Victory Motorcycles, a brand synonymous in the cruiser motorcycle segment, will soon be shut down. The Polaris-owned brand, however, will continue to provide spare parts for the next 10 years along with service and warranty coverage to the motorcycle owners and dealers. The decision by the board of directors of Polaris came due to low profitability of the Victory Motorcycles brand. The company will focus on Indian Motorcycles and the Slingshot models, due to their better popularity globally.
“This was an incredibly difficult decision for me, my team and the Polaris Board of Directors. Over the past 18 years, we have invested not only resources, but our hearts and souls, into forging the Victory Motorcycles brand, and we are exceptionally proud of what our team has accomplished. The experience, knowledge, infrastructure and capability we’ve built in those 18 years gave us the confidence to acquire and develop the Indian Motorcycle brand, so I would like to express my gratitude to everyone associated with Victory Motorcycles and celebrate your many contributions,” said Polaris Industries Chairman and CEO Scott Wine. Since the launch of the Victory Motorcycles brand, Polaris has designed and produced 60 Victory models.
The company will reduce operating costs based on this decision, however, will continue to have its presence in Spirit Lake, Iowa where Indian motorcycles will be produced and Huntsville, Alabama which would focus on Slingshot's production. Polaris will record the sale of the remaining inventory, disposal of factory inventory, tooling and liquefying other assets of the Victory Motorcycles dealers in the company's income statement under respective sales, gross profit and operation expense. These costs will not be a part of the company's annual sales figure provided they fall under the non-GAAP (Generally Accepted Accounting Principles) policy.
“This decision will improve the profitability of Polaris and our global motorcycle business, and will materially improve our competitive stance in the industry,” added Wine. In addition, Polaris will continue to strengthen the Indian brand so that it can compete with the major market player, Harley-Davidson in the United States of America. That said, the company hasn't shared if the Victory Empulse TT, a large electric motorcycle, which garnered reasonable popularity, would also be a part of the 'cease in production' or be resurrected with an Indian Motorcycles badge.