Wednesday, December 20, 2006
Yamaha Snocrosser
Test Bed For Future
While not saying in so many words, Yamaha race team spokesmen acknowledge that what you see on the snocross tracks this year will most likely find its way into future new model Yamaha sleds.
The purpose of the snocross team is to prove that Yamaha 4strokes can compete in the tough big bump race circuit. For Yamaha the “big bump” rider is as yet an untapped growth area for sales. Reaching and convincing that younger, aggressive terrain rider that Yamaha snowmobiles are suited to their needs has been part of Yamaha product planning’s current 5-year program.
“We’ve been racing in Europe and Japan with 4strokes for the past three seasons,” stated Yamaha US race team manager, Greg Marier. “We have a well thought-out plan to capture consumers with big bump interest. These are the riders who like to fly, jump and ride in aggressive bumps.”
R&D Racing —Yamaha’s Research and Development racing crew is adding its own stamp to the product plan as racing abets standard Yamaha test programs for its trail sleds. Think of Yamaha R&D racing as an accelerated portion of standard testing for trail sleds.
If you look at the current Phazer-based snocrosser, you’ll note that many components are designed for engineering flexibility. The engine location can be modified. The racer’s physical seating position can be modified. And, of course, Yamaha is continually testing concepts in suspension design to find the right blend of front and rear setup for big bump and trail riding needs.
Like Yamaha’s last snocrosser, which ended its run with the ’03 season, the current design uses a modified Vector-based, triple-cylinder engine. Existing 4stroke engine rules specify an inline triple with no gear reduction and a maximum displacement of 1050cc.
Yamaha acknowledges that it is not the lightest racer in modified snocross competition. But R&D feels that snocross competition accelerates the learning curve, as Yamaha has to face down tough competition on the racetrack.
Focal Points —Marier noted that the R&D race team is focused on three main areas with its existing design: determining the best “rider forward” ergonomics for big bump terrain riding; maximizing power delivery; and, determining the best suspension setups.
For the big bump rider, power delivery is more than sheer horsepower and top speed. Figure that Yamaha is working to maximize torque (out of the hole, off the bump and out of the corner acceleration) while maintaining as much top end straightaway speed as it can. For those of you familiar with Polaris’ TX-L cross country sleds of the 1970s, its 333cc twin was not the most powerful engine of its day. It was the most successful as it won more long distance terrain races than any other model—by any non-Polaris manufacturer! Yamaha hopes to achieve that blend of competence with its next generation “big bump” sled.
To date, Yamaha has done extremely well with its 4stroke models. In some cases the Japanese-based manufacturer has gained upwards of 50 percent market share in certain segments. But big bump riding is not one of the bright spots. Yamaha feels that those riders are important and wants to reach them with a dominant snowmobile that is nimble, flies well and handles the big moguls as well as, if not better than, the competition.
Our Opinion —If we were looking to the future, we would not become enamored with the current Vector triple as the power source for a new breed of mogul master sled from Yamaha. While it is great for trail sleds, it may be too heavy for a future “big bump” Yamaha. The current Phazer twin has gear reduction and is fairly well tapped for power in its current guise. Rule it out for the future mogul master.
No, we’d look for a new inline triple design that is lighter, as torquey as the Vector triple, delivering 110-plus horsepower, and using fewer, but bigger valves to breathe in and out. Look for a revamped drive system, most likely evolutionary, that will be extremely quick to respond both on and off the throttle. And expect pinpoint throttle response from digitally programmed fuel injection.
More Opinion —As for the suspension, for now Yamaha seems convinced that a torsion-sprung rear unit is the best way to go. But expect some major rethinking there—in the longer-term future. We are unconvinced that current Yamaha torsion-spring rear designs are the answer, no matter how evolved they become. Yamaha needs to totally revisit suspension design—front and rear—as this is holding them back. The front end uses very long arms for extended “big bump” action. It uses it on the Phazer and a variation on the previous snocrosser, too.
Yamaha is also discovering something that other manufacturers learned the hard way—weight creates problems. You can lighten up a trail sled, but when you lighten a race sled, you find durability suffers. Note the obvious bracing on the Phazer-based snocrosser. That adds to weight. And what is necessary is a new sheet of paper to come up with a new design. We suspect that is what we’ll see in the future. A sled built tough where necessary, but lighter where R&D racing discovers it’s unnecessary. This is what R&D racing contributes.
For Now —Will Yamaha reach its goal? We won’t bet against it. Speed and high performance trail handling? The Apex has it. Lightweight, moderate priced 4stroke performance and economy? There’s the Phazer series. Everyday trail riding for the high mileage rider? Vector and its next iteration take care of that. Big bump riding satisfaction from a 4stroke? Yamaha is trying with the Phazer FX and Nytro styled machines, but they aren’t there yet. What you are seeing in the R&D racing snocrossers provides hints of the future. It’s yet to come to Yamaha dealer showrooms. But, inevitably, it’s going to come! You can count on that. When it does, the competition better have been preparing.
© 2006 Snowmobilia/Jerry Bassett
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Thursday, December 14, 2006
World Snowmobile HQ Coming Along In Eagle River
One of the key backers of the World Snowmobile Headquarters tells us that his group plans to open its facility in early January, in time for spectators to enjoy it while attending this winter's World's Championship Derby at Eagle River, WI.
Said Tom Anderson of Leisure Features and a 2002 International Snowmobile Hall of Fame inductee, "We plan to have the doors open before the Derby weekend in January."
The facility, a converted mini-strip mall located right next to the Derby track, will house memorabilia from the International Snowmobile Hall of Fame in Grand Rapids, MN; a vintage snowmobile museum and display; a World Championship "Wall of Fame" with historic racing sleds of the past; video displays and a gift shop where visitors can purchase clothing, books and videos.
Anderson said that his group, which includes former Ski-Doo vice-president Russ Davis, feels that Eagle River's significance in the history of snowmobiling makes this location a natural venue. Eagle River draws thousands of snowmobilers for the Derby every year. In addition, the Derby Track hosts other snowmobile events each year that include the annual Reunion of vintage sleds in the autumn and snocross racing. Eagle River has become a destination for snowmobilers due to the excellent snowmobile trail system in the Vilas County area.
