Fire Hazard Forces Recall of Popular Vehicle

The recall comes while there are concerns over the company, partly due to other recent recalls.

Polaris  (PII) - Get Free Report is recalling nearly 4,000 ATVs due to a fire hazard that injured at least one person and damaged property, federal officials said.

The recall involves certain vehicle identification numbers (VINs) of Model Year 2020-2023 Sportsman 1000 S and Scrambler 1000 S ATVs, the U.S. Consumer Product Safety Commission said. 

The agency said that an electrostatic discharge outside the fuel tank can ignite fuel spills while refueling, posing a fire hazard. The recall involves about 3,800 vehicles in the U.S. and about 780 sold in Canada.

The Medina, Minnesota-based company received 16 reports of fire, including one report of personal injury and one report of property damage, outside the U.S.

The recalled ATVs come in black, orange, gray, blue, and graphite. POLARIS is stamped on the front grille and POLARIS and Sportsman or Scrambler are printed on the sides of the vehicles. 

Consumers Should Stop Using Recalled ATVs

The model name, including “XP”, is also printed on the side of the chassis. The VIN is located on the ATV’s left rear frame. 

Consumers should stop using the recalled vehicles immediately and contact a Polaris dealer to schedule a free repair. Polaris will instruct dealers to install new fuel filler neck clamps and, if needed, a fill neck cover. 

The company has notified consumers and is contacting registered owners directly to provide more details about the repair.

The ATVs were sold by Polaris dealers nationwide from July 2019 through October 2022 for between $15,000 and $17,800.

The recall is being conducted in conjunction with Canadian authorities.

Consumers can contact Polaris at 800-765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday or online at www.polaris.comand click on “Off Road Safety Recalls” or www.polaris.com/en-us/off-road-recalls to check if their VIN numbers are included in any recalls. 

Polaris had six recalls in 2022, according to the CPSC website, including one in December where the company recalled about 9,200 vehicles due to a potential fuel leak at the fuel pump outlet connector on the fuel tank as a result of the supplier’s manufacturing process.

Analyst Concerned About Recalls

Last month, BMO Capital analyst Gerrick Johnson downgraded Polaris to market perform from outperform, while cutting his price target to $110 from $120.

Johnson said in a note to investors that while a slowdown in retail is "generally known and discounted" in the stock price, he reduced estimates due to concerns about loss of market share and an increase in the number of recalls.

With Polaris management "seemingly content with the composition of its product portfolio, it appears corporate action catalysts have now also been exhausted," Johnson said.

The analyst said he has received deteriorating commentary from dealers in his recent checks, which Johnson said compound concerns about the loss of market share in several of Polaris's segments.

Polaris is scheduled to report fourth quarter and full-year 2022 financial results on January 31.