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PSB FOCUS 16 • May 5, 2014 • Powersports Business www.PowersportsBusiness.com This issue: ATV Next issue: Tire & Wheel ADP Lightspeed data shows importance of keeping new units on show floor BY DAVE McMAHON EDITOR IN CHIEF Sales of new ATVs trump sales of pre-owned ATVs at the retail level by a significant margin, according to data provided to Powersports Business by ADP Lightspeed. Side-by-side sales are not included. The findings, which date from February 2013-February 2014 and are inclusive of deal- erships that are ADP Lightspeed partners, show that new unit ATV sales made up 84 percent (107,041 units) of the total sales volume of 127,731 ATVs sold during the time period. Pre- owned units comprised 16 percent of the total, or 20,690. Furthermore, 90 percent of the sales of new ATVs sold, or 96,173 units, were transacted without a trade. A total of 10,868 new ATVs were purchased with a trade, or 10 percent. What are consumers bringing to the trans- action table when they want to purchase a new ATV? Multi-purpose ATVs top the list at 54.8 percent. Motorcycles are next at 20.9 per- cent, with sport ATVs next at 11.1 percent. Other trade-in prospects while buying a new ATV are a side-by-side (3.8 percent), snowmo- bile (2 percent) and PWC (1.2 percent). Scooters and trailers were part of the transaction for a new ATV in less than 1 percent of the sales. PSB New With Trade 10% New Without Trade 90% New ATV Sales - Trade Used 16% New 84% ATV Sales - New vs Used ATV Multi Purpose 54.8% ATV Sport 11.1% Motorcycle 20.9% Other 4.6% UTV 3.8% Snowmobile 2.0% PWC 1.2% Scooter 0.9% Trailer 0.7% New ATV Sales - Trade In By Type NEW ATV SALES – TRADE NEW ATV SALES – TRADE IN BY TYPE ATV SALES – NEW VS. USED INSIDE FOCUS Honda ATVs are most viewed on KBB.com since 2011 SEE PAGE 27 Gibbs banking on continued growth from Quadski SEE PAGE 21 Mud Nationals growth extends to vendors at Texas event, too SEE PAGE 18 New inventory still key for ATV sales Source: ADP Lightspeed Source: ADP Lightspeed May 5, 2014 • Volume 17, Number 6 • $3.99 w w w . p o w e r s p o r t s b u s i n e s s . c o m NEWS: EBR signs on for 2014 AIMExpo . . . . . . . . . PAGE 6 FINANCE: BRP surpasses $3 billion in revenue . . . . . PAGE 13 FOCUS: Exhibitors pleased with Mud Nats . . . . . . . PAGE 18 CYCLE: GE Capital talks floorplanning . . . . . . . . . . PAGE 30 Industry veteran Jim Hansen passes away Jim Hansen, 71, former publisher at Ehlert Publishing Group, Inc., passed away recently after a battle with liver disease. Hansen had a longtime indus- try presence. He was the publisher of Cycle World magazine from 1980-1990, and president of American Roadracing magazine during its run in the early '90s. Shortly after launching BLVD magazine in the mid-1990s, Han- sen joined Ehlert in 1997 and served as Rider group publisher until 2007, over- seeing the Rider, American Rider, Cruis- ing Rider and Woman Rider titles before INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE Not so small Power 50 dealership Cole Harley-Davidson leans on its sister stores to offer big service. SEE PAGE 40 HOTNEWS Grand opening American Heritage Motorcycles opens its first of several new Indian and Victory dealerships. SEE PAGE 30 Cold and snow yield different results for different dealers BY LIZ KEENER MANAGING EDITOR For most of North America, a cold first quarter had a big impact on unit sales, but the effects ranged from awful to fantastic, depending on where deal- erships are located and what they sell. Mark Holmes, owner and sales manager of FDR Honda Kawasaki in Paducah, Ky., wasn't happy with the seven inches of snow that fell in the first two weeks of March. "We had such bad weather; it was really slow. Winter just didn't seem to want to go away. We had fair January and February, but March was really poor," he told Powersports Business. Bill Hollink of Hollink Motorsports in Spencer- port, N.Y., described his Q1 as bad to very bad due to "mostly weather