Polaris Industries Q2 2017 Earnings Results

RZR XP 4 Turbo EPS

RZR sales showed improvement in the quarter compared to the prior year results hurt by recall issues.

Polaris Industries recently announced their quarterly earnings results for the second quarter of the 2017 fiscal year. The quarter ended June 30, 2017. Management reported second quarter sales of $1,364.9 million, up 21% from second quarter 2016. Net income for the quarter was $62.0 million compared to $71.2 the prior year, and included some one-time expenses.

The following are some of the highlights of the earnings call related to small, task-oriented vehicles:

  • ORV sales increased 6% for the quarter
  • North American ORV unit retail sales for the second quarter of 2017 were down low-single digits percent from the 2016 second quarter as UTV sales increased low single digits but ATVs sale declined high single digits in a weak ATV market
  • Polaris ATVs lost market share in a heavy promotional environment
  • RZR retail turned positive while Ranger retail was flat for the quarter in a highly competitive segment with significant promotional activity
  • The General UTV product line has been good and the segment offers good opportunities according to management
  • Agriculture markets remain weak while oil markets are improving
  • Global Adjacent Markets segment sales increased 7% driven by the Work & Transportation group with good performances from Aixam quadricycles and Goupil light utility vehicles
  • Management expects Global Adjacent Market segment to increase mid-single digits percent for the year
  • Side-by-sides are expected to drive the improved guidance for the ORV/Snowmobile segment, which is now expected to see flat sales year-over-year

Learn more:  Seekingalpha.com (Earnings call transcript)

Cub Cadet Recalls UTVs Due to Brake System Issue

 

2016 Cub Cadet Challenger

2016 Cub Cadet Challenger CX500 and CX700 models are being recalled.

2016 Cub Cadet Challenger CX750 Crew

The 2016 Cub Cadet Challenger CX750 is part of the recall as well.

Cub Cadet recently announced the recall of approximately 4,000 2016 Cub Cadet Challenger CX500, CX700 and CX750 Crew utility vehicles. Air in the brake system can cause brake failure and pose a crash hazard to drivers or bystanders. Cub Cadet has received 80 reports of brake failures but no reports of injuries. Consumers should immediately stop using the vehicles and contact their Cub Cadet dealer for a free repair.

While not a large recall in relation to typical UTV recalls, this recall is large for a smaller volume brand such as Cub Cadet. In addition, these vehicles are part of their newest Challenger line which the company has used to revive their utility vehicle product offerings.

The following is information from the Consumer Product Safety Commission.

Name of product:  Cub Cadet 2016 Challenger utility vehicles

Hazard:  Air in the brake system can cause brake failure, posing a crash hazard to the user or bystander.

Remedy:  Repair

Recall date:  July 6, 2017

Recall number:  17-753

Recall Details

Description:  This recall involves four-wheel drive Cub Cadet 2016 Challenger utility vehicles. Model numbers included in the recall are: CX500 (37AW7CKD010, 37AW7CKD710, 37AW7CLD010, 37AW7CLD710, 37AW7CMD710, 37AW7CND710); CX700 (37AX7CKD010, 37AX7CKD710, 37AX7CLD010, 37AX7CLD710, 37AX7CMD710, 37AX7CND710); and CX750 Crew (37AY8CKD710, 37AY8CLD710, 37AY8CMD710, 37AY8CND710). The utility vehicles were sold in yellow, red, blue and camouflage. The recalled vehicles were manufactured between March 2016 through November 2016. A label located under the driver’s seat lists the model number and the month and year of manufacture.

Remedy:  Consumers should immediately stop using the recalled vehicles and contact an authorized Cub Cadet dealer or Cub Cadet customer service to arrange for a free repair.

Incidents/Injuries:  Cub Cadet has received 80 reports of brake failure. No injuries have been reported.

Sold At:  Independent Cub Cadet dealers nationwide from March 2016 through May 2017 for between $8,500 to $9,500.

