Issue #3 March 2023

AN OPEN LETTER

From Scott Schloegel, Senior Vice President Of Government Relations Motorcycle Industry Council

Two of the most important days for our industry are rapidly approaching and we need you to take action now.

On April 25 & 26 the Motorcycle Industry Council will host our Washington, D.C. Fly-In. This is our opportunity to educate lawmakers and regulators about our industry priorities and our importance to their districts and the broader U.S. economy. Powersports is a $50 billion industry in the U.S. Together we create jobs and contribute to local economies across all 50 states and all 435 Congressional districts.

Your MIC Government Relations Office (GRO) represents you in Washington, but when meeting with a member of Congress there is no more powerful voice than that of a local constituent who lives in their district, generates revenue in their district, and supports well-paying jobs in their district. That’s why we need as many dealers as possible to come to Washington, D.C. and participate in the MIC Fly-In. You are the local face of powersports. Congressmen, Senators and their staff drive by your dealerships frequently. They know your business’ name and they likely know many of your customers — if they aren’t customers themselves.

Don’t worry if you’ve never met with an elected official or aren’t up on the latest priority issues for our industry. Your MIC GRO will provide a training video for you to watch about how to handle meetings with officials and/or their staff. The GRO staff will also provide a video and written talking points highlighting the priority issues. All you need to do is get to Washington, D.C., book one of our reduced rate hotel rooms by April 3rd, and enjoy complimentary dinner receptions with industry leaders.

There are thousands of bills introduced in Congress each year. It is nearly impossible for Lawmakers and their staff to cover them all, and that is where your meetings will help to educate them about how those bills and regulations could impact your powersports business. As subject matter experts we can help them better appreciate how our industry works and better understand our issues. We will be discussing key issues, including Right to Repair, PFAS chemical bans, FTC regulations and public lands access.

Again, the MIC Government Relations team will provide all the materials to support you in these conversations but it will mean so much more when you deliver the messages.

You just need to arrive in Washington, DC on April 25th in time for our 5:30 pm opening reception and dinner at the beautiful Canopy by Hilton down along the waterfront at the beautiful new District Wharf. We start early the next morning in the Rayburn House Office Building where you will also hear the latest updates from Washington insiders and policymakers. Then it is off to Hill offices for meetings that your GRO team has set up for you and we’ll close the day with a reception at the Sonoma restaurant and Wine Bar on Capitol Hill.

I look forward to seeing you in Washington, DC. Together, our voice is stronger!

Please don’t delay, register today! https://www.capitolhillflyin.com/

P.S. Join other MIC members and the MIC GRO as we descend on Washington and advocate for our industry. Let’s make our collective voice heard April 25-26, 2023. — Erik Pritchard, MIC CEO

OUR TEAM

EDITORIAL

Robin Hartfiel Editor/Publisher

Bob Althoff World’s Luckiest Man

Gus Stewart Creative Director

Brenda Stiehl Production Manager

CONTRIBUTORS

Don Musick Genesys Technology Solutions

Dr. Paul Leinberger Denny+Leinberger Strategy

Eric Anderson Vroom Network

Jim Woodruff National Powersport Auctions

Mark Rodgers Performance Consulting

Lenny Sims NADA Appraisal Guides

Scot Harden AMA Hall Of Fame/Harden Offroad

Hector Cademartori Illustrations

William Douglas Little Unique Powersports

Charlie Williams Off Road Editor

Marq Smith Holeshot Motorsports, Canada

Alisa Clickenger Women’s Motorcycle Tours

Don Amador Quiet Warrior Racing

Joe Bonnello Joe B Photography

Uncle Paul Wunsch Love Cycles

The Anonymous Dealer

ADVERTISING

Robin Hartfiel Publisher (949) 489-4306 robinhartfiel@gmail.com

Blake Foulds Account Executive (760) 715-3045 blakefoulds@dealernews.com

Brenda Stiehl Production Manager brendastiehl@dealernews.com

John Murphy Publishing Consultant johnmurphydn@gmail.com

Dealernews Magazine 3250 Knoll Dr. Columbus, OH 43230 www.dealernews.com © Copyright 2023

World’s Luckiest Man

By Bob Althoff

THREE STRIKES, BUT WE ARE NOT OUT… YET!

Iknow March Madness refers to the hardwood, but a baseball metaphor comes to mind this month. Recently I heard an economist who said that over the past 150 years, the world has experienced 15 significant worldwide recessions. This econ expert also noted that each of those recessions were precipitated by one of the following: Pandemic, War or Bank Failures.

Perhaps it has occurred to you, as it did to me, that we are currently experiencing the trifecta of all three somewhat simultaneously. Talk about a big strike zone!

I’m not an economist, but it appears that banks will curtail lending until their new higher FDIC insurance premiums are known? They will almost certainly restrict the flow of money until they know the new stricter supervisory burden they

face; until the regulatory rules of the road are made clear; until they can predict the end of the meteoric rise in the Fed’s inflation-fighting interest rate increases. Rate hikes have decimated the value of the Fed’s own bond portfolios (yes — even “risk-free” Treasuries can lose a quarter of their value in a year like this).

It’s a tough time to be a banker… And as a direct result it may be a tough year for our industry, especially at the Dealer level. Classic makings of a credit crunch.

When banks are being properly regulated they undergo a “stress test.” Perhaps we ought to do a little stress testing of our own?

Will your lower credit tier customers have access to the loans they require to buy our vehicles? Will you as a Dealer have access to that floor plan facility or, for that matter, to the mortgage loan you will require given the facility demands of your OEM? Looks like things will be coming in high and tight as Dealers undergo their own version of Spring Training.

However, we have been here before — 2008 was a very dangerous break in the economy. It resulted in many Dealers exiting stage left and it ushered in a decade of slow growth as our industry recovered. Time to dust off our collective derrieres and step to the plate once again.

We are optimists, as most entrepreneurs are.  And while we hope this spring storm subsides, we all know that “hope” is not a strategy! Nor is it a substitute for a well-thought-out plan of action.

Dealernews has your six. Stay tuned for the best analysis and insight from our team of experienced industry observers. The old Bronx Bombers have got nothing on our roster of hall of famers like Scot Harden, Eric Anderson, Dr. Paul Leinberger, Don Musick, Lenny Sims, J.D. Power, Jim Woodruff, National Powersport Auctions and the Dealer members of NPDA…

In the meantime, keep swinging for the fences!

Bob

Editor’s Note

By Robin Hartfiel

MARCH MADNESS

March Madness coincided with some real craziness this year. But rather than a run through the brackets, we faced a run on the banks, precipitated by a loss of confidence in “VC-Central” Silicon Valley Bank. Give me vintage motorcycle marques or obscure industry slang and I will go WFO… bring in numbers, banks and Wall Street and I am bound to DNF. However, as smart people like Bob Althoff and Jim Woodruff try to explain it to me — very slowly — I think our industry is throttling back and the Fed is tapping the brakes so that we can accelerate out of this madness?

And there is more madness as we also experience a “Triple Witching Hour” in March. For those of us who follow flat track rather than market fluctuations, this is the last hour of the stock market trading session on the third Friday of every March (Triple Witching Hours also occur in June, September and December) — these days mark the expiration of three kinds of securities: Stock market index futures; Stock market index options and Stock options). I think I follow Bob’s three-strikes analogy a little better than high finance.

So is the run on the banks during a Triple Witching Hour what they call a “Black Swan” Event? Again, I would be better off explaining Speedway scoring that statistical jargon. But as I understand it, in nature a black swan is considered to be rare, since most swans are white. In fact, the story goes that black swans were once thought not to exist at all, until one was discovered.

By this definition, Black Swan events can cause catastrophic damage to an economy by negatively impacting markets and investments. Unfortunately, even the use of robust modeling cannot prevent a black swan event. Reliance on standard forecasting tools can both fail to predict and potentially increase vulnerability to Black Swans by propagating risk and offering false security.

COVID was described as a Black Swan event — an unpredictable event that is beyond what is normally expected of a situation… and has potentially severe consequences. Black Swan events are characterized by their extreme rarity, severe impact and the widespread insistences like the Pandemic or run on SVB, they were obvious in hindsight.

The moral of the story is that very rare events may be more common than previously thought.

With that in mind, let me mangle Mr. Althoff’s metaphor this month and “pitch” the National Powersports Dealer Association’s forthcoming event. On April 12, 2 p.m. ET, NPDA will join Morgan Stanley/Stanek Group in hosting an online panel discussion for Dealers on the direction of the economy in 2023 as created by the Black Swan banking crisis.

Dealers can gain insight into the current state of the economy based on the industry knowledge from dealers who survived the 2008 downturn and other Powersports industry professionals who were on the front lines 15 years ago. The starting line-up includes:

Bob Althoff, Chairman of the NPDA and a Dealer in Ohio

Bob Kee, NPDA Vice Chairman and a Dealer in Texas

Jim Woodruff, CEO of National Powersport Auctions

Brad Stanek, CFP, Financial Advisor, Executive Director

Paulina Matel, CFP, Financial Advisor

To register or for more information, click here: event.webcasts.com/starthere.jsp?ei=1606537&tp_ key=c37111055b

Former Editor-in-Chief and publisher of Dealernews circa 1990-2003, Robin returns to the magazine. In addition to having been instrumental in creating the Dealernews Top 100 program (still the industry’s ultimate accolade for a motorcycle dealership), Hartfiel has worked for most of the B2B publications in the Powersports arena. Prior to the trade side, he worked as a beat reporter for a local newspaper and was an editor of publications ranging from All About Beer to VW Trends.

LOSING A NATIONAL TREASURE

Really sad that the Industry is losing this treasure. Hope to at least see it once before it closes, forever.

Bill Goebel, National Business Development

Merchants International Inc. Charleston, SC

INSIDER OPINION

SAD STATE OF AFFAIRS

Very sad indeed…seems an opportunity for the industry (both OE and Aftermarket) to step up and do the right thing… CoMoto? Harley? Polaris? Tucker? Parts Unlimited? WPS? RMATV? Seems there’s a solution somewhere?

Hank Desjardins, Powersports M&A Entrepreneur

Chrome Asylum Production

Walnut Creek, CA

SAD STATEMENT

Sad statement on how the present day motorcyclists and the industry does not value this treasure. If you had the pleasure of having John walk you through the museum he could not only give you a complete history of each bike, each component but each nut and bolt. No one knew more. I will say it was a pleasure knowing John and Jill Parham. Besides exceptional business people they were exceptionally generous. Hard to think of any couple who gave more to our industry and their community.I am saddened by the news.

Frank Esposito, Motivational Speaker

Frank Esposito Consulting Coatesville, PA

Sad to see. This is the result of the “corporate” mentality that has infiltrated the motorcycle industry over the last 15 years. During my time at JP Cycles I know John didn’t care for me very much as I was often used to push the MAG agenda during the transition. That being said, I did appreciate his passion for our industry. Those days are over now. Most of the remaining enthusiasts keep propping up and promoting the corporate goons simply because it gets them to the next paycheck. While this happens the industry dies a slow death due to the 3-5 year corporate plan to buy, lean-out, and sell all the previously enthusiast owned businesses. Like the history in this museum, the enthusiast and their knowledge gets spread out and dispersed to eventually fade away. They are replaced with people outside the industry that don’t respect the history or the human element. The only goal is the almighty dollar and the temporary comfort it provides.

Lowell Anderson, Business Owner Simply Sound Consulting LLC Wellington, OH

P.S. People sell often with little insight as to what is going to happen to the people that have been loyal to them. There are often employees within a successful business that have gone far over and beyond what is required of them in order to make the business successful. In the end, those people suffer while the executives walk away with huge severance packages. The common employee gets a handshake and a smile after years of devotion. Just because it happens all the time and everyone is doing it, doesn’t make it right.

SOUND OFF!

NOT OUR INDUSTRY?

I wouldn’t call the VC funds that own/ have owned J&P “Industry”. They may own a collection of players, but don’t lay this at enthusiasts feet. Unfortunately, the bottom line is their passion. I think many motorcyclists would love to own a piece of history, but not many have pockets deep enough to pull it down in one chunk.!

Ray Butts, MBA Leader of Online Excellence for the Powersports Enthusiast

Lexington, KY

SO SAD

So sad. For a time I lived in the area. With J&P as my largest customer in those days it made sense to do so as I needed to be in the building regularly. ($0 to $2m in four years.) I’ve been through the museum numerous times as it was a destination to meet friends traveling through the area. I remember thinking when J&P corporate was relocated to Ft. Worth what a negative impact that would not only have on J&P, and the community of Anamosa, but that the museum itself would suffer the most. I guess while that has come true, one could argue that it did last longer than expected. I credit that to how well it was curated. It truly was a one of a kind destination.

Mitch Winder, Field Retail Merchandising Contractor/StateAppointed Off-Road & Dualsport Riding Advocate Mineral Point, WI

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DUCATI DEALERS DELIVER 60,000 MOTORCYCLES

Ducati dealers delivered a record 61,562 motorcycles in 2022, generating more than 1 billion euros for the Borgo Panigalebased operation. Ducati closes a year full of successes posting record figures for sales, revenue and operating profit on top of sweeping the motorcycle manufacturer titles in MotoGP and WorldSBK.

“For the first time in our history, we passed the 60,000-bikes mark and we overtook 1 billion euros in revenue,” claims CEO Claudio Domenicali. “This establishes 2022 as the best year ever for Ducati in several aspects, starting from the great sales and financial performance to the successes in MotoGP and WorldSBK. We are on a positive trend that in the last years has seen Ducati grow and establish itself as an increasingly solid company. As a brand that is an expression of ‘Made in Italy’ innovation, design and technology, we keep our focus on delivering exciting experiences on and off motorcycles to passionate Ducatisti all over the world.”

“I am glad that for the second year in a row we are able to announce a record financial performance and a growth in the profitability level for Ducati, notes Ducati CFO Henning Jens. He breaks down the numbers: 1 billion euros (1,089 million euros), marking an increase of 24% over 2021 (878 million euros).  Operating profit was a record 109 million euros, corresponding to 77% growth compared to 2021 (61 million euros). As a result, the profitability was up 10%. Ducati closed the year with a record of 61,562 motorcycles delivered to enthusiasts around the world, up 3.6% over 2021.”

Ducati dealers delivered! The Sales network continued to grow over the past year, and at the end of 2022, there were 821 Ducati dealerships, the highest number ever. With the addition of new markets, including February cover Dealer Bob Henig opening up the Maryland market, as well as global expansion in Brunei, Ecuador, El Salvador and Mongolia, Ducati is now in 96 markets around the globe.

BOB’S DUCATI?

Speaking of Bob Henig, the veteran BMW dealer has gotten all his ducs in a row and is now an authorized Ducati Dealership. Ducati North America capo Jason Chinnock, industry VIPs, media and a legion of Ducatisti for the opening on March 25th. The freshly renovated facility, under the management of General Manager Joe Southard, includes the full line of Ducati motorcycles, genuine Ducati parts and accessories. A full service department staffed with Ducaticertified technicians is under the direction of shop foreman Steve Slunt.

All of this is in addition to the product and services Bob’s has offered for over 40 years. Bob’s commitment to the BMW brand remains as strong as ever as it welcomes Ducati into its world-class community.  Wonder why Bob chose to add Ducati after being an exclusive BMW dealer for 40 years? Bob himself, lead groups on behind the scenes dealership tours. If you missed the tour, you can still tune into our exclusive conversation at AIMExpo this year.

February’s cover dealer has watched his business grow from its humble garage beginnings in 1981 to an authorized BMW dealership in 1991, to the award-winning premiere dealership of today representing both BMW and Ducati… he tells his tale here: www.youtube.com/watch?v=jYlrjZu683Q

DLP CHANGES COURSE LeadHelm Launches At AIMExpo

Digital Lead Performance is sharing a sales solution software they developed for themselves. “We set out to develop a lead management solution for our team who is managing over 15,000 new leads per month while continuing to follow up with prior month leads,” explains Chief Executive Officer, Scott Fischer. “We learned quickly that LeadHelm was the digital sales solution our industry needed. We began focusing our efforts on creating a simple, yet high performing, solution for dealers to manage their digital leads in-house. A year later, we’re bringing it to our industry.”

That debut took place at AIMExpo last month. “As a business, it is our responsibility to provide our in-house and on-line customers with more than just low prices,” adds LeadHelm ringleader and co-founder Aaron Barney. “We should strive to provide them with quality products, excellent customer service and a memorable experience… LeadHelm will change how dealerships and sales teams do business and evolve with today’s digital evolution,”

This revolutionary software simplifies KPIs and metrics for dealers, helping them understand their true lead response time, from inbound lead to outbound activity, lead disposition, number of appointments set and kept, conversation history and conversions. This gives dealers insight into their digital sales process and performance, their customer’s digital buying journey, and allows sales teams to focus on genuine human interaction, which cannot be replicated or replaced.

With a subscription, dealers receive access to Helm Academy software and skill training. “Align your sales team to truly elevate the online experience for your digital customers,” concludes Barney. “By doing so, we can show your site visitors that you value their time and strive for their satisfaction, which will lead to long-term loyalty and increased sales.”

