Can-Am Market Share Increases

2019 Can-Am Defender HD8

New models like the 2019 Can-Am Defender HD8 help increase Can-Am market share.

Can Am Defender Max

Can Am Defender Max

BRP Reports Strong Fiscal Q2 Earnings  

BRP Inc., manufacturer of Can-Am vehicles announced strong earnings for their fiscal second quarter (ending July 31, 2018) and improved Can-Am market share for their side-by-side business. Management reported an increase in revenue of 18% to $1,207 million from $1,023 million (In Canadian $) as well as increased profit margins.

Ahead of Strategic Plan 

Since implementing their strategic plan in 2015 Can-Am has steadily made inroads in the side-by-side market. Management set the goal of doubling Can-Am market share for the North American side-by-side market from approximately 10% to 20% by 2020. They are on track to reach that goal in 2019 instead of the original 2020 target year.

Recent Can-Am UTV Launches Source: Can-Am Presentation 9/10/2018

Product Development Drives Can-Am Market Share Success

The company drove this rapid growth by launching a host of new models to maintain competitiveness in existing market segments or to enter new segments. They typically launch new models every six months. The Defender lineup of UTVs is an example of entering new segments. The Defender not only attacked the work/utility segment where Can-Am needed a presence, but opened up under represented geographic markets. The company reports US side-by-side dealer network coverage increased over 50% over four years. They also added trail and sport models for the recreational segment while continuing to produce competitive high-end performance side-by-sides as well.

Can-Am Emerges as Main Polaris Competitor

While still far from the market share of market leader Polaris, Can-Am has established itself as the main competitor to Polaris, outpacing the likes of Yamaha, Honda, John Deere and others. This applies to not only to the side-by-side market but in other product segments as well including ATVs, 3-wheelers and snowmobiles. Both companies have also entered the boating market with recent acquisitions. (BRP; Polaris) Can-Am is one of the few side-by-side manufacturers that comes close to the breadth of models that Polaris offers across all the market sub-segments. Management’s intentions are to continue to build out their product lineup.

Earnings Call Highlights

The following are highlights from the earnings call and presentation. Unless noted comparisons are to the same quarter of the previous year.

  • Revenues were up in North America (NA) and all intl markets
  • NA retail sales for Seasonal and Year-round business segments increased 16%
  • All product segments are outgrowing respective industries
  • Year Round business which includes SxS, ATV and Spyder products increased by 26% from $440.4 to $554.0
  • NA side-by-side retail jumped low 30% vs. low teen % for industry for the quarter
  • NA 2018 SSV industry up high single digits percent for recently ended model year while Can-Am jumped mid 30%
  • Management reports gaining over 2.5% in market share in NA side-by-side market for the 2018 season
  • Can-Am SxS up 25% in all  international markets:  Europe/Middle East, Latin America and Asia-Pacific.
  • Management states:  “We are seeing solid growth across the lineup, and the popularity of our specialized models such as the Defender LONE STAR, the Maverick X3 rock crawler and our mud-ready Maverick X3 and Defender is helping us deliver superior profitability for us and our dealers.
  • Management increased guidance for Year Round business to up 18-21% from previously guided 12-15%
  • Can-Am has more than doubled their side-by-side retail volume since 2015 with 6 new platform introduced over the past 3 years and on target to reach 2020 goals one year in advance
  • Room to grow in the Defender side-by-side segment
  • Some cost pressures from commodity prices and freight costs

Learn more:  Earnings Call Transcript

American Landmaster Recalls UTVs

LandMaster Crossroad

American Landmaster is recalling Crossroad UTVs because of a potential gas leak.

Landmaster Landstar utility vehicle

Landstar models are part of the recall.

Landmaster Trailwagon models are also part of the recall.