Manufacturer(s):  Hisun Motors Corp. U.S.A., of McKinney, Texas

Manufactured In:  China

Units:  About 4,000

Learn more:  CPSC.gov

GEM Recalls Certain 2016-17 Models

The 2016 GEM e2.

Polaris Industries recently announced a recall of certain model year 2016 and 2017 GEM electric vehicles because lug nuts on the front wheels can loosen and the front wheels potentially detach. The recall pertains to certain GEM E2, E4, E6 and ELXD models with steel wheels. As many as 1,254 vehicles may be affected. GEM will notify owners and is currently finalizing a remedy.

Given their recall troubles in the side-by-side market, this is unwelcome news for Polaris. While the number of vehicles affected pales in comparison to the massive RZR and Ranger recalls, it is a sizable chunk of their total annual sales of GEMs. Only a few thousand GEMs are sold annually. The 2016 model year GEMs represented a major relaunching of the line. Earlier this year there was another recall for these vehicles related to the drive mode switch.

Marc Cesare, Smallvehicleresource.com

The following information is from the National Highway Traffic Safety Administration (NHTSA)

April 26, 2017 NHTSA CAMPAIGN NUMBER: 17V279000

Front Steel Wheel Lug Nuts may Loosen
If a wheel separates from the vehicle, it can increase the risk of a crash.

NHTSA Campaign Number: 17V279000

Manufacturer Polaris Industries, Inc.

Components WHEELS

Potential Number of Units Affected 1,254

Summary

Polaris Industries, Inc. (Polaris) is recalling certain 2016-2017 GEM E2, E4, E6, and ELXD electric vehicles, equipped with steel wheels. The lug nuts on the front wheels may loosen, potentially resulting in a front wheel detaching from the vehicle.

Remedy

GEM will notify owners. The manufacturer has not yet finalized a remedy plan, nor provided a notification schedule. Owners may contact GEM Consumer Service Department at 1-855-743-3436. Polaris’ number for this recall is L-17-01.

Notes

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

8 Affected Products
Vehicles

MAKE MODEL YEAR

GEM E2 2016-2017
GEM E4 2016-2017
GEM E6 2016-2017
GEM ELXD 2016-2017

Polaris Reports Q1 2017 Earnings

The General product line with models like the General 1000 EPS Hunter Edition in Polaris Pursuit Camo was a bright spot in Polaris’ Off-Road Vehicle business.

Polaris Industries reported adjusted sales of $1,158.9 for Q1 2017, an 18% increase from q1 2016. Management reported gains in the Off-Road Vehicle (ORV) business, large gains from Global Adjacent Markets and increased revenue from the recent TAP acquisition. In the ORV business Ranger and General product lines improved while the RZR line was down as expected. The side-by-side market continues to be highly competitive with elevated promotional costs. Management reported market share gains for Polaris ATVs. In the Global Adjacent Markets Aixam Mega was strong as well as the government defense business which helped increase revenue by 24%.

The following are highlights from the earnings call related to STOV markets. Figures are in comparison to Q1 2016 unless noted.

  • ORV retail sales were down 5% for the quarter.
  • ORV promotions were key as well as a targeted marketing campaign which showed results in March.
  • RFM inventory management system will be expanded for side-by-sides later this year.
  • Management reports an improved process for quickly tracking and identifying vehicle issues that will improve product safety and recall response.
  • Management did not change full year guidance for the ORV business and expects promotional costs to remain elevated and on par with 2016 levels.
  • ORV promotions are being matched by competitors.
  • Taylor-Dunn added to the significant increase in Global Adjacent Markets revenue.
  • Management expects RFM and a revamped marketing organization to create a more customer focused organization and improve sales.
  • ORV retail sales for the year are expected to be down slightly.
  • The ORV industry is expected to be flat to down for the year and was down mid-single digits in Q1 2017.
  • Continued poor performance in the oil and gas regions and the agriculture market are hurting sales.
  • The Multix launch was underwhelming, and a rapidly changing regulatory framework related to safety requirements and emission standards may provide significant obstacles.