Request a demo and learn more about Helm Academy at: LeadHelm.com

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DEALER NEWS: PAUL VERACKA PURCHASES PATRIOT HARLEY

Well-known within the Washington DC community for their Ride of the Patriots event, Patriot Harley-Davidson has been purchased by Paul Veracka’s PVM Enterprises family of dealerships. In a deal negotiated by George Chaconas of Performance Brokerage Services, Vince Sheehy sold the Harley store in order to focus on his auto empire. Sheehy operates 30 dealerships in Northern Maryland and Virginia.

“We have had the pleasure of working with the Veracka family numerous times over the years,” notes Chaconas. “We recently sold Paul’s father, Dave Veracka, Barney’s Motorcycle & Marine dealerships in Florida. We also represented Paul and his brother Michael with their acquisition of BMC Boats in Florida. This strategic acquisition complements Veracka’s dealership, Old Glory Harley-Davidson in Maryland, which we also sold to Paul in 2020. It was a pleasure to work with Vince Sheehy and Paul Veracka on another successful buy-sell transaction, and I thank them for the opportunity to be of service. I wish all parties great success and I look forward to helping the Verackas with their continued expansion.”

“After acquiring Old Glory Harley-Davidson of Laurel, Maryland from George Chaconas and Courtney Bernhard of Performance Brokerage Services, we were looking to expand our market in and around the Washington, D.C., metropolitan area,” adds Veracka. “George and Courtney introduced us to Patriot Harley-Davidson which was for sale via Sheehy Auto Stores. The addition of this location to our group made strategic sense for the opportunity to service our clients on both sides of Washington, D.C., and allows us to continue Patriot HarleyDavidson’s famous Ride of the Patriots to the nation’s capital. I want to thank George and Courtney for their help to get this deal done and look forward to continued growth in 2023.”

The dealership will remain at its current location at 9739 Fairfax Boulevard in Fairfax, Virginia.

VEGAS, BABY!

The Super Bowl will have to play second fiddle to AIMExpo as the powersports industry returns to Las Vegas February 6-8m 2024. “We knew it was going to be tough to top AIMExpo 2023, but the stars have aligned for one of the most exciting weeks in Las Vegas, with AIMExpo 2024 taking top billing, of course,” says MIC Director of Marketing & Events Andre Albert. To better accommodate travel, AIMExpo starts one day earlier — now Tuesday, February 6 through Thursday, February 8. “Our guaranteed discounted hotel rates will be available to book through the AIMExpo website by early May, but they will only be offered through our exclusive reservation link,” he adds. “If you try to book rooms early, most hotels have not yet released inventory for next February which means you might not see any rooms available or they may be listed at the highest tier.”

Get updates at the website: aimexpousa.com

POLARIS XCHANGE

Noting consumer shopping habits have evolved in recent years with more consumers leveraging online resources for discovery, research and learning as they start the buying process prior to visiting a physical retail location, Polaris Inc. has launched “Polaris Xchange” intended to meet the customers where they are. “We are constantly infusing new ways of thinking and using our knowledge of the powersports customer to help advance our industry, introduce new people to powersports and enhance the experience for our owners and riders,” claims Vic Koelsch senior vice president, chief digital and information officer at Polaris.

“Polaris Xchange is another example of that industry leadership… it simplifies the shopping process for customers, allowing them to do most of the process online before visiting their local dealership to sign the paperwork.” According to Koelsch, Polaris Xchange offers consumers the ability to start the buying process from the comfort of their homes including: finding the vehicle, viewing used vehicle history and condition reports, shopping for accessories, indicating interest in protection products, determining trade-in value and prequalifying for a loan.

Polaris Xchange also provides value to Polaris dealers who can publish their new and used inventory online increasing visibility, reach, and awareness to shoppers. With JoyDrive as a technology partner, Polaris Xchange will showcase used powersports inventory from all powersports manufacturers as well as available inventory of new Polaris vehicles at participating dealers. Click here for more details for Polaris Xchange: www.polarisxchange.com

DESERT RACERS UNITE

The storied Parker 400 returns as part of a new off-road series, according to Mad Media’s Matt Martelli. Multiple classes for motorcycles and an expansion of the UTV World Championship program ensures something for everyone. Called “Unlimited

Off-Road Racing” the new series will include The Parker 400, The Mint 400 and The California 300 races, and host all desert classes including youth, UTVs and motorcycles. The Parker 400 will kickoff the new series in January of 2024, followed by the Mint 400 in March and California 300 in October.

“We’re absolutely thrilled to be announcing this new league and championship points series,” adds Unlimited Off-Road Racing CEO and Co-Owner Matt Martelli. “The Parker 400 is one of the oldest and most historic races in our sport and we’re excited to have that become part of our calendar as we take yet another massive step forward in our league’s development. We’re preparing to take the same assets and marketing power that we have used to make The Mint 400 the biggest spectacle in the sport and apply that to our entire league. Racers, partners and fans can expect us to deliver the best experience, media coverage and value in the industry as we continue to grow and expand our offering. That includes industry leading production from our team at Mad Media, live stream team, and events group.”

“The Parker 400 is one of the most iconic and important races in our sports history,” adds Josh Martelli, COO of Unlimited Off-Road Racing. “It deserves top notch billing and the same approach we implemented for restoring and promoting The Mint 400 these past 12 years. We’re excited to work with the BLM, the City officials and people of Parker, and La Paz county to restore this race and transform it into a massive event for the entire industry to rally around.”

Hail to the chief: Ross Clifford named president of  Nivel Products. “Last week marked the end of what has been the longest chapter of my career to date with leaving Polaris,” claims Clifford. “It was an amazing 15 years building and growing iconic brands and getting to work with great people across the globe in the process.” Most recently  VP/GM Global On Road PG&A for Polaris, dealers may remember Clifford from his tenure with  Triumph before that. “As I look to pen the next chapter I couldn’t be happier or more energized to announce that I have joined  Nivel Parts & Manufacturing, working with Brett Hankey and his talented leadership team to help execute his clear vision and strategy for the future.” Founded in 1968, Nivel is a global aftermarket manufacturer, distributor and seller of specialty vehicle parts and accessories. The company sells its products directly to OEMs, independent distributors, golf car dealers, agricultural and construction equipment dealers… and its recent push into powersports includes taking over the  High Lifter and  Seizmik operations.

Oh Canada? The Canadian Motorcycle Association  has named  A. Ross de St. Croix  as its new CEO. Taking over from interim CEO  Holly Ralph , de St. Croix has been appointed to help transition this 77-year-old not-for-profit national association into a stronger, healthier and thriving organization. “I’m honoured to be taking over for Holly,” de St. Croix says. “What she has done for the organization as interim CEO has given us a great platform to continue to grow and prosper. We have some very exciting news, events and partnerships,  locally, provincially, nationally, and internationally  coming-up over the next few years that just proves we are going in the right direction.” Mr. de St. Croix brings to the association a lifetime of motorcycling experience, both within the competition side as well as the enthusiast side. Adding this to a mixture of knowledge from the commercial business element in his previous work life, his involvement in the film & television industry and years of coaching exposure, de St. Croix will have a positive impact on the continued growth of this organization.  Canadians  click here:  www.motorcyclingcanada.ca

Welcome back! Former  International Motorcycle Shows  fixture Jeff D’Entremont is back in the saddle as Vice President, Global Brand Alliances & Sponsor Relations for the  Sturgis Buffalo Chip. “I’m looking forward to working with our sponsors, attendees and friends in the powersports industry to continue to enhance their experience at The Chip,” says D’Entremont. “The team has done a great job of bringing together top-quality brands and a highly qualified audience over the past 4 decades, and I only hope to build on that legacy. We are working on big plans for the coming year and the future to enhance the experience for all our partners, and I’m excited to be a part of it.” Sturgis Buffalo Chip President  Rod “Woody” Woodruff adds, “Jeff will be instrumental in providing the best possible experience and value to the incredible brands that join us at the Chip. His history and connections in the industry make him a true asset to our sponsors old and new and make him a valuable part of our management team.” This team includes Executive Vice President  Daymon Woodruff,  COO Robert Pandya and Vending &  Biker Belles  Director Toni Woodruff. “We are continuing to build our facility and brand alliance portfolios,” concludes Pandya. “I have known Jeff for many years in our industry. His work ethic and the respect he has earned will deliver for all involved with the Chip.” Brands interested in broadening their presence to rally audiences can connect with D’Entremont directly at: Jeff@BuffaloChip.com

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Phares to  Fasthouse , Sackett searching for the next big gig!  Mark Phares  is the new president and CEO for moto gear outfitters Fasthouse. Although old time “Jet Ski” dealers  will remember him as the OG  Slippery When Wet  guy,  Mark Phares  has been with Smith for the past 20 in various roles, most recently as global general manager responsible for the eyewear company and its sister brand  Suncloud

Vehicle

recovery experts

Find it Now

GPS Security found a new president and Chief Operating Officer headed into AIMExpo… but they didn’t have to look far as Ray Banken was promoted from within. Banken began his FIN affiliation at its inception more than15years ago. Working side-by-side with founder  Mike Conners, Ray’s efforts have been fundamental in FIN being recognized as the preeminent Early Warning GPS Security System for the  Powersports Industry. “FIN would not be where it is today without the continuing efforts of Ray Banken,” claims CEO Conners. “I have complete confidence in Ray’s ability to take FIN to the next level in the overall expanding field of GPS Security. We encourage Ray’s colleagues throughout the industry to join us in congratulating Ray and wishing him continued success!”

In a related move, former Fasthouse president and longtime  Bell Helmets  bellwether Chris Sackett is now seeking new opportunities, noting the goals he had set for Fasthouse had been achieved and in many cases, exceeded. Meanwhile the two brands continue to collaborate — Back int 2017, Bell unveiled a special edition Fasthouse Moto-9  helmet. Bell remains the official helmet of Fasthouse to this day.

now Series Director of  Progressive American Flat Track . Smith will transition immediately from his current role as the Director of Industry Relations to the expanded role of AFT Series Director. “Over the last year, Bryan has consistently demonstrated the leadership capabilities that are necessary to take on even greater responsibilities with the series,” said  Gene Crouch, CEO of  AMA Pro Racing. “Bryan’s ability to leverage the knowledge he’s gained over the course of his motorcycle racing career as both a factory rider and championshipwinning privateer will also be critically important as we form future strategies for the sport.” Smith joined AMA Pro Racing in 2022 following a decadeslong career as one of the sport’s leading competitors. His accolades include winning the  Grand National Championship  as a Kawasakimounted privateer in 2016 before becoming a Factory rider, racing on the  Indian Motorcycle  and HarleyDavidson squads in subsequent seasons. “When I joined the Progressive AFT management team a year ago, I said my goals were to give back to the sport and see it grow,” said Smith. “That’s even more true today. I’m encouraged by what we’ve accomplished already, and I’m excited to embrace this new opportunity to create an even greater impact. I feel certain we’re on the right path to take the sport to the next level.” Smith will be responsible for managing all competition aspects of Progressive AFT, including season calendar and event planning, event operations, safety and track prep and series rules development. Smith will also continue to manage rider & team relationships and new rider evaluation. “We are very excited to move Bryan into this new role,” said Kevin Crowther, Chief Competition Officer of AMA Pro Racing. “Bryan has a wealth of knowledge from all levels of competition, and the experience he gained last year working with the paddock and the Progressive AFT staff has given him the tools that he needs to make a positive impact on the sport.”

Speaking of promoting from within, former flat racker  Bryan Smith is

PERFORMANCE IN MOTION!

UTV UPDATE: GETTING NASHTY, AGAIN!

We just need 1 Day for 1 Hour to have 1 Conversation to alter your lifestyle for the better! — that is what Brandon Nash’s signature block and business cards claim. In this installment with Brandon Nash, we map out MAP, find out what this busy owner would like to do more of and what he’d like to do less of. We also get Brandon’s final advice for powersports dealers.

What’s your position on dealer market adjustment pricing… a.k.a. MAP?

Our MAP policy is pretty straightforward. The manufacturers are putting together a price that they feel it’s worth, what the financial institutions are going to be able to lend on it, and so forth. Have we all had a struggle as far as inventory the past two years? Absolutely! Is it technically the consumers’ fault? No. So when you get into specifics like freight and prep, we’ are straight up. We charge based on the time and effort that it takes and whatever is listed on the manufacturer’s price.

If there’s going to be any type of ‘market adjustment’ to offset the lack of inventory that we have, we make it up by accessorizing the unit —I don’t mark up the freight and prep, instead I put accessories on it. That way, a customer might buy something a little more than what MSRP is, but they are getting value for it… what’s relevant is that the customer is comfortable with buying it from me.

Throughout the pandemic, we told people we were going through this situation with two goals in mind: 1) We want

to make sure the lights are staying on and our employees are kept employed and don’t have to lay anybody off. 2) We’re still making customers happy and doing it the right way.

So let’s shift gears now and go back to some management topics. What do you wish you could do more of?

I wish that I could spend a little bit more time individually with employees… make sure that the employees understand that I’m here to support them, whether I have been in their shoes or not. Service writers are a good example of that. I have not worn that particular hat, but I understand it, I understand how important it is to deliver quality service to the customer. But there’s not always solid training for those specific jobs.

I’ve elevated people much faster than I really wanted to because of needs around the dealership. There is not always time to send them to school or send them to a two week training seminar or whatever. Just being able to help out and spend more individual time as much as I can. Wearing a bunch of hats and trying to help manage three stores pulls you in a lot of different directions.

A lot of directions! So what do you wish you were doing less of?

I wish I was doing less driving! I wish I had a little bit more of a handle on going to pick up parts, going out on deliveries…. That’s just a personal thing. I could find more time to help individuals if I wasn’t in the truck driving so much.

What’s the one word you would use to describe yourself?

Adaptable. I really am adaptable. For example, when I moved from Arizona to Oregon I had never even visited the area before. But it was one of those opportunities where if I don’t say yes to this, I don’t know if more opportunities are coming down the road. So let’s just go for it. That is similar to the current challenges that we have in business. If you’re not adaptable, you’re just going to stay stagnant and watch all the success go by.

You may not be surprised to find out that I had a conversation with your dad about you. You being the second generation Nash in the business, I asked your dad what is the one word he would choose to describe you. Would you care to guess what it might be?

Stubborn!

Well, he was much more polite about that. He said “tenacious.” Does that surprise you that he’s selected the word tenacious?

No, I think having tenacity is an incredible compliment.

I think it was Peter Drucker, the father of modern management, who said, “things get done in organizations by people who have a mono-maniacal

focus on getting things done. I would describe you as tenacious, too. What do you think is the biggest thing that you struggle with?

That’s a hard one… I would say the most recent thing I’ve struggled with is the work/life balance. Being too involved at work and not being able to punch your time card and go home. It is hard to leave it there to be with the family… That’s probably the hardest thing… that’s my biggest challenge I’m still working on.

That is hard. Would you like to know what your dad said? He said sometimes slowing down enough to let others catch up is a good thing. He said you have another gear with the nitrous button smashed!

Actually I don’t think there’s anything wrong with having a nitrous button and smashed doors!

That’s fantastic. What would you say is your competitive advantage, your strengths, something that you do well?

I probably forward-think more than anybody in our organization. If we’ve got an event that’s coming up, I want to get after it! I do not want to sit there last minute asking, Did we grab this? Did we have that? Did we whatever… An example is the fact that our Phoenix store is only open

Continued from page 21

5 days a week, not seven.That means you only have five days to get a seven day work week done. So if you’re not forward-thinking, if you’re not trying to get ahead of what you can, I think that you’re not executing as well as you can.

Your dad says one of your strengths is creativity. You have an extraordinary ability to think outside of normal thought process processes, and to make things happen. He also says that you are a terrific trainer that likes to show people how to do things, versus just telling them how to do it. And he also says that your ability to stay dedicated, since an early age, has really been extraordinary. How does that make you feel when you hear your dad saying that stuff about him?

Well, he’s not exactly a man of many words all the time. But when you hear that stuff, it’s obviously encouraging. I definitely attribute success to goal setting. I set goals big time… I knew what I wanted when I was 18, where I wanted to be at 25, and at 30 — then I put myself in a position to maintain those goals. I know that sounds super naive and cliche, but it truly can happen if you set the goals and put the training in, listen to people who are more educated than you, listen to people who have got more experience than you and be a sponge. You absolutely have to be a sponge!

It’s also good to look outside the industry. There’s a TV show that I like called Bar Rescue. Obviously, it’s a reality TV show, but there’s actually some wisdom in there. Our industries overlap… hospitality has servers, we have our front end people, salespeople. Hospitality has cooks,

we have mechanics, etc. The two industries have a lot in common. You have to be able to take from different industries, and sometimes implant that input into what you do.