American Landmaster has recalled approximately 1,500 model year 2018 UTVs including Landstar, Crossroad and Trailwagon models due to a potential gas leak from the vehicle’s gas tank which can potentially create a fire and burn hazard. Owners have not reported any injuries related to this recall. Owners should immediately stop using the vehicles and contact their American Landmaster for a free repair. The recall information below is from the Consumer Product Safety Commission. SVR maintains an ongoing list of recalls related to utility vehicles, golf cars and LSVs with links to detailed recall information.

Name of product:  Off-road utility vehicles
Hazard:  Gas can leak from the utility vehicle’s gas tank, posing fire and burn hazards.
Remedy:  Repair
Recall date:  August 23, 2018
Units:  About 1,500
Consumer Contact:  American Landmaster at 800-643-7332 from 8 a.m. to 5 p.m. ET Monday through Friday, email at recall@AmericanLandmaster.com or online at www.AmericanLandmaster.com and click on the “Notice to UTV Owners Important Recall Information” icon or www.AmericanLandmaster.com/recall for more information.

American LandMaster Recall Details

Description:  This recall involves model year 2018 gasoline-powered Landstar, Crossroad and Trailwagon models of American Landmaster four-wheel off-road utility vehicles. The recalled vehicles were sold in a variety of colors. The model name and number are printed on the hood of each front fender. The American Landmaster logo is printed on the center of the hood of the vehicle. The VIN is located behind the pedals and below the steering wheel.

Model Number

VIN range start

VIN range end

CR350, LS350, LS350DL

A4PUTYFB1JBA00023

A4PUTYFB9JBA00304

A4PUTYFB1JBA00751

A4PUTYFB7JBA00754

LS450

A4PUTYJC4JBA00422

A4PUTYJC6JBA00499

A4PUTYJC3JBA00749

A4PUTYJCXJBA01512

TW450

A4PUTYJCXJBA00358

A4PUTYJC0JBA00496

A4PUTYJC2JBA00760

A4PUTYJC2JBA01147

TW750

A4PUTYPD0JBA00014

A4PUTYPD8JBB00149

LS477

A4PUVTKD7JBB00003

A4PUVTKD9JBB00049

LS550

A4PUTVKD9JBA00003

A4PUTVKD9JBA00308

LS670, 677EFI, 677EPS

A4PUTYPD6JBB00005

A4PUTYPD7JBB00224

Crew2, Crew4, Crew4X

A4PUFYPD0JBA00005

A4PUFYPD5JBA00078

Remedy:  Consumers should immediately stop using the recalled vehicles and contact American Landmaster for a free repair.
Incidents/Injuries:  None reported
Sold At:  Atwood Distributing, Tractor Supply Company, Orscheln Farm and Home stores and other distributors nationwide from January 2018 through July 2018 for between $4,300 and $10,300.
Manufacturer(s):  ASW, LLC d/b/a American Landmaster, of Columbia City, Ind.
Manufactured In:  U.S.
Recall number:  18-207

Polaris Recalls Gravely Atlas UTVs

Name of product:  Gravely Atlas JSV 3000 and 6000 utility vehicles
Hazard:  The utility vehicle’s exhaust header pipe can crack, posing fire and burn hazards.
Remedy:  Repair
Recall date:  August 8, 2018
Units:  About 2,100
Consumer Contact:  Gravely at 877-740-7060 from 8 a.m. to 4:30 p.m. ET Monday through Friday or online at www.gravely.com and click on the Product Support link at the bottom of the page, then select Product Safety Recall in the menu on the left of the page for more information.

