Polaris 2008 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2008 Polaris annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

number of snowmobile manufacturers serving the North American market declined to four: Yamaha, BRP, Arctic
Cat and Polaris. These four manufacturers also sell snowmobiles in certain overseas markets where the climate is
conducive to snowmobile riding. Polaris estimates that during the season ended March 31, 2008, industry sales of
snowmobiles on a worldwide basis were approximately 164,000 units, up two percent from the previous season.
Motorcycles. Heavyweight motorcycles are over the road vehicles utilized as a mode of transportation as
well as for recreational purposes. There are four segments: cruisers, touring, sport bikes, and standard motorcycles.
Polaris entered the motorcycle market in 1998 with an initial entry product in the cruiser segment. U.S. industry
retail cruiser sales more than doubled from 1996 to 2006, however the motorcycle industry declined in 2007 and
2008 due to weak overall economic conditions. Polaris entered the touring segment in 2000. Polaris estimates that
the 1,400cc and above cruiser and touring market segments combined, declined nine percent in 2008 compared to
2007 levels with approximately 254,000 cruiser and touring motorcycles sold in the U.S. market. Other major
cruiser and touring motorcycle manufacturers include BMW, Harley Davidson, Honda, Yamaha, Kawasaki and
Suzuki.
Products
Off-road Vehicles. Polaris entered the ORV market in the spring of 1985 with an ATV. Polaris currently
produces four-wheel ATVs, which provide more stability for the rider than earlier three-wheel versions. Polaris’
line of ATVs, consisting of thirty models, includes two and four-wheel drive general purpose, sport and side-by-side
models, with 2009 model year suggested United States retail prices ranging from approximately $2,000 to $13,000.
In 2000, Polaris introduced its first youth ATV models. In addition, Polaris also introduced a six-wheel off-road
ATV utility vehicle and the Polaris RANGER
TM
, an off-road side-by-side utility vehicle. In 2001, Polaris expanded
its side-by-side line, the Polaris Professional Series (“PPS”), with a third party sourced all surface loader product as
well as a 4X4 and 6X6 ATV (ATV Pro), which were modifications of existing products. In 2004, the PPS line was
phased out and the RANGER
TM
line expanded to meet both the commercial and recreational customer. In 2007,
Polaris introduced its first recreational side-by-side vehicle, the RANGER RZR
TM
and the Company’s first six-
passenger side-by-side vehicle, the RANGER Crew
TM
. Additionally, in 2007, the Company introduced military
version ATV and side-by-side vehicles with features specifically designed for ultra-light tactical military
applications.
Most of Polaris’ ORVs feature the totally automatic Polaris variable transmission, which requires no manual
shifting, and several have a MacPherson strut front suspension, which enhances control and stability. Polaris’ on
demand all-wheel drive provides industry leading traction performance and ride quality thanks to its patented on
demand, easy shift on-the-fly design. Polaris’ ORVs have four-cycle engines and both shaft and concentric chain
drive. In 1999, Polaris introduced its first manual transmission ATV models. In 2003, Polaris introduced the
industry’s first electronic fuel injected ATV, the Sportsman 700 EFI. In 2005, Polaris introduced the industry’s first
independent rear suspension on a sport ATV named the Outlaw
TM
. In 2007, Polaris introduced the RANGER RZR
TM
,
a big bore recreational side-by-side model, and two military vehicles equipped with engines that operate on JP8
militarized fuel. In 2008, Polaris celebrated the 1 millionth unit sale of its Sportsman ATV family, which has been
the industry leading big bore ATV for 13 years, by introducing the new Sportsman XP, a reengineered Sportsman
from top to bottom. In 2008, Polaris also introduced an extension of its recreational side-by-side vehicle with the
introduction of the RANGER RZR S
TM
.
Snowmobiles. Polaris produces a full line of snowmobiles, consisting of thirty-three models, ranging from
youth models to utility and economy models to performance and competition models. The 2009 model year
suggested United States retail prices range from approximately $2,300 to $11,200. Polaris snowmobiles are sold
principally in the United States, Canada and Europe. Polaris believes its snowmobiles have a long-standing
reputation for quality, dependability and performance. Polaris believes that it and its predecessors were the first to
develop several features for wide commercial use in snowmobiles, including independent front suspension, long
travel rear suspension, hydraulic disc brakes, liquid cooling for brakes and a three cylinder engine. In 2001, Polaris
introduced a new, more environmentally-friendly snowmobile featuring a four-stroke engine designed specifically
for snowmobiles.
2