This ATV Maker Is About to Crash and Burn Again
Polaris Industries (NYSE:PII) is on fire, but it's not how you think, and it's not in a good way. The power-sports vehicle maker continues to be dragged down by recalls related to fire hazards that it still hasn't been able to get under control, and it's now also warned investors they should prepare themselves for more recalls to come.
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This "thermal hazard," as Polaris terms it, first reared itself a year ago, and though it initially thought it had the problem in hand, it instead turned into a wildfire that led to a series of recalls across the year. The conflagration was ultimately responsible for the horrible quarterly earnings report Polaris just turned in.
As CEO Scott Wine remarked during his conference call with Wall Street analysts, "It seems like Polaris has been consumed by recall news this year."
Indeed it does. Just this year alone, the powersports vehicle maker has had at least four major recalls that affected some 231,000 vehicles, all related to fire hazards that subject riders to burns. But the problem extends back into 2015, and this past summer it was forced to issue a stop-ride/stop-sale advisory for its 2016 RZR Turbo. Read more...