And the last thing you have to do is find something that separates yourself from anybody else…

The act of juggling customers, employees, family members, takes extraordinary life balance skills. And I always admire when people like Brandon are doing it well. It’s also great to see someone who truly understands the importance of goal setting. The great JC Penney once said, “Show me a stock clerk with goals. And I’ll show you someone who can take on the world. You show me a person without goals, and I’ll show you a stock clerk.” Brandon Nash and his generation are the future of this business. And to quote Roger Daltrey and the WHO: “The Kids Are Alright.”

Now, go sell something. Will you!

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POLARIS RZR RACING AHEAD!

TLD RZR Pro R Revealed!

A$50,000 UTV? Polaris’ partnership with TLD is anticipated to boost the bottom line for the limited edition benchmark. On the eve of his birthday, iconic motocross, mountain bike and action sports innovator Troy Lee played host to Polaris to present matching 2023 RZR Pro R Troy and RZR 200 EFI Troy Lee Designs Editions. The Polaris-TLD collaboration is said to leverage the legendary artistry of Troy Lee with the performance-engineering prowess of Polaris.

“We’re thrilled to continue our partnership with Troy Lee Designs, offering two limited edition RZRs that powerfully demonstrate our shared passion for off-roading and our commitment to premium style, performance and safety,” said Reid Wilson, VP Polaris Off-Road Recreation. “This year, we selected the RZR Pro R and RZR 200 models for the simple fact that they are at the top of their class – the Pro R for its unmatched power and strength, and the RZR 200 for its unique blend of performance and safety features, ideal for unlocking the excitement of off-roading for the next generation of riders.”

Since his early days painting helmets for professional motocross riders in the 1980s, Troy Lee has influenced generations of two-wheel off-road enthusiasts across the MX and MTB industries. Now with these new limited edition RZR models, TLD and Polaris are elevating self-expression for sideby-side drivers who live for the adrenaline rush and excitement of off-roading, whether out in the dunes or on the trails.

“The RZR Pro R and RZR 200 are both an incredible design canvas,” noted the Birthday Boy. “The Pro R has power for days, suspension that delivers a ridiculously smooth ride, and strength to manage anything thrown its way, while the RZR 200 gives the next generation of riders the confidence to tackle the trails,” Lee added. “It’s truly an honor to design our very own RZR Pro R and RZR 200, the ultimate proof points for Polaris’ engineering prowess and commitment to driving the side-byside industry forward.”

Featuring an industry-leading 2.0L four-cylinder engine that delivers 225 horsepower (noted in the graphics on the hood), a welded one-piece cage, solid box chassis and stronger driveline, plus the adaptive DYNAMIX DV, and all-new MaxLink suspension, the Pro R was built to take drivers further and faster than ever before. For the young, aspiring riders, Polaris is offering the RZR 200 EFI Troy Lee Designs Edition.

TLD KIDS

Designed for children 10 years or older, the youth sideby-side packs industry-leading safety features, kid-friendly performance, and adjustability to allow the young rider to grow with their machine. Simply put, the RZR 200 EFI Troy Lee Designs Edition combines race-inspired styling, with kidfriendly performance that empowers young drivers to get out and ride…

But be warned, Polaris isn’t kidding when they call the TLD Edition 200 a “limited” edition. Only1,000 units will be available to dealers worldwide. The limited edition RZR 200 EFI Troy Lee Designs Edition includes:

• Custom Graphics with matching TLD interior and exterior painted components, including the ROPS and springs.

• Industry-Leading Safety Technology Parents will appreciate top-of-the-line safety features including RIDE CONTROL powered by RIDE COMMAND, which includes helmet-aware technology, pin code start, digital speed limiting and geofencing.

• Kid-Friendly Performance With plenty of ground clearance and suspension travel, the RZR 200 has all the performance necessary to empower young off-roaders.

• Grow With Polaris – The fully adjustable seat and steering wheel make it possible for young riders to grow with their side-by-side.

FACTORY FIRST!

Polaris brought the house down at the spring dealer meeting by announcing their Factory Racing Program. Piloting purpose-built racing RZRs will be rising stars Austin Weiland, Brock Heger and Cayden MacCachren. The trio will be backed by the full Polaris engineering factory effort, along with an elite crew made up of some of the sport’s most proven and successful offroad racing veterans.

“Backed by nearly 70 years of innovation, Polaris is responsible for literally inventing the performance side-by-side category,” said Reid Wilson, Vice President, Polaris Off Road Recreation. “Polaris also has a long and storied history of winning at the highest levels of off-road racing, so it simply makes sense that we’d be driving the industry forward yet again with the first, full-fledged UTV class factory racing program,” he adds.

“Racing is integral to everything we do, driving performance innovations that inspire the products we bring to showroom floors – ultimately pushing the industry forward and advancing the consumer side-byside market. We’re absolutely chomping at the bit to now showcase Polaris’ engineering prowess and ingenuity through our new Polaris Factory Racing team.”

Polaris has hand-picked its team of highly trained off-road racing specialists for the launch. Team operations will be based in Vista, California. Amongst the Polaris Factory Racing team’s 12 full-time employees are more than 150 years of combined off-road experience, expertise and proven champions.

Engineering: Polaris Off Road

The development of the three purpose-built vehicles was led by Polaris Off-Road Racing Technical Director Robert Wilmot, overseeing a team of Polaris off-road engineers for whom racing and racecraft isn’t merely a job, it’s a personal passion. For these engineers, the development of a purpose-built factory racing UTV is literally a dream

come true. Alongside Wilmot, the Polaris engineering team will assist in the progression of the program from the standpoint of ongoing race vehicle testing and development.

Team Principals: Craig Scanlon & Travis Clarke

The team will be run by long-time off-road racing veterans and team principals Craig Scanlon and Travis Clarke, a duo that packs two decades of combined off-road racing experience. The two have formed SCI (Scanlon Clarke Industries) as the program management arm of the Polaris Factory Racing team.

Formerly an executive for Polaris Off Road, Scanlon has been a driving force in the industry on and off the race course. In addition to his work for Polaris, Scanlon dove headfirst into his passion for off-road racing by creating Scanlon Motorsports Group, a professional racing program where he also served as driver, claiming his first UTV Pro Class victory at the 2019 Baja 500.

In addition to experience racing and winning in off-road cars himself, Clarke brings a wealth of experience in racing business and athlete management. Well established as one of the sport’s premier sports marketing executives through his work with Wasserman Media Group, Clarke’s client list includes some of the sport’s more renowned drivers. He’s also been a key player in the ongoing evolution of King of the Hammers, driving critical sponsor support, instrumental to the overall progression of the premier U.S.-based off-road event. Outside of the offroad world Clarke has been responsible for establishing some of the top teams in Supercross/Motocross, NASCAR and the rally racing community, including RCH, Two Two Motorsports, Hoonigan Racing and Pastrana Waltrip Racing.

General Manager: Ryan Thomas

Off-road industry veteran Thomas will oversee the team’s day-to-day operations and manage driver and sponsor relations as the team’s General Manager. Thomas has spent his lifetime on both the business and racing sides of the industry, initially working for his family business, Chenoweth Racing Products, which developed some of the most successful cars in off-road racing history. Most recently, he was President of Ultra4Racing and prior to that spent ten years as Director of Wide Open Baja in Cabo San Lucas. Thomas also packs serious racing credentials from his days as a top-tier driver, with five Baja 1000 titles to his name.

This Polaris Factory Racing team is driven by a singular goal – winning. In 2023, the team will compete in the SCORE International series and the Best in the Desert’s Vegas to Reno race. The season will kick off at the San Felipe 250 on March 28-April 2, followed by the Baja 400 from May 31-June 4, Vegas to Reno on August 16-20, the Baja 500 on September 12-17, and the Baja 1000 on November 13-18.

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• If the tire cannot be repaired:

- 100% of replacement cost* is covered the first year

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Atturo is excited to offer an exclusive industry-first 24-MONTH TRAIL HAZARD™ PROTECTION PROGRAM at no additional charge with Atturo Trail Blade SXS tires. So when adventure calls, UTVers have the tires it takes to go the distance. *Learn more at atturo.com/trailhazard

FACTORY RACER

Since the early days when automotive OEMs drove the evolution of off-road racing, to the modern factory racing programs that exist today in auto racing, every legitimate factory racing program has been built around the development of a purpose-built race vehicle,” said Reid Wilson, Vice President, Polaris Off Road Recreation. “And that’s exactly what we’re doing with the RZR Pro R Factory.”

“We are a company of passionate enthusiasts that live and breathe the off-road lifestyle and the development of the RZR Pro R Factory was nothing short of a labor of love,” he adds. “We are excited to arm our new factory racing team with this incredible machine as we embark on our inaugural season at the San Felipe 250.”

Wilson points to the fact that the RZR Pro R demonstrated capabilities and durability when Brandon Sims won the 2022 Baja 1000 UTV Overall. With its purpose-built RZR Pro R Factory, Polaris has taken the Pro R platform and elevated it with a race-ready level of power, strength and control that’s capable of withstanding the harsh terrain and unrelenting demands of desert racing’s most daunting events, claims Wilson.

Race-Tuned Power

At the heart of the RZR Pro R Factory is the industry’s most powerful engine in a consumer side-by-side, the ProStar Fury 2.0L. In its stock form, the naturally aspirated fourcylinder motor puts out 225 horsepower. Tuned for wide open desert racing, the RZR Pro R Factory’s large rearmounted radiators and Polaris Lubricants PS-4 Extreme ultimate synthetic engine oil take performance to the limit and allow the factory drivers to push the machine further in the harshest conditions. In addition, a racing-calibrated driveline with race-tuned transmission provides maximum power to the ground. At the same time, high-strength, lightweight materials increase the overall power-to-weight ratio for maximized performance from start to finish.

Desert Proven Strength

Built with a high-strength, lightweight chassis compliant with FIA T4 Class, SCORE, Best in the Desert and Rally Raid race series, the RZR Pro R Factory is ready for any global race event. To withstand the toughest and most extreme terrain, the purpose-built machine features 35” BFGoodrich® Tires

that maximize power while staying secure on Method Race Wheels® with exclusive Bead Grip® technology. A full skid plate, front and rear Baja bumper, and cage offer complete vehicle protection so critical components such as the engine and driveline stay protected. In addition, integrated mounts for spare tires, jack and tool kits allow the factory racers to confidently tackle each racecourse, knowing they can get out of tricky situations when needed.

Ultimate Control

Delivering maximum control through the roughest terrain, the RZR Pro R Factory features FOX 3.0 Live Valve X2 Internal Bypass shocks and a race-tuned DYNAMIX DV system. These systems are the ultimate in high performance, independently adjusting the compression and rebound in each shock to keep the vehicle firmly planted through corners and floating across the roughest whoop sections. To meet the needs of the factory drivers and keep them comfortable throughout the longest races, the RZR Pro R Factory features improved racing ergonomics. With Sparco seats, harnesses, and steering wheel, the racing cockpit provides the comfort needed to stay focused on the next corner, whoop section, or rock climb. Additionally, factory drivers and their co-pilots can closely monitor the course and know what lies ahead with a seven-inch RIDE COMMAND and GPS, all while staying in touch with their pit crew with PCI radio communication systems. RIGID lighting enables the racers to see, and be seen, in the harshest conditions.

Team sponsors include Progressive Insurance®, Rockford Fosgate®, Synchrony® and GoPro®. In addition, the team enjoys support from Polaris Engineered Lubricants, BFGoodrich® Tires, Fox Racing®, Fox Shocks®, Rigid® Lighting, Method Race Wheels®, VP Racing Fuels, BOXO® USA, Sparco and Pro Eagle.

The Polaris Factory Racing team and RZR Pro R Factory will debut at the San Felipe 250 March 28-April 2, followed by the Baja 400 May 31-June 4, Vegas to Reno August 16-20, the Baja 500 September 12-17, and the Baja 1000 November 13-18, 2023.

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Dealernews Research

By Don Musick

19 CRIMES PART II

Clearly, as a marketing tool AR can be pretty powerful, but how does all of this fit into the Powersports Industry?

app supported 100+ parts for customizing each build with thousands of model/engine/color/option combinations possible. The visuals were so realistic that you’d be tempted to throw a leg over and grab the bars (but then you’d be sitting on the floor)! While the app has been sun-setted, you can still check it out on the Candy Digital website.

RYKER

No, not that Riker! Let’s rewind back to 2019 when BRP introduced the little brother to the Can-Am Spyder, the Can-Am Ryker. BRP had tapped Toronto-based Candy Digital to support the launch of the Ryker under the marketing umbrella “Ride Like No Other”. The Ryker AR app (no longer available on either platform) allowed customers to place a detailed model Ryker on any target surface in their environment, from life-size to desktop! Using a smart phone or tablet, you could literally walk around the model and view it from any angle and as close as you wanted! The

DOWN IN AFRICA

A few years before Ryker made its debut; the digital media company INDG had also developed an AR app to support the re-introduction of the Honda “African Twin”. The app is available on both platforms from Honda Motorcycles Europe, and like Ryker, the user can place a model on any surface. However, the app does not support walk-around viewing although you can rotate and zoom the model on screen. Customization is limited to color selection. You can see the app in action on INDG’s website.

HARD WIRED

Dallas Texas based “900 lbs of Creative” took a slightly different spin on the AR experience for Vespa Scooter. This app (sun-setted) was designed to work in conjunction with a target image in Wired Magazine to explore colors and available options. The AR image was fixed to the target image, but like Honda, it could be rotated on screen.

ON THE ROXS!

Stepping into the realm of off-road vehicles, creative content provider “Fast Effect” of Royal Oak Michigan also developed an AR app for Mahindra’s ROXOR division (also sun-setted). Like the Ryker app, this implementation also supported walk-around viewing (in multiple sizes – up to life size!) as well as customizable colors, wraps and accessories. But to keep you in the off-road spirit, the app also presented the ROXOR on a rugged out-cropping of rocks! The image on the right shows a full-sized AR image next to a real (snow covered) model.

Continued on page 32

Continued from page 31

FUSION ILLUSION

While a number of powersports manufacturers have dipped their toes in the AR pool, none have embraced it more wholeheartedly than Polaris. Based on the Vuforia AR Platform, Polaris partner PTC has created AR experiences for many of their product lines to address sales support (e.g. RZR, snowmobile and Slingshot) as well as service support. But their most impressive accomplishment has been the fusion of actual product with AR highlighted features. Not to be confused with callout overlays, this approach scans and recognizes the physical dimensions of the vehicle and superimposes 3D constructs of the systems being examined.

In the image below, the RZR is being scanned in the app window. Once registered, the user is invited to explore more details in the categories of power, suspension and agility via virtual buttons that float in front of the vehicle.

Each category is fully supported in walk around view supplemented by audio and video narratives. Note that the rocks on the stage are AR additions as well! A great video that illustrates the effectiveness of this approach can be found below.

AND YOU MAY ASK YOURSELF…

In the last several articles we explored how augmented reality functionality could be incorporated into helmet design. The use case this time though revolves around enhancing a customer’s experience in your dealership. Big budget OEMs can afford this tech, but what can you hope to accomplish on a shoestring?

Well, as a teaser for things to come in future ARticles, scan the QR Code. Thanks Bob!

From his first motorcycles (a Honda S65 and an S90) when he was 16 to 50 years later, Don Musick has never stopped twisting the throttle. Although his accomplishments in the research arena have surpassed his MX career Don has over 25 years experience with major manufacturers in the Powersports and Automotive industries specializing in e-business solutions for retail distribution networks. His solution portfolio includes the development and implementation of manufacturer/dealer extranets, consumer-direct commerce portals, manufacturer/dealer e-channel integrations as well as development of web-based sales force automation tools. For most of his career, Don has been fascinated (his wife would say obsessed) with geographic market analytics, dealer location planning and sales territory optimization. He founded Genesys Technology Solutions (GenesysTech) http://www.genesystech.com/ to develop new tools and market intelligence products to help manufacturers understand the competitive landscape of their industries, recognize opportunities and grow their businesses. A Spartan to the core, Don earned a B.S. in Physiology and PhD in Biochemistry from Michigan State University. Contact: dmusick@genesystech.com

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Dealernews Research

By Lenny Sims

BY THE BOOK

J.D. Power Q4 Powersports Market Overview

It isn’t just the threat of a recession, although higher interest rates, a return to seasonal demand trends, and increased spending on other forms of entertainment and travel are likely factors behind the recent depreciation. In fact powersports pricing dipped in Q4 before anyone even agreed on how to define “recession” — While still strong from a historical perspective, all segments fell year-overyear. As noted last month, inventory levels are filling and demand is slowing. This drives diving values down from the COVID-created highs.

Conversely the automotive industry is still trending positively. “March is shaping up to be yet another positive month for the industry,” states Thomas King, president of the data and analytics division at J.D. Power. “With retail sales forecasted to be up nearly 2%—along with average transaction prices tracking up 3.5%— consumers are on pace to spend nearly $50 billion this month, an increase of 5.5% from what they spent on new vehicles a year ago.” Point of reference, the entire powersports market is a $50 billion industry… the car guys are on track to do that in the month of March alone

King cautions that retail demand has been strong because of pent up demand, but those days are coming to an end at the same time the recession is set to play havoc. “The availability of new vehicles in inventory at retailers is improving, resulting in a softening of dealer margins and increased manufacturer incentive spending.” He also notes fleet sales are up 31% YTD, a windfall powersports can’t tap into, unfortunately.

