Bad Boy Mowers Expands: Targets UTV Market

Intimidator multi-terrain vehicle from Bad Boy Mowers

Bad Boy Mowers of Arkansas has announced plans to hire more than 200 people in the next three to five years as the company expands it’s offerings in the UTV market. The manufacturer of lawn mowers also started producing utility vehicles several years back but has moved more aggressively into the UTV market with the launch of the affiliated company and brand, Intimidator in 2011. The company spent $7.5 million to expand their plant for the new product line.

The Intimidator series features a 1,600-pound payload and a 2,100-pound towing capacity. The company will be producing 10 new multi-terrain vehicles, as they like to call them, expanding the total number of models they offer to 16. The Intimidator product line includes diesel, gas and electric versions. Previously, under the Bad Boy Mower brand the company has also offered a range of UTVs including some that are LSV compliant UTVs. Learn more:  PBCommercial.com

Comment:  And the competition in the UTV market continues, this time in the work UTV segment. Creating a new brand is probably the best way to go as UTVs do not initially come to mind with the name Bad Boy Mowers. There could also be some confusions and possibly even legal issues with the Bad Boy Buggies brand owned by E-Z-GO. However, the company should still be able to leverage the Bad Boy Mower dealer network, which at first glance seems concentrated in the Midwest and East, to grow the Intimidator line. Distribution is key in this market as so many manufacturers entered from adjacent markets like powersports, farming, power equipment, golf, etc. They often can reach parts of the market or certain segments with their traditional distribution networks but then have trouble expanding further.

Polaris Reports Another Strong Quarter for Q2 2013

Polaris Ranger XP 900 helped drive overall sales in the second quarter of 2013

Polaris Industries just announced their Q2 2013 financial results and reported another quarter of strong earnings and market share gains. The following are the highlights of the earnings call with analysts with a focus on the STOV segments.

  • Sales for the second quarter increased 12%, to a record $844.8 million driven by share gains and double-digit retail growth in North America
  • Polaris captured market share in ATVs and side-by-sides which also drove significant gains in PG&A business
  • Second quarter net income rose 15% to $80 million yielding record earnings per share of $1.13, a15% improvement over the prior year period.
  • PG&A sales increased 33% for the quarter
  • ORV segment which includes ATVs and UTVs  performed well fueled by the RANGER 900 XP and supported by RZR products.
  • Revenue for ORV was up 7%, which is less than retail as inventory was reduced in preparation for new model launches.
  • Gained North American market share in both ATVs and side-by-sides.
  • North American side-by-side retail sales strengthened in the second quarter, up double-digits percent driven by growth in both RANGER and RZR categories. In fact, both brands had their largest unit retail quarters in their history.
  • Management estimates the North American side-by-side industry also improved, growing just under 10% in the second quarter and is now up upper-single digits year-to-date.
  • Initial Brutus shipments began into over 400 Polaris commercial dealers.
  • In the military segment Polaris remains the clear #1 in ultralight tactical vehicle space with the new MRZR is selling well globally
  • Due primarily to the Aixam purchase and contributions from GEM and Goupil, small vehicle revenues increased $22 million and 190% for the second quarter. Year-to-date, sales are up 109%.
  • GEM business is improving with second quarter retail sales were up in excess of 50%. Management reports better operations for GEM and improved traction in the B2B market place, particularly in the People Mover sub-segment.
  • Goupil also had a strong second quarter with orders up over 30% and notable cost and productivity improvements in operations, driving gross margin improvements.
  • ORV PG&A sales increased 25% and small vehicles 165%.  “The attachment rate that we’ve seen on the Ranger 900 XP with the new integrated cab system is phenomenal.”
  • In Europe – Polaris’ Q2 ORV retail grew and year-to-date, is about flat in an ORV industry that remains down double digits. Polaris maintains their leading position.

