imagine he'll have lots of questions. hopefully he'll be asked about the future of Victory and we'll get a better picture of where they intend to take the brand.
"Cross"ing my fingers!
Shawn
On previous quarters it seems that the Victory portion of Polaris was "glossed over" and the focus was on ATVs. I can only guess that the financial guys asking the questions aren't as familiar with Victory as the riders.
 
1 - 20 of 33 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top