here in the north, and I'm not really impressed with the economy in New York State," he said. And they weren't alone. Forty-three percent of dealers reported business was below plan in the Powersports Business and RBC Capital Markets first-quarter survey of 197 dealers from 44 states and Canada. Only 17 percent reported perfor- mance that was above plan. Most motorcycle dealers reported being on-par or below last year's first quarter in unit sales, with only 30 percent of heavyweight motorcycle dealers and 25 percent of sport bike dealers reporting sales increases of 5 percent or more. Only 20 percent of See Survey, Page 4 'Over the top' all-access best describes CFMOTO Pioneer Club in Hangzhou BY DAVE McMAHON EDITOR IN CHIEF In what became a roving 20-group of sorts — first aboard an afternoon cruise of the famously beau- tiful West Lake in Hangzhou, then while learning about the silk trade, and finally in the back alley- ways of Shanghai — the CFMOTO Pioneer Club Dealer Meeting in China provided more than a dozen U.S. dealers with a trip of a lifetime. The cordial group of dealers, many meet- ing for the first time as part of the trip, shared business ideas and experiences with each other on planes, buses and tourist sites — and at the CFMOTO factory. But all of them were confident in at least one aspect of the future: they've found a gem of an OEM in China, and they're ready to pass on the brand's strengths to their customers. "This trip was over the top," said David Wiles, co-owner of South Bay Motorsports in Chula Vista, Calif. "Where will the owner of a factory dine with you each night, and bring you after din- ner drinks to your table?" Wiles, whose mammoth San Diego-area dealership also sells Ducati, Triumph, Honda, Yamaha, Kawasaki, Suzuki, Polaris, Victory, Can-Am and Sea-Doo, was not alone in his praise for the hospitality and access provided by CFMOTO owner Mr. Lai. Tracey Harmon, for instance, had visited the factory once before in 2012, but as a prospective dealer. So when the former single-line Polaris dealer took on the Chinese brand in March 2013, he had a late start on the 2013 sales season. Didn't matter. Harmon, general manager at Alaska Power Sports in Anchorage, claimed the brand's No. 1 dealer award in only nine months of sales. FACTORY WOWS 'EM For dealers like Harmon, being welcomed to the factory prior to signing on spoke volumes. When he and the others arrived, they once again found the 1.6 million square foot manufacturing facility in top form. Marble floors and a grand showroom-type design featuring its entire prod- uct lineup of motorcycles, scooters, ATVs and side-by-sides greet visitors. Bikes with 125cc displacement engines and a sport boat, all for the Chinese market, also had dealers talking. The Grand Hall, an exquisite meeting room adorned with more marble and equally appointed audio and video technology, was much more resplendent than the dealers in attendance had expected. Six plants — two-wheel assem- bly, four-wheel assembly, machining, engine PSB: FOCUS ATV SEE PAGE 16 China trip eye-opening for dealers See China, Page 8 See Hot News, Page 3 HOW WOULD YOU CHARACTERIZE YOUR CALENDAR Q1 (JAN.-MAR.) BUSINESS PERFORMANCE RELATIVE TO PLAN? Above plan 17% On plan 40% Below plan 43% How would you characterize your calendar Q1 (Jan.-March) business performance relative to plan? PSB / RBC CAPITAL MARKETS Q1 DEALER SURVEY Weather aside, outlook strong Former magazine pub- lisher Jim Hansen, shown in 2007, passed away after a battle with liver disease. (Top) CFMOTO workers assemble an ATV for the Russian market. (Right top) Doug Lister, owner of Planet Power Toys in Utah, checks out the new CFMOTO ZForce 800EX. (Right bottom) Tracey Harmon, general manager of Alaska Power Sports in Anchorage, was CFMOTO's top U.S. dealer in 2013. Source: Powersports Business / RBC Capital Markets Sticking with it Even as its Wildcat line grows, Arctic Cat stays committed to its ATV product. SEE PAGE 23 P01x10-PSB6-News.indd 1 4/23/14 9:54 AM