Polaris dropping the Victory line of motorbikes

Summitric

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1/9/2017 12:00:00 AM
Victory Motorcycle Important Announcement

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.
 

brutematt750

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I've never owned a victory but have test rode just about all of them during their demo days. And must say I've liked them all and never was unimpressed with any of them. Always wanted one , just couldn't justify two bikes and never wanted to sell mine.
To bad they are going under.


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fnDan

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I thought about buying a Cross Country last year. I would not have been happy now.
 

arff

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Due to fires. Shut down before recalls


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rightsideup

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Stupid question how much of a player is Indian in the north American market?
 

the_real_wild1

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They finally get going good. Polaris buys them out and shuts them down two years later. Id be pissed if I worked for them. Another reason not to support polaris.
 

rightsideup

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They finally get going good. Polaris buys them out and shuts them down two years later. Id be pissed if I worked for them. Another reason not to support polaris.

What you talking about willis?Not understanding your meaning.
 

teeroy

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They finally get going good. Polaris buys them out and shuts them down two years later. Id be pissed if I worked for them. Another reason not to support polaris.
Victory was a Polaris company and started building bikes in '98, they bought Indian in 2011.
 

rightsideup

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I thought victory was their own. My mistake.
Yes victory is a polaris manufactured product. It sounds like the Indian brand they acquired has a larger global network set up so they will focus there efforts on the Indian brand.
 

roadlinur113

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I won't miss the Victory line, always seemed to have an identity crisis to me. Touted as the other American V-TWIN but sported an overhead cam engine. My pushrod yamaha roadliner has a more American style motor ala HD. And the Victory Vision is just plain fugly. And am overly critical cuz Polaris owned them :nono:
 

Skegmeister

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I own a '14 Cross Roads 8 Ball (means no chrome, all black).
Indian's past has been dotted with financial closures and discontinuations.
Victory has some tough completion with the HD and the metric cruisers.
They will be back some day, just like Indian.
 

rzrgade

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Polaris took a beating with the rzr debacle...
Gotta cut somewhere!


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jpmez69

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Going the way of the Polaris watercraft. Too bad, lots of investment in both.
 

skegpro

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catalac

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The HD coolaid is just too powerful. My guess Indian will fold eventually too.
 

MarkCos

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The old victory will be building snowbikes with timbersled for sure
 
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LennyR

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In the announcement they talk about not being able to achieve the market share they need. I believe anyone who has spent time on a new Harley and also on a new Victory will understand this. Harley has made a lot of changes, most good , they are building a great product, really nice bike.
And competing with the HD marketing machine was a tough task to start with, inception of Victory and a couple others really woke the giant up.
Reality, even yet today, little guys still dream and talk about when I grow up I'm gonna buy a Harley".
Too bad , was a good alternative for some .
 
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