PowerSports Business

April 4th, 2016

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www.PowersportsBusiness.com NEWS Powersports Business • April 4, 2016 • 3 HOTNEWS CONTINUED FROM COVER BMW MOTORRAD USA SALES DROP IN FEBRUARY U.S. sales of BMW motorcycles in February declined 3.4 per- cent with 795 motorcycles sold compared to the 823 sold in February 2015. The S 1000 RR was the best-selling model in February with 173 deliveries compared to 98 this time last year, help- ing S-Series volumes grow by 69 percent. Growth also came from the luxury touring K 1600 GTL Exclusive (17 percent increase) and the middleweight F 800 R roadster (14 percent increase). February saw the first deliveries of the new for 2016 C 650 Sport and C 650 GT maxi-scooters and the updated 2016 model F 700 GS and F 800 GS ahead of the March season start. NEW VP OF MARKETING AT UNIVERSAL TRAILER Fort Myers, Fla.-based Univer- sal Trailer Corporation (UTC) From pioneers and innovators to customizers and dealers, the 2016 inductees into the Sturgis Motorcycle Museum Hall of Fame represent every aspect of what makes motorcycling great. The museum was chartered in 2001 to recognize individuals or groups who have made a long-term positive impact on the motor- cycle community. Arguably the most diverse — and deserving — group ever inducted into the Hall of Fame, the Class of 2016 will be honored on Aug. 10, during the annual rally. "The Hall of Fame's mission is to honor those who have made a positive and significant impact on the sport and lifestyle," explained Tigra Tsujikawa, Marketing & Development director for the Sturgis Motorcycle Museum & Hall of Fame. "It honors the men and women who have dedi- cated much of their lives to improving, promoting and advancing motorcy- cling." While the museum certainly pay tribute to the heritage of the rally, the Hall of Fame transcends the Black Hills of South Dakota, she adds. "Having a living off-road legend like John Penton, demon- strates that the Hall of Fame recognizes all aspects of our great sport," said Tsujikawa. "Many consider John to be the godfather of the dirt bike industry, and his pioneering of small, lightweight 2-strokes changed the world of off-road motorcycles." Not to mention shaping and defining KTM to this very day. In addition to Penton, four other equally deserving inductees have been named to the Class of 2016. The Class Of 2016: Bert Baker — V-twin motorcycle drivetrain innovator, busi- nessman and patriot, Bert Baker is committed to using materials, labor, creativity, know how and grit born of America. Jerry Covington — Whether it is on TV or the cover of virtu- ally every biker magazine in the world, it is hard to miss custom builder Jerry Covington. What does get overlooked is Covington's behind the scenes commitment to the motorcycle community, his selfless donation of time and resources to those less fortunate through his various charity projects. John Penton — One of the most influential figures in off-road motorcycling in the world, John Penton developed a legendary brand of motorcycles that bore his name (better known as KTM today). He also founded Hi-Point, an accessory and distribution company that had 50 percent of aftermarket sales in the U.S. and set the mold for modern distribution powerhouses like Parts Unlimited, Tucker Rocky and WPS. Gary Spellman — Using motorcycle as means to further char- itable causes, philanthropist Gary Spellman has been quite effec- tive in utilizing motorcycles to raise money for charities benefiting first responders and their surviving families. He has also brought major business owners into the family of motorcyclists as well as creating the Peace, Love and Happiness Charity Ride with fel- low Hall Of Famer John Paul Dejoria. Buddy Stubbs — Talk about being born into the business; Buddy Stubbs was raised in his father's Harley-Davidson dealer- ship in Decatur, Illinois, and has spent his entire life in and around dealerships, including opening two of his own in the greater Phoenix area. This year marks his 50th year as a dealer and more significantly, an ambassador to the motorcycle lifestyle. STURGIS MUSEUM ANNOUNCES 2016 HALL OF FAME CLASS NEWS 4 ... Statistically Speaking 7 ... Polaris adds senior vice president FINANCIAL NEWS 8 ... CDK Global dealer financial snapshot OPINION 11 ... From the Editor 11 ... Online at PowersportsBusiness.com PSB: FOCUS V-twin 13 ... KBB.com pre-owned interest report 16 ... Cobra rebranding draws attention 18 ... Black Brand headlines V-Twin Expo ATV/UTV 22 ... UTV sales rise 9.71 percent 22 ... AMA reports penalties against riders 24 ... GIE+EXPO, PSB to host UTV training MOTORCYCLE 28 ... K&N now offering loyalty program 29 ... MotorcycleUSA.com ends run 29 ... Spectro Oils celebrates 50 years SOLUTIONS 30 ... Paula Crosbie 31 ... Steve Jones AFTERMARKET 32 ... Hot Products PWC 34 ... PWC sales increase in January 34 ... Pro Watercross renews sponsorship SNOWMOBILE 36 ... Industry's first OEM-built snow bike 37 ... Polaris expands Axys model lineup INSIDE Craig Martin, owner of Action Motorsports KTM, Inc. in