Learn more:  Seekingalpha.com (Earnings call transcript)

 

Another Large Ranger Recall From Polaris

2015 Polaris Ranger Crew 900 Sage Green

The 2015 Ranger Crew 900 Sage Green is part of another large Polaris recall.

Polaris 2015 Ranger XP 900 EPS Hunter Deluxe Edition

The Ranger XP 900 EPS Hunter Deluxe Edition is included as well.

Polaris 2015 Ranger 900 XP Solar Red

The wide-ranging recall includes all model year 2015 Polaris Ranger XP 900, XP 900 EPS, and CREW 900 like the Ranger 900 XP Solar Red.

Despite extensive efforts to address recall problems, Polaris announced another large recall of Ranger vehicles. Approximately 51,000 model year 2015 Ranger XP 900 and Ranger Crew utility vehicles are being recalled because “…the heat shield can fall off the vehicle, posing fire and burn hazards…”. The recall also includes about 1,500 2017 Sportsman ATVs that have been sold. Vehicle owners should stop using the vehicles and contact their local dealer for a free repair. (Full recall details follow at the end of the post.)

One question with all these recall is what impact are they having on the company’s sales. Management has reported losing market share in recent quarterly earnings calls, and a chunk of that is likely to Can-Am, which has had successful introductions of their Maverick X3 models in the sport segment and their Defender models targeting the more utility/work oriented segment. The recalls have been so large and persistent and stretching over such a long period of time that one would have to assume some damage to the Polaris brand, even though Polaris management appears to be reacting relatively quickly to the overall recall issue. Management reports making high level personnel hires, bringing in other personnel with specific engineering expertise, developing new processes and spending significant financial resources to address the issue. This latest recall came as a result of their new process to more quickly track post-sales issues.

Besides affecting the brand and sales directly, these recalls may indicate a more deep-seated problem with the company’s product development process. Some of these recalls are the result of underlying engineering and design issues. How did these issues survive their product development process? Addressing this issue is arguably the most critical.

One of Polaris’ advantages on their way to a dominant position in the off-road vehicle market has been their ability to quickly and regularly produce new vehicle models. What CEO Scott Wine likes to refer to as their “armada” of vehicles provides Polaris with an extensive lineup of vehicles to cover a wide range of market sub-segments, end-use applications and price points. This has enabled Polaris to better meet specific customer needs with more tailored vehicles than their competitors.

The ability to innovate and quickly bring new vehicles to market is even more important now as competition in the side-by-side market has elevated in the past 2-3 years. A host of OEMs are now producing more vehicles, more quickly and attacking a wider range of market sub-segments. This translates into greater head-to-head feature and pricing competition between individual vehicle models. If a weakness is revealed in a product lineup then it needs to be quickly remedied with a new model or variation of an existing model or that OEM risks losing sales on an ongoing basis. Therefore, the vehicle product development process is critical to success and Polaris will need to fix any underlying problems in their process.

Marc Cesare, Smallvehicleresource.com

The following recall details are from the Consumer Product Safety Commission.

Recall Details

Units:  About 51,000

Description: This recall involves all model year 2015 Polaris Ranger XP 900, XP 900 EPS, and CREW 900 recreational off-highway vehicles (ROVs). The recalled ROVs were sold in a variety of colors and have either three or six seats and a rear box. “Ranger” is printed on the rear box, and “900” is printed on the hood of the ROVs. All 2015 Ranger 900 models and vehicle identification numbers (VINs) are included in this recall. The VIN is printed on the frame on the driver’s side towards the rear of the vehicle. To check for recalled vehicles by VIN, visit www.polaris.com.