In the motorcycle segment, values for the most recent 10 model years of cruisers averaged 3.0% lower in the September-October period compared to year-prior. Year-todate, this segment is still 6.0% higher. Sportbikes averaged 5.6% lower in September- October 2022 compared to the same period of 2021, but 3.8% higher year-to-date.

In the side-by-side segment, values for the most recent 10 model years of utilities averaged 2.7% lower in the September-October period compared to year-prior. This category is still 7.4% higher in the first 10 months of 2022 compared to the same period of 2021. Sport side-by-sides averaged 1.2% lower in the September-October periods, but 12.0% higher year-to-date.

J.D. Power Specialty Valuation Services (formerly NADAguides) is a leading provider of specialty vehicle valuation products and services to businesses. The team collects and analyzes tens of thousands of wholesale and retail transactions per month, and delivers a range of guidebooks, web service data, analysis and digital data solutions. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

DLL, a wholly owned subsidiary of the Rabobank Group, has more than 50 years of experience on the manufacture, distributor, and dealers sides of the business.

Our floor-plan finance program with DLL caters to your inventory turns, cash flow requirements, curtailment schedules, and unique business model.

With DLL, approved Vanderhall dealers will receive 18-month terms on inventory purchases. This can help you stock more inventory, match repayment terms to the sale of goods, and improve cash flow management.

JANUARY AWP IN REVIEW

Pricing Stabilizes

After closing the books on 2022, uncertainty continues to permeate throughout the dealer network. While the expectations of Spring typically bring slight increases in Average Wholesale Prices (AWPs) in January, the back half of 2022 was anything but typical. With July through December AWPs correcting downward up to 20% or more, January pricing showed some welcome stabilization. Compared to the prior 90 days, AWPs for most categories were relatively unchanged.

Metric Cruisers rose more than most, while ATV and Side-by-Side AWPs continued to decline. Smaller volume categories like PWC, Marine, and RV reflected positive gains directly attributed to a better product mix. On a year-over-year basis, all categories decline moderately to significantly as post-pandemic pricing continues its retreat to normal levels. The minor exception was Metric Cruisers, which remain in demand versus supply as OEMs resolve their supply chain challenges.

Slow Start

January auction volume continued to come in lower than in prior years, a stark contrast to growing dealer inventory levels. Between concerns over supply chain issues and the rapid drop in wholesale values, many dealers continued to stock and hold inventory through the back half of 2022. With the market transitioning back to normal, smart dealers will take advantage of the Spring market to clean out their closets. Any excess inventory held past May is at risk of another round of significant devaluation, especially as the economy slows. Auction product mix shifted slightly, with an increase in the ratio of Sport bikes and declines in the mix of Domestic and Metric Cruisers.

Looking Forward

Spring brings new product, tax return money, and improving weather conditions across the country. We anticipate further price stabilization and slight upticks across the category spectrum in February and March. We also expect pricing to be more muted this Spring than in typical years and then a significant decline in values again this Summer and Fall. Inventory management over the next 120 days could be makeor-break for many stores. Now is the time to act if you’re already sitting on excess inventory. While retail sales and profit margins are always the priority, dealers will need to be aggressive this year in both their retail and wholesale auction strategies to avoid being buried in the wrong inventory at the wrong price when a midyear recession arrives.

*All data provided by National Powersport Auctions includes live and online transactions from all NPA locations. Closed OEM auction data is excluded. For more info visit NPAUCTIONS.COM.

JANUARY ‘23 VS. AVG OF PRIOR 3 MONTHS AVERAGE WHOLESALE PRICE CHANGE

JANUARY ‘23 VS. JANUARY ‘22 AVERAGE WHOLESALE PRICE CHANGE

D I a g n o s t i c s DIagnostics

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EVOLUTION ELECTRIC VEHICLES

On A Charge!

VOLCON SHOCKS MINT 400

EV OEM Teams With BFG

ELECTRIFY EXPO

Amps Up

CURRENTS+

EV TO BE ASSEMBLED IN AZ

Volcon is shifting assembly of its Grunt EVO to AZ as part of a partnership with ElectraMeccanica Vehicles Corp. Based in Mesa, Arizona, ElectraMeccanica is a designer and manufacturer of electric vehicles and affiliated Volcon’s manufacturing partner, GLV. The group selected ElectraMeccanica’s state-of-the-art, recently commissioned, 235,000-square-foot HQ facility for final assembly of Volcon’s next generation Grunt EVO and Runt fat-tired electric motorcycles.

“Our move is a significant milestone for us as we strive to bring manufacturing back to the United States, speed up the launch of our vehicles, and attempt to establish a first-mover advantage in the electrification of the off-road powersports industry,” said Volcon ePowersports CEO Jordan Davis. “Additionally, we’re continuing to speed up our development and go-to-market process by adding this arrangement to our many key component suppliers such as BFGoodrich, Gates and several other key component providers.”

“Volcon’s an absolutely terrific fit for our Mesa facility, which has one of the best lean-assembly teams in the business,” adds Susan E. Docherty, ElectraMeccanica CEO. “When we commissioned our Mesa HQ in December 2022, we said one of our primary goals was not only to assemble our own unique designs there, but also to help fellow native-EV manufacturers achieve their own go-to-market goals by leveraging our expertise and resources. I’m very proud to be able to contribute to Volcon’s success, and to use our plant to help grow the EV market overall.”

will “parade” through the main drag in Las Vegas to promote the fact that The Mint 400 is back. So where better for EV OEM Volcon to roll out its new collaboration with BFGoodrich Tires?

“As the market evolves towards electric vehicles, BFGoodrich is excited to work with companies that embody the adventure spirit,” said Harold Phillips, Global General Manager for BFGoodrich Tires. “Collaborating with Volcon will allow us to innovate in an exciting direction and help lead the industry into the future of off-roading.”

As part of the collaboration, Volcon worked with BFGoodrich to integrate their ActivAir suspension technology in the Volcon race vehicle. The two teams are leveraging the power of the EV motor in tandem with BFGoodrich’s ActivAir, a Central Tire Inflation System (CTIS) that makes real-time adjustments that aim to enhance the off-road performance and increase the battery range of Volcon’s future UTV products.

“One of the key benefits of the BFGoodrich ActivAir system is the ability to monitor the energy consumption of the battery in real time,” Volcon co-founder and CTO, Christian Okonsky commented. “Something like off-road racing creates the perfect grounds for testing BFGoodrich’s ActivAir system considering these situations have a constant scenario of driving at various speeds, in changing environments; especially when you prerun a course and can anticipate terrain changes, like a lake bed, or elevation.”

“We’re thrilled to be taking on this exciting new challenge,” added Jordan Davis, CEO of Volcon ePowersports. “Off-road racing is a demanding sport that requires not only speed and agility, but also toughness and durability. We believe that our electric vehicles are more than up to the task, and we can’t wait to prove it on track. It also serves as the perfect test bench for our vehicles and partner technologies to be pushed in the most challenging environments, so we know we’ve done due diligence before customers take delivery.”

The announcement comes as one of the first initiatives of the Volcon Technology Innovation Group (VTIG). VTIG is a division of Volcon that explores advanced technologies to improve and evolve current, and future Volcon products, and will be the first UTV brand to co-develop directly with BFGoodrich on new EV tire and other technologies.

VOLCON STUNS MINT 400 CROWD

Outside of showcasing the capabilities of its electric vehicles, Volcon is committed to promoting the use of sustainable energy in the world of powersports. “We believe that electric vehicles have a future in powersports, and we’re excited to be at the forefront of this movement. Not only that, but the environments where these races take place are delicate ones and any way we can minimize the unpleasant externalities of gas, we will,” concluded Okonsky.

In a spectacle that is over the top, even by Las Vegas standards, the infamous Strip gets closed off, and off-road race vehicles

LIVEWIRE LAUNCHES IN EUROPE

Starting with a network of 30 dealers, LiveWire ONE launched in Europe on March 15. According to LiveWire head of marketing Jon Bekefy, “each is equipped with specialist EV capabilities to support the LiveWire customer. LiveWire’s entry into the European market is an exciting step in the company’s geographic expansion strategy and the electrification of motorcycling around the world.”

These pilot stores will play a key role in a number of demo events LiveWire will put on throughout the course of this year. The first four European markets are Germany, France, the Netherlands and the United Kingdom. LiveWire ONE reservations of €100 will secure priority delivery beginning later in April.

Claiming that Harley-Davidson will be all electric in the future, CEO Jochen Zeitz said “I believe in big transformational change for iconic brands, which is what I’ve always done in my life. If you look at the past 120 years, the company has always evolved, never stood still... At some point in time, Harley Davidson will be all-electric,” he explained.” Still 100% EV makes sense to test the waters in Europe rather than Milwaukee?

Set to launch in three colors, LiveWire ONE will be available in Nimbus Gray, Nightfall Blue, and Liquid Black. Reservations will be managed by the team at LiveWire Europe, offering a digital-first model where consumers can interact directly with the brand, choosing color, accessories, delivery timing and their preferred retailer – specific locations by country can be found at www.livewire.com

All LiveWire ONE motorcycles are assembled at HarleyDavidson Vehicle Operations in York, PA.

LiveWire ONE MSRP inc. VAT:

Germany €24,990

France €25,290

Netherlands €25,390

U.K. £22,990

GETTING A JACKRABBIT START

Did you catch the JackRabbit start-up at AIMExpo? The original super portable micro eBike was last seen cruising around AIMExpo. “Somewhere between a pit bike and an electric motorcycle, the JackRabbit has the design of a BMX bike, the ultra-portability of an electric scooter, and the keen ability to make you feel like a kid again,” explains innovator Jason Kenagy.

“Because, just like your motorcycle, this mini machine has a throttle and takes off when you punch it,” he adds. It also might be a great addition to any dealership, pointing out the fact that JackRabbit is completely unique in the motorcycle space. “It’s on a trajectory to become the next big e-thing.”

Only 24 lbs and slimming down to 7 inches wide, the magic of JackRabbit is that it can be stored and taken literally anywhere. “You can easily lift and store multiple JackRabbits flat in a trailer, RV or car. And, because it has a removable swappable battery, you can take this bad boy on a plane because it is even FAA-approved.”

Don’t be fooled by its small size. It can hit 20 mph with the twist of the throttle. It also features 20-inch all-terrain tires for a smooth ride. With an MSRP of $999, it’s the perfect entrylevel electric bike and an ideal pit bike.

JackRabbit is available now in black, white, blue and yellow plus tons of accessories: Get a jump not the competition at: www.jackrabbit.bike

CURRENTS+

EVOLUTION ELECTRIC VEHICLES ON A CHARGE!

The Low Speed Vehicle market continues to accelerate. Leading this evolutionary wave into AIMExpo was Evolution Electric Vehicles. Amping things up in Las Vegas, they introduced the D5 at the trade show… and frankly shocked some dealers with its amenities.

“The Evolution D5 is an innovative electric vehicle that offers a unique driving experience for people of all ages,” notes their product walk-around video. “Equipped with a 9-inch touchscreen, LED headlights and tail lights and a top-mounted soundbar, the Evolution D5 delivers a fun and immersive driving experience. Whether you’re cruising around the neighborhood or exploring new terrain, the Evolution D5 provides a smooth and quiet ride while emitting zero emissions, making it an environmentally conscious choice.”

Looking to sell LSVs into gated communities, local golf courses and other adjacent markets? The Evolution D5 might just fill the bill. See it for yourself here: www.youtube.com/watch?v=Ome6zQ6Jk7g

ELECTRIFY EXPO AMPS UP

North America’s largest EV festival is amping up for 2023. A couple new venues have also been added to the seven-city tour scheduled for May through November. Kicking things off in California in Long Beach and San Francisco, the series crosses the county to Washington DC, New York, Seattle, Miami and concludes at Circuit Of The Americas in September. Electrify Expo showcases more than 1 million square feet of exhibition and demo space from the world’s leading brands in e-mobility to an audience of engaged and enthusiastic EV shoppers.

“Electrify Expo has significantly increased the number of brands participating and also added new entertainment elements for all ages,” said BJ Birtwell, founder and executive producer of Electrify Expo. “We are bringing together legacy automakers, startups in the e-mobility space with truly unique products, and everything in between to give people hands-on experiences with the products that are going to change the world as we transition to an electric future.”

Over the past three years, Electrify Expo has established itself as the premier EV event for everything from electric cars and trucks, to e-motorcycles, e-bikes, e-scooters, e-skateboards, e-watercraft and more. The exhibitor roster includes the industry’s biggest brands including domestic and international automakers as well as early-stage companies.

In addition to the public component, Electrify Expo will again host two ‘Industry Days’ featuring the brightest minds in the EV industry using keynotes, panels and fireside chat formats. Electrify Expo Industry Day allows attendees to network with other professionals and discuss the latest trends in e-mobility which will kick off both the Long Beach, Calif. and Austin, Texas festivals. More information and a full schedule of speakers in Long Beach will be announced soon.

The 2023 Electrify Expo Schedule:

May 19-21: Long Beach at Long Beach Convention Center

June 24-25: San Francisco at Alameda Point *NEW location for 2023

July 22–23: Washington DC at RFK Stadium *NEW location for 2023

August 12-13: New York at Nassau Coliseum (Long Island)

September 9-10: Seattle at Marymoor Park

October 14-15: Miami at Miami Dade Fairgrounds

November 10-12: Austin at Circuit of the Americas

THE NEXT GENERATION

EASE OF USE

No gasoline, clutch, or gears. Just plug in your vehicle for a few hours and you’re ready to ride

HIGH-TORQUE MOTOR

The combination of power and performance creates a smooth ride over any terrain

STRESS-FREE MAINTENANCE

No rebuilding carburetors, checking oil levels, or any of the tedious chores you find with gas powered bikes

LEARN MORE AT VOLCON.COM

CONNECTED TECHNOLOGY

Our unique Parental Control system lets you limit, configure, and even disconnect your child’s motorcycle from your smartphone

ALL-ELECTRIC VOLCON YOUTH LINE

CURRENTS+

FROM ZERO TO HERO

In keeping with its vision to ‘Be The Future Of Mobility,” Hero MotoCorp has signed an agreement to collaborate with Zero to produce premium electric motorcycles. The collaboration combines Zero’s powertrain technology with the world’s largest manufacturer of motorcycles and scooters. Paving the way to this partnership, the Board of Hero MotoCorp approved an equity investment of up to US$60 million in Zero Motorcycles back in September.

“Our partnership with Zero Motorcycles is a significant milestone in our journey towards ushering in an era of sustainable clean technology in the mobility space,” said Dr. Pawan Munjal, Chairman & CEO, Hero MotoCorp. “With Zero as our partner, we look forward to accelerating the transition of electric mobility in India and across our global markets.”

“We are delighted to have Hero MotoCorp – the world’s largest motorcycle maker – as our partner,” added Sam Paschel, CEO, Zero Motorcycles. “Our companies are both committed to transforming the riding experience and bringing remarkable, innovative products to the world. With these shared passions, we look forward to delivering exceptional value, performance and fun for our customers.”

Under its emerging mobility brand, VIDA, Powered by Hero, the company has already launched its first EV, the VIDA V1 scooter. Hero has initiated operations of public charging infrastructure in Bengaluru, Delhi and Jaipur. There are now nearly 300 charging points across the three cities open for public use.

UBCO UNVEILS UNIQUE SELLING PROPOSITION

All the way from New Zealand, UBCO entered AIMExpo with a distribution deal as part of Tucker Powersports burgeoning ePower portfolio and a unique new SE package for the global market in 2023. In a twist on its classic AWD 2X2 Adventure bike, the Special Edition (SE) has been designed to intertwine both outdoor and urban worlds, catering to the everyday adventurer, according to the Kiwis. An expanded range of accessories and limited edition green and electric orange color palette differentiate the first limited edition models from UBCO.

“We’re all about making adventure more accessible, opening up powersports to more people than ever before” explains Colin Godby, Chief Product Officer. “Here we combine proven off-road toughness with added style and functionality to bridge the gap between the great outdoors and everyday life. The idea is to introduce more urbanites to exploring off the beaten track, while providing a bike that seamlessly crosses both worlds, whether everyday errands, hitting the gym, commuting, surfing, or outdoor adventures. We’re excited to see how our Special Edition can help this movement.”

The SE design presents a more contemporary version of its classic utilitarian style bikes not yet seen in the UBCO range, according to Godby. In addition to its unique 2X2 capabilities and the fresh design, key features include:

• A revitalized braking system: A newly designed braking system with motorcycle-grade braking pads and more substantial brake levers.

• A built-in central tote: Central tote that allows convenient, throw-and-go access to everyday items.

• Compact rear duffle: Robust rear duffle designed to carry small to extra-large items on the go.

• Expandable compartments: Duffle side pockets lay flat, perfect for laptop books, or pizzas.

