Polaris industries is shutting down the Victory Motorcycles brand.
In an official press release, on January 9, Polaris industries announced that it “will immediately begin winding down its Victory Motorcycles brand and related operations.”
Polaris is a parent company of Victory Motorcycles and Indian Motorcycle, based in Minneapolis.
Victory was launched 18 years ago as a Harley-Davidson competitor, but has been significantly unprofitable in recent years.
The company decided to kill off the entire brand and focus on its Indian Motorcycle brand because it has far better growth prospects, as Polaris CEO Scott Wine said.
“This decision will improve the profitability of Polaris and our global motorcycle business, and will materially improve our competitive stance in the industry,” he claimed.
Polaris allegedly lost a lot of money on Victory in three of the past five years and the brand represented only around 3% of the company’s total sales.
Jefferies analyst Trevor Young said the move was a surprise, but it will likely help Indian Motorcycle sales. The Indian brand is second only to Harley-Davidson in the market.
“Over the medium-term, we think this is a positive, as it appears Polaris is doubling down on Indian,” Young said in a research note.
UBS analyst Robin Farley noted the move will eliminate an American motorcycle brand, but Harley-Davidson may not be able to take advantage of it because its customer base is aging and Indian Motorcycle has been gaining market share.
Polaris said it will help dealers liquidate their remaining Victory motorcycles, and it will continue producing parts for the bikes for 10 more years.
Photo by fireboat895