International Snowmobile Hall of Fame board of director members, Larry Koch and Jerry Bassett recently traveled from Minnesota to view the ongoing construction and chat with Tom Anderson about the World Snowmobile Headquarters' plans for the future. The two ISHOF representatives provided input and insight as to how snowmobiling Hall of Fame members could be represented at the snowmobile headquarters.
Anderson noted that the idea of a centralized snowmobile headquarters encompassing a museum, hall of fame and space for vintage displays and offices for snowmobile related groups like the antique clubs and state snowmobile groups has been a long, difficult process to coordinate. He noted that all the preliminary planning has made implementation a bit easier once they secured a building site.
© 2006 snowmobilia/Jerry Bassett
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Friday, December 08, 2006
Mark It Down,
Waconia 2007
For Vintage Sleds
Calling itself "The world's largest vintage and antique snowmobile event," the 17th annual Waconia, Minnesota, show gets underway January 20 and runs for the weekend. Expect to enjoy one of the largest swap events in the Midwest. Also planned are ice drag races, a trail ride and show with more than 25 classes for judging.
This year's featured snowmobile will be Arctic Cat. The event will coincide with the Antique Snowmobile Club of America annual meeting.
For more info about the event and places to stay, call 651-649-4688 or venture onto the web at www.mwvss.com.
While this is the highlight of the winter for Midwestern vintage sled collectors, there will be many such similar events of varying size scheduled across the snowbelt. Eagle River, WI, will host its annual vintage derby weekend just ahead of the World Championships. Other races are scheduled --depending on weather, of course-- throughout Minnesota and Wisconsin.
By looking at the two photos, can you tell the vintage racers from actual racing nearly 40 years ago? Clue, the black and white photos are of an actual event in Arjeplog, Sweden, in 1969. The color photos are from Minnesota just a few years back. Check out the spectators in the top photo. Fun, eh!
© 2006 snowmobilia/Jerry Bassett
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Wednesday, December 06, 2006
BRP Plans $3 Million
Expansion For Its
Austrian Rotax-Werkes
In order to meet increased demand for its Rotax® engines, Ski-Doo's parent company,BRP, will invest more than $3.3 million to expand its Rotax-Werkes engine development and manufacturing facility in Gunskirchen, Austria. The investment will be used, in part, to enlarge the production area and optimize the material flow, but also to build new offices, locker rooms, break rooms, and a fitness-center for employees.
"The increased demand for our Rotax engines is proof of our market leadership in development and production of high-performance engines," said Gerd Ohrnberger, vice-president and general manager, BRP-Rotax. "This investment will allow us to increase production capacity by optimizing and modernizing our plant. It will moreover contribute to improve the working conditions and well-being of our employees," he added.
The construction work will start in January 2007 and is expected to be finalized by October 2007. In the past year, BRP will have invested more than $8 million in its Austrian facilities.
Located in Upper Austria, BRP-Rotax GmbH & Co. KG ("BRP-Rotax") has, in the past 50 years, developed over 350 engine types and produced more than six million Rotax® engines. As an affiliate of Bombardier Recreational Products Inc. (BRP), BRP-Rotax develops and produces innovative two- and four-stroke high performance engines for Ski-Doo® and LynxTM snowmobiles, Sea-Doo® watercraft and sport boats, Can-AmTM ATVs and quads, motorcycles, ultralight and light aircraft as well as karts.
© 2006 snowmobilia/Jerry Bassett
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Saturday, December 02, 2006
New Sno Pro Cats
For Vintage Races?
Could it be that Roger Skime and his after hours "skime-works" team at Arctic Cat pieced together a few 1978-ish Sno Pro replicas that could appear by Eagle River to compete head-to-head against some strong running Polaris RX-L replicas?
Strong rumors --consider it unconfirmed truth-- suggest that Cat's senior vice president of engineering spearheaded the effort. Our question is this? If many of the the same engineering crew, many of the same racing team members and the same factory created these sleds, are they replicas or modern day born-again Cats?
A much younger Jerry Bassett, seen above with Hall of Fame racer Bob Elsner, tried out Bob's Eagle River World Championship winner at the end of the season. This was in the "old days" when Bassett was editor of Snow Week and SnowGoer and Elsner was one of Cat's factory-supported Team Arctic race drivers.
"The Sno Pro Cats were very interesting," recalls Bassett."I remember how the the race sled handlebar was cocked to the right a bit in order to get the best leverage in the turns. It was really strange to fly down the straights with bars that were twisted to the right. But when you set up for the left turns and went to full lock it all made perfect sense and felt very precise."
You wanted lots of steering leverage. Remember these were the early days of independent trailing arm suspensions. The long runners and aggressive carbides carved deep grooves in the ice and if you think your trail sled can "dart" on you, try an early Sno Pro racer! Guys like Bob Elsner who made those sleds win were a special breed of cat.
Because the Sno Pro machines were so light, acceleration from the 440 Sno Pro machine was intense.
"Since this was Bob's World Championship winning sled he seemed a bit on edge while I test drove it on Team Arctic's replica Eagle River track," said Bassett. "It may have been nerve wracking for him, but it was a highlight for me. In addition to being a terrific racer, he was a true gentleman."
If the rumors are true and this vintage era Team Arctic Sno Pro machine reappears, make a point of watching them run. In the Elsner years, these Cats gave Polaris' RX-Ls (at left) all they could handle.
© 2006 snowmobilia/Jerry Bassett
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Dealer Sales Leader
To Leave Cat,
Head To ARGO Sales
One of Arctic Cat's long time veterans is leaving for a new challenge in the all-terrain biz. Joe Klosterman, Cat's dealer sales guru for two decades, will take his knowledge of the powersports business to ARGO , a Canadian manufacturer of wheeled all-terrain vehicles. Rumor has it that Joe will be ARGO 's international sales manager.
With Joe's experience we expect to see a few more ARGO six-wheelers in the world market. The ARGO is a cross between a UTV and a traditional ATV. Except ARGO can ford some serious streams and haul plenty of cargo.
