The decision to discontinue Victory motorcycles was primarily driven by a combination of financial challenges and strategic choices made by the company. There were several key factors that contributed to this outcome.
1. Lack of sensible investment in the brand: Victory motorcycles failed to consistently invest in developing innovative features and technologies that would set them apart from competitors. Instead, they focused on releasing new model years with minimal changes, mainly limited to cosmetic enhancements like paint. This lack of investment in research and development hindered their ability to keep up with evolving market demands and customer preferences.
2. Poor investment choices in electric and three-wheeler segments: Victory made the decision to invest in electric motorcycles and three-wheeled vehicles, which turned out to be less successful than anticipated. While it is commendable to explore new technologies and expand product offerings, the timing and execution of these investments were not ideal. The electric motorcycle market was still in its early stages, and Victory faced stiff competition from established players like Zero Motorcycles. Similarly, the three-wheeler segment had limited demand and was dominated by brands like Can-Am. These investments did not yield the desired returns and further strained the financial viability of the brand.
3. Increasing competition in the heavyweight cruiser segment: Victory primarily focused on producing heavyweight cruisers, which faced fierce competition from well-established brands like Harley-Davidson. The heavyweight cruiser market is highly competitive, and Victory struggled to carve out a significant market share. Despite offering competitive features and performance, their brand image and recognition were not strong enough to compete with the loyalty and heritage associated with other motorcycle manufacturers.
4. Financial challenges and lack of profitability: While Victory motorcycles enjoyed profitability for a number of years, they faced financial difficulties in their later years. The lack of sensible investment, poor performance in new product segments, and intense competition in the heavyweight cruiser market all contributed to their financial struggles. In three of the last five years, Victory failed to turn a profit, and sustaining operations became increasingly challenging.
5. Brand consolidation within Polaris Industries: Victory motorcycles was a brand under the Polaris Industries umbrella, which also owned Indian Motorcycle. In 2011, Polaris acquired Indian Motorcycle and decided to focus more on revitalizing this historic brand, which had a stronger heritage and market presence. The decision to discontinue Victory motorcycles in 2017 was driven by a strategic shift to consolidate resources and efforts behind the Indian Motorcycle brand, which was deemed to have greater growth potential and brand recognition.
The discontinuation of Victory motorcycles can be attributed to a combination of factors, including the lack of sensible investment in the brand, poor investment choices in new product segments, intense competition in the heavyweight cruiser market, financial challenges, and the strategic decision to focus on the Indian Motorcycle brand within Polaris Industries.