Jump'd the shark...... - Chicagoland Sportbikes
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post #1 of 7 (permalink) Old 11-10-2004, 10:21 AM Thread Starter
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Jump'd the shark......

Anybody else feel Victory Motorcycles jumped the shard on Tw wheel teusday last night saying they'll be around for a long time because they are backed by Polaris?????


I happen to know a few things about companies that are backed or owned by parents. It's not always as rosey as they made it seem. Plus polaris just dumped their whole personal watercraft operations.

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post #2 of 7 (permalink) Old 11-10-2004, 10:33 AM
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I think they'll be okay for a bit (didn't see the show - just talking out of my a$$). Having the deep pockets of Polaris helped them to weather the Indian/etc. storm already.

My guess is that they'll settle in to a medium sized production run in a few years and be content to eat a small piece of the pie year after year.

Their bikes get great reviews, and it doesn't appear that they're trying to unseat HD anytime soon...IMO that's a sound business model. Especially if they continue to offer good looking, relatively affordable bikes with a Made In America stamp on em.

I'd rock one.

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post #3 of 7 (permalink) Old 11-10-2004, 10:40 AM Thread Starter
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the only thing I'm thinking is Polaris made some big investments in Personal watercraft, motorcycles, and atv's. They've taken on debt and their cash flows have suffered. If they don't start showing some return on investment soon they're cash flow situation is not going to improve and they won't be able to meet short term liabilities. This is probably why they dumped the personal watercraft line.....to cut losses.

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post #4 of 7 (permalink) Old 11-10-2004, 11:01 AM
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They dumped the PWC because it only was about 2% of sales and has been declining since '96 when sales for pwc's peaked for all companies in the game. I think it was a good move on their part

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post #5 of 7 (permalink) Old 11-10-2004, 12:11 PM
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Jump the shark? I thought that was only used to talk about television shows?

Anyways, there could be any number of reasons to drop the PWC line. It could have been old, not gaining market share. The competitors all have new models with new engines. They would need a new engine to even keep their tiny part of the market share. It's also a nitch market, much like snowmobiles. For most of the country, they can only be used for a couple months out of the year. On the other hand, ATVs are becoming popular as recreational and landscaping/changing tools.

The changes they are doing with Victory are probably to keep market share and keep consistent sales. All their recent models are met with rave reviews and offer cruiser buyers an alternative to the other US brand. They have custom type parts available directly from the assembly line, you can pretty much order a custom built model.

Now, if they would only make an 8-ball style cruiser in something OTHER than black. Hopefully that will be next year.

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post #6 of 7 (permalink) Old 11-10-2004, 12:54 PM
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If I had to put money on it I'd say they will be around for a while. They already suffered a lot of financial loss in their first few years and now they have developed a plan and market niche that may become profitable in the next five years. I like thier bikes better than Harleys for the most part, and having something unique is not something Harley represents in my opinion, lately that is. They will always be the other cruiser company, but i think they will be around.

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post #7 of 7 (permalink) Old 11-10-2004, 12:57 PM Thread Starter
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Quote:
Originally Posted by Grover
Jump the shark? I thought that was only used to talk about television shows?

OK.....will the show be over for vicory???? how's that.

Brian (F.K.A. Crazy)

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“You can’t escape the responsibility of tomorrow by evading it today.”

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