Founded in 1962, Ontario Drive & Gear Limited operates from a 105,000 sq. ft. manufacturing facility in New Hamburg, Ontario. ODG has established the ARGO as a world leader in amphibious vehicles.
The amphibious, all terrain ARGO is sold worldwide and has proven its capabilities as a reliable off-road vehicle. The 6x6 or 8x8 ARGO models seat up to six passengers. Other applications include hunting, fishing and bush trekking through mud, across water and over snow. More and more commercial users in the utility, natural resource and public sectors rely on the ARGO in the toughest off-road conditions, all year round.ODG has developed a wide range of options offering greater comfort, protection and convenience.
Klosterman will help establish a growing network of stocking distributors and dealers worldwide. For more info about ARGO, go to: http://www.argoatv.com/.
Good luck, Joe!
© 2006 snowmobilia/Jerry Bassett
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Friday, December 01, 2006
PRODUCT REVIEW
The Back-A-Line Works
The product images are from the Back-A-Line website www.back-a-line.com.
Copyright 2006 Snowmobilia/Jerry Bassett
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Wednesday, November 29, 2006
Polaris Makes Big Score
At Duluth SnoCross
Racing for Judnick Motorsports aboard a Polaris 440 IQ racer, Ross Martin earned victories in the Pro Open and Pro Stock classes in the WPSA PowerSports Snowmobile Tour National over Thanksgiving weekend at Duluth, MN.
“It was a great start for me, for Polaris and for our Judnick team,” Martin said. “We’ve got the sled and the determination. Now we want to win consistently.”
Martin tops 15 Racer Pro Finals
Martin finished first in all three rounds of Pro Open qualifying, adjusting to changing track conditions caused by unseasonably warm weather. Martin's Polaris 440 IQ led the way for the five Polaris racers in the 15-man final. Along with runner-up LaVallee, the other Polaris finalists and their finishes in Pro Open were: TJ Gulla (Hentges Racing) fourth, Mike Schultz in sixth and 11th place finisher Shaun Crapo (Scheuring Speedsports).
Winter X Games Qualifiers
Four Polaris racers were among the 10 WPSA snocross racers to earn invitations to the ESPN-hosted Winter X Games 11, which will be held
The next WPSA national circuit event will be the Polaris Michigan Snocross, scheduled for December 16-17 on the ski slopes of the Otsego Club & Resort in
Copyright 2006 Snowmobilia/Jerry Bassett
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At Duluth Snocross Opener
Although it was their debut, Yamaha/Boss Racing drivers Robbie Malinoski and Yuji Nakazawa wanted to make their Yamaha Factory R&D four-stroke Nytros the first four-stroke sleds in a WPSA Pro final. An additional goal for Nakazawa was to qualify for January's Winter X Games 11 in Aspen.
The pair will have to wait for establishing that 4stroker first. Malinoski, who suffered a crash during practice on Saturday, saw his crew rally to get his damaged Nytro back into racing shape. Despite fighting through four qualifying races in an effort to make the final, he narrowly missed the cut but gets another chance at the next WPSA event on Dec. 16-17 in Gaylord, Mich.
With only the top five finishers earning spots to the Jan. 25-28 X Games, there was plenty of pressure on the 15 riders in the opener's Sunday final. Nakazawa, the defending All-Japan Super Class champion, earned a second and two thirds on his way to the X Games qualifier but could only score a seventh-place finish.
Copyright 2006 Snowmobilia/Jerry Bassett
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Wednesday, November 22, 2006
Yamaha Debuts
Pro Open Snocrosser
In
Yamaha Race Manager Greg Marier stated that these racers are truly developmental sleds, not finished and polished machines. The racing chassis allows the development team to change suspension mounting locations and geometry. Sled ergonomics are fully adjustable, giving the drivers opportunity to provide their feedback on what the ideal setup should be. Even the engine mount location is fluid and has been moved around during field-testing in efforts to find the best location for balance and handling.
To be known as the “R&D Nytro race sled”, these two racing machines utilize an ISR racing rules-approved Nytro-based, 3-cylinder 973cc 4-stroke powerplant. Yamaha race spokesman state that the front suspension, bulkhead, and side panels are derived from the current Phazer design—although rest assured that they are substantially beefed up for racing! The rear suspension is a developmental torsion spring design. Current sled weight is said to be equal or less than other mod sleds on the track.
As you’ll note from the photos, the front suspension is similar to the Phazer with its long lower arms and inboard mounting points. So, the question remains. Is this a forerunner to a new Vector series, which is due for updating? Or is there a new “Exciter” model coming, which could be a higher performance Phazer of 100 horsepower or more?
If you look at where Yamaha is in the marketplace, you may note there is a product for 150hp, 120hp and 80hp. Hmm, could there be a 100hp model or a lower priced 60hp model to come in the future. And, if so, where do the Nytro R&D sleds fall? Test beds for which new ideas? Only the future will tell, but to date Yamaha has had a carefully structured –and executed--4stroke strategy. This would seem to be a part of that plan.
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Rudolf The Red-Nosed Arctic Cat?
Look, look up in the sky! Well, look, look up in the mall ceiling. It’s Santa and eight shiny Arctic Cats.
A few winters ago, Arctic Cat installed a very unique display at Minnesota’s Mall of America. Santa came to town aboard his very own Bearcat with able assistance from Rudolf and other wee “rein-Cats.”
Ah, yes, there is a Santa Claus and he is technologically updated, saving wear and tear on the real reindeer. So, keep a watchful eye in the skies this Christmas season for flashing lights of eight little Arctic Cats and a jolly ol’ man from the North loaded down with gifts for good little snowmobilers everywhere.
© 2006 Snowmobilia/Jerry Bassett
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Black Friday
In the “old days,” the day after Thanksgiving was a bit different. In those days when you went on that post-Thanksgiving Friday shopping spree, you could head to Sears-Roebuck and get more than underwear and a polyester tie. You could get a brand new snowmobile—like this 1966 Sears L252! Now those were the good old days!
© 2006 Snowmobilia/Jerry Bassett
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Give Thanks
As we approach Thanksgiving Day, perhaps, we should pause for a moment and think of those for whom we should give thanks. As snowmobilers we need to say a huge “Thank You!” to all of those who groom our trails. Without them, there would be no snowmobiling.
