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www.PowersportsBusiness.com NEWS Powersports Business • May 4, 2015 • 3 HOTNEWS CONTINUED FROM COVER "SxS. We believe SxS retail sales grew +mid-single-digits year-over-year decelerating from the mid-to-high single digits seen in 4Q14. Polaris does appear to have outperformed by a few points. Industry SxS inventories appear alarmingly high partially due to lower than expected retail sales from weather (encourag- ingly, many started to report better trends as weather broke). Elevated inventories likely led to some higher promotional activ- ity, though Arctic Cat is caus- ing some havoc in recreational vehicles as they move to aggres- sively clear old product. Polaris responded, but not broad based and rather targeted by product/ region. Despite a relatively tougher 1Q15, industry (and Polaris) deal- ers are still fairly optimistic about the rest of 2015, though perhaps a little less so than in 4Q14. On the other hand, we are incrementally cautious about two factors: 1) the increased dealer chatter about oil/gas/ag impact, and 2) some OEM/dealer tension leading some dealerships to look to new OEM relationships (such as CFMOTO) to try and earn better margins. "Motorcycles. Overall, we Arctic Cat Inc. in April announced two strategic hires into newly created roles and a promotion, as the company builds its sales and marketing capabilities for the future under new president and CEO Chris Metz. Effective immediately, Greg Williamson joins Arctic Cat as its first-ever chief marketing officer, while Brit Reich joins as vice president of North America sales. Mike Webster has been promoted to director of North America sales. The roles of chief marketing officer and vice president of North America sales have been created at a time when Arctic Cat is positioning itself for future growth and an increased focus on customer engagement to drive sales. "Greg joining Arctic Cat at this pivotal point elevates the importance of marketing for the organization," stated Metz. "I have witnessed firsthand Greg's strategic vision, mastery of the contemporary marketing toolbox and leadership qualities necessary to oversee and cultivate the Arctic Cat brand." In his new role as chief marketing officer, Williamson is responsible for posi- tioning the Arctic Cat brand to generate future growth and develop a world-class, customer-focused organization that aligns the company around brand and marketing strategies and promotes consumer aware- ness and engagement. In his former role as chief marketing officer at Spectrum Brands, Home Improvement, he led the product, channel and brand strategies for several industry-leading hardware brands, including Kwikset, Baldwin, Weiser and National Hardware. Williamson holds a B.A. from Louisiana State University and an M.B.A. from the University of Texas. Reich is responsible for developing and implementing sales and dealer strategies to increase market share, and focus on geography-centric initiatives in his role as vice presi- dent of North America sales. These initiatives include increasing product and brand recognition in local markets where Arctic Cat believes it is underrepresented. Reich was formerly the execu- tive vice president of sales at American Recreation Products, where he was responsible for global sales of outdoor equipment and apparel, including Kelty, Sierra Designs, Slumberjack and Wenzel brands, creating and executing go-to-market strategies. Reich holds a B.A. from San Diego State University. "Brit is an experienced senior sales leader, sharp business person and skilled collaborative problem solver. Arctic Cat will benefit greatly from his leadership, insight and work ethic," said Metz. Also as part of Arctic Cat's strategic sales and marketing moves, Webster, who was formerly Arctic Cat's Eastern region sales man- ager, was promoted to director of North America sales. Webster has a strong track record of identifying market growth opportuni- ties and delivering outstanding results. In his new role, Webster will oversee Arctic Cat's entire field sales force in the United States and Canada. Metz commented, "Mike is a seasoned and respected sales veteran who has extensive powersports industry experience and a history of success in sales, dealer and market development." ARCTIC CAT HIRES FIRST-EVER CHIEF MARKETING OFFICER NEWS 10 ... Big East Show booth space opens FINANCIAL NEWS 12 ... Steve Dodds OPINION 15 ... From the Editor 15 ... Online at PowersportsBusiness.com PSB: FOCUS ATV 18 ... Honda expands 2016 ATVs with IRS 20 ... Arctic Cat releases XR platform 24 ... ATV dealers see positive future sales 25 ... Can-Am draws new customers ATV/UTV 29 ... Guest column: Steve Shankin 31 ... ATV/UTV World Championship in Wis. SOLUTIONS 32 ... Neil Pascale 33 ... Sam Dantzler MOTORCYCLE 35 ... CFMOTO teams up for Isle of Man TT 36 ... BMW expands brand in Washington PWC 38 ... Sea-Doo to sponsor fan beach party SNOWMOBILE 41 ... Motorfist new to Arctic Cat's offerings AFTERMARKET 42 ... Hot Products INSIDE Kawasaki's Brull gets promotion Kawasaki Motors Corp., U.S.A. (KMC) announced the promotion of Chris Brull to vice president of marketing effective April 1. Brull has spent 25 years delivering innova- tive marketing solutions on both the agency (DMB&B, Foote, Cone & Belding) and cli- ent side. His career at Kawasaki began in 2004 as the national marketing manager, before taking the helm as director of market- ing in 2009. U n d e r B r u l l , Kawasaki became the first Japanese power- sports OEM to launch m o b i l e - b a s e d c o m m u n i c a t i o n s . M o r e prominently, KMC was the first to stage a new product launch simultaneously broad- cast around the world from Times Square in New York City. Brull has also secured alliances with high- profile partner brands such as Monster Energy, Professional Bull Riders Association, Realtree and Lucas Oil. Brull's promotion follows the announce- ment that Mr. Shinichiro "Yoko" Yokoyama will return to Kawasaki Heavy Industries, Ltd. (KHI) in Japan. PSB Gurga to retire from American Honda; Boderman named VP American Honda announced April 1 that Chuck Boderman has been promoted to the position of vice president, Motorcycle Divi- sion. Outgoing Motorcycle Division vice president Robert Gurga will serve as a senior advisor ahead of his August retirement. "I'm excited to assume this new role with American Honda," Boderman said. "It's an exhilarating time for the powersports indus- try, and I'm honored to have the opportunity to build on Bob's accomplishments as we work toward future growth at Honda." Boderman has a long history with Honda, beginning in 1983 with a customer service job in New Jersey. Over the next 15 years, he served in roles in field service and field sales while working in several different markets in the United States. After transferring to American Honda Motor Company's Tor- rance, Calif., headquarters in 1998, Boder- man held management positions in which he was responsible for sales operations, dealer development and marketing before being named assistant vice president in 2006. "After more than 37 years, I'll be retiring from Honda later this year," Gurga said. "Looking back, I've been very fortunate to have worked for Honda, and I'm grateful for the opportunities I've been given and the lifelong friendships I've made at Honda, with our dealers, our customers and in the industry. Soon, I'll leave Honda, confident that the Honda 'Racing Spirit' is firmly embraced by our associates and that Team Honda is prepared for any opportunity or challenge that arises." American Honda's organizational structure will have six senior managers covering all business operations in sales, service and product planning, reporting directly to Boderman. believe motorcycle retail sales were up low single-digits in 1Q15. While Harley's January/ February checks were relatively flat, we saw a slight improve- ment in March, so for the quarter we would peg Harley U.S. retail at flat to +2% y/y. We have also picked up some divergence between southern dealers that reported better trends vs. northern dealers. While over- all retail may be below prior expectations, we are not overly concerned given the relatively lower volume in 1Q. Support- ing this view is that more recent checks appear better, and deal- ers are largely optimistic about motorcycle expectations over the upcoming season, with Harley (and Indian) dealers leading the way. With relatively clean inventory and increased excite- ment over Harley's products, we continue to see a favorable risk/ reward setup for Harley's ship- ment guidance. "ATVs. Retail sales growth in 1Q looks fairly muted. Honda appears to have had a strong sales quarter, but they have also been one of the more promotion- ally aggressive, causing other players to respond. Next 12 months expectations for ATVs appear to have moderated some- what versus last quarter. Even if volumes hold in, given the more promotional environment, we worry about the 'value' of sales. "Snowmobiles. A tough sea- son for snowmobiles given poor snow conditions." BMW'S MARCH U.S. SALES INCREASE 3 PERCENT BMW Motorrad USA sales grew by 3 percent in March with 1,614 BRIT REICH MIKE WEBSTER GREG WILLIAMSON CHRIS BRULL Bob Gurga, retiring as VP of the Motorcycle Division at American Honda, has nearly four decades of service with the company. See Hot News, Page 4 CHUCK BODERMAN