Decatur, Texas, let his customers know in March that he has sold the store to Freedom Powersports, which has 20 locations in Texas, Alabama and Georgia. Action carries KTM, Husqvarna and Kymco. "This decision comes with a very heavy heart on my behalf and the staff of Action Motorsports," Martin wrote on the dealership's Facebook page. "Moving forward, Freedom Powersports will be your local KTM/Husqvarna dealership once KTM and Husqvarna approve them and we close on the deal. All of the staff of Action Motorsports will be also moving from our location to the Freedom building three miles north on 287 upon closing. "Until that time, it's business as usual. Noth- ing is changing. I ask you to please, please give the staff of Freedom Powersports and the staff of Action Motorsports time to prove to you that the same great service and racing environment will exist with them. They are just as dedicated to the customer experience as we have been." Freedom Powersports owner Kevin Lackey will be bringing an all-new "customer experi- ence" approach to the off-road community, Martin wrote. In addition, Freedom will be breaking ground on a state-of-the-art dealer- ship in the next month in Decatur near the current Freedom location. PSB Suzuki sales increase 33 percent in February With year-over-year sales growth in every motorcycle and ATV segment, Suzuki Motor of America, Inc. (SMAI) dealers used the shortest month to grow sales in a big way. February's overall sales increased 33 percent over the same month last year. From KingQuad ATVs to Boulevard cruisers, from enduro bikes to Suzuki's expanding standard-category streetbikes, shoppers visit- ing Suzuki dealers liked what they saw in February. Sales of Suzuki KingQuad ATVs grew by 26 percent year over year and also led all Suzuki powersports segments for sales vol- ume. The KingQuad 400 ATVs were the most popular among this segment in February. Along with continuing strong sales of KingQuad ATVs, Suzuki in February celebrated the 15th anni- versary of its Suzuki Manufacturing of America Corporation in Rome, Georgia, where it completes the manufacturing of KingQuad ATVs for delivery around the world. The classic appeal of Suzuki Boulevard cruisers helped power these motorcycles from Suzuki dealer inventory in February; sales grew more than 50 percent year over year. The powerfully classic Boulevard C90, plus the muscular and striking M109R led the sales in this segment. More moderately priced selections like the Bou- levard C50T and the S40 sold well also, helping prove that Suzuki dealers stock vehicles for a wide range of tastes and budgets. Suzuki's growing line of standard-class street bikes continues to attract new buyers, too. The Suzuki GSX-S750 and GSX-S1000 helped Suzuki dealers more than double their sales of standard- segment motorcycles, year over year, while the entry-level appeal of rides such as the GW250 and the TU250X helped Suzuki deal- ers serve a new market of motorcyclists. "Suzuki and its dealers are starting 2016 with the same strength and energy as we ended 2015," said Rod Lopusnak, director, operations head, Motorcycle/ATV Sales Operations for SMAI. "We're continuing a successful model, supporting dealers with great retail programs that make it easy for customers to buy and helping ensure a highly desired product mix when the customers visit a Suzuki dealer." Among the most highly desired motorcycles, the Suzuki GSX-R line remained popular through February, with sales up nearly 10 percent compared to the same month last year. The vaunted Suzuki Hayabusa gathered the most sales attention, while the prized GSX-R600 sustained the highest year-over-year gains with its 50 percent sales increase. Motocross riders put their trust and their money behind Suzu- ki's RM-Z250 and RM-Z450 through February, with year-over-year sales up more than 90 percent. The invigorated Suzuki Amateur Racing program has helped shine the spotlight on these ultra- competitive MX machines. With six new Suzuki Amateur Rac- ing team members competing across the country, and increased contingency spending supporting scores of RM and RM-Z racers, Suzuki's motocross lineup will remain in demand throughout 2016. Feeding the off-road spirit, Suzuki dealers increased sales of DR-Z70 enduro bikes through February, boosting that segment's sales by more than 100 percent year over year. has named Jeff Howes vice presi- dent of marketing. Howes brings an extensive marketing background, with more than 20 years of experi- ence in product, brand and channel marketing. He most recently served as vice presi- dent/general manager for the Water Initiative and spent 10 years at Newell Rubbermaid as director of marketing for their Tools Business Segment. "Jeff brings a high level of experience and talent to the UTC marketing team," Universal Harley-Davidson dealership owner Buddy Stubbs gets the Sturgis Hall nod with the Class of 2016. Suzuki reported strong February sales growth of 33 percent in the U.S. See Hot News, Page 7 Freedom growing Texas footprint

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