These are the people who work through the night; who drive lumbering pieces of equipment at speeds barely in excess of 8 miles per hour; who make our snowy freeways; and who do all of that with very little appreciation.
Next time you see a groomer on the trail, pause a moment and give them a “Thank You” wave and know that they will be there to cover your tracks all winter long!
©2006 Snowmobilia/Jerry Bassett
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Tuesday, November 14, 2006
Has It
Cat #1 In TC
Now we certainly wouldn't be beneath passing on little tidbits about market sharing competition, but word in the Cat dealerships around St. Paul, Minnesota, is that Cat is #1 in that region.
Just say a little kitty implied that the all-new Arctic Cat line up has created a bit of a stir and given Cat fans a reason to buy. Of course, some great deals on carry-over inventory helps a lot, too!
For those not familiar with snowmobile marketing, since both Cat and Polaris have the same founder and since they are mere miles away from each other in northwestern Minnesota, there is a bit (quite a bit actually!) of competitive spirit between the two snowmo-builders. Of course, when you can throw a little kitty litter in the other guys face there are those that will and they will enjoy it. Especially when the "other" guys are headquartered where Cat can use their litter box.
Rumor has it that Cat has nearly a 40 percent share in and around the Twin Cities area with its high density snowmobile population. That even takes into account all those Polaris guys in Medina (a Minneapolis-St. Paul "ruburb") registering their sleds in their home area.
Of course, that is today and conditions change monthly—especially if it snows. But for now Cat's clan is enjoying the market gain.
Seriously, though, we have been hearing in this area of defections from Polaris to other brands. This kinda reinforces those rumors. Consumers, even long time Polaris riders, have begun to look at other loves for the coming winter.
Cat's new models are really quite well put together. The sled side is getting on par with the UTV and ATV side of Cat. And Cat ATVs, while down a titch in the Minneapolis market, are not down as much as the Polaris brand.
The new Jaguar Z1 showcases the best of the "one sled fits all" theorem. The handlebars and seat are readily suited for virtually any size rider. We have seen a big guy hop off a Z1 and a petite lady make quick adjustments to get the sled suited to herself. After a brief test ride, she was all smiles—just like the big guy who had ridden it just before her. Will "one size fit all"? We'll have to wait and see how the season ends up, but for now, snowmobilers are looking hard at Arctic Cats in central Minnesota.
© 2006 snowmobilia/Jerry Bassett
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Thursday, November 09, 2006
Polaris Cuts Staff
Makes Changes
Due to less aggressive sales than anticipated in three areas — ATVs, international and snowmobiles — Polaris has announced that it will (or has) laid off up to 77 employees, including some at its Medina headquarters. Officially Polaris states that it has taken this move as a result of lower than expected sales of its ATVs to dealers. Figure that works for sleds as well.
Fusion Failure. Then again, the failure of the Fusion series to light up show room traffic might be a residual issue for consumers, if not dealers. There is also the fact that those sleds had too many problems which quite quickly led to bad word-of-mouth amongst the Polaris faithful. The Fusion line has been the biggest problem-maker for Polaris Industries since the ill-fated Comet of 1964 (seen at right).
As for the staff reduction, much of that move — a reduction of 2 percent of its 3500 employees worldwide — can be traced to stagnation in the ATV market and an over production situation of ATVs that were not taken by dealers. Sled sales reflect the lack of quality snowfall for the past few years. And, we would guess that international sales have flattened as well due to tight restrictions on sleds and ATVs in Europe and snowbelt areas. Of course, that failed "partnership" with KTM didn't help Polaris at all and we expect that some of this backlash can be traced to that as the Polaris/KTM deal would have taken Polaris to annual sales of $3 billion from its current realm of just under $2 billion.
Realignments. As happens with multi-line powersports firms, watch for "realignments" and consolidation to make sales, service and marketing staffs more efficient and responsive to dealer needs. It is quite common for "similar" products powersports to share sales reps and service reps to cut costs. Then in a few years when a new "cure" comes in, the lines will be separated out again to better service the perceived differences and then staff is expanded. You needn't be an MBA to foresee this. Just old enough to have seen companies like Yamaha, John Deere, Kawasaki, Bombardier, etc. do it a number of times in the past. Yes, what is old is new again!
Not Clueless. However, we are quite pleased to note that Polaris isn't totally clueless. Check out the Polaris web site for sleds and see that the company is smart enough to utilize its past glory to assist the new models. In its five decades of sled manufacturing Polaris did make some very significant inroads and did enjoy a great deal of success with its Mustangs, Colts, RXL, TXL and other models.
While no one is asking, we think Polaris — despite its current challenges — can spring back with consumers if it reassesses its past in regard to where it wants to go. Snowmobilers react to change more slowly than many marketing types might like, but when they like a brand, they can be stubbornly loyal to it unless a manufacturer totally turns them away. Polaris seemed to be very good at weakening that bond with its consumers, but we are seeing some signs of hope that Polaris may be getting a clue.
Business 101 states that it is much easier and less expensive to keep a customer than get a new one. Polaris just needs to treat its customers with a bit more respect — and that goes for vastly improving dealer relations. Dealers are the direct link to the snowmobile customer. An unhappy multi-line Polaris dealer has the option of selling another brand to his customer. Happy, happy happy!
© Copyright 2006 Snowmobilia/Jerry Bassett
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Monday, October 30, 2006
A Smattering of totally Disjointed Items
Just In — Old Forge got NINE inches of snow over the weekend thanks to Northeastern snows and major "lake effect" snows for which that area is justifiably famous!
In the New York area as well — Bender Racing is now part of the DynoPort empire. Pipes, etc. will now come under the control of DynoPort’s Rich Daly who will maintain Bender Racing name for the foreseeable future. Good brand name. Although it would seem that former Bender Racing owner Terry Paine will retain turbocharger biz. He had been working on that side of the biz for quite a while with some very potent upgrades for 4stroke Yamahas. Keep an eye on these two New York-based sled suppliers for future products.
