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Powersports Business • December 2025 • 9

FROM THE EDITOR INDUSTRY PODCASTS

It feels like 2025 flew by in the blink of an eye. Maybe it’ s true that time speeds up as we get older— though I’ m not ready to claim that“ old” label just yet. Regardless, the powersports world didn’ t slow down for anyone. The year brought seismic

BRENDAN BAKER shifts, surprise moves, and several storylines that will carry plenty of momentum into 2026. I can’ t cover every headline, but here are the ones that I think defined this past year.

TARIFF AND INFLATION WOES If there’ s a phrase that dealers and manufacturers alike would happily banish from the year, it’ s“ pricing pressure.” Rising component costs, shipping volatility, and renewed tariff battles made 2025 a challenging operational year. Even brands with strong product pipelines struggled to keep margins healthy. For many dealers, this was the overriding backdrop that shaped everything else.

ARGO PRESIDENT ACQUIRES ARCTIC CAT One of the year’ s biggest surprises was an investment group led by Argo’ s president stepping in to buy Arctic Cat. After years of speculation about Arctic Cat’ s long-term direction under Textron, the acquisition signaled a new chapter— one that could bring sharper focus, renewed product development, and potentially a more aggressive off-road strategy. Dealers are watching closely to see what this means for inventory, marketing, and future product cadence.

HARLEY-DAVIDSON INVESTOR DRAMA Harley-Davidson spent much of 2025 under the microscope. First came the investor and boardroom drama, which exposed deep disagreements about the company’ s direction. Then came the CEO’ s resignation— followed quickly by the appointment of a new one. It’ s a pivotal moment for The Motor Company. With H-D trying to define what the next generation of Harley riders looks like, leadership stability will be key in 2026.

KTM RESTRUCTURES; BAJAJ TAKES MAJORITY STAKE

KTM’ s restructuring may have been overshadowed by flashier headlines, but don’ t underestimate its impact. With Bajaj now holding a majority stake, KTM enters a new era of global integration. The move could streamline manufacturing, expand its reach in emerging markets, and reshape how products are positioned in North America. It also raises questions about dealer support and brand identity as the companies become more intertwined.

CONSUMER CONFIDENCE CRUMBLES Macroeconomic headwinds caught up to the industry in 2025. High interest rates, cooling discretionary spending, and ongoing inflation combined to shake consumer confidence. Retail slowed in many segments— even categories that had been pandemic darlings. Pre-owned demand stayed relatively strong, but new-unit sales faced tough challenges for much of the year.

HIGH DEALERSHIP CLOSURE RATES With softer retail and tighter credit, the year saw more dealership closures than at any time since the Great Recession. But that pain on one side created opportunity on the other: 2025 became a buyer’ s market for groups looking to expand. Consolidation ramped up, and new multistore groups emerged. Expect that trend to accelerate into 2026, especially as succession issues surface for single-store owners.

THE AGE OF AI BEGINS If there was a buzzword of 2025, this was it. AI made its way into every corner of the industry— from service diagnostics to CRM automation to marketing. Some dealers embraced it; others were more cautious. But one thing became clear: AI isn’ t a fad. It’ s the next operational toolset, and early adopters are already seeing real efficiencies in service scheduling, lead management, and inventory forecasting.

BRP EXITS MARINE AS SOFTNESS SPREADS

BRP’ s decision to dump its marine division wasn’ t entirely shocking, but it was certainly symbolic. Marine softness hit multiple brands this year, pushing companies back toward their core competencies. For BRP, that means doubling down on off-road and on-road products. The shift will likely reshape how BRP allocates resources in 2026— and how dealers plan inventory.

KAWASAKI TAKES THE TOP SPOT One of the most noteworthy— and somewhat underreported— stories of the year was Kawasaki becoming the No. 1 brand in the U. S., according to several industry reports. Years of consistent product execution, strong pricing structure and stability paid off. While other OEMs were navigating distractions or internal battles, Kawasaki simply kept delivering. The brand enters 2026 with serious momentum.

