Polaris: ATV Safety, regulation are concerns
Bennett Morgan, general manager of Polaris Industries’ $1.1 billion ATV business, says there are key two issues facing the industry that perhaps don’t get enough discussion: an underdeveloped ATV trail system and machine safety.
When he talks safety, Morgan talks machine quality and rider training. “I worry a little bit about the energy that the dealer channel particularly is putting into safety, especially 15 years after the Consent Decree (with the Consumer Product Safety Commission),” he says.
“We have to remain active students of safety,” he told Powersports Business, “It takes time and effort out of dealerships, particularly when they are doing the training. It can be a sales advantage; showing the right way to ride can build customer loyalty, but it takes time and time is money.”
Just as important as the training issue, however, is Morgan’s concern about machine safety. This translates into ATV manufacturers meeting the industry safety standards for design, manufacturing and testing.
The so-called ANSI Standard was developed in 2001 with OEMs operating in the United States through the Specialty Vehicle Institute of America and the American National Standards Institute.
Many new Asian manufacturers do not subscribe to the ANSI standard. These manufacturers have been moving up from youth ATVs and small displacement engines, but they generally aren’t regulated, says Morgan, the way the major manufacturers are. “Very few have participated in voluntary standards or (worked with) the CPSC (Consumer Product Safety Commission),” he says. “Are they even meeting the ANSI standards? I’m concerned and believe all ATVs sold should meet the same standards.” Pointing out that new Asian manufacturers are becoming a larger force in bigger machines, he suggests that the industry has to become more aggressive if government isn’t addressing the issue.
“What do we do?” he asks. “I’m not sure. (But maybe) the industry has to work together with the CPSC and develop an appropriate course of action to ensure that all ATV manufacturers are providing products that follow the same rigorous safety standards and training opportunities that the traditional OEMs do.
“What are we doing to make sure that consumers know the right way to ride when they buy in a non-dealership?”
2005 product lineup changes
Polaris’ lineup for 2005 features some important changes, highlighted by the new fuel injected Sportsman 800. The Sportsman family has been totally redone for 2005, says Morgan. “The response (to the 2005 Sportsman) has been over the top positive,” he says.
The Sportsman 800 features a powerful four-stroke Liberty twin 760cc that is the largest displacement engine put into a production ATV.
The Sportsman also has a wider front end and 8.2 inches of travel, an increase of 22% over the 2004 version. The rear suspension is fully independent and has 9.5 inches of travel.
The 800 has nearly a foot of ground clearance and has a towing capacity of 1,500 pounds. It carries an MSRP of $8,599.
Polaris’ new Sportsman MV (Military Vehicle) weighs in at 996 pounds and is a perfect machine to carry the company’s marketing tagline of “World’s Toughest ATVs.” “It’s the HUMVEE approach,” says Morgan.
Polaris also added substantial upgrades to its sport machine lineup. The Predator 500 has been given reverse for 2005 and a higher rev limit for better acceleration on the new Troy Lee Edition. It features premium aluminum shocks, front and rear, a new gear package for better acceleration and styling and graphics from Troy Lee.
The sport lineup also includes the new Phoenix powered by a four-stroke 196cc engine. It carries an MSRP of $2,999.
Looking at 2005
Morgan sees low double-digit growth for the North American ATV market and for Polaris in 2005, with even better sales on the international side. “We expect worldwide ATV growth to be very strong, primarily in Europe,” says Morgan. International sales growth rate should be in the strong double digits, more than 12%-13%, he says.
Increased interest rates could affect sales, Morgan says, “but the (U.S.) economy isn’t going to be strong enough to overheat to where the Fed will have to do something drastic.”
Continued high oil and steel costs could affect margins and increases in MSRP across the industry, Morgan says. Many have raised MSRPs for 2005 and BRP added a surcharge last summer. Polaris added a surcharge of $25 on all youth machines and $50 on all adult machines last spring.
“OEMs are feeling a tremendous amount of pressure on margins,” Morgan says, “and, in all honesty, it’s not a situation we can continue to ignore.” In general, argues Morgan, MSRP across the industry haven’t reflected the value that has been added to machines. “Our Sportsman 500 costs $300 less than five years ago,” he says. “People generally have been getting way more in value for the same price. It’s unbelievable how much (value) Polaris and the industry have provided. If OEMs were behaving rationally, you would have seen increases passed on earlier.”
Next year also will see increased competition in the utility segment, he says, with more push from companies such as John Deere, Kubota and Club Car.
