PowerSports Business

Powersports Business - November 9, 2015

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32 • November 9, 2015 • Powersports Business ATV/UTV www.PowersportsBusiness.com the same values its company encompasses. TGB refers to its management policy as "5P & 2S," or "Product, Price, Place, Promotion, Payment, Service, Spare Parts." Those seven anchors are aimed at delivering customer sat- isfaction. TGB's vision also includes respect to the intellectual property, bringing value-added products and service to the customers, and forming strategic alliances with other like- minded companies. "We want to bring the value to the cus- tomer," Lin said. UNIQUE VEHICLES Though TGB has already developed ATVs for other parts of the world, the OEM wants to work closely with its North American ATV and side-by-side distributor to manufacture the right vehicles for this market. TGB has created different vehicles for each of its dis- tributors and for itself, and it would plan to do so for its future North American distribu- tor as well. The goal is to work with the part- ner to deliver the right product for the North American customer. TGB has 400cc and 500cc ATVs in its lineup, and with a new 1000cc V-twin engine in its roster, it has developed a 1000cc ATV. In addition, it has sketched out plans for 1000cc utility and sport side-by-sides. Each would have maximum power of 62KW/7,000 rpms and a max torque of 89.8Nm/5,500 rpms. "Our slogan is 'Play different' — we want to bring the enjoyment and fun to the customer," Lin explained. In North America, TGB sees its ATVs and UTVs as a good compliment to other brands' units, as some OEMs don't currently offer a 1000cc option. Though TGB has yet to sign a North American distributor, the OEM has already commissioned EPA testing of its 1000cc ATV, so its new partner can hit the ground running. In its 50-year history, TGB products have passed all EPA certification tests. PSB TGB CONTINUED FROM PAGE 30 prior-year sales of $69.6 million. Contributing to the wholesale sales in the quarter were Wild- cat side-by-sides. The company continued to curtail wholesale shipments of core ATV mod- els to support its efforts to reduce core ATV inventory at its North America dealers. At its dealer show in August, Arctic Cat introduced the SPEED brand of race-inspired accessories for side-by-sides, as part of the company's partnership with Robby Gordon and Todd Romano to co-develop innovative, industry-leading side-by-side products and accessories. Under the agreement, Gordon and Romano are providing research and devel- opment consulting on technologies for new Wildcat racing vehicles and high-performance SPEED branded accessories. The company also unveiled its first wave of 2016 model year off- road vehicles. The 2016 lineup features seven all-new products, including four Special Edition mod- els built in limited quantities, powered-up Wildcat Sport models and the introduction of the new Alterra ATV brand. "We are executing against aggressive new product development plans," said Metz. "Our collaboration with Robby and Todd on the SPEED brand reflects Arctic Cat's commitment to the high-performance, off-road vehicle mar- ket with Wildcat side-by-sides and accessories. Our new 2016 side-by-sides and ATV models are just the beginning of the innovation that we intend to bring to market, as we strive to create the ultimate off-road riding experience." Snowmobile sales in the fiscal 2016 sec- ond quarter totaled $109.9 million, down 30.3 percent versus $157.8 million in the prior-year quarter, chiefly stemming from lower international sales to Russia, unfavor- able foreign currency exchange and lack of snow in key regions last year. Year-to-date snowmobile sales are on plan to meet the com- pany's full-year expectations. Stated Metz: "We are confident in our stra- tegic plans to turn the business around. While we face ongoing challenges over the next few quarters, including continued foreign currency headwinds, we see tremendous opportunities to improve the company's operations, expand gross margins and enhance financial perfor- mance over time. We remain excited about Arctic Cat's long-term future." PSB ARCTIC CAT CONTINUED FROM PAGE 31 TGB staff stopped by the Powersports Business office in September. From left: PSB editors Kate Swanson, Liz Keener and Dave McMahon; Gary Gustafson of G-Force Consulting; and from TGB, George Lin, Daniel Hsieh, Jimmy Liu and Gary Tseng.

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