HARLEY SELLS A SLICE OF HDFS Once considered Harley’ s biggest safety net, HDFS has always been a crown jewel. So when Harley sold off a minority stake valued in the billions, the industry took notice. H-D still retains majority control, but the move generated capital and signaled a shift in its financial strategy. What’ s unclear is how this will affect dealer financing programs long-term.

POLARIS SELLS MAJORITY STAKE IN INDIAN

Polaris made one of the year’ s most surprising strategic moves by selling off a majority stake in Indian Motorcycle to private equity. After investing heavily for over a decade to rebuild Indian into a legitimate Harley competitor, Polaris’ decision raised eyebrows across the industry. Is this a temporary detour to unlock the capital for off-road, or a long-term shift away from heavyweight street? 2026 will give us clues.

LOOKING AHEAD If 2025 was a year of shakeups, 2026 is shaping up to be a year of adaptation. Dealers, manufacturers, and distributors alike are rethinking strategy— from inventory and staffing to customer engagement and product development. The industry has weathered big changes before, but rarely so many in such a short time. And that’ s exactly why this next year could be one of the most transformative we’ ve seen in decades.

POWER HOUR EP. 41: CLEVELAND MOTO TAKES ON MOTO MORINI LINE

Phil Waters is the owner of Cleveland Moto, which he has owned for 25 years, and has mostly focused on the scooter market as a Piaggio dealer carrying the Vespa line. However, he has also recently added a new line: Moto Morini. We talk about how it’ s been working for him as we chat inside his west side dealership.

POWER

HOUR EP. 40: PRE-OWNED PLAYBOOK Jacob Berry, co-founder of Motohunt, host of the Dealership Fixit Podcast, PSB contributor, and an adviser to powersports and motorcycle dealerships across the U. S., sits down with Brendan, hot off the Dealer Connect event in Columbus, Ohio, to discuss the growth opportunities in pre-owned.

RIDER

INSIDER EP. 85: DOMINICK LEMERISE-GAUVIN, CAN-AM ON-ROAD

Episode 85 of the Rider Magazine Insider Podcast features guest Dominick Lemerise-Gauvin, manager of global product strategy for Can-Am On-Road. The Rider crew discuss the launch of Can-Am’ s on-road program with the 2008 Can-Am Spyder RS, the evolution of its 3-wheel vehicle platform, the Can-Am Canyon Redrock being selected as Rider’ s 2025 Motorcycle of the Year, and Can-Am’ s electric motorcycles, the Pulse and the Origin.

BOATING

INSIDER: THE SOUNDTRACK OF BOATING WITH KICKER MARINE

On this episode of Boating Industry Insider, host David Gee sits down with Jeremy Bale, senior brand manager at Kicker Marine Audio, a guy who knows about sound on the water. BI digs into what boat buyers expect today, how audio has become a core part of the on-water experience and what Kicker is doing to grow while keeping dealers( and its customers) grinning. If you love boats, audio, tech or just a good behindthe-scenes conversation, you’ re going to enjoy this one.

CLEVELANDMOTO

PODCAST: EP. 525, BRENDAN FROM POWERSPORTS BUSINESS MAGAZINE IS HERE!

The Department of Commerce is weighing an expansion of Section 232 tariffs that could add hundreds of new product categories— including motorcycles, electric motorcycles, parts, and some OHVs— to the existing 50 % duties on steel and aluminum derivatives. The Motorcycle Industry Council, Recreational Off-Highway Vehicle Association, and Specialty Vehicle Institute of America submitted formal comments opposing the requests for inclusion, citing potential harm to manufacturers, dealers, and riders. To voice your opposition to Section 232 tariffs already in place, the MIC Action Center offers a simple way to contact lawmakers.

DEALERSHIP

FIXIT PODCAST: HOW TO BUILD THE RIGHT PAY PLAN FOR YOUR DEALERSHIP WITH STEVE DODD

In this throwback episode of The Dealership Fixit Podcast, Steve Dodd, a 20-club consultant and powersports industry expert, breaks down how to build compensation plans that actually drive the right behaviors inside your dealership.