The Fortune 500 is a list of America’s largest companies, and is a constant barometer on the state of the American business landscape. In its 64 years of existence, the Fortune 500 has been an exclusive club, and its newest inductee is one from the powersports industry: Polaris Industries.
Ranked at #496 on the list, the addition of Polaris means that the influence (and decline) of the US motorcycle and powersports landscape will be seen on a much larger national stage.
Mostly it is just a cool milestone for Polaris, and proud bragging point for the company’s executives at the next country club gathering.
Polaris Industries is starting the year off with some surprising news, announcing that it will cease operation of Victory Motorcycles and other related business operations to the brand. Scott Wine, Polaris Industries Chairman and CEO, explained the decision as coming down to basic business factors, with Victory not showing the growth and volume in order to sustain its continued existence. Polaris in its press release also cites the changing landscape of the motorcycle landscape, and that the resources and investments required to make Victory competitive going forward were too hard to justify for the troubled brand. Instead, Polaris will focus solely on its Indian and Slingshot brands, for the motorcycle space.
Polaris Industries has acquired the electric motorcycle business from Brammo, Inc. Polaris is also acting as a leading investor in the recapitalization of Brammo, which will enable Brammo to focus exclusively on the design, development, and integration of electric vehicle powertrains. This means that Polaris will takeover building electric motorcycles at its Spirit Lake, IA production facility, and that Brammo will continue developing EV powertrains for Polaris and other OEM partners. According to its press release, Polaris will start production of electric motorcycles in the second half of 2015.
It is a fact that isn’t often discussed in the motorcycle industry, but roughly 50% of all on-road motorcycles sold in the United States come from a little company called Harley-Davidson. In 2012 for instance, the Bar & Shield brand sold 161,678 units here in the US, while for the same year the MIC reports 318,105 on-road units were sold nationwide, across all manufacturers. It is easy to be critical of Harley-Davidson, and there are plenty of things to be critical about, but one cannot deny the fact that if Harley-Davidson is responsible for the lion’s share of what we call in passing the motorcycle industry. For Polaris Industries CEO Scott Wine though, Harley-Davidson’s motorcycle dynasty is seen as a market opportunity, though a risky one. Chewy.
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.”