Medina-based Polaris Industries recalled another 10,770 off-road four-wheelers Thursday because of 19 reports of vehicle fires that injured six people and destroyed 15 acres of Utah forest, federal officials reported Thursday.
Polaris issues another ATV recall because of fire hazards
The fire hazard sparks the company's second major recall in roughly the last year.
September 2, 2016 at 2:24AM
One of the people injured was a "young child suffering severe burns," according to the report filed Thursday by the U.S. Consumer Product Safety Commission.
This week's recall comes on top of 203,000 recreational vehicles Polaris previously recalled between 2015 and July due to a variety of fire hazards.
About 2,230 previously recalled vehicles involved the same problem associated with this recall.
The new recalled vehicles are Polaris 2016 RZR XP Turbo models or Polaris RZR XP 4 Turbo recreational vehicles sold between August 2015 and July 2016, the commission said. Affected vehicles had either two or four seats plus a rear box carrying the letters "RZR."
Federal officials said the worry is that the vehicles' engines can overheat and that the turbo system's drain tube can loosen and pose a fire hazard.
Consumers are instructed to stop using the vehicles immediately and to take them back to the dealership for a free repair.
Polaris CEO Scott Wine sent a letter to customers apologizing for the inconvenience. He said the company asked customers to stop riding their RZR Turbos in July. "Since then, we have been doing intensive testing to make sure we have the right solution, and as of today the corrective action is in place. Owners of model-year 2016 RZR Turbo vehicles can now contact their dealer to arrange for service."
Polaris declined to comment beyond Wine's letter.
Company officials said during a conference call with analysts in July that they lowered their earnings guidance for 2016. Estimates now factor in all costs necessary to address all vehicle repairs and warranty issues. The huge recall numbers, however, have hurt the company.
Polaris stock traded as high as $155.44 as recently as November 2014. Thursday the stock closed at $85.82, down 82 cents a share. The company also has said the sizable recall costs were a factor in its 29.4 percent drop in second-quarter profits.
In his letter, Wine told customers that all 2016 Turbo owners will receive an additional 12 months of warranty. Polaris also offered a $1,000 loyalty discount on any Polaris side-by-side vehicle purchased between now and the end of 2017. Wine said the discount was in addition to all other promotions. Details will arrive by mail by mid-September, he said.
Dee DePass • 612-673-7725
The American restaurant and bar recently filed for bankruptcy. Minneapolis-based Carlson had owned the brand for 40 years before selling it to a private equity firm in 2014.