From the What’s Old is New Again Department
Just when you think we’ve been developing hot new technology never seen before. Well, let’s just say that sometime long term memories are the best. For example, Polaris was playing around with V-configured engines nearly 40 years ago. Note the 1969 V4 800cc prototype at right in the photo. At left is an inline 4-cylinder motor displacing 1060cc that was built circa 1970. Haven’t things changed dramatically since then?
And, while Yamaha points out that its underseat exhaust for its 4strokers has many advantages, seems that Arctic Cat actually incorporated the idea into one of its 4strokers way back in the 1960s! That would be BEFORE Yamaha even got into the snowmobile business. Here’s the photo proof that Cat was ahead of its time.
© 2006 Snowmobilia/Jerry Bassett
Friday, October 27, 2006
Shows Polaris Sled,
ATV Sales Down,
Motorcycle Sales Up
In its 10-Q financial report, Polaris reported sled sales decreased 42 percent for year-to-date versus last season.
Sales of snowmobiles were $87.2 million for the third quarter 2006, a decrease of 16 percent compared to sales of $104.2 million for the comparable quarter in 2005. For the year-to-date 2006 period, snowmobile sales declined 42 percent to $95.0 million from $163.3 million for the prior year-to-date period.
Shipments in the third quarter 2006 were lower as a result of a significant decrease in dealer orders for 2007 model year snowmobiles. As discussed in prior communications, the reduced levels of dealer orders resulted from increased dealer inventory levels at the end of the prior 2005-2006 snowmobile season due to below average snowfall across many regions of North America and quality issues relating to certain 2005 and 2006 model year snowmobiles.
During the third quarter 2006 Polaris has begun shipping its IQ and models which utilize the new 600 HO Cleanfire semi-direct injection engine technology which has received positive reviews.
The average snowmobile per unit sales price for the year-to-date 2006 period decreased three percent when compared to the same period last year due to product mix change.
Sales of ATVs were $308.3 million in the third quarter 2006, a decrease of 12 percent from the third quarter 2005 sales of $351.2 million. Despite the lower sales performance, several of the Polaris’ newer products continued to show growth during the quarter including the entry-level Hawkeye ATV and the two-up ATV-the Sportsman X2. Polaris also experienced double digit sales growth during the third quarter and year-to-date 2006 periods in the RANGER™ product line.
A bright spot were sales of the company's Victory motorcycles which were $25.8 million for the third quarter 2006, a 60 percent increase from $16.2 million for the comparable period in 2005.
Jaguar Z1 Helps Push Cat’s Sled Sales to 9% Increase
Thief River Falls, Minnesota-based Arctic Cat’s revenue went to $285 million from $276 million a year earlier. Arctic Cat expects that its full-year revenue growth will be in the range of 5% to 9% for snowmobiles; with a 3% to 5% increase in ATV sales; and, a year-end gain of up to 6% for parts, garments and accessories sales.
"Our record sales and increased earnings for the second quarter were driven primarily by a 9 percent increase in snowmobile sales, continued strong demand for our Prowler utility ATV, and higher ATV parts and accessories sales," said Christopher A. Twomey, chairman and chief executive officer. "We are confident that we remain on track to post sales gains across all of our product lines for the fiscal year."
Sales of Arctic Cat snowmobiles totaled $121.5 million in the 2007 second quarter, up 9 percent versus sales of $111.4 million in the same period last year. Contributing to the increase was the previously disclosed shift of Arctic Cat's extensive new model snowmobile production, and related revenue and earnings, into the company's fiscal 2007 second and third quarters. The company's year-to-date snowmobile sales totaled $142.4 million compared to $163.5 million in the prior-year period.
Arctic Cat continues to anticipate that its full-year snowmobile revenues will exceed last year based on strong dealer orders for its 2007 model line-up, of which 80 percent are new models.
Innovation Recognized: In recognition of its snowmobile innovation this year, three 2007 Arctic Cat sleds already have been named among the year's top sleds by a leading industry magazine. Snowmobiles chosen to receive this honor include Arctic Cat's Jaguar Z1, with the first 4-stroke engine built specifically for snowmobiles, the fast F8 Sno Pro, and the M1000 mountain sled with its leading power-to-weight ratio.
Year-to-date sales of Arctic Cat's ATVs grew 9 percent to $194.0 million versus $177.3 million in the first six months of last fiscal year.
Bio-Diesel ATV: During the second quarter, Arctic Cat also began shipping the industry's first twin cylinder diesel ATV with the introduction of its new Diesel 700 model.
"We are excited to begin shipping the first biodiesel-compatible ATV," said Twomey. "This machine reflects our stewardship goal to be a leader in fuel efficiency."
Arctic Cat's Diesel ATV, with its exceptional low-end torque, is ideally matched to Arctic Cat's line of SPEEDPoint accessories, making the machine highly versatile and allowing operators to change a variety of accessories in less than a minute.
The Prowler UTV continued to be a strong contributor to Arctic Cat's ATV business during the second quarter and first six months.
Parts, garments and accessories (PG&A) sales rose 3 percent continuing to benefit primarily from increased ATV parts and accessories sales.
Cat spokesmen noted that due to the timing of shipments, some snowmobile and ATV sales to dealers that were anticipated to occur in the second quarter will now occur in the third quarter.
The company said it expects to make 33 cents to 38 cents a share for the third quarter on revenue of $210 million to $230 million. — ©2006 Snowmobilia/Jerry Bassett
Call it smart marketing or bogus hype, but Polaris chairman of the bored Tom Tiller declared victory in Polaris’ pretend head-to-head ATV duel to see which brand was really the toughest ATV.
Tiller was quoted as saying: “After granting an extension and issuing several requests to participate, the other manufacturers' CEOs have either declined or not responded at all, Regardless of the reason, I'm disappointed the other CEOs would not accept my challenge. Their unwillingness to participate proves only one company makes the world's toughest ATVs...and that company is Polaris"
Tiller had issued the challenge on October 9th via a letter to the CEOs of Honda, Suzuki, Yamaha, Kawasaki, BRP and Arctic Cat. After not getting any of the manufacturers to accept by the October 20 deadline, Yeah, l,ike that was ever going to happen. P-l-e-a-s-e! Those CEOs didn’t get where they were by failing to recognize over the top marketing hyperbole.