Model Year Model Number Model
2015 R15RTA87AA RANGER 900 XP SAGE GREEN
2015 R15RTA87AR RANGER 900 XP SOLAR RED
2015 R15RTA87AC RANGER XP 900 POLARIS PURSUIT CAMO
2015 R15RTE87AA RANGER XP 900 EPS SAGE GREEN
2015 R15RTE87AR RANGER XP 900 EPS SOLAR RED
2015 R15RUA87AA RANGER CREW 900 SAGE GREEN
2015 R15RUA87AR RANGER CREW 900 SOLAR RED
2015 R15RUY87AA RANGER CREW 900-6 SAGE GREEN
2015 R15RTE87AK RANGER XP 900 EPS BLACK PEARL
2015

2015

R15RTE87AM RANGER XP 900 EPS SUPER STEEL GRAY
2015 R15RTE87AS RANGER XP 900 EPS SUNSET RED
2015 R15RTE87AW RANGER XP 900 EPS WHITE LIGHTNING
2015 R15RTE87AX RANGER XP 900 EPS SANDSTONE METALLIC
2015 R15RTE87AZ RANGER XP 900 EPS SUNSET RED SILVER
2015 R15RTE87AB RANGER XP 900 EPS HUNTER EDITION
2015 R15RUE87AC RANGER CREW 900 EPS POLARIS PURSUIT CAMO
2015 R15RUE87AM RANGER CREW 900 EPS SUPER STEEL GRAY
2015 R15RUE87AS RANGER CREW 900 EPS SUNSET RED
2015 R15RUE87AW RANGER CREW 900 EPS WHITE LIGHTNING
2015 R15RUZ87AC RANGER CREW 900-6 EPS POLARIS PURSUIT CAMO
2015 R15RUZ87AS RANGER CREW 900-6 EPS SUNSET RED
2015 R15RUZ87AW RANGER CREW 900-6 EPS WHITE LIGHTNING
2015 R15RTE87AV RANGER XP 900 EPS VOGUE SILVER DELUXE
2015 R15RTE87A5 RANGER XP 900 EPS HUNTER DELUXE EDITION
2015 R15RTE87A2 RANGER XP 900 EPS NORTHSTAR DELUXE EDITION

Incidents/Injuries:  Polaris has received 13 incident reports involving the recalled ROVs, including five reports of fires. No injuries have been reported.

Remedy:  Consumer should immediately stop using the recalled ROVs and contact Polaris to schedule a free repair. Polaris is contacting all known purchasers directly.

Sold At:  Polaris dealers nationwide from April 2014 through March 2017 for between $13,400 and $21,300.

Manufacturer(s):  Polaris Industries Inc., of Medina, Minn.

Importer(s):  Polaris Industries Inc., of Medina, Minn.

Manufactured In:  U.S. and Mexico

Learn more:  CPSC.gov

John Deere Recalls Gator XUV590i Models

John deere XUV590i

The John Deere Gator XUV590i S4 is being recalled because of an issue with the throttle cable.

The four-passenger Gator XUV590i S4 is being recalled as well.

John Deere has announced a recall of approximately 8,500 Gator XUV590i and XUV590i S4 models sold between January 2016 and March 2017. The recall is being initiated because “…the dust boot on the throttle cable can come loose, resulting in the vehicle not slowing down or stopping, posing a crash hazard.” To date there have been no reports of injuries related to the issue.

This is a fairly large recall compared to many of the UTV recalls, which typically number a few thousand or less. It also represents a significant amount of the UTVs that John Deere sells annually as the XUV or crossover Gators have been an important part of their product line in recent years. According to the recall information, there were only two reports, so John Deere appears to have tracked this issue down and initiated a recall fairly quickly. The following is information from the Consumer Product Safety Commission.

Recall Details

Hazard: The dust boot on the throttle cable can come loose, resulting in the vehicle not slowing down or stopping, posing a crash hazard.

Units:  About 8,500
                                                                                                                        Description: This recall involves John Deere Gator™ Utility Vehicles with model number XUV590i or XUV590i S4 printed on the hood and the “John Deere” and “Gator” brand names printed on the cargo box. The serial number, located on the frame on the rear of the machine above the hitch, begins with 1M0590 and fall within the ranges on the chart below. The recalled utility vehicles come in several colors and have four-wheel suspension with side-by-side seating for two or four people depending on model.
                                                                                                                                           Model                                      Serial Number Range
XUV590i                                   1M0590T+++M010001 – 20742
XUV590i S4                              1M0590F+++M010001 – 20277
                                                                                                                    Incidents/Injuries:  John Deere has received two reports of the dust boot on the throttle cable coming loose. No reports of injuries.

