sled sales decline may be near bottom

Minneapolis, Minn. - The 10-year decline in snowmobile sales may be close to bottoming out, says Ed Klim, executive director of the International Snowmobile Manufacturers Association.

Klim presented the latest sales and sled registration figures to the 39th International Snowmobile Congress in Minneapolis last week. But afterward he said he believes sled sales are near their low point and he notes that all the makers are looking for better snow conditions in the next year.

Snow is the key to our sport bouncing back, said Klim, as did virtually every industry representative at the Congress.

For the record, 2007 sled unit sales were 160,318 worldwide, compared with 164,860 a year earlier. Sales have been falling since 1998 when 257,936 sleds were sold.

US sales decreases led to the overall decline. The Big 4 sold 79,815 sleds in the US this past season, down nearly 13% from 2006 when 91,670 were sold. In dollars, sled sales equaled $685,459,000 with the average cost of a sled being $8,587. The average cost was up from $8,064 last season. In 1998, when sales peaked, an average sled cost $5,988.

Sled prices have moved up steadily since 2004 as manufacturers invested more heavily in emission controls for their lineups, Klim said.

There was better news from Canada and overseas though.

Klim said that 45,477 sleds were sold in Canada, up 5.8% from the previous season when 42,953 were sold. In Canada, the average cost of a sled was $8,836. Overall, 2007 sales in Canada reached $385.6 million. Good snows in Western Canada boosted sales in Alberta, Saskatchewan, Manitoba and British Columbia, he said. Oil production in Alberta, and the resulting financial benefit to that area, also has helped.

In Europe and Russia, sales jumped 15.8% from 30,225 in 2006 to 35,026 this season. Sales overseas have been rising since 2002 when they bottomed out at 13,911 units. Klim explained that Russia has grown to be the No. 1 oil producer, which has stimulated parts of the economy there, providing more income for luxury items, such as snowmobiles.

Ed Klim noted that this is the first year ever that combined sled sales in Canada, Europe and Russia have exceeded those in the US.

Sled registrations remain pretty strong, with 1.69 million sleds registered last year in the US, and 601,243 in Canada. Both numbers are up from the benchmark year for sales, 1998, when 1.4 million sleds were registered in the US and 597,200 sleds were registered in Canada.

Klim also noted:

-ISMA's Safe Rider program has been successful. During its 7-year run, the accident and death rate for snowmobiling has declined 34%.

-There are concerns for 2012-13 when fuels will be available with 20% ethanol. The aim is to further cut emissions, but he noted that higher ethanol content could hurt engine durability and drivability, another challenge for manufacturers.

-A new use plan for Yellowstone National Park is expected late this year, or early in 2008. He remains hopeful that a workable plan to accommodate snowmobiles will be part of the use plan. He noted the irony in various groups trying to keep snowmobiles out of the park when the maximum has been 40,000 in a winter, as opposed to 1.8 million motor vehicles visiting the park in a summer.

In other Congress news:

-The group said the 2008 Congress will be conducted in Boise, Idaho.

-The International Snowmobile Council reports that $2.1 million has been raised by its state and provincial organizations for charity. Minnesota leads in charity donations with $730,748. Rounding out the top 5 are Saskatchewan ($406,750), Ontario ($360,279), Michigan ($309,425) and Manitoba $285,500).

-The top 3 charities receiving donations from snowmobile groups are, Easter Seals ($847,459), Lou Gehrig's disease foundation ($415,100) and cancer groups ($404,768).

-The Thirsty Dogs group that hawks lanyards and pins at the Congress said it has raised $34,365 for snowmobiling charities since 1985.