"Today's market is not what last year's market was,” Tucker Powersports CEO Marc McAllister told about 50 suppliers in an online Town Hall Meeting on October 27. He addressed several topics, including Tucker's strategy, the importance of dealers and the company's preparation for AIMExpo. He opened with some prepared remarks then did an extended Q&A to wrap up the meeting.
“The market has been tightening and that is likely to continue into Q1.” He said the company's data indicates a bottoming out during that quarter and a recovery starting at the end of Q1 and into Q2. “Our plan is to weather the winter and look forward to Spring."
He also said Tucker is not doing as well as he had hoped but is on solid footing while they are working some inventory out of their system to free up cash and capital. McAllister reiterated company strategy is “a blending of what we used to consider pure powersports, motorcycles and side-by-sides, combined with new lifestyle choices of getting outdoors and participating in powered adventures.” Tucker will continue to lead the charge into EV.
“With the growth of e-bikes and electric motorcycles, we don't think that consumers are as discerning as we are about how that experience happens and where that experience starts. We see a blended future with plenty of space for what we do, whether it's internal combustion powered, EV-powered or human-powered. We are looking to serve all of those customers."
He cited some notable successes for Tucker, such as the announcement of an exclusive distribution agreement with high-tech helmet company Forcite, E-Power brands that are selling through to dealers rapidly, as well as certain products from the suppliers on the call that are moving rapidly.
McAllister confirmed to suppliers that he sees a multi-channel future and is not moving away from dealers, saying "the dealer channel is critical to our industry, the dealer today continues to drive a significant amount of our sales and your sales. Our industry still needs a clubhouse, a gathering point, where people can feel engaged, a place where questions can be answered and to ensure they get the sales and service that they need.”
“We continue to invest in dealers, and that brings me to AIMExpo. In our mind it's critical that AIME exists. It's a time for our industry to get together, it's a time for our industry to celebrate who we are, and a platform for us to present a cohesive version of our industry to our dealers, who are, at the end of the day, our primary customers."
Tucker does expect the show to be "significantly larger than last year" and mentioned that Tucker's investment is much higher than the previous show, including the company's plan to bring all of its sales reps to the show to support their dealers. On that note, McAllister closed the meeting by thanking the attendees for their support and encouraging participation in AIMExpo.