Recall Details

Description:  This recall involves all model year 2015 through 2018 Gravely Atlas JSV 3000 and 6000 gas-engine-powered utility vehicles. The recalled utility vehicles were sold in red and have one or two rows of seats and a rear box. “Gravely” is printed on the rear box, and “Atlas” is printed on the hood of the utility vehicle. The model and serial number can be found on the driver’s side and are visible from the front wheel well. The following model numbers and serial number ranges are being recalled:

Year

Model

Serial Number Range

2015

996200 Base

150100, 150102 – 150299, 150310, 150321, 150332, 150343, 150354, 150365, 150376, 150387, 150398, 150409 – 150771, 150774 – 150803 and

150805 – 151173

996201 Crew

150100 – 150299, 150310, 150321, 150332, 150343, 150354, 150365, 150376, 150387, 150398, 150409 – 150599 and 150601 – 150641

2016

996200 Base

160100 – 160299, 160310, 160321, 160332, 160343, 160354, 160365, 160376, 160387, 160398 and 160409 – 160640

996201 Crew

160100 and 160102 – 160112

2017

996200 Base

170100 – 170256

996201 Crew

170100 – 170102 and 170108 – 170152

2018

996200 Base

180101, 180105 – 180116, 180118 – 180136, 180138 – 180149, 180151 – 180154, 180158 – 180161, 180163 – 180166, 180168 – 180170, 180172,

180174 – 180178, 180181 – 180182, 180186 – 180187, 180190, 180192, 180199, 180202, 180205 – 180206, 180209 – 180211, 180214 – 180215, 180218 and 180220 – 180222

Remedy:  Consumers should contact an authorized Gravely dealer for a free repair. If the exhaust system becomes noisier, consumers should immediately stop using the recalled utility vehicles. Gravely is contacting all known purchasers directly.
Incidents/Injuries:  Gravely has received seven reports of cracked header exhaust pipes. No injuries have been reported.
Sold At:  Gravely dealers nationwide from September 2014 through July 2018 for between $13,000 and $15,700.
Manufacturer(s):  Polaris Industries Inc., of Medina, Minn.
Distributor(s):  Gravely Company, of Brillion, Wis.
Manufactured In:  United States
Recall number:  18-758

Bobcat 3400 and 3400XL UTVs Recalled

Bobcat 3400 utility vehicle

The Bobcat 3400 for model years 2015 through 2018 is being recalled.

Bobcat 3400XL utility Vehicle

The Bobcat 3400XL is being recalled as well.

Last month Bobcat issued a recall of the gas powered Bobcat 3400 and 3400XL UTVs for model years 2015 through 2018. The vehicle’s exhaust header pipe can crack and create potential burn and fire hazards. Owners have not reported any injuries or fires related to this recall, which involves approximately 2,700 units. The 3400 model is a two-seater and the 3400XL is a four-seater. Polaris manufactured both models for Bobcat under a partnership the companies formed several years ago to develop UTVs for commercial markets. If you have an affected model you should contact your local Bobcat dealer. The following recall information is from the Consumer Product Safety Commission.

Name of product:  Bobcat 3400 and 3400XL utility vehicles
Hazard:  The utility vehicle’s exhaust header pipe can crack, posing burn and fire hazards.
Remedy:  Repair
Recall date:  August, 2018
Units:  About 2,700

Recall Details

Description:  This recall involves model year 2015 through 2018 Bobcat 3400 and 3400XL gas engine-equipped utility vehicles manufactured by Polaris Industries. The recalled utility vehicles are white and black with orange decals and have one or two rows of seats and a rear box. “Bobcat” is printed on the hood of the utility vehicle and “3400” or “3400XL” is printed on the rear box. The model and vehicle identification number (VIN #) can be found on a label under the seat and storage bin on the passenger side. The following models and VIN ranges are being recalled:

Year

Model

VIN Range

2015

3400 4X GAS

B3FL11001 through B3FL11911

3400 4X GAS DLX

B3FN11001 through B3FN11286

2016

3400 4X GAS

B3FL12001 through B3FL12803

3400 4X GAS DLX

B3FN12001 through B3FN12245

2017

3400 4X GAS

B3FL17001 through B3FL17580

3400 XL GAS

B3FN17001 through B3FN17124

2018

3400 4X GAS

B3FL18001 through B3FL18097

3400 XL GAS

B3FN18001 through B3FN18065

Remedy:  Consumers should contact an authorized Bobcat dealer to schedule a free repair. Bobcat is contacting all known purchasers directly.
Incidents/Injuries:  Bobcat has received seven reports of cracked exhaust pipes. No injuries or fires have been reported.
Sold At:  Bobcat dealers nationwide from August 2014 through July 2018 for between $10,000 and $15,000.
Manufacturer(s):  Polaris Industries Inc., of Medina, Minn.
Distributor(s):  Bobcat Company, of West Fargo, N.D.
Manufactured In:  United States
Recall number:  18-757

