Polaris Industries announced earlier this week that it will cease the production of Victory Motorcycles models, a brand that it started some 18 ago from scratch.
Polaris Industries is an American company. It is based in Medina, Minnesota and was founded in 1954. The company manufactures ATVs, neighborhood electric vehicles and snowmobiles.
It also produces motorcycles. These are manufactured through the Indian Motorcycle and Victory Motorcycles subsidiaries. However, the latest announcement does not bear good news for the latter.
- Victory Motorcycles was founded back in 1997.
- Its final assembly line is based in Spirit Lake, northern Iowa.
- The motorcycle models take their inspiration from Harley-Davidson success.
- More exactly, they compete in the V-twin engine market.
- They also offer a cruiser, touring, and sport-touring configuration.
Victory models increased their profitability starting with 2002. However, in recent years, the company has seen a decline in numbers.
As such, Polaris, its parent company, released a statement. On January 09, it announced that it will cease manufacturing Victory Motorcycle models. The “winding down” will reportedly begin immediately.
Polaris also went to point out another fact. Indian Motorcycle and other company divisions will not be affected. The decision will only include Victory brand models.
Scott Wine, the Polaris CEO, went to offer details. According to him, the Victory Motorcycles brand has been struggling. It has not managed to meet its needed market share. As such, it did not manage to be successful or profitable.
One of the reasons, according to Wine, is its sector. The motorcycle industry is reportedly a highly competitive area. Its pressures are said to have increased the brand’s headwinds.
Victory Motorcycles have performed quite badly over these past years. In three out of five, it has failed to bring profits. Last year, its motorcycle market share marked another decrease. It slid to just 2 percent of the area. In 2013, it had accounted for 3 percent of the market.
Wine stated that Polaris has decided to shift its attention. The company will be concentrating on the Indian Motorcycle. This latter was first released back in 2013. Since then, the brand has turned a strong performance. Its growth potential is reportedly quite significant.
Additional investments were also taken into account when taking the decision. Victory Motorcycles would reportedly require quite an investment in order to succeed.
Polaris announced that it will be offering liquidation support. More exactly, it will help dealers liquidate their Victory inventory. However, it will still be honoring warranties. This will be covered according to their period. Polaris will also continue supplying parts. Victory Motorcycles parts will be easily available for another 10 years.
Further details about the liquidation still remain to be offered. For example, plant activity. It remains to be seen how the decision will affect plant workers. Or if it will have an impact.
Brand shutdown costs have also yet to be announced. Market specialists are expecting further details next week. At the time, Polaris will be releasing its fourth-quarter earnings report.
The company shares reported a fall on Monday. Polaris closed at a $83.72 per share. Their value marked a 3.3 percent decrease.
Victory Motorcycles were Polaris’s first departure from its base products. According to Wine, the company will be using the experience that it has gained through them. More exactly, it has helped gain knowledge and experience in the area. It also developed the needed infrastructure.
These facts reportedly gave the company the courage to launch the Indian brand. It reportedly was the boost needed so as to acquire and develop the latter.
As such, Wine went to express his gratitude. He thanked all those involved and which contributed to the Victory Motorcycles brand. Motorcycles make up for around 15 percent of the annual Polaris revenue.
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