After eighteen years of manufacturing the Victory Motorcycle brand Polaris says it has decided to part ways. Polaris started the company from scratch, yet shares dropped two percent last year and three percent three years ago.
Polaris says this decision won’t have any effect on its other existing brands like Indian Motorcycle and other brands. Even though Polaris begins to liquidate Victory, it will honor its warranty and provide coverage and service for the next ten years. Although there is no way to tell how this decision effect employment.
Victory was a capstone brand that first gave Polaris the confidence at diversifying its brands. In 1998, when Victory was first launched, it produced all-terrain vehicles, snowmobiles and even four-wheelers. Thin won the company at least twenty-five awards. The spike in profits this year was mostly contributed to Victory. Both Victory and Indian brought in a profit of $603 million. That’s up by $192 million from 2012.
It was the same confidence gained from the launch of Victory that allowed the company to invest and buy into the Indian Motorcycle brand. However, the choice to get rid of Victory was no surprise for many. Victory’s sales had been steadily declining in the last few years with no sings of coming back up.
CEO of the company, Scott Wine, said that “Victory has struggled to establish the market share needed to succeed and be profitable. The competitive pressures of a challenging motorcycle market have increased the headwinds for the brand.”
The shutdown of the company is to start immediately. Lastly, Wine said, “So I would like to express my gratitude to everyone associated with Victory Motorcycles and celebrate your many contributions.”
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