Remedy:  Consumers should immediately stop using the recalled utility vehicles and contact a John Deere dealer for a free repair. John Deere is contacting all registered owners of the recalled vehicles directly.

Sold At:  John Deere dealers nationwide from January 2016 through March 2017 for between $10,000 and $12,900.
                                                                                                                        Manufacturer(s):  Deere & Company of Moline, Ill.
                                                                                                                          Manufactured In:  United States
Marc Cesare, Smallvehicleresource.com

Another Polaris Recall: RZR, RZR Turbo & GENERAL Vehicles

The model year 2017 is the General 1000 EPS Hunter Edition in Polaris Pursuit Camo is one of the vehicles involved in the recall.

Polaris announced a recall of model year 2016 and 2017 RZR 900, 1000, Turbo and GENERAL 1000 utility vehicles. The recall involves approximately 13,500 vehicles. According to the notice, “The vehicle engine can misfire and the temperatures of the exhaust and nearby components can get too hot and cause the components to melt, and/or a contaminated brake master cylinder may cause unintended brake drag, posing burn and fire hazards.”

Relative to more recent Polaris recalls this one is not that large, but compared to more typical recalls in the industry that involve a few thousand vehicles, this is a large recall. The recall does include RZR 900, 1000 and RZR Turbo models that have previously been recalled. The GENERAL 1000 being involved in a recall is a new development.

Based on recent quarterly earnings calls with Wall Street analysts, the management has put a lot of money and manpower into fixing the underlying product development issues that lead to their recent massive RZR and Ranger recalls. The origin of the issues for this latest recall probably pre-date these efforts, but management is likely disappointed with this development as they have been trying to put these recalls behind them and repair damage to the Polaris brand. A recent report from BMO Capital Markets states that the recall is considered a ‘non-event’ by dealers who are having strong start to the year and think the recall will only have a ‘minimal impact’.

The following information is from the Consumer Product Safety Commission.

Recall Details

Units:  About 13,500 (The RZR Turbo and RZR 900 and 1000 have previously been recalled.)

Description:  This recall involves model year 2016 and 2017 RZR 900, 1000, Turbo and GENERAL 1000 recreational off-road vehicles (ROVs). “Polaris” is printed on the front grill and “RZR” or “GENERAL” is printed on the side of the rear cargo area. The ROVs were sold in various colors. Visit the CPSC website see a complete list of the models involve.

Incidents/Injuries:  Polaris has received 14 reports of vehicles catching fire related to the brake master cylinder and one report of fire and two reports of melting vehicle components related to an engine misfire. No injuries have been reported.

Remedy:  Consumers should immediately stop using the recalled ROVs and contact Polaris for a free repair. Polaris is contacting all known purchasers directly, and consumers can check their VIN on the Polaris website.

Sold At:  Polaris dealers nationwide from August 2015 through February 2017 for between $12,800 and $24,000.

Importer(s):  Polaris Industries Inc., of Medina, Minn.

Distributor(s):  Polaris Industries Inc., of Medina, Minn.

Manufactured In:  Mexico and U.S.

Marc Cesare, Smallvehicleresource.com

How Will Textron’s Arctic Cat Acquisition Impact The STOV Market

Textron E-Z-GO Logo

Textron’s recent acquisition of Arctic Cat raises some interesting questions about the acquisition itself and how other companies in the market may react. In particular, what does the acquisition mean for Club Car.

One question is whether or not Textron will continue investing in the Bad Boy Off-Road brand. Except for the electric powered Bad Boy Off-Road UTVs the brand’s product offerings are redundant given the more popular Arctic Cat product lineup. One can argue that the dealer networks are sufficiently different that the brands can effectively reach different customer bases and not cannibalize each other’s sales.  A quick perusal of the Bad Boy dealer network indicates that most of their dealer s are golf car related with some power sports dealers. Moving forward, Bad Boy how much resources are put into product development, and what type of vehicles they develop should indicate the direction the brand will take in the context of Arctic Cat acquisition.

