PowerTALK Reports

Purchasing “Outside-the-Box” by Polaris

Polaris Industries, the $5.4 billion maker of snowmobiles, off-road vehicles and motorcycles, says it has agreed to acquire Boat Holdings, a boat manufacturer owned by the Vogel family, management and Balmoral Funds, in an all-cash transaction valued at approximately $805 million.

Boat Holdings is the largest manufacturer of pontoon boats in the
U.S., one of the largest and fastest growing segments in the marine
industry.

With a full offering of pontoon, deck and cruiser boats, Boat Holdings’ four recognized brands, Bennington, Godfrey, Hurricane and Rinker, have over 200 base models across a range of price points. Boat Holdings offers boats through a network of dealers primarily in the United States and Canada. Boat Holdings reported 2017 sales of approximately $560 million.

With this purchase Polaris could realize several benefits, including:

• Boat Holdings is the leading manufacturer of pontoon boats in the U.S. In a fragmented market, Boat Holdings’ experienced and loyal network of nearly 500 dealers is a competitive advantage.
• The move into the recreational marine market expands Polaris’ significant presence in the powersports market. Polaris will be able to offer customers a range of engine-powered options on land and in the water. Customer demographics across the off-road vehicle and boating segments are similar, with nearly 30% of Polaris customers owning a boat. Polaris expects that these cross-selling opportunities will increase sales and provide additional value to shareholders.
• The addition of Boat Holdings will broaden and diversify Polaris’ range of powersports offerings, and Polaris expects that it will boost its overall growth rate. The U.S. market for new powerboats is an $8 billion market, and pontoon is one of the largest and fastest growing segments within the industry. Sales in the pontoon boat category have grown at an 11% compounded annual growth rate since 2010.

Boat Holdings has been a leader in developing high-featured, high-performance luxury boats, across price points. Boat Holdings will maintain its headquarters and manufacturing facilities in Elkhart, Indiana. PSR

Other top stories in the June 2018 issue of PowerTALK are:

• Brazil Truck Strike
• Euro Boat Market
• Poland Pushes EVs
• Russia Drone Trucks
• Nissan Focuses on EV
• Kia-India Expands
• DataPoint: Crawlers
• INTERMAT Asia Shows Reports
• Polaris Boat Acquisition

Global Truck Production Declines 6.1%

The Power Systems Research Truck Production Index (PSR-TPI) decreased from 114 to 107, or 6.1%, for the three-month period ended March 31, 2018, from Q4 2017. The year-over-year (Q1 2017 to Q1 2018) loss for the PSR-TPI was one point (108 to 107), or .93%.

The PSR-TPI measures truck production globally and across six regions: North America, China, Europe, South America, Japan &

Here are several other Top Stories in this issue:

• Global Economies Power Ahead
• Truck Production Index (TPI) Declines
• DataPoint: 2018 TLB Production
• Hydrogen Fuel Cell Primer
• Florida Law Boosts Gen-Set Sales
• European Business Climate Improves
• Korea GM Faces Bankruptcy
• US-China Trade War Heats Up
• China Welcomes Tesla
• Russia Truck Market Grows

Severe Weather, Economy Boost Q4 2017 Gen-Set Sales

In this issue of PowerTALK, you’ll find PowerTRACKER North American gen-set survey report as well as news and analysis about these Top Stories:

• PSR Marine Database Expanded
• Data Point: A new feature
• 2018 Moscow Boat Show Report
• India Shifts EV Program
• Hyundai May Build Engine Plant in Russia
• Ford Delivers First Bi-fuel Focus Cars in Russia
• Some Thoughts as China Drops Term Limits.
• VW Picks China’s CATL as Battery Source

AI Techniques Advance Quickly

In this issue of PowerTALK, John Krzesicki, PSR Business Development Manager, reports on 2018 Annual Automotive Industry Outlook Conference.

SUMMARY. Recent applications of digital technology combined with automotive industry expertise have produced impressive advancements in Advanced Driver Assistance Systems (ADAS) and Automated Driving Systems (ADS).

The increasing use of powerful artificial intelligence (AI) techniques promises to revolutionize the driving experience and mobility strategies.

On Feb. 1, The Center for Automotive Research (CAR) hosted
The Artificial Intelligence Applications to Driver Assistance and
Vehicle Automation. The event featured experts on the topic of AI in the automotive industry, discussing cutting-edge technologies expected to be
integrated into production vehicles in the next two to five years.

Topics included guided machine learning, computer vision, sensor fusion, and systems integration.

Key Takeaways:

• AI and other technologies are converging to enable powerful and valuable new applications that people want and will help achieve social goals such as safety.
• All commercial and social sectors will be transformed on a scale equal to or greater than the changes from the Internet and smartphones.
• The automotive sector will have many new business opportunities to be captured by companies that are smart, agile, adaptable, and quick to weather disruptions.
• The OEM’s and Tier One Suppliers are well positioned to understand and rapidly adopt new technologies, such as Artificial Intelligence, for innovative new products and services and to do so with the same rigor in engineering for quality and safety that is a foundation of our reputation today.

The other Top Stories in the February issue of PowerTALK include

• Q4 2017 Global/NA Ag, Construction Forecast
• ZF Enters China’s Forklift Market, Launches JV with Anhui HeliTrans
• Ashok Leyland Unveils India’s First Swap Battery Bus
• India Budget Seen Boosting Vehicle Sales
• Germany Top Market for Russian Tires
• Exports Drive Brazilian Construction Machinery Growth

Global Truck Production Climbs 8.6%

Global truck production climbed 8.6% climbed for the 12 month period ended Dec. 31, 2017, according to Power Systems Research (PSR). The outlook for global truck production in class 4-8 looks very promising for 2018, as the strong growth pattern established in 2017 continues.

Other Top Stories in this issue of PowerTALK include:

• Report from SAA Conference
• Transportation News from CES
• Global/North America Forecast
• India CV Outlook
• Chinese Truck OEMs Fined