Off-Road Vehicle Maker Polaris Agrees To $27M Settlement

MINNEAPOLIS, MN – Polaris Industries Inc. has agreed to pay a $27.25 million penalty for failing to report that a pair of its popular recreational off-road vehicles had defects that could have led to serious injuries or death. The company, based in Medina, Minnesota, reported the defects only after numerous incidents happened, including the death of a passenger on one of its vehicles.

The U.S. Consumer Product Safety Commission announced the civil penalty settlement on Monday. The company, in a statement from chief executive and chairman Scott Wine, said the settlement resolves the matter. The company said it continues to stand behind a "guiding principle of 'safety and ethics always.'"

The settlement covers the company's RZR 900, model years 2013-2016 and RZR 1000 ROVs, model years 2014-2016, the CPSC reported. Polaris, which made approximately 133,000 of the vehicles, had received reports that the RZRs could catch fire while they were being driven, and create a dangerous situation for drivers and passengers.

"Despite having this information that reasonably supported the conclusion that the RZRs contained a defect that could create a substantial product hazard or create an unreasonable risk of serious injury of death, Polaris failed to immediately notify CPSC," the agency said in a statement.

The company did not report the hazard to the CPSC, until after receiving reports of 150 fires, including one that led to the death a of a 15-year-old passenger, 11 reports of burn injuries and an incident act led to a fire that burned 10 acres.

Additionally, Polaris received 36 reports of fires between December 2016 and July 2016 on its 2014 Rangers. The company made design changes to prevent heat shields from loosening and detaching from the vehicle, the CSPC reported. The company had manufactured some 93,500 of the Ranger XP 900, Ranger XP 900 EPS and CREW 900 vehicles in model year 2014-15, reported the CSPC.

Polaris reported the fires on model year 2014 Rangers to CPSC in July 2016 and recalled 42,500 of the vehicles September 2016. However, after the recall, Polaris received reports of heat shields coming loose or detaching from the model year 2015 Ranger – incidents that included reports of fires. The company, however, failed to immediately notify CPSC of the defect. And, by the time Polaris did report the issue, the company had already received 10 reports of heat shield incidents, including five reports of fires.

The company then recalled another 51,000 of the vehicles in April 2017.

In the company statement, CEO Wine said Polaris remains dedicated to innovation and performance, as well as safety and quality, in the off-road vehicle industry.

"I am extremely confident in the strength of our organization, the quality of our products, and the 11,000 employees who champion the principles and values that embody Polaris," Wine said.

The company, in the statement, advised customers to check if there are any recalls available for its vehicles. Customers can visit the Polaris website and enter vehicle identification number to check for recalls. Customers can also call the company at (800) 765-2747 from 7 a.m. to 7 p.m. CT Monday through Friday.

Image via U.S. Consumer product Safety Commission