Another issue is the potential clash of corporate cultures between Textron Specialized Vehicles and Arctic Cat. Textron is a large conglomerate with over $13 billion in sales annually and a particular corporate culture while Arctic Cat is a much smaller company coming out of a powersports background. How well these companies will mesh will be interesting to see. Keeping Arctic Cat as a stand alone operating unit can mitigate any cultural problems to a certain degree. However, any future financial difficulties at Arctic Cat could generate more intrusion from Textron management regarding Arctic Cat operations.

Club Car is targeting the commercial market with the Carryall 700 and other vehicles.

A more intriguing question is how the acquisition of Arctic Cat might impact Club Car, which is now the only large stand alone fleet golf car manufacturer. While Yamaha Golf Cars are separate from their UTV and ATVs business, they are both part of their Power Products division. Similarly Textron has developed their Textron Specialty Vehicles division that combines a range of small, task-oriented vehicles from airport tugs, to fleet golf cars to off-road ATVs and UTVs.

Ingersoll-Rand and Club Car has taken a decidedly different approach. Rather than collecting other categories of vehicles, they have opted to focus on building out the sales of golf cars for personal/golf use and commercial oriented utility vehicles that are based off of their golf car platform. Management confirmed this approach when asked about the Arctic Cat acquisition during their recent fourth quarter earnings call.  According to recent financial results Club Car has been successful with positive growth in the commercial/utility segment while the fleet side continues to lag. However, the business is relatively small compared to the overall size of the company which had $13.5 billion in sales in 2016, and Club Car is part of their smaller Industrial segment.

This raises the possibility that Club Car may be an inviting candidate for divestiture. But who might be interested in buying Club Car? One possibility is Honda Motor. They already have a range of motorcycles, ATVs, UTVs and scooters. An acquisition of Club Car could further diversify their vehicle portfolio. In addition, golf is a popular sport in Japan so there could be some degree of personal affinity among the management towards owning a leading golf car company. Club Car would offer a premium brand and a different distribution channel that might be useful for moving other Honda products. It would also add some electric vehicle expertise to Honda as well as additional global manufacturing capabilities.

Another possibility is Polaris, which has been acquiring small vehicle brands over the past several years. Polaris tends to acquire leading brands in a particular segment and many consider Club Car to be the leading golf car brand. Besides the premium brand, Club Car would bring some other positives to the table:

  • Global brand and distribution
  • China based manufacturing facilities as well as Southeast US facilities and supplier network not far from Polaris’ new Huntsville, AL facility
  • Large volume of electric vehicle sales that can be used spread costs of new battery and electric powertrain development.
  • Entry into the golf car segment
  • Largely separate distribution channel from existing products but similar enough to cross-sell some other Polaris brands
  • Good presence in commercial small vehicle market that Polaris has been targeting

The one drawback is that, from previous presentations, Polaris management considers the golf car segment a low growth segment. In large part this is due to the stagnant fleet golf car market which is the major portion of the golf car segment. However, E-Z-GO’s recent introduction of lithium battery powered fleet golf cars represents a potentially significant shift in the market. If lithium battery golf cars can disrupt the fleet market, this might create a more appealing market to Polaris. Providing an opportunity to leverage their expertise in electric vehicles, increase electric vehicle unit volume to lower costs and find a growth avenue in an otherwise stagnant fleet market. Despite recent headwinds from recall issues, Polaris still has the financial resources for such an acquisition. It will be interesting to see if they move in this direction.

Marc Cesare, Smallvehicleresource.com

Textron Acquires Arctic Cat

Marc Cesare, Smallvehicleresource.com

Textron Specialized Vehicles will now compete in the recreational side-by-side market with vehicles like the 2017 Wildcat X from Arctic Cat with RG Pro suspension.

