My wife had me thinking of getting a Victory touring bike. (great wife, I know.) Of course, I had to wait till, I either sold the motorcycle I have or we were in a better financial situation. She liked the one she saw at the Arlen Ness shop in California. I had visions of the Motorcycle Radio Podcast riding again. Then out of the blue, BAM! I heard that Polaris, the mother company of Victory cycles was killing the thing. WTF! Say it isn’t so…
Direct from the Polaris site:
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.
Great mother of pearl! Now what? Do I get a bike from my friends in White Plains, MD and squirrel it away or just wait? What do you think?
Rev. Kenn Blanchard is a professional speaker, writer, podcaster, and digital influencer. Follow him on Twitter, Facebook He is the founder of Blanchard.Media and the GunPodcastNetwork.com Tags: Arlen Ness, going out of business, kenn Blanchard, kustom shoppe, podcast, Polaris Industries, victory motorcycles