PowerSports Business

April 3, 2017

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www.PowersportsBusiness.com ATV/UTV Powersports Business • April 3, 2017 • 33 Analyst: Polaris recall impact minimal for dealers 13,500 RZRs, Generals recalled due to fire potential 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 owning 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 mini- mal 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 that 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 han- dling 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 deal- ers we speak with. Given what appears to be a boost from the recent election, greater cus- tomer optimism from key customers was called out by numerous dealers. More farm area deal- ers 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." According to the U.S. Consumer Product Safety Commission, Polaris is recalling about 13,500 RZR and General recreational off-high- way vehicles due to burn and fire hazards. The vehicle engine can misfire and the temperatures of the exhaust and nearby com- ponents can get too hot and cause the com- ponents to melt, and/or a contaminated brake master cylinder may cause unintended brake drag, posing burn and fire hazards, according to the recall notice. Polaris has received 14 reports of vehicles catching fire related to the brake master cyl- inder and one report of fire and two reports of melting vehicle components related to an engine misfire. No injuries have been reported. The recall involves about 13,500 units. (The RZR Turbo and RZR 900 and 1000 have previ- ously been recalled.) 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 "GEN- ERAL" is printed on the side of the rear cargo area. The ROVs were sold in various colors. The units were sold at Polaris dealers nationwide from August 2015 through Febru- ary 2017 for between $12,800 and $24,000. They were manufactured in Mexico and the U.S. PSB DIGEST ARGO SHIFTS DSM TERRITORIES IN CANADA Onatrio-based ARGO announced the shuf- fling of two of its top district sales managers as part of a Canadian territory realignment designed to further cement the company's aggressive growth trajectory. Effective immediately, Shawn Brodie will assume the district sales manager responsibility for all Ontario dealers, while Frederick Hillier will dedicate 100 percent of his time to serving his Manitoba dealers in a more focused district sales manager role. The changes will allow for more dedi- cated management of dealer accounts for each DSM as the company seeks to triple revenue and retail sales over the next couple of years. "Year after year Frederick and Shawn have shown that they are not only capable of putting up impressive numbers but also that they have exceptional relationship building skills that have endeared them to dealers of all shapes and sizes," said Kevin Asselin, ARGO's vice president of Sales & Marketing. PSB CONTINUED FROM PAGE 32 Model year 2016 and 2017 Generals are part of the latest Polaris recall.

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