PowerSports Business

October 7, 2013

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54 • October 7, 2013 • Powersports Business AFTERMARKET www.PowersportsBusiness.com VARTA batteries make North American debut Newest launch from Johnson Controls set for AIMExpo products. VARTA Powersports products will be freshly charged at the Johnson Controls facility located in Middletown, Del., guaranteeing the freshest and best possible charge quality upon initial customer use. This "factory activation" process ensures each VARTA Powersports AGM battery is freshly charged, with no need to hassle with measuring, filling and waiting for a charge. BY DAVE McMAHON EDITOR IN CHIEF A new entrant into the North American powersports battery category launches at AIMExpo, with VARTA Powersports introducing a range (16 SKUs) of 12-volt spill-proof batteries for motorcycles, ATVs, UTVs, snowmobiles, PWC and scooters. A brand of Milwaukee-based Johnson Controls, Inc., VARTA has had a strong footprint in the European battery market for decades. Johnson Controls, of course, has worldwide manufacturing facilities, and has been a private label manufacturer in the industry as the largest global supplier of lead acid batteries. "This is the first battery launch under Johnson Controls, showing our level of commitment and that we want to move strongly into this industry," said VARTA Powersports product manager Doreen Lucht. "It's a world renowned brand; we're ready to launch it in North America to create a powerful line of powersports batteries. We're DOREEN LUCHT really excited to be moving into North America with VARTA." VARTA's applications include both aftermarket and OEM strategies, with dealers — via national and regional distributors — on tap to bring the fully charged battery lineup to market at the retail level in the U.S. "From the dealer's perspective, you don't have that hassle of adding the acid, doing the initial charge. You get your customers ready to go sooner. It's ready to be sold," Lucht said. "You take this product out of the box, put it into your vehicle and you're ready to go. [Dry-charge conventional batteries] do have their place for certain applications, but this is a premium product that gets your customers going faster and, from a dealer's perspective, allows them to focus on things HAYESFROM PAGE 52 CONTINUED feedback from attendees on its snowmobile, ATV and UTV systems. Its other motive, perhaps most significantly, was demonstrating consumer interest that might prod one or more of the manufacturers to add controlled braking to its machines straight from the factory. "I think generally the OEMs are wanting to ensure that the consumer has an interest in the technology and is willing to invest in it. That's why we've taken it to this next step to gauge customer interest," said Mike Kenny, vice president of powersports and specialty products at Hayes. "The technology is proven and it continues to evolve … it's a question of getting that right blend of pricing and technology that a customer's willing to invest in." Currently Trail Trac 1.0 carries an MSRP of $995 for a dealer-installed kit, and Hayes offered the kit at a discounted $749 during Haydays. Kenny said consumer interest was extremely supportive, with no complaints about the price being too high. Expounding on the company's motives for exhibiting at the snowmobile show, Kenny said proving the merits of the technology and driv- P52x54-PSB13-Aftermarket.indd 54 PSB: Why did you feel it was important to launch it at AIMExpo? DL: The AIMExpo represents the largest VARTA Powersports will reveal its new 12-volt batteries for the North American powersports market in October. VARTA, a Johnson Controls brand, has a strong footprint in the auto and powersports industries in Europe. other than prepping batteries." Lucht, a former engineering manager at Harley-Davidson Motor Co., spent some time with PSB in anticipation of the product launch at AIMExpo in Orlando to discuss some of the specifics of the launch. PSB: What are VARTA's origins? Is it available in other countries, and when will it launch in the U.S.? DL: Under Johnson Controls leadership, VARTA batteries has become the strongest premium brand of automotive and powersports batteries in Europe, with a growing presence in Asia and South America. This world-renowned VARTA brand will now launch in North America with a powerful lineup of powersports batteries. The VARTA Powersports batteries North American launch takes place officially in Orlando at the American International Motorcycle Expo on Oct. 16-20, and the VARTA Powersports battery lineup will be on display in Booth 737. VARTA Powersports batteries will be available for purchase on VARTApowersports.com in early-October and will be found in retail outlets beginning in early 2014. PSB: Is it an aftermarket product, OEM, or both? DL: VARTA is a major supplier for a wide variety of OEMs in Europe, including BMW, Mer- ing grassroots acceptance is the key for pushing the OEMs to adopt the technology. "That's a big part of why we're here," he said. "It's not only to cultivate customer interest, but to cultivate dealer relationships to do the