Looking ahead:

  • Future Sales of Off-Road Vehicles are expected to increase in the 8% to 10% range with retail sales of side-by-side vehicles and ATVs outpacing the overall market in North America and internationally
  • ORV market share is expected to continue to increase in 2013
  • For small vehicles, which includes the GEM and Goupil businesses, along with the recently acquired Aixam Mega, sales are expected to increase well over 100% for the full year 2013.
  • Both GEM and Goupil are expected to increase sales for the full year over last year total company sales increase in the range of 13% to 15% for the full year 2013.
  • Management is not feeling pricing pressure in the UTV market as they are confident that the Polaris brand/product can garner a price premium
  • Process improvement in small vehicle operations are improving quality and delivery as well as reducing costs. Management feels they are positioned very well in this space for strong growth.
  • The Bobcat dealer network has lagged Polaris in the commercial utility segment and the sell through of the Brutus vehicles will be slower than consumer vehicles because of the slower commercial vehicle buying cycle.
  • Management was even more upbeat than usually about the 2014 models that will be announced at the dealer meeting in a few days.

Learn more:  Seekingalpha.com (Earnings call transcript)

Comment:  Polaris management continues to execute on their strategic plans very well. They are setting the industry standard for inventory management, operational efficiency and product development and innovation. In an increasingly competitive market it will be interesting to see what features and innovations their new models will have.

News from Lithium Boost Technologies

Lithium Boost Technologies signs manufacturing agreement with Bright Technologies

Lithium Boost Technologies, which produces a lithium battery system to replace the lead acid battery pack in golf cars, industrial and utility vehicles, recently announced a new safety feature and strategic manufacturing agreement. Their new interlock feature locks the vehicle in place to prevent the user from moving it while the battery is in the charging process.

The company also signed a manufacturing agreement with US/Mexico based Bright Manufacturing to produce wiring harnesses and electronic boards for the the battery systems. The agreement will allow the Lithium Boost to improve delivery time and meet growing demand.

Lithium Boost offers a variety of lithium iron phosphate battery solutions including, LithiumBoost Plus for leisure use, LithiumBoost Pro for industrial, and LithiumBoost Ultra for off-road. Depending on vehicle application, the product is available in 36, 48, & 72 volt systems and 60ah-200ah lithium-ion battery cells. Learn more:  Lithiumboost.com

New Florida Law Allows Conversion of LSVs to Golf Car Speeds

A new Florida law went into effect on July 1, 2013 that allows owners of low-speed vehicles to mechanically convert their vehicles to normal golf car speeds of 20 mph, which lowers their insurance costs. Reportedly thousands of Florida residents are waiting to make the change. The conversion can save an owner between $500 to $800 in insurance costs since a typical golf car can be insured for only $100 compared to $600 to $900 for an LSV. They can also save on the annual LSV registration costs of about $50. The conversion costs about $40.  Learn more:  WUSFNews

Comment:  This law further blurs the line between golf cars and LSVs. While most of the time this hurts the LSV market by making golf cars a more viable substitute, this time the law should help the LSV market by significantly reducing LSV operating costs in a major market for the vehicles. With its many retirement communities geared to golf car or LSV use, Florida has more than 5,000 registered LSVs or golf cars modified to meet LSV requirements.

Renault Offers Twizy Cargo for Commercial Use

Renault’s Twizy Cargo for urban commercial use

France-based Renault is modifying their commuter vehicle, the Twizy Z.E., to be used as a small commercial vehicle for cargo transport. Whereas the Twizy Z.E. features two seats with the passenger behind the driver, the Twizy Cargo will be a one-seater with cargo space. Both are electric powered vehicles. With 6.53 cubic feet of cargo space and a 165 lb payload the vehicle is best used for small package delivery in urban environments. The top speed of the Twizy 45 Cargo is limited to 27 mph which means in some European countries a driver doesn’t need a license. The Twizy 80 Cargo has a top speed of 52 mph and requires a licensed driver.  Durability issues with the vehicle raise concerns about the ability of the vehicle to withstand more demanding commercial usage. Learn more:  Plugincars.com

Comment:  Europe and some other regions have relatively more relaxed vehicle regulations than the US when it comes to smaller vehicles such as the Twizy.  With their older cities and narrower streets, they arguably have a greater need for them as well. Thus, the market and regulatory bodies have responded with a variety of vehicles and vehicle classifications to meet the market needs. Europe will continue to be a more fertile ground than the US for these low speed vehicles in the foreseeable future unless US regulations change. This is one reason why Polaris in recent years has made acquisitions in the European market and sees potential for their GEM brand internationally.

