With the departure of Scott Wine from the powersports industry, the question coming into 2021 was who was going to lead Polaris Industries going forward.
We still don’t have a definitive answer on that, but we do know who will be leading the company’s house of brands as it looks for a permanent solution, as Michael Speetzen has been named the interim CEO for Polaris.
What a difference a week makes. Just seven days ago, we reported to you the fight that was brewing internally at Harley-Davidson, where investor Impala Asset Management was vying to put two additional board members on the corporate board for Harley-Davidson.
Well before the firing of Harley-Davidson CEO Matt Levatich (and it was a firing, no matter how much the Bar & Shield brand touts its “mutual decision” narrative), there has been a wrestling of control over the future of the iconic American motorcycle brand.
Dwindling share prices on the New York Stock Exchange necessitated a change of regime at Harley-Davidson, as shareholders saw a continued loss on their investment with the Milwaukee firm; and thus, a loss of confidence in management’s ability to run the company.
Now with Matt Levatich out and Jochen Zeitz taking on the role of interim CEO and President of Harley-Davidson, a new battle is being fought – what is known in the investing world as a proxy fight.
A plethora of Indian Financial publications are reporting that Hero MotoCorp has bought a 49.2% stake in Erik Buell Racing for $25 million. Hero MotoCorp is India’s largest two-wheel manufacturer, and for a year now has partnered with Erik Buell Racing for technical development, as well as sponsoring the American company’s AMA Pro Road Racing team for the past two seasons.
Today’s news confirms numerous rumors we have heard about the Hero investing in EBR. Acquiring only 49.2% of Erik Buell Racing, Hero has only a minority stake in EBR, and while we cannot confirm the information, we would imagine that the odd 49.2% ownership was done to keep Erik Buell as the majority shareholder in his company.
Coming off the third-straight record year for Polaris, CEO Scott Wine has just gotten a resounding vote of confidence from the company’s Board of Directors, and has been elected to Chairman of the Board at Polaris Industries. Wine replaces former-Chairman Greg Palen, who had served in the position of chairman for 11 of his 20 years on Polaris’ Board of Directors.
“I would like to congratulate Scott on his election to serve in the additional capacity of Chairman of the Board,” said Palen. “Under his leadership, Polaris has delivered consistent and profitable growth while successfully executing the company’s ambitious strategy, generating record results and shareholder returns.”
With the acquisition of Ducati Motor Holding by Audi AG, the German car manufacturer was bound to do some shuffling in the Italian motorcycle company’s executive ranks. Announcing that it has formed a new Board of Directors, Audi CEO Rupert Stadler has unsurprisingly been name President of the Board, while Horst Glaser and Axel Strotbek (best names ever) from Audi have also been given seats on the Ducati’s Board.
Giving Audi AG a 3-to-2 controlling interest of over Ducati’s Board of Directors, the new board is also comprised of Gabriele Del Torchio and Claudio Domenicali. In an interesting move, Del Torchio has been reconfirmed by the new Board of Directors as CEO of Ducati Motor Holding, with Audi also appointing the Italian to the Board of Directors at Automobili Lamborghini SpA.
Zero Motorcycles has quietly announced some interesting news: that Mark Blackwell, V.P. of Motorcycles at Polaris Industries, will be joining the electric motorcycle company’s Board of Directors. With a plethora of reasons as to why an industry veteran like Blackwell would join Zero’s board, it’s been no secret that the Scotts Valley company has been collecting seasoned industry professionals like pokemon characters, seemingly building a brain trust of people who actually know how to run a motorcycle company.
Blackwell’s addition to Zero is interesting because it could signal a relationship with the Polaris V.P. that goes beyond merely an advisory/visionary position, which is the core responsibility of a companies board. The timing is interesting as well, as Polaris has been on a buying spree, first acquiring the original American motorcycle company brand: Indian Motorcycles, and a few days later electric car manufacturer GEM. With a Polaris executive sitting on Zero’s board almost immediately after these aquisitions, one has to wonder if this isn’t a precursor to some sort of larger arrangement between the two companies.
It’s Tuesday, and in the world of electrics that means another Zero Motorcycles press release, and another weekly confirmation that Asphalt & Rubber is still on the Santa Cruz company’s “ultra double-secret probation” list of publications that no longer get media communiqués and press invites to its media events. That clearly hasn’t stopped us though, as today’s news release confirms what we already knew: Zero Motorcycles CEO Gene Banman has stepped down from his position in the company, although he will continue to serve on the company’s Board of Directors.
Don’t adjust your computer screen, you’re at the right website…and no Harley-Davidson hasn’t taken over A&R, but the Milwaukee company certainly has been busy the past few weeks. To recap, Harley-Davidson recently agreed keep its Monemonee Falls and Tomahawk plants in Wisconsin after the labor unions agreed to workforce concessions (getting paid $215,000 a head for each laid off worker in the process) and the Wisconsin Department of Commerce handed out a $20 million tax break.
That victory was offset by Harley-Davidson getting dumped last month by long-time ad agency Carmichael Lynch, with a classic “it’s not you, it’s me” press release (which if high school dating us taught us nothing, means it really is YOU). Meanwhile this week, Harley was dumped in a different fashion when Interbrand, the world’s largest brand consultancy firm, dropped the Bar & Shield brand 22 places on its T0p 100 brands list, down to 97th, and devalued the Harley-Davidson brand by over $1 billion in brand equity. This is of course nothing compared to the coup de grâce, where Harley-Davidson sold MV Agusta for €1, after buying the bankrupt Italian brand for $100 million two years ago.
Hoping to right the ship, Harley-Davidson announced today that it has created a 13th Board of Directors seat, and filled it with Levi Strauss & Co. CEO R. John Anderson.
Harley-Davidson has just announced that it will be giving out a 10¢/share dividend for the third quarter of 2010. Being paid on October 15th to anyone who owns Harley-Davidson stock (NYSE: HOG) on October 1st, 2010, holders of HOG common stock will get a chance to be rewarded for investing in the Milwaukee brand. It’s not clear at this time if Harley-Davidson intends to keep the cash dividend for future quarters, or if this is one-quarter only event.
With HOG currently trading at $28.43/share, this announcement means essentially an automatic 1.2% investment gain for stock owners, however contact your financial advisor before placing any orders…you shouldn’t take stock advice from a motorcycle blog.
Dal Smilie is certainly not smiling this week. The Former American Motorcyclist Association (AMA) Chairman was sentenced yesterday for embezzling $100,000 in fraudulent travel reimbursement claims to the not-for-profit organization. Smilie received a sentence of eight months in prison, and two years probation after pleading guilty for his misappropriation of organization founds over the course of years, ending in 2007. He was also ordered to pay a $1,000 fine and court costs.