• Peak Design phone mount: Vibration protected and featuring magnetic locking technology to enable onehanded phone attachment and removal.

• Giant Loop Pronghorn straps: Multi-purpose stretch straps that provide full flexibility to attach and carry items.

See your Tucker rep for more details.

FEATURED TRANSACTIONS

Transactions were exclusively facilitated by our Harley-Davidson & Powersports Division.

COWBOY HARLEY-DAVIDSON & COWBOY POWERSPORTS

4 Locations, Texas

Acquired by Ed Morse Automotive Group from Walter & Sheila Umphrey

LOS ANGELES

HARLEY-DAVIDSON

Los Angeles, California

Acquired by Andrew Westbrook from Rodin Younessi

STAR CITY MOTOR SPORTS

Lincoln, Nebraska

Acquired by Elway Powersports from Robert Kay

BARNEY’S MOTORCYCLE & MARINE

3 Locations, Florida

Acquired by Dave Veracka from KC Wood & Todd Hempstead

BUD’S HARLEY-DAVIDSON

Evansville, Indiana

Acquired by Evan Schipper from the Morand Family

PATRIOT HARLEY-DAVIDSON

Fairfax, Virginia

Acquired by Paul Veracka of PVM Enterprises from Sheehy Auto Stores

For a confidential consultation and complimentary opinion of value on your business, please contact us:

Harley-Davidson & Powersports Division

George C. Chaconas, Senior Partner, CBI/M&AMI

Office: 813. 569. 6250 | Cell: 813. 245. 2535

Email: george@performancebrokerageservices.com

Address: 2102 West Cleveland Street, Tampa, Florida 33606

BRAD GEORGE JUAN PARDO

COURTNEY BERNHARD

GEORGE C. CHACONAS

News from YOUR National Powersports Dealer Association

Welcome to the March 2023 newsletter from the NPDA! There is strength in numbers, and WE APPRECIATE the 300 Dealers who have joined us in our Mission: “To advance our industry by elevating Dealers to be well prepared, sustainably profitable and exceed the expectations of a growing Powersports customer base.”

URGENT RESPONSE NEEDEDEconomic & Banking Crisis Dealer Forum

On Wednesday, April 12, 2 p.m. ET, the NPDA will host a very important online panel discussion for Dealers on the direction of the economy in 2023, including the unfolding banking crisis.

Attendees will gain insight into the current state of the economy and be presented with important industry knowledge gained during the 2008 downturn from Dealers and other Powersports industry professionals who were on the front lines 15 years ago.

You do not need to navigate these uncertain times alone – let the NPDA help you gain a better understanding of how best to steer your Dealership forward.

An email with registration instructions for this online discussion will be sent in the coming days; to help with planning, please send an email to info@npda.org with the word “YES” indicating you are interested in taking part in this event. Thank you.

Just Something To Think About ...

“March Madness Has Been Cancelled.”

Who would have thought we’d hear those words, but that’s exactly the news that was shared three years ago this month when the COVID-19 pandemic began wreaking havoc on the health of millions of people around the world, and ruining the global economy in the process.

We all know how bad it was, and in some cases still is. But the old line, “Hope Springs Eternal,” could not be more true than right now!

That’s because the first full day of Spring 2023 is today, March 21! In some parts of the country, the temperatures are already warm and the roads and trails are full of riders, while elsewhere waterways are dotted with personal watercraft. In other places, winter weather is sticking around, meaning great snowmobiling conditions!

We’re certainly not dismissing all the pain and suffering leveled by the pandemic over the past 1,000-plus days. But we also can control our outlook as we move forward, and try to make the most out of every day, road, trail, lake, river and mountain.

Here’s to a great season of change for the Powersports industry and all of us who live and breathe this lifestyle!

NPDA Membership Provided By Tucker

Powersports

One of the most important things to happen in the history of the National Powersports Dealer Association occurred last month - our Partner, Tucker Powersports, announced it would pay membership fees for Dealers participating in its dealer support program.

Are you a Tucker customer? How much business are you doing with them? Contact your Tucker rep and see if your Dealership qualifies for a free or reduced fee NPDA membership! Current NPDA members, you can also use this perk to renew your membership with us when your current term expires!

If you need to do more business with Tucker to qualify, please consider doing so, and earn membership into the NPDA!

Even if you already qualify, please think about doing more business with Tucker – they are making a big leap of faith in the NPDA through this membership program, and will help us grow our association into a greater force in the Powersports industry.

“We are here to serve Dealers, such as providing them with tools to run their businesses better and advocating on their behalf, and even helping them enjoy this industry we all love,” added NPDA Organizing Director Darris Blackford. “We are excited to see how things unfold throughout 2023 and beyond.”

We Rocked It In Vegas!

Now that the desert dust has settled on the 2023 AIMExpo in Las Vegas last month, the NPDA is busily pursuing an aggressive path to drive the Powersports Industry to greater success.

Since our founding less than two years ago, the NPDA has grown to 300 Powersports Dealer members. The Board of Directors of seven men and three women are Harley-Davidson and metric dealers from Alaska to Virginia, Ohio to Texas.

The NPDA had a very active presence at the February 15-17 AIMExpo. We had a show booth, held a series of private meetings for Harley-Davidson Dealers, Board members and Advisors were featured show speakers, and we held our first Annual Update Meeting.

The February 16 Annual Update featured NPDA leadership, as well as representatives from nearly all of the 19 Partner companies that provide financial and intellectual support to the association.

During the meeting, NPDA Chairman Bob Althoff presented recent accomplishments of the group, including:

Formation of a Foundation to meet Dealer needs and support charities; The launch of the Powersports Industry Growth Initiative, which will include visual campaigns to help “mainstream” the industry on various media platforms;

Partnering with Tucker Powersports to provide its highest-volume customers with free or reduced fee membership in the NPDA.

“This is an incredible time for our organization, and I am humbled by the incredible work of our Directors and Advisors, and the support of Dealers and Partners, in making it all come together,” Althoff said. “Of course, the challenges Dealers are facing are on-going. What we love we have to make last, and we have exciting plans to continue our momentum.”

One area in particular will attract attention from the group’s leadership throughout the year: Education. The group’s Education Committee will further its efforts to arm Dealers with valuable, pertinent information and lessons that can help them grow their businesses and improve profitability. Other agenda items include establishing a lobbying presence in Washington D.C., improving connectivity between Partners and Dealer members, and launching in-person gatherings to promote Dealer-toDealer engagement.

“We are here to serve Dealers, such as providing them with tools to run their businesses better and advocating on their behalf, and even helping them enjoy this industry we all love,” said NPDA Organizing Director Darris Blackford. “We are excited to see how things unfold throughout 2023 and beyond.”

It’s Time to Sunset Surcharges - An NPDA Position Statement

Listen to the news for an hour, and you’ll hear a story about how tired of additional charges consumers have become. Airbnb’s cleaning fees, Live Nation’s service fees, airline baggage fees, the list goes on. When Americans say they are being nickel and dimed to death, it’s not an exaggeration, it’s reality. Consumers are sick and tired of these charges.

A large percentage of the items that Americans use each day are produced overseas, and most of those products are shipped to this country in containers.

A massive industry has been built to support the global movement of materials, and it’s very competitive. Shipping costs had remained relatively stable for the last decade, but due to strong demand and a tight supply they increased dramatically during the height of the COVID pandemic. As savings accounts have emptied and demand has slowed, supply chains have normalized, and the cost to ship a container around the globe has almost returned to pre-pandemic levels.

Another example, the Freightos Baltic Index, is a measure of the costs associated with global shipping. It’s used by many investors. The most updated chart shows that shipping costs have fallen dramatically. They are nowhere near their peak. We can talk about theories all day, but facts don’t lie.

During COVID, freight surcharges in the Powersports industry moved forward with lightning speed. First it was on vehicles, then parts, and then on everything. And once one OEM started charging them, it took less than 30 days for almost every manufacturer to release new price lists with all kinds of additional fees. Luckily for Dealers, some of the OEMs who had heavily promoted pre-order pricing programs protected those orders, but not all. We know of one dealer who forfeited more than $100,000 because he chose to honor the prices he had quoted his customers. He’s a good guy, and he plays the long game.

Powersports consumers were never happy to pay surcharges on their vehicle purchases, but they understood. Every newscast talked about supply chain delays, and showrooms were empty. It was easy to show a customer that demand dramatically exceeded supply. Except for a few models, those days are now behind us.

For those of us who have been around for a while, we knew that once manufacturers started charging these additional fees, it would be hard for them to stop. By a couple of levels, manufacturers are removed from customers. On the other hand, Dealers are the ones who bear the brunt of the customer dissatisfaction with these additional costs, and we hear those comments every day.

We knew that Wall Street would get hooked on those additional profits, and they are. During the pandemic, many OEMs sent a constant stream of notices to Dealers detailing how their costs were increasing, and the need to pass those on dealers/customers, while at the same time many were reporting record profits. The math doesn’t feel right to customers. Pay attention to what’s going on in DC and you’ll see that Congress is starting to hold hearings related to excessive fees and surcharges. The Consumer Financial Protection Bureau is also sniffing around. We all know that if the government gets involved in our business, they will just make things worse. It would do us well to be proactive on this front.

From the beginning of when humans began making products to sell, the manufacturer of a product calculated the input cost of materials and labor, added in a reasonable margin to support the business and its owners, and then established a selling price. That model has served us well for more than 4000 years. Capitalism at its finest.

There is always going to be some level of distrust between consumers and Dealers, especially with first time buyers. Dealers who focus on building relationships with their customers can quickly overcome these issues. However, sitting down and showing the customer the advertised price, and then three or four additional fees quickly moves the customer back into a defensive position. In many cases, the customer will still buy the vehicle, but they will continue to have a bad feeling about the transaction. Most Dealers want to play the long game, but we need manufacturers to be aligned with Dealers in order to build lifelong relationships.

Now that the global economy has stabilized, it’s time to get back to business as normal. It’s time for the manufacturers to reset MSRPs based on their true input costs. It’s time to abolish surcharges and other extraneous fees that Dealers and consumers are seeing. It’s time for each manufacturer to get back to playing the long game by working with dealers in the critical step of building customer loyalty.

None of this will happen until surcharges are eliminated.

NPDA Position Statement, featuring Lead Author & Board Member Mark J. Sheffield

The NPDA Board

NPDA PARTNER PROFILE

The Stanek Group/Morgan Stanley

Show me the money! Rather than talking sports with Jerry Maguire we decided to get a “second opinion” on financial planner at the dealership level from Paulina K. Matel, CFP Financial Advisor/Certified Financial Planner from the Stanek Group at Morgan Stanley. Since 1993, the group has focused on multiple trade associations and helping dealers with everything from wealth management to selling the store.

Business Summary

Our mission is to help Powersports Dealers like you become financially independent of your dealership. Whether you’re growing your business for the long-term, planning to transfer it, or intending to leave it within the family, you only get one chance to get it right. Why leave one of the most important financial decisions you’ll ever make to chance?

Having worked with countless Dealers over the past years, we are highly familiar with the many challenges you face in achieving your unique financial goals and are highly adept at leveraging the vast capabilities of Morgan Stanley. In fact, as much as approximately 90%t of our new business comes from Dealers like you and as many as 70% of these Dealers are interested in selling their dealership.

When you work with the Stanek Group, you have a savvy, well-informed financial quarterback helping you make all the right decisions for your needs, including those that frequently get overlooked.

Why Does The Stanek Group At Morgan Stanley Collaborate With The NPDA? The Stanek Group at Morgan Stanley is a member of multiple dealership trade associations, in areas like recreational vehicle, marine, and equipment industries, and understands how vital these organizations are to a Dealers’ success. When our team learned about the NPDA and its commitment to help Powersports Dealers succeed, it was an easy decision for us to collaborate. We are grateful to be a part of this association from its infancy and look forward to being a resource to all NPDA members for many years to come.

How Can NPDA Members Best Benefit From Our Collaboration With The Stanek Group At Morgan Stanley? Whether you’re growing your business for the long-term, planning to transfer it, or intending to leave it within the family, you only get one chance to get it right. Why leave one of the most important financial decisions you’ll ever make to chance?

Just as you wouldn’t have a major surgery without getting a second opinion from another doctor, it may be valuable to get a Second Opinion Service from advisors who focus on dealerships’ long-term success and ownership transitions.

Our Second Opinion Service is just that – a no-cost, no-obligation financial analysis of your overall picture. Our team can help you answer questions such as:

• Are you wondering what financial planning tools are available to help minimize tax and maximize proceeds in a year of a dealership sale?

• Are you doubting whether your personal and business wealth has proper safeguards and protections in place?

• Are you unsure what strategies top dealers are implementing now to make the best of a challenging environment ahead?

In addition to one-on-one Second Opinion consultations for Powersports Dealers, the Stanek Group at Morgan Stanley plans on hosting NPDA member exclusive webinars on an array of financial topics. Our team will also periodically contribute to NPDA newsletters to ensure members stay up to date on financial planning considerations impacting the powersports industry.

The Stanek Group/Morgan Stanley

Headquarters: Chicago, Illinois

Year Founded: 1993 (The Stanek Group) / 1935 (Morgan Stanley Firmwide)

Number of Employees: The Stanek Group at Morgan Stanley - 10 / Morgan Stanley Firmwide - 60,000

If you have an interest in learning more about the Second Opinion Service complimentary offering, contact:

Paulina K. Matel, CFP Financial Advisor/Certified Financial Planner

Morgan Stanley Wealth Management

227 W. Monroe Street Suite 3400

Chicago, IL 60606

Office: +1 312 648-3533, Mobile: + 708 553 2245, Email: Paulina.Matel@morganstanley.com, https://advisor.morganstanley.com/the-stanek-group

COMMUNICATIONS

MIC Team Gains TV Coverage for Motorcycling and AIMExpo Nationwide

The MIC Communications team recently worked with journalist Mike Caudill to get motorcycles, gear, safety, and training on TV in Nashville and San Diego and on dozens of websites across the country. And just last month, with AIMExpo at the epicenter of the powersports industry in February, MIC Communications contacted and informed media, both endemic and non-endemic, about the Las Vegas trade show and facilitated more TV news coverage and social media placements.

Many MIC members were featured in the Mike Caudill segments, including motorcycles from BMW, Ducati, Honda, and Indian – and gear from Arai, REV’IT!, Schuberth, and Shoei. Caudill also talked about the best way to learn to ride, with the Motorcycle Safety Foundation.

“Mike has great media connections, so working with him helps us spread features and content about motorcycles far and wide,” said Andria Yu, MIC director of media relations. “He had two live segments on the local ABC channel in Nashville, one more than four minutes long, and the other nearly six minutes, and a taped segment of more than two minutes that was aired on FOX5 in San Diego. Caudill’s team also placed the story on more than 80 stations’ websites. These are all great earned media segments.”

THE PFAS PROBLEM

Maine and Environmental Group Put Spotlights on “Forever Chemicals”

The Maine Department of Environmental Protection has issued a revised draft rule and rulemaking fact sheet surrounding products containing PFAS, or perfluoroalkyl and polyfluoroalkyl substances. The proposed rule provides additional guidance on the notification requirements and sales prohibitions for products and product components containing intentionally added PFAS. The department will hold a public hearing on April 20.

The MIC Government Relations Office continues to request that state and federal agencies provide additional time for manufacturers and distributors to test and find suitable alternatives to PFAS in their products. Dozens of proposals have been introduced to ban PFAS in textiles, children’s products, and packaging. Total bans on PFAS in any products sold have also been proposed.

Meanwhile, the New York Times published another news story about PFAS in February, this one revealing how wildlife is being affected.

“While concern about PFAS compounds, also known as ‘forever chemicals’ because they break down very slowly, has largely focused on people, the pollutants have also been detected in wildlife,” the story said. “Now, a review of research made public...by the Environmental Working Group, a nonprofit advocacy organization that focuses on environmental safety, shows PFAS turning up in hundreds of wild animal species around the world. Last year, the Environmental Protection Agency found there was virtually no safe level in humans for two of the most widely used PFAS chemicals and proposed designating them as hazardous.”

TOGETHER, OUR VOICE IS STRONGER

MOTORCYCLE INDUSTRY COUNCIL

CAPITOL HILL FLY-IN 2021

SEPTEMBER 20-21

WASHINGTON,

DC

MIC’s Capitol Hill Fly-In is your opportunity to meet with members of Congress (or their key sta ) to communicate important issues a ecting your business and the business of our industry. Our voice is stronger when we come together to advocate for the needs of the powersports industry. WHEN CONSTITUENTS SPEAK, CONGRESS LISTENS.

REGISTER TODAY!

Personnel Files

By Alex Baylon

THE POWER AND THE PASSION

Our Passion-Driven Industry Is Kind Of Cool!

Most of us receiving  Dealernews every month are in this business because of passion, plain and simple. OEM or aftermarket, dealer or distributor, street or dirt… we share a common bond for powersports. Our love for the people, the products and the places like our local dealerships is why we do this for a living. I wanted to write this article to remind everyone that reads this why we are here and why we do what we do. When we are deep into it (you know what I’m talking about) we tend to forget why we are here. And that is a mistake.

