It is the first story of this year that does not end well. Polaris Industries announced that they are going to wind up with the Victory Motorcycles brand and related operations. A company that produced some of the finest cruisers, baggers and tourers. It had a good run for nearly 18 years. But all of this changed mostly in the last half a decade where it struggled to keep up with the attention pulled by the Harleys and the Indian.
The Iowa brand began its journey in 1988 when it decided to enter the heavyweight championships. Since then, the company had shown steady growth and it further diversified its product lineup with cruisers, baggers, tourers and they had also started an electric timeline for their powertrains. At the end, they had around 60 models and even bagged 25 top honours of the industry including the J.D. Power 5 stars in 2006.
The decision to shut down operations came after looking at Victory’s struggles to float in the challenging market and the need for additional investments to launch new platforms. Instead, Polaris decided to concentrate more on its other brands that are showing strong performance, immense growth potentials and are running quite successfully at present.
We are talking about the company’s recently acquired Indian Motorcycles and the three-wheeled Slingshot Roadsters. Polaris wants to narrow down its resources into developing these two brands on the global platform and to eventually improve their competitive stance in the industry. All of this to foster a long-term growth and increase their shareholder values.
Polarise will gradually start to liquefy Victory Motorcycle’s assets and inventories, starting with assisting dealers with providing service and warranty coverage for a period of 10 years. It will eventually dispose of factory inventory, tooling, other physical assets and the cancellation of various supplier arrangements.
Of course, it will assist Victory owners with the supply of warranty, service and parts for a period of 10 years from now and cease operations after that.
Scott Wine, Polaris Industries Chairman and CEO said in a statement “This was an incredibly difficult decision for me, my team and the Polaris Board of Directors. Over the past 18 years, we have invested not only resources, but our hearts and souls, into forging the Victory Motorcycles brand, and we are exceptionally proud of what our team has accomplished.”
About shifting tides to other brands, he added: “The experience, knowledge, infrastructure and capability we’ve built in those 18 years gave us the confidence to acquire and develop the Indian Motorcycle brand, so I would like to express my gratitude to everyone associated with Victory Motorcycles and celebrate your many contributions.”
Polaris will still remain committed to operating out of Spirit Lake, Iowa community with Indian Motorcycle production and in the Huntsville, Alabama community with its Slingshot production.