Here are a few stories that came across my desk that I think are relevant and interesting to the powersports business community.
1 – Holeshot gets acquired by Rox Speed FX – From Powersports Business
The snowmobile brands that were on display at the Parts Unlimited/Drag Specialties/Parts Canada NVP in Madison over the weekend were unique for sure. In the maze of motorcycle, ATV and side-by-side vendors, snowmobile companies like StudBoy and Woody’s were awash with activity for much of the weekend despite their winter-season-only appeal.
Over at Rox Speed FX, owner and president Chris Olin was celebrating a new deal that will lead to expansion for his company. Last week, Olin closed a deal that will bring Holeshot Products into Olin’s portfolio. Holeshot Products, founded by Chris Carlson, has been around since the late 1980s. Aaron Burquest took ownership in 2012 until the sale last week.
Cohasset, Minnesota-based Rox Speed FX plans to use Holeshot to grow deeper into the youth snowmobile segment, focusing on 120cc and 200cc class sleds.
“Right now, a stock 120 comes from the factory with a max speed of about 9 mph. With a few modifications, we can get them to 20 mph,” Olin said. “If a parent wants to do a motor mod, you can get up to 27 mph. Our goal is to grow handlebar risers, handlebars, throttle blocks, seat covers and gas caps in the youth segment with Holeshot. Right now the OEMs can’t keep up with the youth segment manufacturing-wise, so a lot of parents are looking to upgrade and mod older sleds. We want to fill that space with products from Holeshot by RoxSpeedFX.”
Olin is planning for expansion of the company’s headquarters to accommodate the new addition.
2 – Sea-Doo releases 2023 GTI personal watercraft series
Sea-Doo has announced the release of the 2023 GTI series that offers next-level versatility and affordability. With an attitude that begs riders to take every adventure to the next level, GTI are the watercraft built for anything. From spacious storage for ski ropes, snorkel gear and more, to ingenious LinQ accessory attachment points, there’s no end to the pure excitement the GTI offers.
That excitement goes even further with the optional iDF (Intelligent Debris Free) technology that clears clogged intakes with a simple button push. Riders can also rock their favorite summer jams with the optional 100-watt BRP Premium Audio system.
A choice of Rotax 170- or 130-HP engine brings versatile power and performance to the GTI series. With exclusive ACE technology, it features fuel-efficient engines and proudly touts a sterling reputation for reliability. The Sea-Doo GTI series brings three offerings to the water, the GTI 130, GTI 170 and the GTI SE 130. GTI SE models offer the option of adding the exclusive iDF pump system. Each model includes the ability to add incredible versatility through a wide range of optional LinQ accessories that help make every adventure on water exactly what you want it to be.
Built on a robust and scratch resistant Polytec Gen II hull, all GTI models offer a ton of usable space and superior stability. The second generation Polytec design is more scratch-resistant than fiberglass with improved impact resistance and reduced weight for exceptional handling and efficiency. The exclusive Ergolock seat design makes the rider one with the watercraft for confidence-inspiring control. The unique hull design keeps handling playful yet predictable for an unbeatable fun factor.
An incredible onboard experience comes standard with awesome rider-focused amenities to maximize every minute on the water. With a lower center of gravity and controlled handling in rough water, at speed and with up to three riders, it offers a playful, yet predictable ride. The extra width also makes boarding and movement about the watercraft a breeze.
3 – Kawasaki awards Tetreault as District Manager of the Year – From Powersports Business
Napoleon Tetreault has been named District Manager of the Year by Kawasaki Motors Corp., U.S.A., according to a recent social media post.
Tetreault, a former Powersports Business contributor, announced the honor on his LinkedIn.
Check out the post here.
4 – Quad Lock Appoints Motovan As Canadian Powersports Distributor
Quad Lock, the leader in smartphone mounts & accessories for Motorcyclists has signed Motovan as their Canadian Powersports Distributor.
The Quad Lock range includes a suite of super secure mounts for a variety of motorcycle setups, industry leading Wireless Charging and Vibration Dampening solutions designed for Motorcycles, & protective cases for flagship Apple, Samsung & Google Pixel devices. Additional products are also available for Cyclists, in the Car and even around the Home & Office.
Ben Taylor, Sales Director at Quad Lock says “We are thrilled to be working with a partner with such rich history and strong standing in the Powersports industry as Motovan. We look forward to offering our growing range to Canadian consumers via their local Powersports Dealer.”
“We are extremely honoured and excited to represent the Quad Lock brand for Canada”, Mike Paladino, VP Motovan. “Our experienced team is looking forward to servicing our valued Powersports dealers with the Quad Lock offering for many years to come.”