When you don’t take a minute to enjoy the little things like test riding a customer’s motorcycle after a repair or seeing a smile on the customer’s face after their purchase of a brand new unit off the showroom floor… you are missing the point. How about when the races come to town and you get to go to Supercross and walk the pits and see thousands of people who share the same passion as you?

When I meet people outside of the industry and they ask me what I do, for me the simple answer is:

“I work in the motorcycle industry.”

Recently a small group of guys I met at a neighborhood get-together thought my profession was cool. “Sounds more fun than my accounting job,” said one. “Cooler than home appraisals,” added another. That was the small “ah ha” moment that made me appreciate doing what I do. We work in a fun industry, yet it’s so easy to get hung up on the issues of whatever company you work at. We all have our problems… not one company is perfect. We might need to revisit and re-read a column I did a while back called “the grass isn’t always greener?”

Want to guess the number one question we get at MIJ?  “How do I get a job in the motorcycle industry?”

People outside of the industry will almost always say “that is so cool you work in the motorcycle industry.” What they mean is “it is so cool we work in an industry we are passionate about.” They also mean that there are not many passionate Roofers, Custodians, Telemarketers, Portable Toilet Cleaners, Animal Masturbators… Yes, I did google “worst jobs.” So in other words we are lucky to work in an industry we love.

Some of us enthusiasts that work in the industry can even expand the “cool factor” of working in the industry. To some, the coolest jobs are on the racing circuit, traveling the country to different tracks and hanging out with pro racers. To some it’s a dream job because they get to travel to many different places, go to trade shows… and get paid for it. Does it get any cooler than that?

However sooner or later the cool job is not so cool anymore. We tend to somehow focus on the bad and forget about the good things our jobs offer. Think about this for a minute. If I asked you to write a list of the things you hate about your job and write a list of things you love about it, most of us who have been at the same job for a long time will have an easier time writing the negatives and have a hard time coming up with the good. It’s just human nature to do that, but we all need to remember every once in a while that we have it way better than the animal masturbator!

I’ve been in the industry for just over 30 years and I still feel there are some kinda cool jobs out there that would be cool to have. For example: A DSM gig for an OEM. Also known as a District Sales Manager, you sell units to dealerships, you get demo units and a company vehicle and you get to hang out at dealerships selling products that you know they want and actually have to buy, so maybe not too much selling.…That sounds good right? I have friends who have been doing it for more than 15 years and love it. I also know of some DSM’s who have left after many years — they were over it.

While I don’t exactly know why they decided to leave their dream job after so many years… you can only assume that it was time for a change.

I’ve had the opportunity in the past to be a Brand Manager and I can’t lie, it was cool… at least to me. Brand managers for helmets, apparel, boots, tire brands and more often fly around the country representing their brand. They preach the word of their brand, they educate dealerships, hand out free hats and T-shirts and visit dealerships while trying to sell their brand. They are the guy or gal who gets hit up for free stuff because they have the power to give anyone they want a free $600 helmet or a leather jacket. However, it seems there are companies out there looking to fill these same exact jobs because the previous employee wasn’t happy with this dream job anymore.

think that, but my 30 year’s experience and being part of MIJ has allowed me to see things a little differently. I’m not expecting anyone not to quit if they are that unhappy, I’m just hoping that some of you take in the small moments and appreciate the job, industry and all the good we have in our lives.

THE BOTTOM LINE

There are thousands of jobs out there, some a little harder to get than others. The bottom line is: even though the grass may look greener on the other side, you still have to mow it!

Never give up looking for what truly is your very own dream job. Don’t burn bridges and take in all the good and appreciate all the fun we have. One of the best sayings I have ran into on my social media feed is: “It’s amazing the number of great people in my life that I wouldn’t have ever met if it wasn’t for motorcycles.”

Keep living and working your passion.

MIJ Industry #PROfiles

Dealernews is honored to work with Motorcycle Industry Jobs to recognize the people who make up this great industry. “When you start reading the Industry #PROfles, you will notice that 80-90% of them get their start at a motorcycle dealership,” says MIJ founder Alex Baylon. “The dealers are on the front lines and have always been the heart and soul of the industry. Without motorcycle dealerships, most of us wouldn’t be where we are today, so part of our message is always going to be ‘support your local motorcycle shop.’”

In addition to recognizing industry pros, Dealernews is also working with MIJ to create a job ticker tape of the latest positions opening in the industry at the Dealernews.com site. Check it out at: www.dealernews.com/Industry-Jobs

“Tell us your story,” adds Baylon. “We would love to feature you! Click here to fill out the questionnaire: www.motorcycleindustryjobs.com/industry-profiles/

There are plenty of jobs that many of us think are cool within our industry. But I can’t help but think that sooner or later we would “be over it” — I really hate to MotorcycleIndustryJobs.com founder Alex Baylon has been hiring and firing people in the powersports industry for 25 years.

Currently with a major distributor, he has also been with Dragon Alliance, Ceet Racing, MX GP Services in Europe, Acerbis USA, Motonation/Sidi Boots and Scott USA. He started MIJ as he saw a need in the industry for people who are passionate about the motorcycle industry to have an employment outlet. The motorcycle industry like many others has always recycled employees from one company to another and it has always been done by word of mouth. MIJ allows companies in the industry to post their openings and give others in and out of the industry a chance to apply and insert new blood and fresh ideas in the many opportunities in the motorcycle industry.

BEWARE THE IDES OF MARCH

Et Tu, Donny?

By Donald Amador

In William Shakespeare’s play  Julius Caesar, the immortal words “Beware the Ides of March” were uttered as a warning to his audience to be on the alert for acts of misfortune or doom that happen on March 15. The act in the play is based on real-world events. Julius Caesar was in fact stabbed to death in 44BC by a group of senators. Since then, March 15 has a dark and gloomy connotation which portrays the date as being cursed. This time backstabbing was done by Mother Nature herself promising Spring only to flood us with a succession of atmospheric rivers.

Countless local communities and businesses in California continue to be pounded by the 12th atmospheric river of the season, and there are apparently more on tap. A significant number of popular recreation areas used by both street legal and “off-road use only” OHVs have been closed to the public… and will remain off limits until post-storm recovery and repair mitigation projects are completed.

For example, Carnegie State Vehicular Recreation Area (SVRA) just east of San Francisco was closed indefinitely in January due to a 100-year flood event in the park. The never-ending deluges are preventing much needed repairs from being accomplished.

The SVRA said in a recent update they have received more than 1,670 tons of rock for repair work throughout the par. As a point of reference, this is the equivalent of 13,688.5 Honda CRF450Rs! Carnegie SVRA is just one of the islands caught in the stream.

The Mendocino National Forest was forced to close both the Upper Lake and Stonyford OHV sites. Both are major motorized destination areas that are in the burn footprint of the 500,000acre 2018 Mendocino Complex Fire. Low snow levels and heavy rain continue to hamper agency staff from even evaluating the extent of damage to roads, trails, and campgrounds.  Any nonprofit volunteer groups have also been washed out when it comes to clearing the downed trees that are blocking routes. Other County, State and Federal recreation sites throughout the state have also been devastated by winter storms. Worse, some of the OHV areas may remain closed for the rest of the year. However we may have had a lifeline tossed our way:

On March 10, President Biden declared that an emergency exists in the State of California and ordered Federal assistance to supplement State, tribal and local response efforts due to the emergency conditions resulting from severe winter storms, flooding, landslides and debris flows. That declaration means that monies are available under The Emergency Relief for Federally Owned Roads Program, or ERFO Program, to assist the Forest Service and BLM repair roads that provide important access to public land recreation areas.

The powersports community can be assured there is an effective cadre of OHV-related post-disaster non-profit volunteer groups and trail stewardship professionals that are already partnering with their agency counterparts to aid in the recovery and reopening of damaged recreation facilities in a timely manner so they can be enjoyed, once again, by our customers…

Don Amador has been in the trail advocacy and recreation management profession for almost 29 years. Don is President of Quiet Warrior Racing/Consulting. Don served as a contractor to the BlueRibbon Coalition from 1996 until June, 2018. Don served on the California Off-Highway Motor Vehicle Recreation Commission from 1994-2000. He has won numerous awards including being a 2016 Inductee into the Off-Road Motorsports Hall of Fame and the 2018 Friend of the AMA Award. Don currently serves as the government affairs lead for AMA District 36 in Northern California. He may be reached via email at: damador@quietwarriorracing.com

WHEN TRAILS CLOSE

WE ALL LOSE

Do Your Part / Don't Lose Trails

Do Your Part Don't Lose Trails

Keeping trails open is everyone's responsibility. By working together as one motorized community, we can keep our trails open, healthy and beautiful for generations to come. Do your part by riding responsibly, keeping trails clean and trash-free, and volunteering with organizations that are working to keep access open for everyone.

Do your part, support Tread Lightly! and it's mission by becoming a member at treadlightly.org.

I RIDE, I DRIVE, I OFF-ROAD, I TREAD LIGHTLY!

Confessions Of A Customer®

By Eric Anderson

COUNTER CULTURE Cheers To The Parts Department

Have you been to a cocktail lounge lately? One of those swanky ones with the colored lights behind all the liquor bottles? You know, the dark wood, cushy barstools and $15 margaritas (in California it is $21). What is it about nuzzling up to the bar on a comfortably padded stool? Once I settle into my upholstered bar-nook, I feel welcome as an integral part of my surroundings. No longer am I just a wayward observer or two-bit passerby; I become a very real and engaged participant who belongs here… I become Norm Peterson (George Wendt)!

The parts counter has always reminded me of the moto industry’s equivalent of Sam Malone’s Cheers bar. Like the dairy section at the back of the grocery store, it’s the place most frequented by your customers. It’s also where you can make the deepest impressions about the long-term branding of your dealership. People need what the parts department has, unlike simply wanting the other stuff in the showroom or accessory areas. The real action happens here more often because our darned motorcycles and UTVs won’t run without getting the necessary parts as quickly as possible.

Do you know what percentage of your walk-in traffic goes straight to the parts department without even looking at the new bikes on display? You should track and know that number! Then you can focus on luring some of their waning interest into other revenue streams under your roof… like the sales and accessories departments —

service too. Consider offering “guided tours” of your shop, starting at, and branching beyond the parts counter. Many parts buyers don’t know what other services, programs, or products you offer under the same roof. Heck, they have just been beelining for parts with blinders on never looking left or right!

Just like a good bar, the parts counter should attract people to sit down and socialize while they chat about, shop for, learn about and buy parts. Like a cocktail bar without the booze, there should be all sorts of “eye candy” around — goodies to buy and goodies to watch. Carbonfiber widgets, anodized parts, a vintage Belchfire 8 on display and racing on TV sets… you know, the good stuff!

The flat screens up on the wall showing last week’s moto, adventure and racing action, can also sneak in store announcements about new product arrivals, service packages and seasonal messaging. The movement and colorful imagery on the screens attract the human eye, fascinates the imagination, and increases customer retention times dramatically. In turn, this gives your staff more time to convert shoppers into buyers.

Everyone knows your name? As a customer, I also meet more new people in the parts department than any other section of a dealership, many of whom are now riding buddies. It can become a social place… like a bar.

The parts counter is also a Museum of Retail. Well, hopefully the products actually sell and get replaced more often than a museum’s displays — I mean from a visually intensive point of view. It’s about the glamor, sizzle, glitz and excitement. A well displayed parts department shouldn’t be just about replacement parts hung up randomly with the hopes of them selling — boring!

Show me the top shelf high-performance parts and accessories on a rotating black velvet-covered stand under a sparkling halogen light. Wow! All that for a new color-matched chain and sprocket? I’m not kidding. That stuff can cost as much as jewelry, so why not position it as such? Stop unpacking, stacking and racking — start elevating, showcasing and illuminating!

The parts counter tends toward becoming a sort of Man Cave away from home. Women aren’t excluded, but we know the parts department is generally and historically built, designed and decorated for anyone with a technical DIY nature… who most often drinks beer. That DOES NOT MEAN it has to look like my home garage. To the contrary, consider making it look inspirationally like Chip Foose’s garage on the Overhaulin’ TV hotrod show.

It is more powerful when a Man Cave is decorated tastefully and isn’t simply a “hang and hope store room” of randomly arranged parts and accessories. You’re the pro, so set the example. Sales will increase as dwell time does, just be sure your employees know how to bend time-wasting chit-chat into a sale.

Determine the décor of your parts department: neoretro, futuristic space age, high performance laboratory, biomechanical Bat Cave, steampunk science, light and bright contemporary or the classic/vintage racer theme? Unfortunately, most stores I visit take the lazy route with a “cornucopia mishmash” look for their displays.

Pick a classier theme--how about adding stools, a foot rail and some big screen TVs (volume turned down of course)? Non-alcoholic refreshments available too? If customers can hang out while you still get your job done, they will inevitably buy more while surrounded by a place of comfort. It’s helluva lot better than letting them shop the Internet from the couch at home!

The parts counter is also an Entertainment Center. Customers used to visit your dealership weekly to buy Cycle News on Wednesdays and watch reruns of last weekend’s races. That “feel” is still there when a parts department offers “news” alongside “new products.” The staff are the broadcasters, of course, preaching the latest. The TV screens can also cast news (see www.mototvnetwork. com) along with customizable in-store ads and a full array of recent OE and aftermarket advertising — all controlled by you.

I love the TV visuals and action, but I tend to prefer music inside the department more than the screaming race announcer—that way I can concentrate on the entertaining shopping experience. All the colors, new products, apparel, performance parts — wow! It’s “edutainment” at its best — learning while having fun. Keep it upbeat and I will stick around longer… and spend more.

However, my local parts manager makes new recommendations every time I visit — that’s proof of my ignorance of the latest tweaks, tuning tips and performance mods. The knowledge base at this counter makes deep impressions on where and how I spend my motorcycling “mad money.”

This is especially true since my Confessions article of 10 years ago “6 Words I Hate” which was given that title after the classic parts counterperson reply of “We can order it for you.” The essential additional words I wanted to hear are…“and we can ship it to your house.” I am usually that guy who doesn’t have time to visit a second time to pick up a single part… unless you give me an additional reason. If your store is a super-cool place to hang out, I might be willing to make the time to come by every week!

Make your parts counter a real cultural place! You know, the place where everybody knows your name and they’re always glad you came. Cheers!

“The Internet and Mr. Google don’t give me all the answers to my questions because I don’t always know the right questions to ask.”

Technology For The Body

REV’IT Stratum GTX Launch

By Scot Harden, photos by Kevin Wing

One of the best things about being involved in the sport as long as I have is benefitting from all the advancements in technology that has gone into motorcycling over the past five decades. Today’s motorcycles are so much better than those I started out riding; it’s almost a different sport. Air-cooled, drumbraked, twin shock, carbureted motorcycles have been replaced with liquid-cooled, disc-braked, single shock, EFI wonders. Throw in all the electronic advancement ABS, traction control, programmable EFI, GPS and even electric propulsion and we are living in a golden age for motorcycles. By comparison, my factory-prepped 1977 Baja 1000-winning Husqvarna 390CR can barely hold a candle to a modern, production off-road open-class motorcycle sitting right now on any dealership floor. The good news is I’m still riding and benefitting from all this technology. Good thing because I’m not getting any younger.

The advancements in technology apply not only to the machinery we now ride but also the gear we wear. Modern riding gear is as sophisticated, and integrated a design project as any of the machines we now ride. This has never been more apparent to me than at REV’IT!’s recent Stratum GTX Adventure Travel Suit press launch. Held at Jim Hyde’s RawHyde Adventure Zakar training facility in Mojave, Ca., Dutch-based REV’IT! has been at the forefront of modern motorcycle apparel design and manufacturing. It is a leading brand in the ever-growing adventure/dual sport market. To highlight the technology and design mission of the new Stratum GTX line REV’IT! hosted several journalists and me (one of their brand ambassadors) to sample their latest creation under actual riding conditions. In attendance were REV’IT! USA’s Paolo Bacchiarello, Brand Relations Mgr. Matthew Miles and, most importantly, lead designer Rod MacIntyre. Rod was brought over from the mothership to offer the back story behind the new Stratum GTX suit.

One of adventure/dual sport motorcycling biggest challenges is managing the wide variety of weather/ temperature conditions that exist. On any given day or ride, you might experience up to a 70-degree swing in temps depending on where you live and ride. Also, depending on the time of year, you might experience rain or snow conditions in the morning and sunshine in the afternoon. How do you manage such wide variations in conditions? This is where the Stratum GTX’s dual-layer approach makes sense. The Stratum GTX Adventure/Dual Sport travel suit is a two-piece riding outfit with base and outer layers. The base layer has built-in air mesh and impact protection in all the critical areas (i.e., back, knees, elbows, and shoulders) while having sufficient ventilation options ideal for moderate to hot conditions. For riders living in the southwest or warmer climates, the base layer system alone would be applicable 75% of the year.

