Polaris Industries' (NYSE:PII) investment in an all-new diesel-power version of its popular RZR all-terrain, side-by-side vehicle looks like it's already paying off. The powersport vehicle manufacturer announced last week that the Canadian military will acquire 36 MRZR-D utility vehicles and 12 tactical trailers for evaluation. Polaris says there is an option for up to 18 more MRZR-Ds and up to six more tactical trailers to be delivered under a contract awarded in June.
Going where ATVs haven't gone before
The MRZR-D is not your typical trail ATV, and not least because the public can't get its hands on one. These are military-issue-only vehicles, and they're powered by turbo-diesel engines, giving them greater range and more power than their gas-powered siblings.
Polaris has been providing the U.S. military with MRZRs since 2013, and was awarded an $83 million five-year, indefinite-delivery, indefinite-quantity contract a year ago for its MRZR 2 and MRZR 4. However, the U.S. Special Operations Command has been looking for an improved version that would be transportable to forward-deployed troops via its CV-22 Osprey tiltrotor helicopter. While the ultralight MRZR helped the military in that capacity, it has some limitations, primarily its reliance upon gasoline, which may be in short supply or unavailable in the hot spots in which these vehicles are needed.



