Textron Specialized Vehicles, a subsidiary of Textron Inc., launched several finance incentives for its new off-road line to help dealers sell old inventory, following the manufacturer’s recent acquisition of Arctic Cat Inc., according to the company’s website.
The “No Brainer” sales event offers 0% financing for 60 months on select 2015 and 2016 Arctic Cat ATV models, and select side-by-sides for models years 2015 through 2017. Additionally, the OEM is offering 3.9% financing for 60 months or 4.9% financing for 72 months on select 2015 through 2017 ATV or side-by-side models.
Rebate offers include up to $3,500 on snowmobiles, $5,700 on ATVs, and $7,700 on side-by-sides, according to the OEM’s website.
“The challenge that we have on [Arctic Cat], as we acquired it, was the — frankly, they have too much inventory,” Scott Donnelly, Textron’s chief executive and president, said on the OEM’s first-quarter earnings call. “And so the first step out of the gate here has been to put together these [incentive] programs to help put rebating together to help the dealers move it out. I think that’s been very well received, and we’re already starting to see the impact of that.”
Textron agreed to buy Arctic Cat in an all-cash transaction valued at approximately $247 million, plus the assumption of existing debt, the companies announced back in January. The acquisition closed on March 6.
The side-by-side market is “fairly soft right now,” Donnelly said on the call, and with the Arctic Cat acquisition, Textron did not have enough time to work with dealers on moving inventory before the start of the selling season.
With the deal now closed, Textron has meetings set up with all the dealers in a region-by-region basis, Donnelly said. “We’ve got all our sales folks now aligned, post deal,” he said. “So I’d say we’re just now, frankly, as we’re going to the month of May, able to have these conversations with that channel around what products are now being added, what’s going on in terms of new products — both things within the Arctic Cat pipeline, as well as what was in the Textron off-road pipeline — and to really start that selling process.”
Separately, Textron transitioned its Bad Boy Off Road brand to Textron Off Road in March. Side-by-side models in the current line remain the same, and vehicles with the new Textron Off Road branding started appearing in dealerships this month, according to a company press release.
“Our new name is more indicative of the level of performance, quality, and innovation that we build into our side-by-sides, and demonstrates how serious Textron is about its future in the powersports market,” John Collins, vice president for Textron Specialized Vehicles, said in the release.