When it turns cooler or for the rest of the country, the wind and waterproof GTX outer layer can be slipped over the base layer. Made from GORE-TEX, the outer layer provides water resistance and thermal protection. While riding in rapidly changing conditions, the rider can easily open and close the VCS/ventilation zippers on the jacket and pants to direct air to the body. The waterproof outer shell can also be used off the bike as casual rain gear during exploring or camping. It seems straightforward enough, but once you dig deeper into all the little design details, you understand just how much thought and effort have gone into creating this new REV’IT! product. As Rod explained, the selection of materials and their placement in each part of the suit, from the location of ventilation, padding, pockets, and even a removable hood that can be used when not riding, helps you understand that REV’IT! has paid close attention to what it means to have to live with its product throughout an adventure ride- both on and off the bike.

Like all REV’IT! gear I’ve tried, fit and finish are impressive. They pay particular attention to the areas of the suit that bend. Knee, elbow, and waist joints integrate seamlessly, allowing the rider to perform at their maximum. Also, any materials used on the gear that contact your body/skin are super comfortable and non-abrasive—another plus.

We were fortunate to arrive on a day between the massive storms that pounded southern California this winter. While it was sunny, the conditions were extremely cool, with temperatures ranging from the low 30s to the low 50s. In other words, a great test of the gear. As I rode along on the BMW 1200 GS supplied by RawHyde, playing with all the features of the new Stratum GTX, I could not help but be amused by how far our sport has come. Not too long ago, my choices for gear on a similar day like the day we tested the Stratum GTX line would have been limited to a pair of basic off-road riding pants and a not so sophisticated riding jacket. It would have been up to me to figure out how to stay warm and dry, what additional gear to wear, and even not too long ago, whether or not to pack a plastic garbage bag in case it rained.

Technology used to be confined to just hard equipment we run- the bikes and the parts that go on them. Now it’s part of everything we do. I for one am glad to have made it this far to experience the transformation. I can’t tell you how many times I spent “frozen”, near “hypothermic” on a motorcycle. I’m really glad those days are over and we have technology to thank for that.

REV’IT! USA’s Paolo Bacchiarello

ZAKAR!

Jim Hyde Hosts REV’IT Launch

By Scot Harden, photos by Kevin Wing

At 66 years young Jim Hyde is going stronger than ever… and still pushing the limits! Launched in 2002 his RawHyde Adventure program was the culmination of a lifelong dream — or so he thought. In reality it open-end the door to even more imaginative concepts.

An avid off-road enthusiast and rider, Jim recognized early on that Adventure motorcycling was the next big thing so he threw himself into creating a world-class training facility. Starting with his base location in Castaic, California, Hyde created an environment where riders from all backgrounds, especially those new to the sport, could find a safe and fun place to learn to become better riders. Since then, Jim has opened up a second training facility in Colorado.

However, Hyde’s Adventure Camps are much more than a simple riding skills program; they offer a holistic approach to the sport of adventure/dual sport motorcycling. In 2008, BMW Motorrad North America officially endorsed them as an official BMW Off-Road Academy. More than 17,000 people have attended RawHyde camps, a testament to how good the training is.

More recently, Jim launched his ZAKAR Training facility in Mojave, California. Described as his private “art project,” ZAKAR serves as a base camp for special events, including

rallies, press launches and dealer events for manufacturers and aftermarket companies. Designed to embrace the adventure lifestyle ZAKAR provides room and board, meeting rooms and as authentic an environment as you’ll find to embrace all things adventure. For more information visit: www.rawhyde-offroad.com.

Scot Harden is recognized as one of the best off-road racers ever produced by the United States. From 1971 until his final professional race in 2007 — at the age of 51 — Harden excelled at the toughest races in the world including the Baja 1000, Baja 500, Las Vegas 400, Mint 400, Dakar, B to V and the ISDE. He is a Desert/Baja specialist and the first American to win an African Raid Rally. He also possesses an impressive executive management resume as a brand builder, race team manager, sales professional and product planner with such companies as Husqvarna, KTM, Zero Motorcycles and Best in the Desert. Harden owns and operates Harden Offroad, a Powersports business consulting practice. He has been inducted into the AMA(2008), Trailblazers(2020), Hot Shoe(2021) and MRAN Hall of Fames(1996).

Specializing in Adventure, Dual Sport, Off-Road and EV market segments.

Delivering solutions in today’s rapidly evolving marketplace.

Over 35 years of senior level executive management experience.

• Brand Development

• Advisory Services

• Strategic Planning

• Product Development

• Motivational Speaking

• Advocate for the Sport

INDUCTED 2008

APOCALYPSE NOW!

At AIMExpo motorsports artist Hector Cademartori informed us we would be adding new artwork for Scot Harden’s ADVOCACY column. This was not open for negotiation. Some scribbles on a cocktail napkin at the Top 100 Party on Thursday night and an exchange of photos and ideas between Scot and Hector resulted in our latest Cademartori column head (an homage to the old Cycle World days). What followed was an exchange of images, ideas and insight into the process of creating art… with a lot of rabbit holes ranging from Argentina to Africa and spanning from the trade show meeting until this issue’s deadline.

Like everything he turns his eye to, Hector has to “see” the vision and then capture that essence — art vs. a snapshot on a cell phone. Even though Scot wasn’t even in the photo we started calling “Apocalypse Dakar” it was a window into Harden for Hector. “When I look at this photo I see “you” more than the standard headshot.”

But ultimately it is the people that count most! With that in mind, Scot and Hector deferred to Kristi Harden before Dealernews was cleared to run the new portrait. “My wife likes it too, which means I have final approval,” said Harden. “I really like how you captured my KTM Rally bike even without a full image of it. It’s amazing and the angle you portray it with the dual exhausts so prominent is very cool.”

A lifelong motorcycle enthusiast, Hector is still enthralled by the hardware almost as much as the people that power our industry. “I chose that angle for the bike because I thought it shows a lot of hardware while if I had done it from the front it would have shown too much bodywork,” Hector explains.

Art, Passion & Life

“All the reference photos helped with the details…. But in the end, the dual exhausts look really nice from that angle!”

“I can’t tell you how excited I am about you doing a vignette for me. I’ve admired and respected your work for years as it captures the person and the sport in such a compelling way. When I got home fro AIMExpo, I immediately started digging around for photos to use… both a headshot and a picture of a motorcycle to use. For me it makes sense to use a shot of my 2005 Dakar Rally bike as this was the last big adventure/race of my career. I was almost 50 years old when I took on the challenge of racing Dakar and it was an amazing experience.”

A quick story about the “Apocalypse Dakar” photo: This photo was taken early in the morning of Day 8 of the 2005 Dakar Rally. The day before was one of the toughest days I’ve ever spent on a motorcycle. Day 7 from Zouerat to Tichit was a ball buster! We ran 669 Kilometers and almost all special test — 240 miles was on a constant CAP heading of 170. Unending Camel grass, too! Only 19 vehicles even finished the stage before the next morning.

Then a giant sandstorm came up forcing everyone to find refuge that night, including all the organization helicopters and medics. They just had to set down wherever they were. It was so bad, the next day was cancelled. Those of us that finished Day 7 were given a new route to get us to the start of Stage 9 in Tidjika since 8 was cancelled.

Chris, Kellon and I rode together. When we got to Tidjika we set up our tents and I decided to take advantage of the down time and take a nap. I was just falling asleep when I heard the copters coming in. I grabbed my camera next to me, opened the flap to my tent and shot this photo while laying on my back. It was a cool moment.

I’ve been producing motorsports artwork for over 40 years, loved every minute of it, supported my family (and my family supported me), did business with great companies and organizations, met incredible individuals and, along the way, forged wonderful friendships. Hope we’ll have a chance to meet in person.All the products on my website are organic, gluten free, non-GMO, do not contribute to global warming and no animals have been injured in the production of the artwork. Thought you’d like to know…

If you have any questions, please, contact my lovely wife: florenciavcademartori@gmail.com

REV’IT LAUNCHES INTO 2023

Making big promises… yet over delivering since 1995! In just 25 years, REV’IT! has become one of the most recognized motorcycle brands around the world. We do business in more than 70 countries through offices in Europe and the United States. ADV collabs with the likes of Harley and Husky to sweeping MotoGP podiums; the brand has been on the gas since Ivan Pos decided it was time to create his own brand. At that time, he was managing a company importing motorcycle gear into The Netherlands. He saw that there were only two types of motorcycle gear on the market: low priced items that were poorly designed, and well-designed products that only came at top-of-themarket prices. He set out to develop his first collection with a thought that still resounds today: Making quality protective motorcycle gear that looks good on and off the bike.

Photo courtesy of Kevin Wing

STRATUM GTX ROCKS

Well grounded ADV gear was what the design brief called for… and the Stratum line delivers, literally (stratum means layers of rock). The Stratum GTX jacket Scot Harden put through its paces at the Zakar launch is based on two layers, zero compromises! The Shell Layer is constructed of top flight GORE-TEX 3L Pro fabrics to provide a weatherproof barrier to keep wind and rain out. The new “air” inner layer functions as a fleece of its own. Both the new Air Layer and the Shell Layer are designed to complement each other. Worn separately or layered together, they enable you to press on and make the most of whatever climate or weather type you may encounter.

www.revitsport.com/us_en/motorcycle-jacket-stratum-gtx-grey-anthracite

PACK IT IN

Designed in conjunction with the stowage experts at Kriega, the Load 22L H2O backpack enables riders to “Load” up essentials and ride to the destination without compromising comfort or style. The ripstop waterproof roll-top main body offers 18 liters of space, and a 4-liter zipaccess front compartment can be used to expand the carrying capacity even further. The webbing straps can be used to make the backpack more compact when it is not fully loaded. Behind the rear compartment you can install a 3.75L Hydration Reservoir. The Load also incorporates Kriega’s innovative “Quadloc-Lite” harness, which transfers weight from the shoulders to the chest and upper body, providing all-day riding comfort, even with the backpack fully loaded.

www.revitsport.com/us_en/motorcycle-backpack-load-22l-h2o-black

HOT STUFF!

With the winter that will never end, now is it time to get your mitts on some heated gloves! The heated Liberty H2O gloves have been specifically designed to be highly protective, waterproof and WARM.

Proprietary THERMOTRONIC technology keeps your hands at the ideal temperature of around 33 degrees Celsius, regardless of weather influences such as wind, moist and cold. Featuring 4 different heating levels — which are easily regulated via a large button on the upper part of the glove — these gloves can be dialed in for any conditions. Thanks to the colored ring around the button, it’s easy to see the heating setting at a glance.

www.revitsport.com/us_en/heated-motorcyclegloves-liberty-h2o-black

GET UP TO SPEED

Man does not live by ADV riding alone, so REV’IT wants to get riders up to speed — Hyperspeed 2 Urban Sport jackets, that is. The Hyperspeed 2 is essentially a one-piece roadracing suit cut in half. However this top-end leather jacket is definitely not a half-measure! Instead, it offers race-derived components adapted to the street. From its pre-shaped cut and aerodynamic speedhump to airbag-prepared (the Tech-Air airbag vest drops right in) and the replaceable elbow sliders straight from MotoGP! www.revitsport.com/us_en/explore/ridertype/ motorcycle-clothing-urban-sport/hyperspeed-2

TAKE IT TO THE TRACK

Performance meets practicality when it comes time to take in a track day. Hyperspeed 2 one-piece suits utilize an array of race-spec stretchy textiles like a patented PWR|Shell, stretch neoprene and no less than three different types of leather. Elbow and knee sliders – identical to the protection trusted by MotoGP riders – are replaceable, and on long rides or on those scorching track days, the speed hump can accommodate a water bladder. Of course this exemplary one-piece racing suit is airbag prepared.

www.revitsport.com/us_en/race-leathers-hyperspeed-2

CLIMB EVERY MOUNTAIN

The all-weather Everest GTX boots blend the look of hiking footwear with motorcycle functionality. Constructed with the fully waterproof and breathable GORE-TEX Performance Comfort membrane your customers will never worry about trench foot again. REV’It’s rubber-EVA sole offers grip while extra comfort comes from the OrthoLite insole footbed. www.revitsport.com/us_en/motorcycle-boots-everest-gtx-black

Photo courtesy of Kevin Wing

NPA LAKELAND LAUNCHES!

By Bob Althoff

Wow!

Like everything else National Powersport Auctions does, the launch of their newest campus in Lakeland, Florida, was over the top! Since the team was up to their eyeballs finishing off the AIMExpo issue of Dealernews, I was lucky enough to be the first staffer to lay eyes on the new NPA digs. What an eye opening experience! On Wednesday, January 25, NPA celebrated its latest expansion with the grand opening of its brand-new 142,000 sq./ft. Lakeland facility. The “official” Grand Opening auction took place on Thursday, January 26.

Just wow!

If you have never been to an NPA auction as a dealer, you don’t know what you are missing. If you are a regular visitor to any one of NPA’s 8 other venues, but haven’t seen the crown jewel in Florida, you don’t know what you are missing! To help get attending dealers up to speed, they kicked things off at the new campus with a Dealer training session.

Designed to update dealers on the industry, provide tips on how the auction process works and ways for maximizing preowned inventory profits, there was literally something for every dealer. Then it was time for my favorite subject in school, recess! Yard games, prizes, a BBQ dinner, music and dancing were the topics of the afternoon.

The next day commenced with a traditional ribbon-cutting ceremony at 8:45 a.m. before the inaugural NPA Lakeland auction at 9:00 a.m.

“The investment we made in our new, ground-up facility in Lakeland reinforces NPA as the place for dealers in the Florida region to buy and sell their pre-owned inventory throughout NPA’s nationwide network,” said NPA CEO Jim Woodruff. “We’re very excited about this coming year,”

The larger Florida operation paves the way for NPA to continue expanding its growing RV and marine remarketing business. The new NPA Lakeland building is twice as big as the former location, plus it has more than 10 acres of outdoor storage and a massive, fully equipped boat and RV wash and inspection bay.

“We have a ton of inventory slated for the grand opening Lakeland auction on January 26, including a record number of boats,” added Matt Amata, NPA Vice President of RV and Marine. As is the case with any NPA motorcycle auction all inventory of boats, trailers and RVs can be seen online any time and in person from 8 a.m.-5 p.m. on the day before the auction.

“I’m thrilled to be increasing our coverage and capabilities,” concluded NPA Eastern Regional Operations Manager Mark Clifford. The NPA Lakeland Grand Opening allowed our customers and industry partners to see our state-of-the-art facility and meet the NPA staff.”

NPA Lakeland is located at: 4035 Frontage Rd. N. Lakeland, FL 33810 www.npauctions.com

GODSPEED WAYNE JAECKE

Perennial Top 100 winner and the 2012 Dealer Of The Year Wayne Jaecke of City Cycle Sales has passed away. Wayne A. Jaecke, 89 of Junction City, Kansas, passed away on Friday, January 6, 2023, at Stormont Vail Hospital in Topeka, after a brief battle with cancer.

Wayne was born on August 22, 1933, in Junction City, to Leslie and Bethel (Stebbins) Jaecke. He graduated from Junction City High School, class of 1951. Wayne married Rosalie Larson on December 16, 1955. They had two daughters, Trudy (who shares the same birthday as Wayne) and Melanie, and one son, Bradley. They divorced in 1979. Wayne married Rodella (Alford) Eder on May 1, 1992.

In his early years, Wayne worked for his father at Junction City Stone Quarry. In 1962, he opened his Harley-Davidson dealership, City Cycle Sales. He found a burned-out building and got the rent waived for a year in exchange for fixing it up. Over the years the business grew, finally settling into the current building on Goldenbelt Boulevard in 2005. He owned and operated the business for 60 years. City Cycle Sales was included in  Dealernews Magazine’s Top 100 Dealers from 20062011. In 2012, City Cycle Sales was awarded Business of the Year by the Junction City Chamber of Commerce and awarded Dealer of the Year by Dealernews

He enjoyed racing his Sprint and did well with the Harley-badged Aermacchi. Wayne was even 250cc hare scrambles site champ. But racing took him well outside his local market. He raced as far away as Daytona, but it was the infamous Jack Pine Enduro that was his favorite. He participated in the physically demanding 500-mile, two-day event in Michigan with great success. Wayne won his class twice… and would have won a third time but made the decision to stop and assist a fellow competitor.

Wayne also loved ballroom dancing, learning in the 1970s and taking many classes over the years. He and Rodella also gave classes in their home to friends. They danced up to three times a week until a few months before his death. They were noticed by actress Debbie Reynolds on a Turner Classic Movies Cruise for their dancing. Wayne enjoyed traveling to other countries and going on cruises with Rodella.

Sailing was another one of Wayne’s passions, and he enjoyed introducing others to the sport. His latest boat, a 36’ Yamaha, was bought and shipped from California. The new boat did not come with a trailer, so Wayne designed his own and had one built locally by Engstrom Custom Welding. He was a member of the Southwind Yacht Club for more than 50 years, serving as Commodore in 1997. He spent a great deal of time helping maintain the club’s docks and surrounding property.