E-Z-GO Introduces Redesigned TXT Golf Car

Newly redesigned E-Z-GO TXT golf car

E-Z-GO has introduced a newly redesigned TXT golf car featuring updated styling and new features to improve durability and performance. The press release follows with more details but some of the major themes of the redesign include:

  • New features to better incorporate usage of personal electronic devices
  • Refinements of existing features for increased usability and easier maintenance
  • Updated styling
  • Stronger components for increase durability

Comment:  The level of the refinements speaks to the competitive nature of the fleet golf car market where small incremental changes can lead to a competitive advantage. Some of these incremental changes in this case include an optional USB port, larger and repositioned cup holders, repositioning key control switches, slight changes in canopy angles and bagwells that drain water better. Taken individually they may not seem like much but collectively they can produce a better vehicle for both the owner and the user. This level of refinement also takes a certain level of investment and resources to study vehicle usage in great detail and develop appropriate changes at a high level of refinement.

FOR IMMEDIATE RELEASE:
June 18, 2013

Contact: Brandon Haddock
Director, Communications
706.772.5931
bhaddock@textron.com
E-Z-GO® Introduces Redesigned TXT® Golf Car
to Deliver a Better Golf Experience and Proven Performance

AUGUSTA, Ga. — E-Z-GO is pleased to introduce its redesigned TXT® golf car, updating the model’s classic look and proven performance while delivering a host of refined features to offer a better golfing experience, increased fleet durability and simpler maintenance.

“We remade the TXT to give our customers a golf car that was even easier to maintain, and to provide the premium features and conveniences expected by today’s golfers,” said Michael R. Parkhurst, vice president, golf for E-Z-GO. “The refined TXT has more of what you need, while still providing the unmatched level of performance that’s made our TXT the industry’s most trusted golf car for more than 15 years.”

Multiple design updates were developed to increase golfer enjoyment and make the car simple to use and maintain. The dashboard can be equipped with an optional USB port to recharge mobile phones, rangefinders and other small electronics, while also providing 30 percent more storage — enough room for an iPad. Storage pockets are placed higher in the dash to protect stored items from the elements.

Cup holders provide 45 percent more volume and are relocated to a more central position in the vehicle to prevent spills. Seatbacks are 23 percent larger to make every round a more pleasant experience. Ball holders are now mounted in the outside dash pockets for easy access from outside the vehicle. The oversized bagwell accommodates larger golf bags, has fewer places for dirt to collect, and new drainage holes to help eliminate standing water.

The new TXT’s updated styling follows modern automotive design cues, giving the vehicle a sleek, contemporary appearance. The forward-neutral-reverse switch has been relocated to a central location along the spacious bench seat’s centerline, placing controls at the driver’s fingertips for easier access and quick changes of direction.

Many new features of the TXT redesign increase the unit’s durability and make cleaning and maintenance easier. The vehicle’s front struts are 25 percent thicker for longer life, and the TXT’s front cowl and body panels are crafted from durable automotive-quality materials with an attractive, painted finish resistant to scratches and fading. An optional front bumper withstands repeated 5-mph impacts, and the TXT’s steel-reinforced rear bumper is the strongest in the industry.

The new sun top boasts a double-walled construction and an industry-first molded-in grab handle. The canopy is angled downward three degrees to eliminate standing water. Built-in drainage channels and a 360-degree drip edge are placed at the top’s corner to funnel water away from golfers, while lack of an internal drainage channel ensures no clogging.

The redesigned TXT golf car retains its predecessor’s proven performance and standard features still not found anywhere else in the industry. TruCourse Technology allows golf course owners to tailor speed, acceleration and regenerative braking characteristics to optimize the vehicle’s performance for safe, efficient operation on their course, and also reduces energy costs and improves battery life and daily range. The new TXT’s 48-volt DC technology offers the most efficient and effective DC power in the industry, maximizing battery life and using less energy than competing models.

For more information about the redesigned TXT, visit ezgo.com or follow E-Z-GO on Facebook. To receive a demo of the new TXT, contact your local E-Z-GO sales representative or authorized distributor.