Polaris Industries Reports Q2 2018 Results

2019 Polaris Ranger Crew XP 1000 EPS

New models like the 2019 Polaris Ranger Crew XP 1000 EPS helped drive side-by-side revenue for the quarter.

Polaris Industries reported their financial results for the second quarter of 2018. Second quarter 2018 revenue increased 10% year over year to $1.503 billion with the ORV/Snowmobile segment jumping 17% to $993 million and off-road vehicles, excluding PG&A, increased 19%. Some of the gains in ORV were because of the need to boost dealer inventory levels to match retail demand.

Earnings Call Highlights

The following are highlights from the earnings call related to the small, task-oriented vehicle market.

  • The powersports market in North America is essentially flat to up slightly with Polaris ORV flat
  • ORV retail is growing in every region of the US
  • Ag markets have not slowed down at all at this point
  • ORV/Snowmobile segment sales were up 17% in Q2
  • Improved ORV demand for side-by-sides worldwide, and availability and sale of new models accelerated during the quarter helped drive sales
  • Polaris side-by-side North American retail sales up mid-single digits driven by new products and improved oil/gas and agriculture markets
  • Average selling prices for ORV increased 3% and promotional spending per unit decreased
  • Polaris gained market share in side-by-sides and ATV for the quarter
  • Production costs are increasing due to higher logistical and commodity costs
  • ORV helped drive international growth, particularly in Europe
  • Global Adjacent Markets sales increased 17% in the second quarter to $113 million, due to growth in Commercial, Government, and Defense businesses

Guidance for Full Year 2018

  • Management increased guidance for the Global Adjacents and ORV businesses with Global Adjacents expected to be up low-double digits % for the year and ORV/Snowmobiles up high-single digits %
  • ORV sales are expected to be up high single-digits percent from international results and pricing actions and slightly higher volumes

Learn more:  Seekingalpha.com (Earnings call transcript)

Honda Recalls 65,000 Pioneer 1000 UTVs

The 2016 Honda Pioneer 1000 EPS is one of the models being recalled.

Honda is recalling approximately 65,000 Pioneer 1000 utility vehicles because potential muffler overheating may cause a plastic heat shield to melt or catch fire. Consumers should immediately stop using the vehicles and contact a Honda powersports dealer for a free inspection and repair. Honda is contacting all known purchasers directly. The recall involves model year 2016, 2017 and some 2018 three passenger and five passenger Pioneer 1000 vehicles. The vehicles were sold from October 2015 through April 2018. The following recall information is from the Consumer Product Safety Commission.

Hazard:  The muffler can overheat, causing the plastic heat shield to melt or catch fire, posing a fire and burn hazard to consumers.

Remedy:  Repair

Recall date:  May 15, 2018

Units:  About 65,000

Consumer Contact:  American Honda toll-free at 866-784-1870 from 8:30 a.m. to 4:30 p.m. PT Monday through Friday or online at http://powersports.honda.com and click on “Recall Information” at the bottom of the page for more information.

