Victory to cease production

Discussion in 'General Harley Davidson Topic' started by STEVE07, Jan 9, 2017.

  1. STEVE07

    STEVE07 Well-Known Member Staff Member Super Moderators

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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.


    Click here for additional information related to this release.


    About Polaris

    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.
     
  2. jamesearl

    jamesearl Senior Member Contributor

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    This is what keeps me from buying an Indian.
     
  3. oldhippie

    oldhippie Senior Member

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    Too bad. Hopefully Indian production continues. It's good to have another bike made in North America. It'll help keep H-D advancing and not sitting back on their laurels.
     
    zoob2 likes this.
  4. kabory

    kabory Active Member

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    I test road all the new Indians 6 different times before purchasing my 16 RGS. I was strongly considering an Indian, but the nearest dealer is 2 hours from me and like most, I have a closet full of Harley gear. Still wish them well, shame about Victory, but I never liked the looks of their bikes.
     
  5. Blue Wide Glide

    Blue Wide Glide Junior Member

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    Looks like "the buck rules" all over again.:eek: Maybe this is a curse associated with the "Indian" brand name. I wonder how their Victory customers feel about this decision? :mad:
     
  6. dolt

    dolt Senior Member Contributor

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    Polaris made a strategic error in taking on the Indian brand alongside the Victory brand. One of them had to go and the decision has been made that the Indian brand has a better chance of establishing sufficient market share to survive. I have my issues with the MoCo but Harley Davidson is America's motorcycle and always will be.;)
     
  7. CHZWIZ

    CHZWIZ Active Member

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    Maybe this was the long term strategy from the get go. I thought it was a little strange that the parent company would build two motorcycles to compete against each other which intern would generate a push-pull effect. Makes no sense especially when considering your competition. I think the Indian brand is the more worthy brand anyway. Good luck to them, competition always brings out the best in everything created.
     
    zoob2 likes this.
  8. jamesearl

    jamesearl Senior Member Contributor

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    I recall when I got my 1st bike,100cc Kaw.In the 1970's, Indian was around,I looked at them because I thought they were still the original Indian's.Only problem was,all they had was a 2 stroke mini bike to offer.They've bought and sold the nameplate over and over.If Victory can fail after 18 years,it's gonna take longer than that for me to trust Indian.At my age of 58 I probably will never own one.Although J&P cycles does have a $5 a ticket raffle on a new Indian so maybe.
     
  9. jdezorzi

    jdezorzi Member

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    So sorry to hear the news, this will undoubtedly effect many American workers. I hope and pray they are able to find another way of earning an income.
     
  10. Harttoo

    Harttoo Senior Member

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    Too bad.Victory looked a lot better than Indian.I really liked the look of the Magnum.