Speaking of maintenance, Wayne could frequently be seen tending the property and landscaping around his Dealership and picking up trash along the road. Many people mistakenly thought he was the maintenance man. He didn’t mind that, as he was a very humble and modest man. Wayne was known for his honesty and integrity.

Visitation was held on Wednesday, January 18, 2023, at Johnson Funeral Home, followed by funeral services on Thursday at Junction City Church of the Nazarene. Burial was at Highland Cemetery. In lieu of flowers, memorial contributions may be given to the American Cancer Society, 1315 SW Arrowhead Road, Topeka, Kansas 66604.

RUMBLINGS AT RUMBLEON

RumbleOn’s Two Largest Stockholders Will Be Nominating Five Highly Qualified Candidates For Election To Company’s Board Of Directors

IRVING, Texas, March 15, 2023 /PRNewswire/  -- William Coulter and Mark Tkach, who together own approximately 32.5% of the outstanding Class B shares of common stock of RumbleOn, Inc. (“RumbleOn” or the “Company”) (NASDAQ: RMBL), today issued an open letter to the Company’s stockholders. Mr. Coulter and Mr. Tkach announced that they have nominated five highly qualified candidates for three Board seats that will be up for election to the Board of Directors of the Company (the “Board”) at its 2023 Annual Meeting of Stockholders.

Below is the full text of the letter:

Dear Fellow RumbleOn Stockholders:

We are William Coulter and Mark Tkach. We are entrepreneurs, not activist investors. Over 32 years, we built a thriving retail business, RideNow Powersports (“RideNow”), which sold motorcycles, all-terrain vehicles, personal watercraft and other powersports equipment, plus accessories. In 2021, we sold RideNow to RumbleOn. RumbleOn used both cash and stock to acquire RideNow, resulting in us obtaining approximately 32.5% of RumbleOn’s outstanding Class B common shares. We also own and lease to the Company 25 properties under 20-year leases, which expire in 2041.

After RumbleOn purchased RideNow, Mr. Coulter joined RumbleOn as Executive Vice Chairman of the Board of Directors, while Mr. Tkach was appointed as a director and the Chief Operating Officer of RumbleOn. Despite those titles and our substantial share ownership, we learned that our influence and voices were considerably less than our roles suggested. Other executives and directors purposely avoided seeking our counsel, or disregarded it outright. We were not provided adequate information to properly fulfill our roles, even after multiple requests. As a result, we resigned from our roles in February 2022.

From February 11, 2022, the last trading day before our resignations were publicly announced, through March 13, 2023, RMBL shares have fallen -80.4%. Over the summer and fall of 2022, the Company’s inventory level and its SG&A/revenue ratio each rose sharply. After witnessing the severe stock price decline and observing operating metrics deteriorate, we reached out to Chairman and CEO Marshall Chesrown and the Board of Directors on December 9, 2022.

In a letter, we asked the Board to articulate to all investors publicly its plans regarding the Company’s bloated cost structure and questionable inventory controls. After being ignored, we reiterated this request in two follow-up letters. However, RumbleOn declined to provide investors with any concrete plans to improve its business. This, as well as several other corporate governance missteps, makes us doubt the current Board’s ability to oversee, and management’s ability to implement, the type of selfimprovement plan that will maximize value for all stockholders. Over the past twelve months, even as the share price has fallen and financial metrics have deteriorated dramatically, the Board and management have not reacted proportionally. Instead, when RumbleOn management presented at the ICR Conference in January 2023, it provided investors with a rosy view of the business and its growth prospects.

These events have led us to explore and now seek meaningful changes to RumbleOn’s Board. While the Company did ask Mr. Coulter to rejoin the Board in the past few weeks, the type of change required at RumbleOn will require more than one new director. We know this from first-hand experience. We privately proposed a more significant refreshment of the Board to RumbleOn with the hope that we could reach a settlement before the Company’s nomination deadline of March 16, 2023. In the nearly two weeks since our settlement proposal, the Board has not responded substantively to our proposal or negotiated in good faith to reach mutually acceptable terms to bring about the changes required to maximize shareholder value. Instead, they appear to have decided to entrench themselves further, which will likely result in the Board and management attempting to defend their decisions and poor track record, ignoring the economic value that has been destroyed along the way.

The Board’s seeming attempt to stall us and prevent a proxy contest is consistent with other significant corporate governance deficiencies. For example, corporate governance best practice typically enables only one executive on a board of directors, most commonly the CEO. By contrast, RumbleOn’s Board includes Mr. Chesrown and Chief Operating Officer Peter Levy. During the six months we served as RumbleOn directors, it became clear to us that Mr. Chesrown’s role as Chairman and Mr. Levy’s Board representation only served to defend the types of decisions that emboldened a strategy that has resulted in the Company’s poor total shareholder return and its declining operational metrics.

The Board has at least two other reputedly “independent” directors with close business ties to RumbleOn or longstanding personal ties to Mr. Chesrown. Michael Marchlik is an executive at a subsidiary of B. Riley Financial Inc. (“B. Riley”). When RumbleOn

acquired RideNow, another B. Riley subsidiary was RumbleOn’s financial advisor and its investment banker, garnering millions of dollars in fees while leading the Company’s equity offering. Kevin Westfall worked with Mr. Chesrown both at AutoNation in the late 1990s and at Vroom.com nearly a decade ago. In 2013 and 2014, Mr. Westfall was Vroom’s CEO, where Mr. Chesrown reported to him as Vroom’s Chief Operating Officer. In early 2017, Mr. Westfall joined the RumbleOn Board, where his role includes overseeing Mr. Chesrown and other executives.

About one year ago, on February 4, 2022, RumbleOn Board member Sam Dantzler resigned, more than four months before RumbleOn’s 2022 annual meeting. The Company reported the resignation that day in an SEC filing, stating that it “expects to appoint a new independent director in the coming weeks.” That statement suggested that the Company would appoint a director in time for stockholders to vote on that person, as Mr. Dantzler’s Board seat would have been up for election in June 2022. Instead, nine days after the 2022 annual meeting, the Board appointed Shin Lee as a director.

The Company informed our counsel that Ms. Lee replaced Mr. Dantzler on the Board and will not be up for election until 2025. Yet, the Company has never even disclosed to stockholders which class of directors she was appointed to, nor in which year Ms. Lee’s term is due to expire. The Board apparently believes that Ms. Lee should serve a multi-year term on the Board notwithstanding that the Company deliberately sought to avoid shareholder approval on her appointment. The Company could have easily sought shareholder approval for Ms. Lee’s nomination at the 2022 annual meeting. Are we to believe that Ms. Lee was identified as a Board candidate in the nine days between the 2022 annual meeting and her appointment?

Let us be clear. We have no quarrel with Ms. Lee. We presume that she did not control the timing of her appointment to the Board. Furthermore, we do not know how strong a director she has been, as we have never met her. We hope to have the opportunity to meet her in the near term so we can assess whether she can be part of the solution in turning around RumbleOn. The point of course is the timing of her appointment to the Board. This exemplifies a disregard of shareholder rights and utilization of slick maneuvers to avoid shareholder input. Stockholders cannot tolerate such activities, especially if they continue ahead of the 2023 annual meeting.

As referenced earlier, the Company did offer a single Board seat to Mr. Coulter about one month ago. That offer was intended to fill a recently vacated Board seat by Denmar Dixon, who resigned from the Board on January 18, 2023, just shy of the one-year anniversary since we resigned from the Board. Mr. Coulter rejected this offer on the grounds that it was inadequate to support the level of change that we know is necessary to restore and maximize shareholder value. Mr. Coulter urged the Company allow the stockholders to decide how that vacant Board seat should be filled at the upcoming annual meeting. Hopefully, they will listen to the recommendation from their largest stockholders this time around rather than subvert the rights of all stockholders in favor of a friendly face.

As such, we propose that the Company include a proposal at the 2023 annual meeting to invalidate the appointment of any director after March 1, 2023 until such time as the 2023 annual meeting is concluded. If this proposal passes, we believe it is not only appropriate but also important that ALL stockholders have an opportunity to determine who should fill Mr. Dixon’s vacant Board seat.

We have also proposed that the Company include two other separate proposals to be considered by the stockholders at the 2023 annual meeting.  One will ask stockholders to approve a proposal to separate the Chairman and CEO roles. Not only is this a well settled hallmark of strong corporate governance but with regard to RumbleOn specifically, we believe that Mr. Chesrown should not be serving in both capacities.  Many academics and management consultants agree that the most important role of a Board of Directors is to select and provide oversight to the CEO. Only through a separation of the chairman and CEO roles, as well as with the oversight of a truly independent board of directors, can this be accomplished. In our minds, this is an important point in the turnaround of RumbleOn.

Lastly, we have proposed to include a proposal at the 2023 annual meeting to remove Peter Levy as a Board member. Given his lack of public company board experience, the amount of value destroyed during his tenure in both of his roles, we are seeking to remove him from the Board and replace him with an independent director candidate with extensive public company board experience.

All of the foregoing has led us to seek to replace three RumbleOn directors at the 2023 annual meeting, while enabling all stockholders to fill Mr. Dixon’s seat. We are nominating five individuals for the three board seats – two Class II seats and one for Mr. Levy’s seat. We have nominated two other director candidates in the event another director decides to resign before the 2023 annual meeting or should something unexpectedly happen to one of our nominees. The upcoming 2023 annual meeting is that important.

We have reluctantly undertaken this process and have tried to avoid it via settlement. Again, we are entrepreneurs, not activist investors. However, we believe that the Board needs several new, well-qualified directors to oversee the type of change required to maximize value for all stockholders. Our nominees include:

William Coulter was the co-founder of RideNow and owns 2.62 million RMBL shares (16.2% of total Class B shares outstanding). Mr. Coulter and Mr. Tkach co-founded RideNow in 1989 and expanded the company to include more than 40 stores in eight states.

Mark Tkach was the co-founder of RideNow and owns 2.62 million RMBL shares (16.2% of total Class B shares outstanding).

Continued on page 82

Kyle Beaird is the Chief Financial Officer of SCORE Sports, which designs, manufactures and sells youth sports uniforms and equipment. He has led operations and finance in the action sports industry.

Mel Flanigan was the Chief Financial Officer of recreational vehicle retailer Camping World Holdings, Inc. and of audio technology firm DTS Inc., both of which were publicly traded.

Steve Pully is a founding partner of Speyside Partners, which performs consulting, restructuring and investment banking services for companies and investors. He has been a director on many public company boards.

We look forward to engaging with our fellow stockholders and certain members of the Board to move RumbleOn in the right direction. We are enthusiastic about the opportunity to improve RumbleOn’s operational performance and start restoring stockholder value. We have little confidence that this will occur at the hand of the existing leadership of RumbleOn.

RUMBLEON’S RESPONSE

No Shareholder Action Required At This Time

DALLAS - RumbleOn, Inc. (NASDAQ: RMBL) today acknowledged the press release filed by two former directors and current shareholders, William Coulter and Mark Tkach, regarding their announced intention to nominate five individuals for three seats that they propose should be available on RumbleOn’s Board of Directors at RumbleOn’s 2023 Annual Meeting of Shareholders. These shareholders also announced their intention to make certain other governance related proposals at the annual meeting regarding the composition and organization of the Board.

Consistent with its fiduciary duties to all shareholders and RumbleOn’s governing documents, the Board and its independent Nominating and Corporate Governance Committee will follow all appropriate processes regarding any properly noticed nominations for the two Class II director seats to be elected at the 2023 Annual Meeting and any other governance related proposals. Shareholders are not required to take any action at this time.

RumbleOn’s Board welcomes open communications with all shareholders and appreciates shareholder input. The Board remains committed to acting in the best interests of all RumbleOn shareholders as we design and execute our strategy to support sustained growth and value creation.

Forward-Looking Statements

This press release may contain “forward-looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995. Readers are

cautioned not to place undue reliance on these forwardlooking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. Readers are further advised to consider the factors listed under the headings “ForwardLooking Statements” and “Risk Factors” in the Company’s filings with the Securities and Exchange Commission, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except as required by law.

Important Information

RumbleOn intends to file a proxy statement with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for the 2023 Annual Meeting of Shareholders. Any definitive proxy statement and a proxy card will be mailed to RumbleOn’s shareholders. RUMBLEON SHAREHOLDERS ARE URGED TO READ ANY PROXY STATEMENT AND OTHER RELEVANT MATERIALS IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. These and other SEC filings made by RumbleOn may be obtained (when available) without charge at the SEC’s website at www.sec.gov and at the investor relations section of RumbleOn’s website at  www.rumbleon.com. In addition, investors and security holders will be able to obtain free copies of these documents from RumbleOn by directing a request to Investor Relations, RumbleOn, Inc., 901 W. Walnut Hill Lane, Irving, Texas 75038.

THE OTHER SHOE DROPS

Noting the 2022 Net loss was $287.7million, Marshall Chesrown, RumbleOn’s Chairman and CEO commented, “Our fourth quarter results reflect forward-looking actions taken to better position the business for 2023 and beyond. We are aggressively addressing macroeconomic uncertainties, as we operate in an environment of normalized inventory levels and associated margin pressures.”

He claims, “We are building a solid foundation for long-term profitable growth, all while making prudent, timely and disciplined investments in technology and customer experience improvements online and in our stores. Further, the fulfillment process being rolled out will enable our operations and teams to become more agile to meet customer demand through diligent on time inventory management and customer selection and service.”

“With an ongoing focus on maintaining financial health and a strong balance sheet, we remain committed to a completely self-funded business model for growth. In the fourth quarter, we pre-paid $15M in principal and recently signed an engagement letter with JP Morgan to review our balance sheet initiatives and options for 2023. As we look to 2023 and beyond, we are continuing to implement our five pillar strategy to achieve our near and long term financial targets, driving sustainable shareholder value,” concluded Chesrown in an investor call on Thursday, March 16.

Total Unit Sales of 18,419 declined (7.5)%, driven by the Company’s strategic decision to purchase fewer automotive units during the quarter, combined with the anticipated seasonal impact experienced in Powersports. The Powersports Segment made up approximately 95.3% of total unit sales in the fourth quarter with the Automotive segment comprising the remaining approximately 4.7%.

Total Revenue of $369.51 million declined (18.0)%. The Powersports Segment revenue made up approximately 86.8% of total revenue in the fourth quarter, the Automotive Segment made up approximately 10.2%, and the Vehicle Logistics Segment made up approximately 3.0%.

Total Gross Profit of $93.1 million declined (20.0)%. The Powersports Segment contributed approximately 96.4% of total gross profit in the fourth quarter, and the Vehicle Logistics and Automotive Segments made up approximately 2.9% and 0.7%, respectively.

Operating Expenses were $98.1 million, or 26.6% of revenue, compared to $102.8 million, or 21.9% of revenue. Total stock-based compensation was $2.1 million down from $2.6 million in the prior quarter.

Net Loss was $(287.7) million, reflecting a $350.3 million pre-tax non-cash impairment charge. Earnings (loss) per diluted share was $(17.80) compared to $0.19.

Adjusted Net Income (Loss) was $(11.0) million, or 3% of revenue, compared to $4.4 million or 1% of revenue. Adjusted earnings per diluted share was $(0.68) compared to $0.27.

Adjusted EBITDA was $18.7 million compared to $25.7 million. The (27.3)% sequential decrease in adjusted EBITDA was primarily driven by modest gross margin compression in the Powersports Segment and lower gross profit contribution from the Automotive Segment.

Cash as of December 31, 2022, including restricted cash, was approximately $58.6 million, and total debt was $635.2 million. Availability under our short-term revolving credit facilities totaled approximately $137.5 million. Total Available Liquidity, defined as cash and cash equivalents, including restricted cash, plus availability under our short-term revolving credit facilities totaled approximately $196.1 million.

Cash Flow used in Operating Activities was $(18.9) million for the year ended December 31, 2022, which was negatively impacted by $45.1 million of cash used for inventory purchases not financed by trade floorplan credit facilities.

Weighted Average Basic and Diluted Shares of Class B common stock outstanding were 15,871,005 for the year ended December 31, 2022. As of December 31, 2022, RumbleOn had 16,184,264 total shares of Class B common stock and 50,000 shares of Class A common stock outstanding.

Used Powersports Units, which includes used retail and wholesale Powersports Units, declined (17.9)% sequentially. Sequential declines are primarily the result of our decision to slow down used vehicle acquisition while new inventory normalized.

Used Powersports Revenue declined (26.9)% sequentially due to anticipated seasonality. Used Powersports Gross Profit declined (42.9)% sequentially, due primarily to lower unit sales and anticipated seasonality.

New Powersports Revenue declined (9.4)% sequentially, despite a 6.6% increase in unit sales, driven by increased supply of new inventory and unfavorable price mix in consumer demand. New Powersports Gross Profit declined (21.2)% sequentially, due primarily to higher inventory acquisition costs.

Powersports GPU was $5,420, as compared to $6,348 in the prior Q3.

Get the complete statement here: https://investors.rumbleon.com/RumbleOn-Reports-Fourth-Quarter-and-Full-Year-2022-Financial-Results-3-16-2023

STOCK UP FOR THE SPRING RUSH