News today shocks the motorcycle world, Polaris to cease manufacturing of Victory Motorcycles effective immediately.
Polaris Industries makes an announcement
Polaris Industries, (January 9/2017) today announced it will immediately begin winding down its Victory Motorcycles brand and related operations.
This short sentence threw my day into somewhat of a tizzy. Early this morning I received a text from Angela while at work that read “Hey guys, my brother Clint saw this on Facebook and asked me if it was true”.
Of course when I saw this I just thought of another Facebook prophecy and shook my head. The nagging thought continued bouncing around my skull, so I decided to find the nearest computer and put the rumor to rest. To my utter dis-belief, I quickly found out it indeed was no rumor and Victory Motorcycles has shocked North America!
Falling in love with Victory Motorcycles
As many of you know we have had an intimate relationship with Victory Motorcycles and our local Victory retailer Cycleworks Motorsports. In 2015 Angela put Victory’s flagship cruiser, the Magnum to the ultimate real world test on the Worlds Longest Motorcycle Demo Ride. It passed the long arduous ride with flying colors.
In 2016 with trepidation I threw my leg over a Magnum sporting many performance upgrades and by the end of the season was probably the brands biggest out spoken supporter.
We became fond of the motorcycles, the brand, the retailer and the good folks who also shared our unbridled passion for Victory Motorcycles.
Why is Polaris doing this?
There are many questions concerning the reasons Victory is halting production and shutting the doors and I believe there is only one answer; economics plain and simple. To quote Scott Wine, the companies CEO “No Profitable Growth”. Victory has only been profitable 3 of the last 5 years and with the recent Polaris acquisition of Indian Motorcycles the focus will be toward that brand.
Vince, GM of Cycle Works Motorsports, speaks out
So Victory over the next 18 months will follow many other automotive companies that have fell by the wayside, such as Pontiac, Oldsmobile, Saturn, Buell and many more. Vince Aiello, a good friend and GM of CycleWorks Motorsports Calgary who was shocked like all other dealers stated “We want our friends and customers to rest assured that we will continue to support you in your future riding endeavors with the same enthusiasm and comradery. Victory has made a commitment to us, the dealer to honor all warranties and to supply parts for ten years which will allow us to continue to bring you the service you have been accustomed to.
Thinking of everyone affected by this news
We do have much compassion for all the people who will be affected by Victorys decision to cease operation. The hard workers on the factory floor, some who we have met. The dealers across the world, many who we have visited and the Victory Motorcycle owners, many who we have ridden with. Matt & Angie Smith, the drag racing dynamic duo, Tony and Joe the Victory stunt riders, all the people who work behind the scenes to make all these amazing events happen.
Being a part of the Victory world we were able to meet the amazing team at Lloydz MotorWorkz in Pine Bush New York, they are THEE power performance guy to go to and we were able to spend a day with him at his shop. One of the highlights on our Worlds Longest Motorcycle Demo Ride in 2015 that is for sure, here is what he had to say about the announcement.
Take a deep breath
As we sit down and have a drink, thoughts of the road fill the air.
The quality, the style, the sound and the performance are second to none.
We offer a toast as the Victory brand may end but its legacy will live forever.
Now lets take that White Lightning out for a ride.
Check out our Reviews on the 2016 Victory Magnum
Click the button below for more info
Troy Reviews the 2016 Magnum
Check out our Reviews on the 2016 Victory Magnum
Click the button below for more info
Ang Reviews the 2015 Magnum
The following is the press release
MINNEAPOLIS (January 9, 2017) — Polaris Industries Inc. (NYSE: PII) today announced it will immediately begin winding down its Victory Motorcycles brand and related operations. Polaris will assist dealers in liquidating existing inventories while continuing to supply parts for a period of 10 years, along with providing service and warranty coverage to Victory dealers and owners. Today’s announcement does not affect any other Polaris business units.
“This was an incredibly difficult decision for me, my team and the Polaris Board of Directors,” said Polaris Industries Chairman and CEO Scott Wine. “Over the past 18 years, we have invested not only resources, but our hearts and souls, into forging the Victory Motorcycles brand, and we are exceptionally proud of what our team has accomplished. Since inception, our teams have designed and produced nearly 60 Victory models that have been honored with 25 of the industry’s top awards. The experience, knowledge, infrastructure and capability we’ve built in those 18 years gave us the confidence to acquire and develop the Indian Motorcycle brand, so I would like to express my gratitude to everyone associated with Victory Motorcycles and celebrate your many contributions.”
Several factors influenced today’s announcement. Victory has struggled to establish the market share needed to succeed and be profitable. The competitive pressures of a challenging motorcycle market have increased the headwinds for the brand. Given the significant additional investments required for Victory to launch new global platforms that meet changing consumer preferences, and considering the strong performance and growth potential of Indian Motorcycle, the decision to more narrowly focus Polaris’ energy and investments became quite clear.
“This decision will improve the profitability of Polaris and our global motorcycle business, and will materially improve our competitive stance in the industry,” said Scott Wine. “Our focus is on profitable growth, and in an environment of finite resources, this move allows us to optimize and align our resources behind both our premium, high performing Indian Motorcycle brand and our innovative Slingshot brand, enhancing our focus on accelerating the success of those brands. Ultimately this decision will propel the industry-leading product innovation that is core to our strategy while fostering long-term growth and increased shareholder value.”
Polaris will reduce the appropriate operating cost based on this decision, while continuing to support the future growth of the ongoing motorcycle business. Polaris remains committed to maintaining its presence in the Spirit Lake, Iowa community with Indian Motorcycle production and in the Huntsville, Alabama community with its Slingshot production.
Any one-time costs associated with supporting Victory dealers in selling their remaining inventory, the disposal of factory inventory, tooling, and other physical assets, and the cancellation of various supplier arrangements will be recorded in the 2017 income statement in respective sales, gross profit and operation expense. These costs will be excluded from Polaris’ provided 2017 sales and earnings guidance on a non-GAAP basis.
Polaris will release its fourth quarter and full-year 2016 financial results and provide 2017 guidance on Tuesday, January 24, 2017. A webcast and conference call will be held at 9:00 a.m. Central Time on January 24, 2017 to discuss the results. A slide presentation and link to the webcast will be posted on the Polaris Investor Relations website at ir.polaris.com. To listen to the conference call by phone, dial 877-706-7543 in the U.S. and Canada, or 478-219-0273 Internationally. The Conference ID is #45015597.
Click here for additional information related to this release.
Polaris Industries Inc. (NYSE: PII) is a global powersports leader with annual 2015 sales of $4.7 billion. Polaris fuels the passion of riders, workers and outdoor enthusiasts with our RANGER®, RZR® and POLARIS GENERAL™ side-by-side off-road vehicles; our SPORTSMAN® and POLARIS ACE® all-terrain off-road vehicles; INDIAN MOTORCYCLE® midsize and heavyweight motorcycles; SLINGSHOT® moto-roadsters; and Polaris RMK®, INDY®, SWITCHBACK® and RUSH® snowmobiles. Polaris enhances the riding experience with parts, garments and accessories sold under multiple recognizable brands, and has a growing presence globally in adjacent markets with products including military and commercial off-road vehicles, quadricycles, and electric vehicles. Please visit www.polaris.com.