Polaris Axes Victory Motorcycles

[Papa Zook]

Polaris Industries announced today that it plans to halt production of Victory Motorcycles. The motorsports firm, which manufacturers vehicles as diverse as ATVs, side-by-sides, snowmobiles, and the unique three-wheeled Slingshot, will assist dealers in selling off current Victory inventories and will continue to supply parts for ten years. Polaris says it will honor service and warranty coverage for Victory owners and dealers, too.

It would appear that Polaris wants to redirect resources to the Indian Motorcycle brand, which it acquired in 2011 and has experienced significant growth since. In the announcement, Polaris also cited Slingshot as a brand that would benefit from cutting loose Victory, which has "struggled to establish the market share needed to succeed and be profitable."

[peteg59]

Not surprised at that.
Polaris has recently been plagued by vehicles throughout their all of their lineups, of running hot & also catching fire.
Recalls have happened to correct these issues, but the brand is certainly tarnished for many potential consumers.

If I owned a Victory, I'd be seriously considering selling it. I'd almost bet it'll be less than 10 years before replacement parts become scarce. Especially for their older models.

Indian might be their only hope of staying in the big bike market, but the brand isn't known for its long term competitiveness.
Time will tell & I hope they can turn things around...

[Sunman]

Hate to see this. I had a 2012 Victory Cross Country Tour and it was an excellent bike. I only rode it 2 years and 26,000 miles but I never had to do anything but routine maintenance. The only reason I traded it in was to buy a Freewheeler to keep my wife riding with me. She got to the point that she was uncomfortable on 2 wheels so I went with a trike. If not for that I would still be riding the Victory.

Sunman

[rhino 2]

I kinna seen that coming once Indian was up and running, I bought my Victory [Gunner] A 2015 model in 2014..And my dealer also sells ATV'S Side-bys And the Slingshot ,No Indians, The few Victories he had would sit there forever , Where as the off-road stuff would fly out the door, Between my Sons and me we bought a Side-by and 3 ATV's.
To tell the truth the Victory is a great bike , And does everything right... But unlike the Harley's which they also sell' The Victory has no soul...

[Sully]

<section id="story-heading">

1/9/2017 12:00:00 AM

Victory Motorcycle Important Announcement

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</section><section id="story-content">

POLARIS INDUSTRIES TO WIND DOWN VICTORY MOTORCYCLES OPERATIONS

STRENGTHENING ITS POSITION IN THE POWERSPORTS INDUSTRY



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.

[rhino 2]

Either my Victory [Gunner] Is going to be worthless , Or if i keep it long enough it will be a classic ....
I blame the Damm Russians for this...First Hillary now Victory.....

[Dirtydan]

So they want to put their full efforts behind Indian. I wonder how many potential buyers of Indian will now think twice before buying one considering what they did to their Victory line?

2012 was their most profitable year ever for Victory. Then they focused on Indian and let Victory languish. 10 years in parts? I highly doubt it. Also there is no potential for a possibilty of Victory being sold as a brand as it clearly states they will retain intellectual property rights. Unless the take technology, features and design cues from Vic to Indian I see it going the same way. Screw Scott Wine. Polaris should stick to off road. Although they made a damn fine motorcycle. Sad.

[Shimpy]

Can you see the big smile on Harleys face?

[Ozarkryder]

A couple of years ago the theory was that Victory would become a sportbike maker. They campaigned an electric sportbike at the Isle of Mann TT a few times and electric and gas powered sportbikes at Pikes Peak. Victory did very well at both events. The thinking was that Indian would be the cruiser/touring line and Victory would be developed into the sportbike segment of Polaris.
Seeing as they chose to retain the rights to the Victory name and intellectual property and not sell it off to make some bucks, they may be hedging their bets to figure out if a sportbike line may have enough profit.

[ol' school]

Can you see the big smile on Harleys face?

No doubt...

[Marc H]

I wondered about this happening when they bought Indian.I'm still bummed by this cause I had considered the Cross Country to replace my aging wing a some point.That won't happen now for sure and Indian is so far out of my price range it might as well be a Rolls.It will also be interesting to see how they handle their dealers and how will the dealers handle the situation as well.I know of 2 in the same area probably 20 miles apart that are both Victory and Polaris dealers but only 1 had Indian.How that situation play out will be interesting.From a potential owners standpoint i don't think I want any of their stuff at this point.

[Blueline]

Todays news takes us back to about 1937 when only Harley and Indian were the American heavyweights!

[Dirtydan]

I wondered about this happening when they bought Indian.I'm still bummed by this cause I had considered the Cross Country to replace my aging wing a some point.That won't happen now for sure and Indian is so far out of my price range it might as well be a Rolls.It will also be interesting to see how they handle their dealers and how will the dealers handle the situation as well.I know of 2 in the same area probably 20 miles apart that are both Victory and Polaris dealers but only 1 had Indian.How that situation play out will be interesting.From a potential owners standpoint i don't think I want any of their stuff at this point.

Or you can look at it this way, now is a good time to grab one for cheap. still a great motorcycle and plenty of them out there with lots of aftermarket support.

[rhino 2]

Or you can look at it this way, now is a good time to grab one for cheap. still a great motorcycle and plenty of them out there with lots of aftermarket support.

You might be on to something there.. I bought a Gunner in 14 it was a 15 model, And they gave me a grand off with proof of being a Vet... Plus over 4+ hundred in jackets and T's, And a few$$ off list' So if as they [Polaris] say the'll help their dealers unload the bike's and stuff... Maybe if you buy one thell throw in an ATV..... Or a Brochure on their Indian line of Bikes..

[Phu Cat]

I wondered how many of the new cruiser-like bikes would be able to hang in there some years ago. It just didn't seem like there were enough riders to keep all the new bike companys afloat. For instance, if Indian was a stand alone company I doubt they're selling enough iron to stay in business judging by what I've seen of their models on the street. Sure hate to see anybody have to close their doors and all those people lose their jobs.

Even the dealers themselves lose. I wonder how much it might have cost to buy a franchise? Doubt they're gonna get that back. But then again, I guess that's probably a fat tax write off.

PC

[Sunman]

Even the dealers themselves lose. I wonder how much it might have cost to buy a franchise? Doubt they're gonna get that back. But then again, I guess that's probably a fat tax write off.
PC

I still owned my Victory when Polaris brought out the Indian and I had stopped by my Victory dealer to see if he was going to handle Indian. He told me that Polaris wanted way too much franchise fee to become an Indian dealer so he was going to wait and see what happened before making the investment. He handle the Polaris ATV line and also Triumph and Royal Enfield so he won't be out of business. I need to stop by and see what he has to say about it all.

Sunman

[rhino 2]

I dont think there were any stand alone Victory dealers , There was no way they could have survived, Selling ATV's Side-Bys and snowmobiles ' And now Slingshots kept them in business. Back in 2014 i bought the first Gunner that they got in, The second one that came in sat for over a year.. As far as taking on Indian no they don't want it, Their also a Harley dealer.. Been there since 1956 in the same location .. Not to far from me is another Polaris Victory dealer, They built a new building and took on Indian, And when i went there last summer they had relegated a few Victory's they had to the back of the showroom..