Textron is buying Arctic Cat for $247 million. Arctic Cat will become part of Textron’s Specialized Vehicle business and Textron’s management stated that the current manufacturing, distribution and operational facilities will be maintained. Arctic Cat employs about 1,600 people in production and management facilities mostly in Minnesota. Textron management remarked that the acquisition will allow for “…more aggressive investment in product development, dealer networks, marketing and customer service.” For the full fiscal year ended March 31, 2016, Arctic Cat reported a net loss of $9.2 million on net sales of $632.9 million. Sales are roughly split between ATVs/UTVs and snowmobiles. For fiscal year 2017 they were expecting similar sales.

This acquisition by Textron makes them much more of a direct competitor with Polaris. While Polaris has been expanding into more work and transportation related products with acquisitions of GEM, Aixam, Goupil and Taylor-Dunn, which puts it in direct competition with Textron’s Cushman, TUG and E-Z-GO vehicles, Textron has been expanding with their roll-out of the Bad Boy Off-Road brand of UTVs and ATVs. This acquisition significantly adds to the products and markets where they will be competing head to head.

This deal should provide the Arctic Cat brand with a lot more financial muscle to expand their dealer network and develop new products. For Textron there are a number of benefits:

  • In Arctic Cat they acquire a well established brand.
  • They acquire a power sports dealer network which is distinctly different then what they currently have.
  • They expand their reach in the UTV market, not only in terms of sales volume and distribution, but in the pure recreational market segment
  • They add a completely new type of vehicle to their portfolio with snowmobiles
  • They add geographic diversity to their manufacturing facility portfolio

It will be interesting to see what happens with the Bad Boy Off-Road brand. There is some overlap of product lines with Arctic Cat. A quick perusal of the Bad BoyOff-Road dealer network reveals that many or even most of the dealers are golf car related dealers with some power sports dealers. They could continue to develop the brand or fold some of the products into the Arctic Cat brand. Perhaps, lower than expected success of the Bad Boy Off-Road launch was one reason for acquiring Arctic Cat. Why spend a large amount of resources building a new brand in a very crowded market with no guarantee of success when they can acquire a well established brand such as Arctic Cat.

Learn more:  Arctic Cat

BRP Recalls Can-Am Defender UTVs

Marc Cesare, Smallvehicleresource.com

2016 Can-Am Defender

The 2016 Can-Am Defender is part of the recall.

BRP has issued a recall for about 780 model year 2016 Can-Am Defender utility vehicles because the vehicles can unexpectedly roll away when in the “park” position. The recall includes Defender, Defender DPS and Defender XT models. Consumers should immediately stop using the recalled vehicles and contact a BRP dealer to schedule a free repair.

This recall is on the small size compared to what is typical in the industry. Luckily, no injuries have been reported.

The following information is from the Consumer Product Safety Commission.

Recall Details

Units:  About 780

Description:

This recall involves model year 2016 Can-Am Defender, Defender DPS, and Defender XT model side-by-side off-road vehicles. The vehicles were sold in various colors and have four tires, two seats and a cargo box on the back. “Can-am” is printed on the side of the cargo box and the model name is printed on the side of the front of the vehicle beside the headlight. The model name and vehicle identification number (VIN) are printed on a label under the glove box. Contact BRP or a BRP dealer to verify VINs included in the recall.

Incidents/Injuries:  The firm has received six reports of the vehicles moving when in the “park” or “P” position. No injuries have been reported.

Remedy:  Consumers should immediately stop using the recalled vehicles and contact a BRP dealer to schedule a free repair. BRP is contacting all known purchasers directly.

Sold At:  Can-Am dealers nationwide from October 2015 through December 2016 for between $10,000 and $15,700.

Importer(s):  BRP U.S. Inc., of Sturtevant, Wis.

Manufactured In:  Mexico

Consumer Contact:  BRP toll-free at 888-272-9222 from 8 a.m. to 8 p.m. ET any day or online at www.can-am.brp.com and click on the Off-Road website and then the “Owners” tab at the top of the page and then “Safety” and then “View Notices” for more information.