News Briefs

Polaris Adds Jobs – Polaris will be adding 89 jobs in their Osceola, WI plant for work related to their Indian Motorcycle and GEM product lines that were acquired last year.  Work at the plant will include engine production for motorcycles and R&D for GEM vehicles.  The company has also added 200 jobs over the last 18 months at their Spirit Lake facility which is ramping up to full production of Indian motorcycles and GEM vehicles.  Learn more:  Startribune.com

Campus Sustainability Drives Electrics – Washington State University is another example of how sustainability initiatives on campus are driving electric STOV purchases.  The university recently purchased the three GEMs for transportation and general fleet use.  The vehicles help the university meet the governor’s mandate that state entities reduce their carbon footprint.  Learn more:  News.wsu.edu

A Case For NEVs/LSVs – In this brief interview an author in the renewable energy space makes the case for NEVs/LSVs and the role for STOVs.  Learn more:  2greenenergy.com

UTVs Help Drive Strong Earnings At Polaris

Polaris reported strong first quarter earnings for 2012 with record sales of $673.8 million.  Key sales drivers were Ranger and RZR UTVs and Victory motorcycles across global markets.  Some key takeaways from the earnings call:

• First quarter net income increased 27% to $60.1 million
• Earnings per share increased 27% from the prior year period to $0.85
•  32% improvement on operating profit
• Management expects sales and earnings for 2012 to surpass previous guidance with full year sales guidance to up 13% over 2011 and full year earnings per share are now projected to be $3.85 to $4.00 per share, an increase of 20% to 25% over 2011.
• Off-road Vehicle business revenue grew 30% in the first quarter.  This includes side-by-sides and ATVs.
• Polaris gained market share in both ATVs and side-by-sides.
• Side-by-side retail sales grew at over 30% in North America for Polaris compared to low teens for the overall market with strong performance across all segments
• Bobcat has reported dealer retail sales increases of upper single-digits in the first quarter
• Expect a new Bobcat product  in the coming months for both Polaris and Bobcat channels. “This should be a significant capability change from products we’ve offered traditionally.”
• Management believes they can leverage their strengths in distribution, product cost and product innovation to drive growth in their GEM and Goupil acquisitions. They see the global small electric vehicle market as a growth area and note “… certainly we think we’re not done building out that portfolio.”
• In Europe under tough conditions Polaris outpaced the overall market with particular strength in France.  Northern Europe is more of a work vehicle/Ranger market while Southern Europe sees more recreational vehicle/RZR sales.

For earnings call transcript:  Seekingalpha.com

Polaris Drives Side-by-Side Market Momentum in Q1

According to preliminary results from a dealer survey conducted by Powersports Business and RBC Capital Markets, powersports dealers are reporting positive results across most categories in Q1 with side-by-sides leading the way.  In the latter category Polaris is “outperforming” expectations with nearly half of  dealers surveyed reporting double-digit sales increases in side-by-sides.  Polaris competitors such as Arctic Cat and Can Am are not impacting the market leader’s performance as significantly as expected to date.  Larger dealers are more likely to be selling above plan than smaller dealers.  Learn more:  Powersportsbusiness.com

Polaris Monterrey, Mexico Plant Praised by Analysts

Polaris management recently gave analysts that cover the company a tour of their Monterrey, Mexico facility that opened a little over a year ago.  Analyst came away with a positive review of the plant and its impact on the company’s performance.  The plant currently produces about 200 side-by-sides per day on two production lines with a third line likely to be added in the future.  Analysts report the plant has the lowest warranty costs in the company.

The plant was opened to more quickly supply southern US markets as well as international markets such as Brazil, India and China.  The plant has also helped Polaris execute on their objectives of shortening ordering times and reducing dealer inventory.  They have been ahead of their competition in these areas.  Learn more:  Powersportsbusiness.com

What’s Cooking On The STOV

Highlighting some of the many applications for small, task-oriented vehicles

Lewis County's New UTV: A Search & Rescue command center for backwoods operations

 Search and Rescue Command Center Vehicle – In Lewis County in upstate New York a Polaris Ranger UTV was recently purchased to serve as a command center for search and rescue operations.  The vehicle cost $19,000 and was funded with a grant from the Federal Department of Homeland Security.  Other funding covered the $4,000 for a track kit that expands the vehicle capabilities in snowy conditions.  The vehicle also includes a heated cab, 100 watt radio system, emergency floodlights, a winch and a small emergency generator.  Any agency in the county will be able to use the vehicle in addition to it’s use as a search and rescue vehicle.  Learn more:  Watertowndailytimes.com

