Polaris 2015 Annual Report Download - page 30

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product line to include the Victory Cross Roads↧ and Cross Country↧ models. In 2011, we acquired Indian
Motorcycle Company, America’s first motorcycle company, and in 2013 we re-launched the Indian Motorcycle
brand by releasing the first three Indian Motorcycle models engineered by Polaris: Indian Chief↧ Classic,
Indian Chief Vintage and Indian Chieftain↩. In 2014, we added two new Indian models, including the
Roadmaster↧, a luxury touring motorcycle, and Scout↩, Polaris’ first mid-sized motorcycle. In 2015, we
introduced the Indian Scout Sixty↩. In 2014, we also added a new bagger to the Victory motorcycle line, the
Victory Magnum↩. The all-new three-wheel motorcycle, Slingshot was introduced in 2014, and is the
Company’s first moto-roadster. In 2015, we acquired the electric motorcycle business of Brammo, Inc., and
introduced the Victory Empulse TT, our first electric motorcycle. Our 2016 model year line of motorcycles for
Victory, Indian and Slingshot consists of approximately 21 models with suggested U.S. retail prices ranging
from approximately $9,000 to $29,500.
We produce or supply a variety of replacement parts and accessories for our motorcycles. Motorcycle
accessories include saddle bags, handlebars, backrests, exhaust, windshields, seats, oil and various chrome
accessories. We also market a full line of recreational apparel for our motorcycles, including helmets, jackets,
leathers and hats. In 2012, we acquired Teton Outfitters, LLC (d/b/a Klim), which specializes in premium
technical riding gear for the motorcycle (and snowmobile) industry. Apparel is designed to our specifications,
purchased from independent vendors and sold by us through our dealers and distributors, and online under
our brand names.
Global Adjacent Markets—Work and Transportation. In 2011, we acquired GEM and Goupil to expand and
complement our product offerings. In 2013, we further expanded the Global Adjacent Markets segment by
acquiring Aixam. GEM addresses the people mover segment of low emission vehicles, Goupil, a French
company, addresses the light duty hauling segment and Aixam, also a French company, addresses both the
passenger and light duty hauling segments. GEM has seven models, while Goupil has five base platforms that
are modular and can be configured to meet numerous custom needs from park and garden maintenance to
delivery and other commercial needs. Additionally, Aixam has four base models of passenger-based
quadricycles that are sold primarily in Western Europe. Prices for our GEM, Aixam and Goupil vehicles range
from $8,000 to $22,000, depending on the model and application. Work and Transportation also includes all
commercial, BRUTUS↧ side-by-side vehicles, and all business-to-business (B2B) applications of ORV,
Snowmobiles, and Motorcycles outside of our traditional dealer channels.
Global Adjacent Markets—Military/Government. In the mid-2000’s, we introduced a military version ATV and
side-by-side vehicles with features specifically designed for ultra-light tactical military applications. These
vehicles provide versatile mobility for up to nine passengers, and include DAGOR↩, Sportsman MV and
MRZR↧. Our standard line of military and government vehicles for model year 2016 consists of six models at
suggested United States retail prices ranging from approximately $7,000 to $163,000.
Marine Products Division. We entered the personal watercraft market in 1992. In September 2004, we
announced our decision to cease manufacturing marine products effective immediately. As technology and the
distribution channel evolved, the marine products division’s lack of commonality with our other product lines
created challenges for us and our dealer base. The marine products division continued to experience
escalating costs and increasing competitive pressures and was never profitable.
Manufacturing and Distribution Operations
Our products are assembled at our facilities in Roseau, Minnesota; Spirit Lake, Iowa, and its surrounding
areas; Osceola, Wisconsin; Monterrey, Mexico; Opole, Poland; Shanghai, China and various locations across
France. Since our product lines incorporate similar technology, substantially the same equipment and
personnel are employed across production in North America. We are vertically integrated in several key
components of our manufacturing process, including plastic injection molding, welding, clutch assembly and
balancing and painting. Fuel tanks, tracks, tires, seats and instruments, and certain other component parts are
purchased from third-party vendors. Raw materials or standard parts are readily available from multiple
sources for the components manufactured by us. Our work force is familiar with the use, operation and
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