In addition to claiming “toughest ATV” status, Tiller offered a prize donation of $10,000 through Polaris' T.R.A.I.L.S grant program to the non-profit ATV organization of the winner's choice. Since none of the CEOs accepted Tiller's challenge, Polaris will donate the $10,000 to an organization to be named later.
An allegedly disappointed Tiller was quoted to say: "I wanted to give the CEOs every opportunity to respond. I apologize to all the riders out there who were looking forward to 'The Duel.' No rider wanted it more than I did."
We’re in alligator tears here! — ©2006 Snowmobilia/Jerry Bassett
Tuesday, October 24, 2006
Sled Sales Lowest
In 12 Years
Heading into the current season, snowmobile sales are at their lowest ebb since 1994. Industry estimates put 2006 sled sales at just under 165,000 units. That’s the lowest sales report since 181,000 sleds were sold in 1994. That was a relatively “good” year as the industry was rebounding from two previous sales years that saw sales under 160,000 units.
As you can see from the following chart, the snowmobile business clearly reacts to snow conditions. Plentiful snow results in plentiful sales. Industry sales figures clearly reflect the effect of poor snow conditions in the North American marketplace.
Just as in the 1970s inventory problems are a concern. While snowmobile makers are far removed from the volume of carry-over units seen back then, current unsold inventory poses problems for sled maker profitability until there is a better balance between new models and carried over units. These inventory problems are a boon for consumers in the short term as manufacturers and their dealers can offer terrific “deals” to blow out old models. However, dealers are faced with the double whammy of getting non-current product out the door so bank interest doesn’t bankrupt them and being forced — in some cases — to absorb some of the manufacturers’ special “blow out” deals to consumers. Snowmobile dealers know that while virtually all special programs are good for the sled maker, only some of them are beneficial to the dealer as well. This is most likely why many dealers have stood their ground in not taking on too many new sleds — despite the objections of the manufacturers.
When you figure it all out for this past season there were 91,670 new snowmobiles sold in the U.S., and 42,953 new snowmobiles sold in Canada. According to industry reports the average suggested retail price of a new snowmobile sold in North America in 2006 was $8,269.00.
If you are a consumer looking for a good buy, look now as you’ll find some very good values. Of course, once inventory of new versus non-current gets to a more manageable level, those great values will be gone. Until the next time manufacturers overproduce and end up with more non-currents than current models. It seems to be a cyclical thing that can be caused by lack of snow, fuel prices and general economic malaise. For now, though, the market is starting to get back on track.
Snowmobile Industry Market
2006 to 1968
Estimated Sales (In Units)
- 2006—164,860
- 2005—173,733
- 2004—181,336
- 2003—186,627
- 2002—203,152
- 2001—208,592
- 2000—208,297
- 1999—230,887
- 1998—257,936
- 1997—260,735
- 1996—252,324
- 1995—227,433
- 1994—181,000
- 1993—158,000
- 1992—150,000
Sales from 1978 to 1968
- 1978—226,000
- 1977—195.000
- 1976—243,000
- 1975—316,000
- 1974—435,000
- 1973—450,000
- 1972—460,000
- 1971—495,000
- 1970—425,000
- 1969—255,000
- 1968—85,000
© 2006 Copyright Snowmobilia/Jerry Bassett
Thursday, October 19, 2006
EPS: A Good Idea
For Female-Friendly
And Heavyweight Sleds?
Both Honda and Yamaha are offering electric power steering (EPS) on versions of their ATVs this season. The idea is to reduce steering effort on those fat-tired ATV front ends when slogging through tough terrain. When ATVs were lightweight 4-wheelers with 300cc engines, it didn’t take much effort to turn the handlebars. But add in an extra cylinder or even a quite large displacement v-twin and you have added weight with which to contend. Throw in the extra avoirdupois of fuel injection and its complexities; add liquid cooling—complete with front-mounted radiator. Well, that little ATV is now a heavy bugger that needs to be forced through rugged wilderness. Hit a rock or the side of a stump just so and feel the handlebar get ripped from your grasp. EPS is intended to reduce both steering effort and soften the jolt when the front end meets immoveable objects—like boulders and hidden roots, etc.
The idea of electric powered steering is actually quite simple and said to add negligible weight. Honda’s Electric Power Steering (EPS) system for All Terrain Vehicles monitors steering torque and vehicle speed to adjust the levels of steering assist and feel. When stopped or at low speeds, it requires light steering effort, and as speeds increase, the amount of assist is adjusted to provide the appropriate level of feedback. States a Honda media release: “EPS is a unique system consisting of an ECU-programmed electric steering assistance motor and multiple sensors. These sensors measure the handlebar torque applied by the operator as well as the ATV’s speed to determine the correct amount of steering assistance required for all conditions. More assistance is provided in rough terrain and at low speeds to decrease the amount of steering effort required, while less assistance is provided at higher speeds and in smooth terrain. This innovative technology also decreases bump steer and kickback through the handlebar in all conditions. The sophisticated Showa system includes separate ECU programming for 2WD and 4WD modes, while spring-loaded steering-motor gears minimize play to increase steering feel and feedback at higher speeds.”
The front and rear ATV suspensions have been revised specifically for Honda's 2007 Foreman with EPS.
Yamaha has added its own EPS to the new Grizzly 700 with fuel injection. With vehicles like the Honda Foreman and Yamaha Grizzly weighing at 600 pounds or so —in the range of many new sleds (with fuel)— wouldn’t there be some likely consideration for adding power steering to snowmobiles? You wouldn't necessarily add it to the sporty ones, but surely here’s a chance to make sleds more “female-friendly!” Certainly seems to make a heckuva lot more sense than “pink” sleds.
Adding EPS to touring and two-up machines —which tend to be the heaviest of models because they tend to come with the most bells and whistles— would make them easier to enjoy on a 250 to 300 mile jaunt! Just a little thought here, are we on the verge of “automobilizing” the sled market? If sleds are already at $10,000 and there are more 4-strokes coming and these sleds keep getting heavier, isn’t assisted steering a good idea? Just some thoughts on the obvious. Hey, macho guys, even NASCAR's good ol' boys use assisted steering. If it's good enough for Dale Jr. and Juan Pablo, then it's probably good enough for us.