About E-Z-GO
E-Z-GO, a Textron Inc. (NYSE: TXT) company, is a leading global manufacturer of golf cars, utility and personal transportation vehicles. Products sold under the E-Z-GO brand include RXV® and TXT® fleet golf cars, Freedom® RXV and Freedom TXT personal golf cars, E-Z-GO Terrain™ and Express™ personal utility vehicles, and the 2Five® street-legal low-speed vehicle. E-Z-GO also produces the Cushman® line of heavy-duty material carriers and utility vehicles, and the Bad Boy Buggies® line of off-road utility vehicles for hunters and outdoor enthusiasts.

Founded in 1954 in Augusta, Ga., E-Z-GO became part of Textron Inc. in 1960.

About Textron Inc.
Textron Inc. (NYSE: TXT) is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron in known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.

e-Ride Industries Wants to Deliver Your Mail

e-Ride Industries EXV4, a LSV compliant utility vehicle

e-Ride Industries of Minnesota wants to provide electric powered fleet vehicles for the US Postal Service for mail delivery. The manufacturer of low speed utility vehicles states that their vehicles would save $0.90 per mile in operational costs compared to the Postal Service’s current gas powered delivery trucks that are such a familiar sight to many. There is also the reduced emissions to consider. A modified version of one e-Ride’s existing models is currently being tested by the agency. Depending on the configuration, initial costs would be between $18,000 and $30,000. With hundreds of thousands of vehicles in service, the potential market is very large for this small manufacturer.  Learn more:  KSTP.com

Comment:  The appeal of this market for electric vehicles is that set delivery routes and  central recharging at the vehicle depot make it easier to determine the range requirements for the battery pack. Shorter routes on roads with speed limits of 35 mph and under would be ideal for this vehicle. The continuous stop and go nature of this vehicle application is also an ideal use of electric power rather than an ICE.  This type of vehicle could make a lot of sense for certain routes but the potential could be limited by vehicle speed and road use restrictions.

Miles Electric Vehicles Files for Bankruptcy

Miles Electric Vehicle’s ZX40S

Miles Electric Vehicles has filed for chapter 11 bankruptcy. The company listed assets estimated between $10 million to $50 million and liabilities estimated between $50 million and $100 million. Established in 2004, Miles produces four LSVs including the ZX40, ZX40S, ZX40S Advanced Design and ZX40ST electric truck. The vehicles are manufactured in China. The main market for the company has been commercial, government and university fleets. Learn more:  Inautonews.com

Homeland Security: A Good STOV Market

US Border Patrol to purchase Kawasaki Mules

A couple of news items I came across indicate that homeland security continues to be a good market for STOVs. One involves the Army purchase of a couple of GEM LSVs. While obviously not a large purchase, these type of small volume purchases occur on a regular basis at various bases. At one time the Army had made plans for purchasing a large volume of LSVs, in the thousands, and had started that initiative before other priorities apparently squeezed out spending for them. Nonetheless, reducing petroleum use remains an important goal for the armed forces and replacing some vehicles with LSVs helps towards that goal. It is also possible that if more funds become available then larger volume purchases may start up again.

The other news item involved STOVs in action closer to actual battlefields. The U.S. Customs and Border Protection (CBP) is planning to purchase six 4×4 Mule UTVs for their operations in Afghanistan using a reverse bidding process. The demanding terrain in both Afghanistan and Iraq has lead to significant purchases of off-road vehicles of both the UTV and ATV variety. Among the groups using the vehicles are Special Operations forces. While the drawdown of troops in those theaters of operation will likely decrease the demand for those vehicles, they have proven valuable in difficult terrain and are likely to be continued to be used in other operational areas.  Learn more:  FBO.gov  and GSNmagazine.com

Club Car Awards Johnson Controls as a Top Supplier

Club Car recently gave their award for Overall Operations Excellence 2012 to Johnson Controls in recognition of being a top supplier. Johnson Controls supplies all the batteries to power Club Car’s fleet of Precedent golf cars and Carryall utility vehicles from facilities in Florence, SC. Besides providing deep-cycle lead-acid batteries, Johnson Controls is working with Club Car to develop and deploy advanced battery technologies that should be available in the next eighteen months as options for certain models..

Learn more:  SacramentoBee.com