installations and work with customers on become advocates." A NATURAL EVOLUTION As most off-road vehicles already have electronic throttle control (ETC) in their on-board ECUs, controlled braking is a significant development that, as mentioned, could lead to further advancements in chassis control technology that leverage the ability to electronically regulate both braking and throttle. With an eye toward future upgrades, Hayes eschews labeling its systems as strictly ABS. "Electronic throttle control allows the software control to allow a traction control function, so you have on-throttle-type intervention in addition to brake intervention, so that's another reason why we try not to use the term ABS, because our system is capable of doing significantly more," Kenny said. As the tech guy at the company's booth, True said he doesn't anticipate stability control in the near future due to the price and required bolstering of complex sensors for off-road duty, cedes and Honda, among others. VARTA also has a full complement of aftermarket products available as upgrade products as well. PSB: Why is the market ready for this type of product? DL: The VARTA product line is proven, and offers a high level of quality and convenience (with no charging or spillage concerns) to North American enthusiasts. The VARTA name carries a strong, well-earned worldwide reputation, and North America is ready for a premium powersports battery product with a proven track record. VARTA Powersports batteries feature Absorbent Glass Mat (AGM) technology that is engineered to extend the life and improve performance of the battery. VARTA AGM batteries can be installed at any angle, are maintenance free, feature a non-spillable design and last longer in demanding applications. PSB: What is the competitive landscape for VARTA batteries? DL: VARTA powersports batteries compete head-to-head with every other powersports battery product available in Europe already, and are very successful there. As a proven Absorbed Glass Mat (AGM) product featuring an established grid design, it offers both dealers and consumers premium quality and a level of safety and convenience above other motorcycle show to reach both commercial and consumer audiences. Additionally, all the relevant motorcycle media (both print and digital) will be in attendance, along with regional and national distributors. It's an ideal place to introduce VARTA to the North American market. VARTA Powersports is also sponsoring the Top 1 Oil "Ack Attack" streamliner, currently the world's fastest motorcycle, which will be on display in the VARTA booth at the AIMExpo. PSB: What role will dealers play in selling the battery? What type of distribution channel(s) will there be for the battery? DL: Dealers are critical, and can service customers quickly. It's an immediate sale for retailers, so VARTA recognizes the importance of dealerships in the supply chain. National and regional distributors have advantages within their respective territories, and we are looking forward to speaking with them at the AIMExpo. PSB: What are some other products Johnson Controls has launched for our market? DL: OPTIMA Batteries is also a Johnson Controls brand, and last year they launched the OPTIMA Chargers Digital 400 12V Performance Maintainer and Battery Charger that is a perfect complement to VARTA Powersports AGM batteries. While targeted for the motorcycle and powersports markets, the compact charger is compatible for use in automotive, truck, marine and RV applications as well. PSB "The technology is proven and it continues to evolve … it's a question of getting that right blend of pricing and technology that a customer's willing to invest in." Mike Kenny, vice president of powersports and specialty products, Hayes but said that it is possible. More immediately, the addition of controlled braking and ETC can provide many of the benefits of stability control for approximately half the price of automotivegrade systems. While its initial business plan likely involved early OEM adoption, Hayes is unfazed and is taking the long game to convincing powersports manufacturers to pick up its controlled braking technology. As Kenny explained it, being first takes time and patience. As many of its potential competitors bring a more industrial or automotive background, Hayes seeks to leverage its history in providing OEM brake systems, its expertise in chassis electronics and the fact that its proj- ect leaders are powersports enthusiasts that understand this technology must enhance the riding experience. Person added that this technology is a natural as performance continues its dramatic improvements in all segments of the marketplace, fueling improvements in suspension and tire technology, among others. "A lot of manufacturers are starting to realize that they need more brake power," he said. "When you need more brake power and you're traveling at faster speeds, it's natural to start thinking the vehicles need some more sophisticated brake control technology, traction control technology. It's a natural evolution we see coming." PSB 9/25/13 12:49 PM

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