Issue link: https://read.dmtmag.com/i/148632
August 12, 2013 • Volume 16, Number 10 • $3.99 INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE www.powersportsbusiness.com 1-800/848-6247 POWERSPORTS BUSINESS / RBC CAPITAL MARKETS Q2 DEALER SURVEY Dealers report rough Q2 PSB: FOCUS SNOW SEE PAGE 14 Hi-Ho Teryx! Kawasaki pulls off a massive marketing campaign, this time with "The Lone Ranger." SEE PAGE 26 Rain and cold weather. Those were the two reasons cited by most dealers as to why their dealership's second quarter results weren't quite what they hoped for. Though there were some bright spots, with UTV sales especially, motorcycles and PWC took a tumble for many in the April through June period. Half of the nearly 200 dealers from 44 states and Canada polled by Powersports Business and RBC Capital Markets reported their Q2 performance was below plan. New units took at least part of the blame for 46 percent of dealers, who reported sales were "weak" or "somewhat weak" during the quarter. Traffic was down for 39 percent of deal- ers, and buying interest appeared to drop in 41 percent of stores. Dragging the quarter down were motorcycle sales, as 53 percent of sport bike dealers reported a 5 percent decrease or more, while 43 percent of heavyweight motorcycle dealers reported the same. Sales also dropped for 42 percent of off-road bike dealers, 45 percent of scooter stores and for 46 percent who sell PWC. Side-by-side sales were the highlight for 53 percent of dealers, who reported a sales increase of 5 percent or more. Because of the PWC decrease, 43 percent of those dealers reported being left with too much inventory. Looking into Above plan 21.1% Below plan 50.8% On plan 28.1% See Survey on Page 4 RATE THE FOLLOWING Very weak 100% Average Somewhat weak 6% 11% 5% Somewhat strong 6% Significantly worse 7% 3% Very strong 9% 14% 90% Significant ly better 5% Polaris unveiled its all-new 2014 RZR XP 1000 at the OEM's dealer meeting in Washington, D.C. SEE PAGE 28 BUSINESS PERFORMANCE RELATIVE TO PLAN? UTVs give dealers limited optimism HOW WOULD YOU CHARACTERIZE CUSTOMER TRAFFIC IN THE LAST THREE MONTHS COMPARED TO THE SAME PERIOD LAST YEAR? Big-time launch How wouldWOULD YOU CHARACTERIZE YOUR(April-June) HOW you characterize your calendar Q2 CALENDAR Q2 (APRIL-JUNE) to plan? business performance relative 20% 80% 28% 32% 22% 35% 70% 39% 60% Somewhat worse 32% Somewhat better 27% 42% 50% 36% 30% 42% 21% 40% 30% About the same 29% 110th prep work 20% FINANCE: Ex-dealership GM turns to consulting . . . . . PAGE 8 FOCUS: 2012-13 snowmobile sales . . . . . . . . . . . . PAGE 14 CYCLE: A mannequin story that's hard to believe . . PAGE 30 29% 5% 4% 24% 25% 20% 0% Overall Business Conditions New Unit Sales 9% Used Unit Sales 13% 5% P&A Sales Service Department 7% F&I Bye Big Red, hello Pioneer Honda's new UTV line brings 65 jobs to South Carolina BY DAVE McMAHON EDITOR IN CHIEF Honda of South Carolina Mfg. Inc. (HSC) officials knew they had a hit on their hands with the all-new 2014 Pioneer 700 side-by-side when 45 of its U.S. Powerhouse dealers headed to Timmonsville, S.C., to test ride the machines. And with the Big Red no longer in production due to the launch of the Pioneer, there was no reason for concern. "The Pioneer is night and day better," said Bill Savino, manager of motorcycle press for American Honda Motor Co., See Honda on Page 7 S.C. Gov. Nikki Haley and Honda's Katsumi Fujimoto are all smiles in the 2014 Pioneer. PHOTO BY KEVIN WING NPA program offers advance payments . . . PAGE 5 27% 10% House of Harley-Davidson is pulling out all the stops for the Motor Co.'s 100th anniversary party. SEE PAGE 40 NEWS: 31% HOTNEWS Quadski to increase dealer count, add models Gibbs Sports Amphibians has announced plans to increase its U.S. dealer count, add models and start P01x07-PSB10-News.indd 1 exporting its Quadski. The company plans to build 1,000 Quadskis out of its Auburn Hills, Mich., plant this year. Its dealer count, which is currently at five, is expected to surpass 100 by the end of 2014. Gibbs' first Michigan dealer should be announced this summer. In addition to increasing its U.S. presence, Gibbs is also seeking to export units to Europe, the Middle East and select markets in the Asia Pacific region, communications manager Graham Jenkins told the media at a Tech Crawl 2013 press conference in See Hot News on Page 3 7/31/13 3:23 PM