GEM Fargo Factory Being Liquidated

The original Fargo, ND GEM factory will be liquidated starting December 6th.  After acquiring GEM, Polaris Industries moved GEM production to their plant in Spirit Lake, IA.  Items available for sale include “…excess Global Electric Motorcars vehicles, tools, equipment, office furniture, pallet racking, and a state of the art production line installed in 2003.”  Liquid Asset Partners will be conducting the liquidation.  Learn more:  PRWeb.com

Polaris Makes Another Move In The EV Market – Acquires Goupil Industrie of France

Goupil Industrie electric truck

Diversifying their portfolio of electric vehicle offerings, Polaris Industries recently purchased Goupil Industrie SA.  The privately owned French manufacturer produces a line of light duty electric trucks for a variety of commercial uses.  There were no comments by management on whether the Goupil product line would be exported to or produced in the US.

This is the third major transaction in the small electric vehicle space by Polaris this year following the acquisition of GEM and a major investment in Brammo, an electric motorcycle manufacturer known for electric powertrain expertise. The work and hauling oriented Goupil product line will complement the more people mover oriented GEM line.   Goupil’s estimated annual sales of $25 million adds to the estimated $30 million in annual sales that Polaris gained from the GEM acquisition.

Comment:  After testing the LSV market with their Breeze model for personal transportation and the electric UTV market with their electric Ranger, Polaris has now moved decisively into the space.  Management sees the global market for small electric vehicles as a growth area and have executed on that belief by purchasing this manufacturer in France and initiating GEM distribution in India.  Polaris now has a range of small EV product offerings spanning off-road and on-road, consumer and commercial, as well as work and transportation applications.  Learn more:  BizJournals.com

In related news, I noticed that Polaris also has a new website for GEM.  On their home page it is accessible under the tab “Low Emission Vehicles” along with the Breeze LSV.

GEM To Use ARI PartSmart

Polaris announced that they have selected ARI’s PartSmart to provide their GEM dealers with parts and service information for the complete line-up of vehicles.  PartSmart is already used by Polaris and Victory motorcycle dealers.  From the press release:

PartSmart is ARI’s premier parts lookup software known to more than 50,000 users worldwide. It provides the fastest way to find the right part the first time by providing more information with fewer keystrokes and mouse clicks. PartSmart interfaces with more than 90 dealer business management systems to drive even more efficiency. PartSmart offers time-saving features, including easy navigation, a single log in, a single and familiar user interface, updates via the Internet, and thumbnail browsing.

Learn more:  PRNewswire.com

News Briefs

Group Promotes LSVs in Augusta, GA – A newly formed group, the Augusta Greenway Alliance, has been formed to help increase awareness and support of LSVs.  One vision includes linking the medical and downtown districts with LSV lanes.  Learn more:  Chronicle.augusta.com

Polaris Chooses Agency for GEM – Polaris Industries has chosen Nelson Schmidt Inc as the new agency to provide marketing and sales support for the recently acquired GEM business.  Learn more:  Wisbusiness.com

GM’s EN-V for China’s Eco-City – GM’s trio of two-wheeled neighborhood electric vehicles are being incorporated into plans for Tianjin, China’s futuristic eco-city.  Being developed in conjunction with partners from Singapore, Tianjin will be

“…a large-scale prototype for the sort of sustainable, high-density communities we’re expected to see in the coming decades. Key features include a focus on renewable energy, mass transit (in the form of a light rail system) and – you guessed it – a development of GM’s EN-V.”  

Learn more:  Carscoop.blogspot.com

 

 

 

 

 

 

 

 

 

Polaris Targets India For Growth

In August Polaris introduced a broad selection of their off-road vehicles (ORVs) to the Indian market.  The company expects to have twenty-five “sales touch points” in the country by the end of the year.  Management has a goal of $100 million in ORV sales by 2016.  They are also studying the feasibility of selling LSVs, leveraging their recently acquired GEM product line.  Mahindra Reva is currently selling similar vehicles with a sales target of 3,000 vehicles per year.  The government provides some incentives but infrastructure issues are an obstacle as well.  Learn more:  Business-standard.com