Recall Details

Description:  This recall involves all model year 2016 through 2017, and some model year 2018 Honda Pioneer 1000 Vehicles. The recalled vehicles were sold in various colors including: red, blue, green, gray and yellow. The name “HONDA” is on the front, sides and the rear of the vehicle. The model name Pioneer 1000 is printed on a label located on both sides of the vehicle, near the rear. The serial number (VIN #) is stamped in the frame at the left rear, below the tilt-up bed/seat. The following model numbers and serial number ranges are being recalled:

 

MY Model VIN Start
2016 Pioneer 1000 3P

(SXS10M3*)

1HFVE04**G4000001 — 1HFVE04**G4008403
2016 Pioneer 1000 5P

(SXS10M5*)

1HFVE04**G4000001 — 1HFVE04**G4010507
2017 Pioneer 1000 3P

(SXS10M3*)

1HFVE04**H4100001 — 1HFVE04**H4102101
2017 Pioneer 1000 5P

(SXS10M5*)

1HFVE04**H4100001 — 1HFVE04**H4103000
2018 Pioneer 1000 3P

(SXS10M3*)

1HFVE04**G4200001 — 1HFVE04**G4203360
2018 Pioneer 1000 5P

(SXS10M5*)

1HFVE04**G4200001 — 1HFVE04**G4207379

* Variable character

Remedy:  Consumers should immediately stop using the recalled ROVs and contact an authorized Honda Powersports dealer to schedule an appointment for a free inspection and repair. Honda is contacting all known purchasers directly.

Incidents/Injuries:  The firm has received 22 reports of the muffler plastic heat shield melting and three reports of muffler plastic heat shield fires. No injuries have been reported.

Sold At:  Authorized Honda Powersports dealers nationwide from October 2015 through April 2018 for between $14,000 and $22,000.

Manufacturer(s):  American Honda Motor Company Inc., of Torrance, Calif.

Manufactured In:  United States

Recall number:  18-742

Learn More:  CPSC.gov

SVR’s Take:  This is another very large recall for the industry and once again related to an overheating and heat shield issue that can create a fire hazard. While massive recalls by Polaris have probably received the most attention in the industry, other manufacturers have had very large recalls as well.

Horsepower is one of the key vehicle specifications that manufacturers use to differentiate their offerings. This has created an atmosphere of one-upsmanship regarding engine size with each vehicle introduction trying to outdo the last in terms of horsepower. Given the large number of recalls in recent years related to overheating and/or fire hazards one has to wonder if the industry’s expertise in engine technology has outpaced their expertise in handling the additional heat output by these increasingly powerful engines. SVR has been tracking utility vehicle recalls for the past several years.

Marc Cesare, Smallvehicleresource.com

Polaris Earnings Report: Q1 2018

2018 Polaris Ranger XP 1000 EPS

The new 2018 Polaris Ranger XP 1000 EPS helped drive ORV sales in the first quarter according to the latest Polaris earnings call.

Polaris Industries reported first quarter 2018 revenues fo $1,297 million, an increase of 12% from the prior year. Adjusted net income for the quarter ended March 31, 2018 was $69 million compared to $48 million in the 2017 first quarter. ORV/Snowmobile segment sales were up 15% in Q1 driven by improved ORV shipments of side-by-sides worldwide as demand accelerated during the quarter.(ORV includes UTVs and ATVs). The following are highlights of the Polaris earnings call related to the small, task-oriented vehicle market.

  • ORV/Snowmobile segment sales were up 15% in Q1 to $833 million driven by improved ORV shipments of side-by-sides worldwide as demand accelerated during the quarter
  • Average Selling Price of ORV was up 4%
  • First quarter North American (NA) retail sales were driven side-by-side sales
  • NA side-by-side sales were up high single digits %
  • Important oil and agriculture market areas are improving
  • Side-by-sides gained market share in Ranger and RZR brands despite less promotional spending
  • Ranger business grew both in units and in dollars faster than the RZR business
  • The RZR RS1 demand was slightly higher than anticipated but management is not ready to call it a “Grand Slam” product
  • Global Adjacent Markets (GAM) grew revenue by 20% to $113 million and is looking for a strategic acquisition. This segments includes commercial ORVs, Defense, GEM, Aixam, Taylor-Dunn and Goupil sales)
  • GAM vehicle sales increased 25% with strong performance from Aixam, Goupil and government/defense business, and PG&A sales increased 19%
  • International ORV/Snow sales increased 20%
  • GAM international sales increased by 32%
  • Polaris has the leading ORV market share outside of North America
  • Polaris increased its full year 2018 sales guidance to up 4% to 6%
    • ORV/Snow is expected to increase mid-single digits %
    • GAM is expected to increase high single digits %
  • Management addressed the latest recalls and stated that they were part of the process of improving their systems, working with the CPSC and identifying any previous outstanding thermal issues. Moving forward under the new systems in place management expects to see fewer recalls involving a smaller number of vehicles.

