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Posts Tagged ‘Polaris Industries Inc.’

Indian Motorcycle 2017 Line-Up

Indian Motorcycles

Could this be a historic mark on Sturgis?

Seventy-five years after Ed Kretz dominated the first motorcycle race on the sands of Daytona Beach, Indian Motorcycle announces the 2017 line-up just days before the start of the 76th Sturgis Motorcycle Rally and just hours before Harley-Davidson’s Q2’16 financial results.

Indian states the 2017 lineup includes the recently released Scout Sixty, Indian Springfield and Chief Dark Horse models with new color choices.

A new and the industry’s largest and brightest touch-screen information and entertainment system has a 7-inch display with turn-by-turn navigation, Bluetooth audio and USB flash drive support. The Chieftain bikes come with 100 watts of audio, while the more expensive Indian Roadmaster has 200 watts.  The screen is glove compatible with two-finger touch capabilities, according to the company.

Indian has grown at a brisk pace, introducing nine new models since its relaunch in August 2013.  The motorcycle industry is looking to be flat this year, so Indian and Harley-Davidson are in a share battle.  For the full year, Polaris sees motorcycle sales increasing in the high teens on a percentage basis.

Time will tell if it’s a brand, a dealership or a bike thing as the two companies slog it out in the back half of the year.  On the surface it looks like Indian will once again challenge its main rival.

If you are headed to the 76th annual Sturgis Motorcycle Rally,  riders can view the entire new 2017 lineup at the Indian Motorcycle Factory display on Lazelle St. or experience them firsthand with a Factory Demo Ride at 2100 Whitewood Service Road (I-90 at Exit 30) from August 6 – August 12 from 9 a.m. – 5 p.m. daily.

Photo courtesy of Indian Motocycles.

All Rights Reserved (C) Northwest Harley Blog

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Polaris Industries -- Victory Motorcycles

Creativity.

There is a fascinating and quite boring article in ‘Newsweek’ about the creativity gap, how creativity is declining in America.  Reading it I couldn’t stop thinking about the motorcycle business and specifically Harley-Davidson.

Given it’s earning season; H-D announce earnings HERE, now it’s Polaris Industries Inc. (NYSE: PII), makers of the Victory motorcycles turn who reported its Q2’10 net income of $25.6 million.  By comparison, the 2009 second quarter net income was $17.5 million.  Sales for the second quarter 2010 totaled $430.9 million, an increase of 25% from $345.9 million recorded in the year-earlier period.

Scott Wine, Polaris’ CEO stated:

“Polaris maintained strong momentum in the second quarter, driven by solid market share gains, sales growth and margin expansion. Innovation and execution enabled us to deliver another quarter of solid operating results in an overall economic and powersports industry environment that remains sluggish.”

Yeah, but you’re likely saying that’s all ATV and snowmobile sales, right?  True the lions share is off-road sales, but specific to sales of the On-Road Division, which primarily consists of Victory motorcycles, they saw an increase of 48% during the second quarter of 2010 vs. the same period in 2009. The N.A. heavyweight cruiser and touring motorcycle industry remained weak during the quarter, but Victory motorcycles had strong retail sales during the second quarter, increasing more than 10% in N.A. compared to the second quarter last year, resulting in overall market share gains and retail sales growth for the third consecutive quarter. The increased demand reflects the popularity of the new 2010 Cross Country and Cross Roads touring models.   The N.A. dealer inventory of Victory motorcycles declined 32% in the Q2’10 compared to 2009 comparable levels. The sale of Victory motorcycles in markets outside of N.A. continues to accelerate, with sales reaching 25% of total On-Road/Victory sales for the year-to-date period.  And lastly the income from Polaris financial services was $4.2 million for Q2’10 compared to $4.0 million in 2009.

I can’t put my finger on it, but there is something missing for me with the Victory motorcycle.  Maybe it’s just the “bar-n-shield” logo and now my bias is showing?  But I balk at comments from riders that claim Victory is NOT a threat or competition for H-D… it just doesn’t ring true.  The cruisers are more roomy, the engine has more HP, the motorcycle is lighter, has a lower seat, larger saddlebags all at a cost of thousands less means Victory is doing a lot RIGHT on the creativity front.

In other words, the Harley-Davidson businessmen look to squeeze all the creativity out in the name of profits.  And now the business is in the hands of the manufacturing line worker, who are always the least creative element in the chain.  The engineers designed out cost, the line-worker built them at the lowest cost, the dealer sold them slightly above cost. Now the company is trying to fix the business, but are flummoxed.  Do they truly think cutting out cost, means somehow people will magically appear?

They’re not and meanwhile Victory ratchet’s up innovation.

Photo courtesy of Polaris/Victory Motorcycles.

All Rights Reserved © Northwest Harley Blog

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Today was not a good day for leadership.

First it was Calderon.   You know — the Mexican President, Felipe Calderon?  His administration has attempted to rid Mexico of the narco-traffickers using thousands of Mexican troops and hundreds of millions of dollars in U.S. aid, but cartel members have killed thousands in an effort to maintain control of the lucrative drug trafficking routes.  More than 18,000 people have been killed since Calderon launch his military offensive in 2006.

Then in an unprecedented mucho ballsy move he comes to the U.S. today and complained about Arizona’s immigration law (SB1170), when all the state wants to do is protect itself against a flood of illegal immigrants from Calderon’s country!  And, how about that Congress’s standing ovation for the Mexican leader?!  Adding insult to injury in this twilight zone was President Obama complaining whining about Arizona trying to do something about a problem he- President Obama and the federal government- have created and choose to ignore.  George W. didn’t help.  Combined with the fact they can’t be bothered to read the law that they’re criticizing. If they did, they’d find out that parts of Arizona’s law are word-for-word the same- exactly- as the federal statutes on immigration.  I’ll save my viewpoints on how Mr. Calderon should spend his time trying to create opportunities for his own citizens, so they’re not driven by poverty and desperation to sneak into this country illegally for another day.  The fact is that this “pony show” is all about pandering to Hispanics for votes.

And speaking of pandering…

Polaris Industries Inc., (parent company of Victory motorcycle) announced today that it will establish a new factory in Mexico’s Monterrey/Saltillo area. Talk about great timing on doing your part for the American economy — exporting American jobs along with the factories.  This major realignment will begin immediately and will lead to an eventual sale or closure of the Polaris’ Osceola, Wis., manufacturing operations.  Polaris stated the realignment allows it to invest in and outsource certain “nonstrategic” component manufacturing processes while improving on-time delivery to customers, and providing savings in logistical and production costs.  Make no mistake, it is all about the money.

Scott Wine, CEO of Polaris, stated in a press release:

“Pursuing opportunities in new markets outside the United States, while concurrently evaluating our cost structure to improve our long-term competitive positioning, are key components to our growth strategy. This decision was based on a thorough review of our worldwide operations and will allow us to improve our ability to meet the quality, delivery and cost standards desired by our dealers and customers.”

Harley-Davidson has made it public they are also considering a move out of Wisconsin.  Inconceivable? Think again.  Polaris plans to have their factory in Mexico operational beginning in the first half of 2011.  Can H-D be too far behind?

My philosophy is that if my neighbor doesn’t have a job, sooner or later I won’t have a job either.

Photo courtesy of Harlistas.

All Rights Reserved © Northwest Harley Blog

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