More Farm Equipment Manufacturers Enter Utility Market

Both New Holland and Case IH have decided to enter the utility vehicle market with the addition of their Rustler and Scout UTV product lines, respectively.

New Holland Ruslter 125 UTV

New Holland is targeting the rancher, farmer and property owner with their line-up of three Rustler utility vehicles:  Models 115, 120, and 125.

New Holland offers Rustler UVs with 4×2 or 4×4 axles. For extra traction on the 14-hp 4×4 115 (gas) model, simply engage the shift-on-demand four-wheel drive, while the larger models engage four-wheel drive automatically. The 20-hp 120 (diesel) and 23-hp 125 (gas) models feature an automatic, all-wheel-drive system that delivers the gear you need, when you need it.

Lean more:  Northwest Horse Source

Case IH Scout UTV

Case IH offers their Scout and Scout XL utility vehicles.  The XL comes in a gas or diesel versions for 2 or 4 passengers. Key target segments for the Scout include crop and livestock farmers, contractors, and landscapers.

The two-passenger Case IH Scout offers premium features in a compact size, including: MacPherson Strut front suspension and best-in-class independent rear suspension; a wide ratio CVT transmission for fuel efficiency and smooth shifting; hydraulic, four-wheel disk brakes; ROPS protection, retractable safety belts and Halogen headlamps.

For all the comfort, safety and fuel-saving features in a bigger box, there’s the larger Case IH Scout XL. These also feature a wide ratio CVT transmission; hydraulic, four-wheel disk brakes; ROPS, retractable safety belts and headlamps; along with a double A-arm front suspension with coil overshocks for a comfortable ride; and a full-sized bed box with 800 lbs. (15.1 cu. ft.) of capacity – or 1,050 lbs. with the optional high capacity kit.

Learn more:  PRweb.com

Comment: I believe these new product line introductions are indicative of two trends in the utility vehicle market.  First, despite the economy and some declines in the market, the utility vehicle market is still relatively vibrant and poised for strong growth as the economy gains strength.  In part, this is because purchasing these vehicles  makes economic sense  since they  increase productivity.  In their July quarterly analyst conference call Arctic Cat reported positive comparative UTV sales figures for 9 of 13 weeks. In contrast, both Polaris and Arctic Cat have reported significantly sharper declines for ATVs than UTVs during the economic downturn.

This leads me to the second trend in the market – utility vehicles “stealing” market share from other vehicle classes.  One class being affected is ATVs.  Polaris estimates a third of side-by-side vehicles are displacing ATVs.  The other class of vehicles is tractors in the farm segment.  I have picked this trend up in interviews with farm equipment dealers and I speculate that these new product line introductions are, in part, a response to New Holland and Case IH experiencing a negative impact on tractor sales.  The  other reason for the introductions is that the utility vehicle market represents a good growth opportunity, one which competitors like John Deere and Kubota have already been exploiting for a number of years. – Marc Cesare

Yamaha Rhino Federal Lawsuits Consolidated

Yamaha Rhino lawsuits filed in federal districts around the United States will be consolidated for pretrial litigation in the Western District of Kentucky.  There are currently  55 different product liability lawsuits related to the Rhino filed in 33 different U.S. District Courts.  The common allegation in the lawsuits is that the side by side vehicle has defects that give it a propensity to tip over.

Most of the lawsuits in federal courts have been filed in the last year and more are expected.  If filings in state courts are included, those following the story estimate over 200 lawsuits in total are pending across the country.  Last month consumer advocates and victims of rollover incidents released a report(pdf) that covers all utility terrain vehicles (UTV) but extensively discusses the Yamaha Rhino. Learn more about the consolidation

UTV Market Still Attractive

Despite the general downturn in the economy, the UTV (utility terrain vehicle) market is still attracting new entrants. Motorsport Aftermarket Group, Inc. recently announced its acquisition of DragonFire Racing, a leading supplier of aftermarket racing and performance parts for ATVs and UTVs.

Brian Etter, President and CEO of MAG said, “We are excited to continue our expansion into the Off-Road market with the addition of DragonFire Racing. DragonFire Racing, with its comprehensive line of performance parts and accessories, launches us into the attractive UTV segment.

MAG is a group of businesses that design, build and sell products for Street and Off-Road motorsport markets.

Consumer Product Safety Commission Investigates UTVs

According to a story in the Wall Street Journal, the US Consumer Product Safety Commission(CPSC) has started an investigation into UTVs like the Yamaha Rhino and similar vehicles from other manufacturers. There have been 30 deaths reported involving the Rhino and the company has had more than  200 lawsuits filed against it related to the vehicle. There currently aren’t any safety standards for these type of vehicles  because they are essentially a new class of vehicle. According to the article:

They aren’t subject to ATV safety standards because of design differences such as having a steering wheel, in contrast to the ATVs’ handlebars. But the novel off-road vehicles also aren’t subject to the much-tougher standards for cars. Owners of UTVs don’t have to register them.

“When there is no standard in place, we have to basically determine if there’s a substantial risk of injury and death, and there’s a hurdle there that has to be met,” says Jay Howell, acting assistant executive director of the CPSC’s office of hazard identification and reduction.

This is how consumer regulation often works: Products hit the market governed by no particular safety standards. If injury reports later arise concerning a product, these gradually get the attention of both manufacturers and regulators — often with a spur from lawyers for those injured.

Based on figures provided by Power Sports Marketing for the article, approximately 150,000 Rhinos have been sold since 2003. Yamaha incurred a charge of $136 million in 2007 related to potential product liability expenses. Last month, most of the leading manufacturers of UTVs (Arctic Cat, BRP, Honda, Kawasaki, Polaris, and Yamaha) started the Recreational Off Highway Vehicle Association which has put out a set of safety rules and received ANSI accreditation to develop standards for the vehicles which they now refer to as Recreational Off-highway Vehicles (ROV).