XY Powersports continues growth trajectory

New model, new warehouse among positive signs for UTV distributor

When it comes to the longevity of powersports companies, XY Powersports is still rather young. XY launched its U.S. operations in 2009, but the company has already seen success in its short lifespan, and it’s moving toward even better results in the future.

“From the beginning, we started out with crated products, shipping them out to the dealerships, building the brand and the name. And then we slowly made adjustments throughout the years with fully-assembled vehicles to a new warehouse,” sales coordinator Cody Quick said. “We’re going to expand out west in the future. So we’ve grown. We’ve been around since 2009, and here we are in 2015 still growing, still learning. It’s learning every day.”

Recent growth

The year 2014 was one of expansion and learning for UTV distributor XY Powersports. XY started the year with a January move from a 13,000-square-foot facility in Evandale, Ohio, to a 32,000-square-foot space in Loveland, Ohio. XY then began taking the crated units from its Zhejiang Xinyang Industry Co., LTD. factory in China and assembling the them in Loveland, saving the dealer much of that work.

“We started assembling our product line ourselves to help with quality control before it comes into a dealership,” Quick told Powersports Business.

XY also hosted dealer training sessions throughout the year. It brought a group of dealers into its headquarters on the second Monday of each month to teach them how to increase reimbursement for warranty shop labor, increase troubleshooting capabilities, decrease repair times, reduce warranty service and labor costs and increase customer satisfaction. Dealers are also given full walk-arounds and explanations about the XY lineup during their training.

“Basically we’re helping build them and keeping the dealership organized, so if they ever need anything, they can do it quickly. And it definitely helps tremendously,” Quick said. “A lot of dealerships like it. It does raise the shop rate up, which is an improvement; they love that as well. [It’s] just allowing them to get hands-on with the improvements you can’t just learn by looking through PowerPoints or online or in a book. So with the hands-on, it lets them get dirty and learn about the vehicles.”

Expanding network

The dealer training has been needed more and more, as XY expands its network. XY receives calls and emails daily from dealers interested in bringing on XY’s lineup, Quick said.

“Every month we’re adding new dealers. We’re having them come to our dealer training, and it seems like they’re hungry to learn more about the product,” Quick said.

In 2015, XY plans to continue to increase its dealer network, with a special focus on the western U.S. as the company only has about half a dozen dealers west of the Mississippi River.

“A dealership that we’re looking for is someone who is hungry and wants to be there to build a brand from the beginning and go,” Quick said. “Just like any other major OEMs out there, we need the right amount of dealerships out there to build the brand and the name, and that’s what we’re doing. We want dealerships that are hungry; they’re engaged with us and want to sell product; they want to be part of the family.”

Quick added that dealers are drawn to XY because of the product, the price point, dealer training and other support provided by the distributor.

“We’re here to help them expand. We’re not just trying to be another vendor for them; we’re building a relationship, so it’s long term, and they like that. We’re here to help, no matter what,” Quick said. “That communication is huge with a lot of our dealerships. A lot of people out there just don’t communicate, and that hurts relationships. We’re here to communicate.”

Quick reported that XY dealers will never encounter an automated phone system when they call the Loveland office; they’ll always hear an XY employee on the line.

New UTV

To sweeten the year for XY dealers in 2015, XY has recently introduced the Vaterra 1100.

“The Vaterra is one of our flagship vehicles. It’s definitely one of the larger vehicles out there. The quality, standard options, engine size and price range really catches the eye of a lot of people,” Quick said.

An automotive inline-4, 16-valve, dual overhead cam engine powers the Vaterra 1100, which comes in two- and four-seat models.

“With a lot of other side-by-side vehicles out there now, it looks like they’ll be switching to automotive engines, but it gives us the advantage that we started ahead of a lot of them. A lot of people are still out there using ATV/UTV engines. The type of engine in this vehicle makes for a lot more longevity and durability on a vehicle,” Quick said.

After developing the Vaterra 1100, XY outfitted a four-seat model with special fabrication and wiring for lights and sirens for the Loveland Police Division.

“They use it for football games, events, car shows they had going on, parades; they actually passed out candy on Halloween to all the kids that came by. And they also use it to patrol the bike trails around here. Or off-road search and rescue, they’re able to do with that type of vehicle,” Quick said.

The vehicle, which produces 71.5 hp and 67 pounds of torque at 4,000 rpm, is ideal for a variety of customers and situations, Quick reported.

“There are a lot of things you can do with this type vehicle — construction sites can use it; farmers can use it; even an everyday weekend rider can use it if they want to. It does come with a lot of power behind it in horsepower and torque,” he said.

Continuing growth

Though XY Powersports has already made great strides as it enters its sixth year in the U.S., the distributor is not slowing down. In addition to increasing its dealer network, XY plans to improve its supply chain to be able to deliver parts more quickly in 2015.

Another assembly facility is also in the plans. XY would like to open a second warehouse somewhere in the Midwest to better reach the western U.S.

“We’re growing,” Quick said. “It’s just a learning experience every day.”