Learn more:  Seekingalpha.com (Polaris Earnings Call Transcript)

SVR’s Take:  This was another strong Polaris earnings report and the last large recall appears to be related more to the company’s previous issues than an ongoing or new problem. The company seems to be back on track with strong performance in both Ranger and RZR and introducing innovative new products like the RZR RS1. I’m curious to see what the GAM acquisition they referred to could be. After the failed Eicher-Polaris JV are they going to try to buy their way into the Southeast Asian STOV market as an alternative? In the past they have often acquired strong brands that could be grown with improved financial and engineering resources as well as expanded distribution. I previously speculated on the pros and cons of Garia as an acquisition target, which offers a luxury international brand and electric vehicles.

Polaris Issues Massive RZR XP 1000 Recall

Polaris RZR XP 1000

The Polaris 2014 RZR XP 1000 in Pearl Black is one of the models being recalled.

Polaris has once again had to issue a major recall of over 100,000 side-by-sides. The recall involves approximately 107,000 model year 2014 to 2018 RZR XP 1000 and RZR XP 4 1000 vehicles. The exhaust silence can fatigue and crack leading to too much heat for the heat shield to manage which in turn lead to components melting or fire. Consumers should immediately stop riding the affected vehicles and contact a Polaris dealer for a free repair. The following recall information is from the Consumer Product Safety Commission.

Name of product:  Model Year 2014-2018 Polaris RZR XP 1000

Hazard:  If the exhaust silencer fatigues and cracks, the heat shield may not manage heat, which may lead to melting of nearby components or fire.

Remedy:  Repair

Recall date:  April 2, 2018

Units:  About 107,000

Recall Details

Description:
This recall involves Model Year 2014-18 Polaris RZR XP 1000 recreational off-highway vehicles (ROVs). The ROVs have “POLARIS” stamped on the front and back grilles, and “Polaris,” “RZR,” “1000,” & “XP” stickers on the side panels. The Vehicle Identification Number (VIN) can be found on the right rear frame of the vehicle, to the rear of the engine. See CPSC.gov for specific model numbers.

Remedy:
Consumers should immediately stop riding the affected vehicles and contact a Polaris dealer for a free repair.

Incidents/Injuries:  Polaris has received 30 reports of cracked exhaust silencers, including 3 reports of fire. No injuries have been reported.

Sold At:  Polaris dealers nationwide since December 2013.

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

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

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

Manufactured In:  United States and Mexico

Recall number:  18-133

Consumer Contact:  Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.com and click on “Off Road Safety Recalls” at the bottom of the page for more information. In addition, check your vehicle identification number (VIN) on the “Product Safety Recalls” page to see if your vehicle is included in any recalls. Polaris is contacting all known affected consumers directly.

SVR’s Take:   This is yet another massive recall for Polaris. The company was just starting to rebound from the previous rounds of RZR and Ranger recalls. Some of these models pre-date the company’s efforts to implement a new quality system and add personnel to address issues while others are from after that effort. It appears that either the silencer component was either poorly made or not designed robustly enough to perform the task. In some ways this recall may be worse the prior ones since the management has taken steps to remedy the quality issues but they yet again have a large recall. The Polaris brand will likely take a hit from this. Occasionally the company provides some brand metrics in their presentations to analysts and it will be interesting to hear what the management says about the recall in the next earnings call.

Massive Yamaha Golf Car & PTV Recall

Yamaha Drive2

The 2018 Yamaha Drive2 is one of the models being recalled over a brake cable issue.