Quad Lock products are available now via Motovan for Canadian Powersports Dealers.
5 – Volcon signs deal with Ted Turner Reserve – From Powersports Business
Volcon Inc. has announced the agreement of Ted Turner Reserves to purchase eight of the company’s UTV units, the Stag, and to be a part of its UTV testing group. As a conservation-forward hospitality company based in New Mexico, more than one million acres of land will be utilized for testing. The pre-orders are non-binding and cancellable prior to delivery.
READ THE ENTIRE POST HERE – https://powersportsbusiness.com/top-stories/2022/08/25/reserve-agrees-to-join-volcons-utv-testing-group/
6 – Volcon Implements Comprehensive Program To Improve Profitability/Cash Flow
Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the first all-electric, off-road powersports company, announced today a comprehensive program and manufacturing transition aimed at efforts to improve profitability and cash flow.
To improve cash flow and profitability over the immediate and near term, Volcon will close its manufacturing operations in Round Rock, Texas, merging its logistics and storage operations into a single location, reducing storage and fulfillment costs. To improve product margins, the Company has entered into a contract manufacturing agreement with GLV Ventures (GLV), an established automotive supplier and manufacturer. GLV Ventures and its partner companies have been providing sound automotive solutions, superior product development and advanced manufacturing in a timely, cost-effective manner for over 25 years. GLV will produce the Volcon Grunt in both current and future models, as well as the Volcon Stag, the class leading all electric UTV launched by Volcon in July 2022.
The Company expects these actions will improve overall gross margin on a product-by-product level by reducing materials, labor and overhead costs, reduce operating expenses due to lower headcount and facilities cost, all of which are expected to improve cash retention. The Company is also seeking to reduce its reliance on parts and components sourced from China, and will look to consolidate its supply chain to countries friendly to US manufacturers, especially those located in North America.
“The manufacturing, supply chain, and logistics environment in which small and emerging companies are participating is changing at a rapid pace. Socio-economic and geo-political landscapes are much different now than they were two to three years ago,” said Jordan Davis, Chief Executive Officer of Volcon. “For the past few quarters, our leadership team has been re-evaluating our costs across the entire organization to ensure we are appropriately structured to achieve profitability in order to set ourselves up for long-term success. While we’ve been able to successfully navigate supply chain and logistical issues to date, we believe the best course of action for our profitability and cash retention is to leverage the scale of third-party manufacturers. We believe that eliminating our reliance on Chinese components to the greatest extent possible, will improve our payment terms and cash outlay for parts and components that can be sourced closer to home. While we understand this transition will take time to execute, and that some products will require sourcing from southeast Asia for the time being, we believe that this cost-reduction plan stands as the best course of action to reach profitability as quickly as possible for our business and for our shareholders. As part of this program, we’ve made the difficult decision to reduce the size of the Volcon team. This was a very difficult decision as we recognize that we are losing quality teammates. We thank them for their dedication to building a great product as we could not have brought the Grunt to market without them.”
To improve competitiveness and profitability in the immediate and near term, Volcon plans to look at additional opportunities to utilize third party manufacturers that have robust infrastructure, established supply bases that enable a lower cost structure, high utilization of overhead, and greater purchasing power. The Company believes these types of relationships will enable it to launch products at an accelerated pace that the Company believes will improve profitability in the near term.
About Volcon Inc.
Volcon Inc. is the first all-electric powersports company producing high-quality off-road vehicles. Based in Round Rock, Texas, Volcon joins many major electric vehicle companies located near Austin, Texas, an area that is poised to become the electric vehicle capital of the world.
Volcon was founded with the mission to enhance the outdoor experience while reducing the industry’s environmental footprint so that adventurers and workers alike can enjoy the outdoors and preserve it for generations to come. Volcon produces all-electric, off-road vehicles designed to elevate the adventure experience and help people get things done at work and on the home front.
Volcon’s first product, the innovative Grunt, combines a fat tire physique with high-torque electric power and a near-silent drive train which started shipping in September of 2021. Future two-wheel models may include the Runt, which is a youth-sized version of the groundbreaking Grunt, and an eBike, the Brat. The Stag and Project X are expected to be Volcon’s venture into the rapidly expanding world of UTVs and are expected in future years as the company continues to expand.
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For more information on Volcon or to learn more about its complete motorcycle and side-by-side line-up, visit: www.volcon.com
Some of the statements in this release are forward-looking statements, which involve risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ”believes,” ”estimates,” ”anticipates,” ”expects,” ”plans,” ”projects,” ”intends,” ”potential,” ”may,” ”could,” ”might,” ”will,” ”should,” ”approximately” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q filed with the SEC, which are available on the SEC’s website, www.sec.gov.