Home » News » Analyst: Latest Polaris recall viewed by dealers as ‘non-event’

Analyst: Latest Polaris recall viewed by dealers as ‘non-event’

BMO Capital Markets analyst Gerrick Johnson reports that the Polaris recall of 13,500 model year 2016 and 2017 RZR 900, 1000, and General 1000 side-by-side vehicles owing to engine misfires and a faulty master brake cylinder is disappointing, but dealer checks “indicate dealers and customers are viewing it (mostly) as a non-event, with dealers expecting minimal impact on their businesses. Furthermore, dealers generally noted an improving business environment and a stronger start to year than at this point last year.”

Johnson goes on to report in the research note provided to Powersports Business that Polaris management assures that “parts are in stock, and the repairs are quick.”

“Dealers, too, were quick to point out that the issues behind the recall are relatively minor, requiring a quick fix. Dealers also point out that Polaris has continued to be

proactive in handling the recalls and using rebates and other incentives to maintain brand loyalty.

“Despite the recall, early-season business appears to be going fairly well for most dealers we speak with. Given what appears to a be boost from the recent election,

greater customer optimism from key customers was called out by numerous dealers. More farm area dealers are also mentioning that the agricultural community seems

much more optimistic than at this point last year. Add in a warmer start to the year and we think Polaris dealers are seeing incremental retail improvement to start 2017.”

Johnson's report is aptly titled "Where There's Smoke There May Not Always Be Fire".

— Dave

 

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