Powersports Business has learned that Capital One recently informed its OEM partners that it will no longer be renewing contracts with them, it will be reducing investments in powersports and will eventually exit the business.
Capital One’s lineup of OEM partners for its factory credit card business includes Can-Am, Indian, Kawasaki, Polaris, Sea-Doo, Ski-Doo, Star Motorcycles and Yamaha. In fact, Kawasaki was the first powersports OEM to offer retail financing to its customers, beginning as a Capital One partner in 1988. Yamaha became a Capital One partner in 1994, Polaris in 2005 and BRP in 2013.
Each OEM will experience a different status as a result of the announcement. For example, Kawasaki’s agreement with Capital One was recently renewed and does not expire in the near term, therefore, there will be no interruption in normal business. The Capital One termination with Yamaha will not occur prior to February 2016.
Capital One is one of the top five credit card issuers in the U.S. and is backed by the country’s sixth-largest bank. In 2012, Capital One acquired HSBC’s partnership card business.