Polaris 2011 Annual Report Download - page 21

one millionth unit sale of our Sportsman ATV family, which has been the industry leading big bore ATV for
13 years, by introducing the 100 percent redesigned Sportsman XP®. In 2008, we also introduced an extension of
our recreational side-by-side vehicle with the introduction of the RANGER RZR S®. In 2009, we introduced our
first all-electric side-by-side vehicle, the RANGER EV. In 2010, we introduced our first four-seat recreational
side-by-side, the RANGER RZR 4®, a mid-sized RANGER side-by-side with increased power, a four-person
mid-sized RANGER Crew and a RANGER powered by our first 24 horsepower diesel engine. In addition,
shipments to Bobcat Company (“Bobcat”) of the differentiated utility vehicle produced by us for Bobcat, began
in 2010. In 2011, we added to our lineup of recreational vehicles with the addition of the mid-sized RANGER
RZR®570 and an extreme performance RZR, the RANGER RZR XP®900.
Snowmobiles. We produce a full line of snowmobiles, consisting of 26 models, ranging from youth models
to utility and economy models to performance and competition models. The 2012 model year suggested United
States retail prices range from approximately $2,600 to $12,000. Polaris snowmobiles are sold principally in the
United States, Canada and Europe. We believe our snowmobiles have a long-standing reputation for quality,
dependability and performance. We believe that we 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, we introduced a new, more
environmentally-friendly snowmobile featuring a four-stroke engine designed specifically for snowmobiles. In
2009, we introduced the first true progressive-rate rear suspension snowmobile, the Polaris RUSH®.
On-Road Vehicles. In 1998, we began manufacturing V-twin cruiser motorcycles under the Victory brand
name. In 2008, we introduced our first luxury touring models, the Victory Vision®. In 2009, we expanded our
touring product line to include the Victory Cross Roads®and Cross Country®models. In 2011, we acquired
Indian Motorcycle Company, America’s first motorcycle company. Our 2012 model year line of motorcycles for
both Victory and Indian consists of 20 models with suggested U.S. retail prices ranging from approximately
$12,500 to $36,000. In 2009, we introduced our first SEV, the Polaris Breeze. In 2011, we ceased production of
the Breeze electric vehicles and acquired GEM and Goupil to add to our small vehicle product line. GEM
addresses the people mover segment of low emission vehicles and Goupil, a French company, addresses the light
duty hauling segment. GEM has 6 SEV models with retail pricing ranging from $7,600 to $13,500. Goupil has
two base platforms that are modular and can be configured to meet numerous custom needs from park and garden
maintenance to delivery and street cleaning. Prices range from $25,000 to $35,000 depending on model and
application.
Parts, Garments and Accessories. We produce or supply a variety of replacement parts and accessories for
our product lines. ORV accessories include winches, bumper/brushguards, plows, racks, mowers, tires, pull-
behinds, cabs, cargo box accessories, tracks and oil. Snowmobile accessories include covers, traction products,
reverse kits, electric starters, tracks, bags, windshields, oil and lubricants. Motorcycle accessories include saddle
bags, handlebars, backrests, exhaust, windshields, seats, oil and various chrome accessories. We also market a
full line of recreational apparel, including helmets, jackets, bibs and pants, leathers and hats for our product lines.
The apparel is designed to our specifications, purchased from independent vendors and sold by us through our
dealers and distributors, and online through our e-commerce subsidiary under the Polaris brand name.
Marine Products Division. We entered the personal watercraft market in 1992. In September 2004, we
announced that we had decided to cease manufacturing marine products effective immediately. As technology
and the distribution channel evolved, the Marine Products Division’s lack of commonality with other Polaris
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 original manufacturing facility in Roseau, Minnesota and at our facilities
in Spirit Lake, Iowa, Osceola, Wisconsin, and Monterrey, Mexico. Since our product lines incorporate similar
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