Yamaha Golf Car has issued a recall for over 160,000 golf cars, personal transportation vehicles (PTVs) and utility vehicles due to potential failure of the brake cables and subsequent crash hazard. The recall involves model year 2015 through 2018 gas and electric powered golf cars, PTVs and utility vehicles. Note that the utility vehicles from Yamaha Golf Car are different than those from the power sports manufacturer Yamaha Motors which makes the YXZ, Wolverine and Viking utility vehicles. This recall involves Yamaha Drive and Drive2 branded vehicles made by Yamaha Golf Car. For a detailed list of the model numbers and serial number ranges included check the CPSC.gov website. Owners can also contact Yamaha at 800-962-7926 or at www.yamahagolfcar.com.   Owners should immediately stop using these recalled Golf Cars and PTVs and contact a local Yamaha Golf Car dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

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

Name of product:  Yamaha Golf Cars and Personal Transportation Vehicles (PTVs) Hazard:  The brake cables on the golf cars and PTVs can fail, posing a crash hazard.

Recall date: February 22, 2018
Units:  About 161,000

Description:  This recall involves the following model year 2015 through 2018 gas and electric-powered golf cars , PTVs and utility vehicles. The vehicles were sold in various colors including blue, green, red, white, tan and silver. The model and serial numbers can be found on a label under the seat on the left or right side.

Remedy:  Consumers should immediately stop using these recalled Golf Cars and PTVs and contact a local Yamaha Golf Car dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

Incidents/Injuries:  The firm has received 285 reports of brake cables failing. No injuries have been reported.

Sold At:  Yamaha Golf Car dealers nationwide from November 2014 through December 2017 for between $5,900 and $7,700.

Manufacturer(s):  Yamaha Motor Manufacturing Corporation of America, of Newnan, Ga.

Distributor(s):  Yamaha Golf-Car Company, of Kennesaw, Ga.

Manufactured In:  Assembled in United States
Recall number:  18-725

SVR’s Take:  This is a very large recall and on par with the relatively recent large recalls from Polaris. This will likely cost Yamaha millions of dollars to remedy. More importantly, this might put a dent in Yamaha’s progress in gaining market share against Club Car and E-Z-GO. In the last few years, Yamaha has been touting how many thousands of golf courses have switched to their golf cars. The golf car market has always been highly competitive, and even more so in the last several years as golf course growth has declined or remained stagnant.

Marc Cesare, SmallVehicleResource.com

Textron Reports Q4 2017 Earnings

E-Z-GO Freedom RXV

The lithium powered Freedom RXV ELiTE helped drive E-Z-GO sales at Textron.

Textron, manufacturer of Arctic Cat and Textron Off Road utility vehicles, E-Z-GO golf cars and other small, task-oriented vehicles recently reported Q4 2017 financial results. Revenues in the quarter were $4.0 billion, up 5% from the fourth quarter of 2016. Textron segment profit in the quarter was $360 million, down $31 million from the fourth quarter of 2016. For the year revenue increased to $14.2 billion up from $13.8 billion. Textron also produces Bell helicopters, Citation jets and various military systems and products. Textron is forecasting 2018 revenues of approximately $14.6 billion, up 3% percent from the prior year.

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

  • Industrial revenues, which includes Arctic Cat, E-Z-GO and other Specialized Vehicles, were $1.1 billion for the quarter, up 20% largely related to the recent Arctic Cat acquisition.
  • Industrial segment profit was up $10 million from the fourth quarter of 2016 due to favorable performance.
  • E-Z-GO sales increased led by the new lithium powered ELiTE golf car which has seen over 21,000 units delivered
  • In December the new Havoc X side-by-side was introduced

Guidance for 2018

  • At industrial, we’re expecting growth in each of our businesses resulting in projected segment revenue of about $4.7 billion and a margin of about 8%.

Learn More:  Seekingalpha.com (Earnings Call Transcript)