© 2006 Jerry Bassett/RPI
Friday, October 13, 2006
Whassup At Polaris? — Oops. Polaris reports that it will be realigning its production to reflect the real world lack of demand for its products and to reduce dealer inventories.
Polaris reported weaker-than-expected quarterly profits this week. That was offset somewhat by the company’s plan to cut production and shipments of all-terrain vehicles. Investors viewed this as good news as many analysts felt Polaris’ dealers were too stocked with product. Based on that assessment, Polaris shares went up a bit despite the news that company officials see continued lack of demand in the current quarter. Polaris officials are blaming shaky consumer confidence.
Polaris reported a profit of $42.5 million for its third quarter. That’s down from $48.3 million a year earlier.
Citing lower demand for snowmobiles and ATVs, Polaris sales fell 9.8 percent to $490.1 million, below the $506.9 million analysts had expected. The company reported strong demand for its Victory motorcycles.
Polaris now says that it expects full-year sales to be down 11 percent to 12 percent. This past July Polaris reported that it expected a decline of 3 to 5 percent.
Polaris is not alone in feeling the pinch. Others in the powersports and leisure product industry have seen overall business pressured by an uncertainty about gas prices (which have been more than $3 per gallon over the summer) and interest rate hikes, a softened housing market and offshore competition in certain segments of the powersports biz. China is currently manufacturing and importing very competitive ATVs and motorcycles that are much lower priced than domestic makers’ products.
The KTM Factor — The fallout from the failed KTM deal may haunt Polaris. As you may recall, Polaris acquired a 25 percent stake in the European motorcycle maker. The hope was that Polaris would become the “senior” partner and exercise controlling interest. At its annual shareholders meeting, Polaris executives made a big deal of the then-pending merger/partnership (whatever you want to call it) as being a major steppingstone for Polaris. The deal would take Polaris from a near $2 billion company to a $3 billion firm in less than three years. It would be a boon for its engine development programs. And a major boost to its Victory motorcycle program.
While Victory is doing well by Polaris standards, it isn’t a major threat to Harley-Davidson or even Kawasaki for that matter. But, give Victory a pre-existing line of high performance off-road and on-road sport bikes and you have turned Polaris from an ATV/snowmobile maker with a motorcycle division to a full-fledged motorcycle company with major growth prospects.
For whatever reasons, the deal fell apart and Polaris seems to lack a cohesive post-KTM fallout plan. So, it’s back to Square One and that $3 billion target in three years was missed.
With a cutback in production at the ATV and snowmobile groups, this can only lead to lowered profits as lower production numbers make it difficult to retain previous operational efficiencies in manufacturing, etc.
The Non-Current Factor — Other sled makers have already admitted —informally— that it can retain dollar volume figures (which stock followers like to see) despite lower production because the sleds are now $10,00-plus volume.
However, how many $10,000 sleds are going to be sold when these same sled makers are tagging their noncurrents with discounts/rebates and other deals worth $3,000 and more? The best selling sleds are currently noncurrents. There are some great deals on those. What will be consumer reaction to $10,000 models when the noncurrents are finally blown out?
Friday, October 06, 2006
'07 BRP SKI-DOO 4STROKERS—If you like fun, nimble sleds that may approach 20-plus miles per gallon and won't break the bank when you write a check for them, then you need to check out Ski-Doo's new Freestyle-based models. While the single cylinder 300cc engine remains, the line now adds the same 550cc fan-cooled twin that powers the full-sized REV. And there is a new 4stroke twin that is a major surprise. It is borrowed from the Can-Am ATV line and is specifically adapted for sleds. This 800cc V-twin makes a challenge to Yamaha's all-new trail Phazers. We were very impressed with the ATV powerplant and how it performed in the Freestyle type chassis.
We didn't care for the last V-twin 4stroke we saw from Ski-Doo. It was cumbersome, heavy and slow. It was underpowered for the type of chassis it was expected to propel and left us with a negative attitude toward Ski-Doo 4stroke prowess. The new Freestyle-based models really caught our attention. Initially, we felt that we had to give the sled a "mercy" ride just so we could say that we had ridden it. Oops! A day and half later, we got off the Ski-Doo V-twins and got back to business. We really were impressed with the responsiveness and overall feel. If bang for your buck is a concern, check into these V-twin powered Ski-Dooes.
When we asked a few questions and did a little background research, we discovered that BRP/Ski-Doo has been utilizing the V-twin powerplant in Scandinavia for the last season or two. That explains why the clutching and overall powertrain feel is so "spot on." This was a very good move. Of course, when your motor has the bottom end that this ATV-based 4stroker has, clutching needn't be racer-sharp. And putting the motor in a lighter weight chassis helps immensely as well. We came to the sled with remarkably low expectations. Heck, we figured if the V-twin Ski-Doo could muster up more performance than Polaris' doggy Frontier ever could... well, we'd be happy!
On a closed course trail we tried the short-tracked Ski-Doo against the trail Phazer prototype. We would switch from one rider to the other after a lap or so. What we discovered is that while the Ski-Doo is marketed toward buyers looking for a good buy and not racer-wannabes, the Ski-Doo will not embarass itself head to head with the new lightweight Yamaha 4stroke—despite the Phazer's great power output. The Phazer will roll out its top speed on long straights, but the Ski-Doo 4stroker seemed to pull out of the turns a bit harder. Remember that low end ATV torque we mentioned?
The Ski-Doo has a more traditional front A-arm suspension that handles more like you would expect from a REV. The Yamaha uses very long positioning arms that provide ample travel but a great deal of side-to-side action. Yamaha claims this is on purpose and is designed in to give younger riders greater motocross "feel" in the bumps. We think it's too much yaw and makes the Phazer too twitchy in the real bad moguls. The Ski-Doo felt more secure, but its low-buck shocks won't take the abuse for long and will fade quickly. So, it's a trade-off.
When we ran the Phazer and V-twin Ski-Doo head-to-head, neither of us riders could get a big advantage over the other. Where the Phazer could achieve better top speed, the Ski-Doo would gather it back in on the turns. Frankkly, It was a big shock to us that the Ski-Doo was as good as it was.
