Polaris closes Victory Motorcycles brand

While Polaris says the closure is effective immediately, the actual wind-down of Victory's operations, including the dealership network, is expected to extend into mid-2018.

 

Polaris, who created the Victory brand in 1999 and launched it here in Australia in late 2008, say that several factors contributed to the decision to close down the marque. The primary one, unsurprisingly, is that Victory simply didn't achieve enough sales - and enough market share - to be profitable.

 

This lack of success (particularly in the US, where Harley outsells Polaris by around 7 to 1) meant that there weren't the profits necessary to invest in new platforms "to meet changing customer preferences".

 

Polaris Industries Chairman and CEO Scott Wine, elaborated on the shock decision in a press release issued by Polaris: "This was an incredibly difficult decision for me, my team and the Polaris Board of Directors," said Polaris Industries Chairman and CEO Scott Wine. "Over the past 18 years, we have invested not only resources, but our hearts and souls, into forging the Victory Motorcycles brand, and we are exceptionally proud of what our team has accomplished. Since inception, our teams have designed and produced nearly 60 Victory models that have been honoured with 25 of the industry's top awards. The experience, knowledge, infrastructure and capability we've built in those 18 years gave us the confidence to acquire and develop the Indian Motorcycle brand, so I would like to express my gratitude to everyone associated with Victory Motorcycles and celebrate your many contributions."

 

As Wine's statement makes clear, Indian has been spared the axe, with the quads and SxS vehicles sold under the Polaris brand (including the Slingshot trike) also to continue. Both these brands were identified as having better growth potential than Victory.

 

With Victory gone, Polaris say they will be able to focus the company's energy and investments on brands that have better growth potential.

 

"This decision will improve the profitability of Polaris and our global motorcycle business, and will materially improve our competitive stance in the industry," Wine said.

 

"Our focus is on profitable growth, and in an environment of finite resources, this move allows us to optimize and align our resources behind both our premium, high performing Indian Motorcycle brand and our innovative Slingshot brand, enhancing our focus on accelerating the success of those brands. Ultimately this decision will propel the industry-leading product innovation that is core to our strategy while fostering long-term growth and increased shareholder value."

 

While Victory motorcycles will cease to be produced, with the dealer network dismantled and inventories liquidated over the coming months, Polaris has committed to supply parts for Victory motorcycles for the next 10 years, as per standard industry practice, and will also honour service and warranty coverage.

 

Peter Alexander, Managing Director of Polaris Industries, Australia and New Zealand, elaborated on the impact of the impending closure from an Australian perspective.

 

"We first launched Victory Motorcycles here in Australia in October 2008 with our flagship dealership in Melbourne that set new benchmarks for motorcycle retail in Australia.

 

"Victory Motorcycles, through its innovation and engineering prowess, also set new standards in Heavy Cruiser motorcycle design and performance.

 

"In just eight short years, there are now four flagship stores plus independent dealers in major markets in Australia and New Zealand, all conceived and driven by the Victory brand.

 

The learnings and plain hard work of launching Victory has now set Indian Motorcycle on the path to even greater success.

 

"During the last eight years, Australia established itself as the largest unit volume market for Victory outside North America. That's an astonishing feat given our population and testament to the enthusiasm, loyalty and dedication of our customers and our staff.

 

"To all Victory owners both new and old, we sincerely thank you for your passion and commitment. I have been privileged enough to meet and ride with many of you at rides and other events and look forward to riding with you well into the future.

 

"We and our dealer network are committed to continue to supply parts, service and warranty to ensure this happens.

 

"Victory Owners will always be part of the Polaris family, they will always be welcome and we will be continuing to sell these world class motorcycles for some time.

 

"Although [this is] a tough time for all of our staff, dealers and of course riders who have put an enormous amount of blood, sweat and tears into Victory, there is a lot to be proud of and celebrate. Victory will always be a great motorcycle and a great brand that has punched well above its weight in Australia and New Zealand and forged a legacy that will take a lot of beating.

 

"Although the history books will start being written a little earlier than we would have liked, I'd like to thank all current and future Victory owners for helping write a little bit of that history."

 

How all this will shake out over the remainder of Victory's time in the local market is yet to be made clear. New Victory motorcycles will still be available for some months yet, but today's announcement has made them instant collectables.

 

Given the circumstances, no "farewell edition" Victory bikes are likely (in a similar vein to the last performance Falcons from Ford), but expect speculators to swoop on some of the rarer and more desirable models in the range as investments, while the very last Australian-delivered Victory is sure to become a hot item amongst cruiser bike collectors and aficionados.