It comes with the REV seating arrangement, which we still feel is the best overall positioning for many of us veterans. Yamaha's Phazer is close, but the seat is definitely designed for a younger, narrower hard butt crowd. It fits wider, older guys like a thong. The Ski-Doo is marketed for a less aggressive, more mature and comfort-oriented rider.
We'll save you the spec charts, etc. You can check that online or at a dealership and draw your own comparisons. If you are looking for a nice overall package with decent performance, very good mileage potential and a more than fair starting price, check into the new V-twin powered Ski-Doos. Oh, yeah, that 550 Freestyle-based model is a hoot too!
©2006 snowmobilia/Jerry Bassett
Thursday, October 05, 2006
Is there a "pink" Polaris sled in your future? This "doctored" image of Polaris' IQ racer suggests what a "Barbie Pink" Polaris might look like.
And what's all this talk of "pink" sleds? Recently Polaris marketeers announced the creation of "girlie" ATVs decked out in feminine pink accents. According to Polaris its research discovered that girls enjoy the world of powersports as well as guys.
Harley-Davidson recognized this same fact with its motorcycles in the past few years. Any biker guy knows well that biker babes are no longer satisfied to ride on the passenger seat. They want control. Harley has answered that call -- But quite a bit differently than Polaris.
While recognizing gals want their own motorcycles, Harley did not just add pink as a color choice. The Motorcycle Company took a hard look at what its female customers wanted and CHANGED its product to accommodate the customer. Female riders wanted lower seat heights, easier pull clutch levers, and other female friendly features. We doubt you'll find a "Barbie Bike" in the Harley line.
But, Polaris, basing its decisions on similar factoids have come up with pink as the selling point for girls. Are they making its ATVs more femme-friendly? Do they offer power steering? Easy-reach controls and footrests? Are these new Barbie quads just colored pink or do they offer female-friendly features? If not, Polaris may find that this marketing ploy will be seen as a condescending, male-chauvinist insult to its female customers. Is there a pink camouflage ATV in the future for female hunters?
As for female sledders, lady riders are going to want more than pink. They will want easy-starting, lighter weight models with nimble-handling, easy steering, female-friendly controls, etc. Girls want friendly features first. Girls just want to have fun. And pink probably isn't it.
This marketing ploy underscores why Polaris currently finds itself an also-ran in the sled biz. That must have been some intersting staff meeting when it was decided to push pink ATVs. What female focus group did they base this on? But equally puzzling was the response of some stock analysts who caused Polaris stock to immediately go up in value. If this is the level of expertise we can all expect from stock market experts, out 401s are doomed! Yes, recognizing growth in female participation in powersports is excellent. How about recognizing how to tap into it in a solid, long term manner?
For a company that seems to rely heavily on MBA educations, maybe the company would be better served to get back to basics. This is a company that became #1 in snowmobiles by building quality products that it sold at very fair prices. This is a company that reacted to what its customers wanted. For those that can recall it, Polaris thought its customers wanted the cheaper-to-produce Cutlass models. When Polaris buyers opted for the more expensive Indy models, Polaris accepted that decision and profitted. When the trailing arm Indys became obsolete, instead of leading the Polaris faithful to the IQ and its A-arm design suspension, marketeers "bad-mouthed" that concept. Right out of the chute at product launch, Polaris had to overcome its own negative campaign against the IQ suspension as it did an immediate about face telling its faithful buyers that the new A-arm was the best thing in snowmobiling. Huh!
This company has 50 years of experience in Roseau but doesn't seem to trust its heritage to lead its future. While CAD and CAM design programs can assist in engineering concepts, it takes real-world experience (which Polaris has in spades) to know what works and what doesn't in the snow world. Computers can only spit out what's programmed into them. Stupid in. Stupid out. The Fusion 900 was stupid out and Polaris will be paying for that mistake for some time in all kinds of ways.
Maybe, maybe we're totally wrong and Polaris will be in the "pink" with its new concepts. But the Minnesota company would do well to look at what a certain Wisconsin company has done when studying similar facts.
Monday, October 02, 2006
Minnesota snowmobilers need to be concerned about some of the things going on in the Grand Rapids area. Seems that some of the current trails may become history as logging areas are in transition — which may mean a significant cutback in land usage in the area. Rumor is that with lands changing hands due to sale and leases, snowmobile clubs are being asked to front up to $1,000 per mile for trail usage by some new land rights holders. If true, that will put a serious crimp in sledder travel for the future. Itasca County snowmobilers have always been very active in the area and are working on the issue. BUT if this action continues, the sled manufacturers will have bigger problems than $3 per gallon gasaoline, high noncurrrent inventories and lack of snow. Because if you take away trails, the sport ceases to exist!
Simply stated:No trails. No sales.
Rumor has it that the average age of pre-season Yamaha PHAZER Buyers is nearly 20 years YOUNGER than other Yamaha snowmobile purchasers. Average age of a snowmobiler is mid-40s. Early season Phazer buyers are typically mid-20s!
Last time there were issues with fuel prices, snowmobile inventory backlog and economic concerns, Yamaha hit the market with a lightweight, nifty styled, extremely competitively priced snowmobile. That was about 1983 and the sled was the first Phazer! Is history repeating itself? Has Yamaha timed the newest Phazer to launch at precisely the right moment?
There have been some little but significant quality updates made to the production Phazers that were missing on the pre-production and prototypes that I rode earlier this year in Michigan. The production versions are much nicer and much more rider-friendly than the earliest test models we had to ride!
Also, according to some multi-line snowmobile dealers, there is concern at Cat that Yamaha four-strokes are generating much bigger sales and interest than Cat and the other factories will acknowledge publicly. Seems that representatives from Cat's future models team was chatting with some big dealers about this concern. Seems that Cat's nicely styled and well put-together Jaguar 4-stroker is quite a bit more expensive than its competition. Suzuki may be asked to find ways to help reduce costs so the new Cats can sell more competitively with Yamaha's Vector series. Right now the big 4-stroke Cat's pricing is closer to the high performance Apex than it is to the 120 horsepower Vector.