Club Car Awards Johnson Controls as a Top Supplier

Posted on June 3, 2013 by Marc Cesare

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

Highlights from the Polaris Earnings Call – Q1 2013

Posted on April 26, 2013 by Marc Cesare

The following are the highlights of the Polaris earnings call for their first quarter 2013 earnings report as it relates to the STOV market.

Total sales for the first quarter increased 11% to a record $754.9 million
First quarter net income increased 26% to $75.5 million
Gross profit margins were up a modest 10 basis points to 29%
Full year sales expected to be up 12% to 15% over 2012.
Polaris’ first quarter Off-Road Vehicle (ORV) revenue increased 7% driven by side-by-side sales.
In the first quarter consumer demand for the RANGER 900XP outpaced all other ORVs in the industry.
Polaris gained market share in both ATVs and side-by-sides.
ATVs down low single digits and for industry as well
Polaris side-by-side retail grew mid-single digits in an industry estimated to grow low single digits.
The new RZR XP 900 Jagged X has been a hit with consumers
Major strategic initiatives included launch of Brutus commercial line, acquisition of Aixam and start of plant construction in Poland
Brutus line will be sold through dedicated new Polaris commercial channel that already includes 400 dealers
Initial orders for both the Brutus product and the attachment have been better than are than expected.
Small vehicle business consisting of GEM and Goupil grew double digits
GEM and Goupil both had good quarters, as GEM retail more than doubled in its best first quarter since 2008, while Goupil retail orders were up about 20%, significantly outperforming the European economy.

Looking Forward

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.
Management expects to increase ORV market share in 2013 although at a more moderate rate than the past 3 years.
Management optimistic about new model introductions for model year 2014
Poland facility to be online in the 2nd half 2014 mainly for producing ATVs for the European market with some side-by-side capability as well.
Management expects to realize sourcing and engineering synergies between Goupil, Aixam and Gem
Goal is to decrease the delivery time of for side-by-side products to dealers from 6 weeks down to 4 weeks

Learn more: Seekingalpha.com (earnings call transcript)

LSV Manufacturer GreenTech Automotive to Make Highway Capable EV

Posted on April 25, 2013 by Marc Cesare

GreenTech Automotive plans to produce a highway capable electric sedan

GreenTech Automotive (GTA), the Virginia-based manufacturer of the MyCar LSV, is partnering with China-based JAC to build a 5-person electric powered sedan. JAC’s Rejoice platform will be used for the vehicle which will likely feature a 19 Kwh lithium battery power source and have a range of over 100 miles. According to executives they have distribution agreements in place to sell 30,000 vehicles over three years. Vehicle assembly will be carried out in Mississippi at the same facility as the MyCar with a dedicated new facility for the sedan in the plans. Production is scheduled to begin in late 2013. There is no information on the pricing of the vehicle.

Comment: This is another LSV manufacturer that is trying to make the move from producing LSVs to producing highway capable EVs. None have met with any great success so far. From what we’ve seen, the sales of the MyCar has not met the hype about the company. Given the sales levels of the Nissan Leaf which is produced by a well-established company with an extensive distribution network, 30,000 units in three years for this sedan appears to be very optimistic.

First Polaris & Bobcat Co-Developed Commercial UTVs Roll Off the Line

Posted on April 17, 2013 by Marc Cesare

Bobcat & Polaris executives join workers at Milford, IA factory to celebrate the first commercial UTVs to roll off the production line.

Executives from Polaris and Bobcat made an appearance at the Milford, IA assembly plant to commemorate the first Bobcat 3600 and Bobcat 3650 and Polaris BRUTUS models to roll off the production line. The commercial UTVs are the result of a strategic alliance between the two companies to co-develop products. The alliance leverages Polaris experience in utility vehicles and the powersports market, and Bobcat’s experience in work vehicle technology and attachments. Bobcat also brings to the table extensive knowledge of commercial customers and a dealer network to reach that segment. Learn more: SXSNews.com

Polaris to Produce Brutus Line in Milford, IA Starting in 2014

Posted on March 28, 2013 by Marc Cesare

Polaris Industries will be producing their recently launched Brutus line of commercial utility vehicles at a facility in Milford, IA in 2014. Once the Klaussner-Stylecraft Furniture factory, the site was purchased by Polaris after it was closed in 2011. A state agency provided the company with $3.6 million in tax credits and the city provided “$1 million in tax increment financing over a 10-year period.” along with putting in a lift station and sewer line. Polaris already produces their GEM line at another location at the site. Learn more: Siouxcityjournal.com

Polaris 4Q 2012 Earnings Report & Conference Call

Posted on February 6, 2013 by Marc Cesare

Last week Polaris reported another strong quarter and year for 2012. They continue to lead the UTV market and are now making inroads in the LSV market with their GEM acquisition. Polaris increased fourth quarter sales 15% to a record $900 million. Fourth quarter net income and earnings per share both increased 38% to $88.1 million and $1.24 per share, respectively. Full year 2012 sales increased 21% to a record $3.2 billion and net income increased 37% to $312.3 million. Net margins reached a record 9.7% and earnings per share rose $4.40, up 38%. Several days after the call management announced that the quarterly dividend would be raised by 14% to $0.42 a share. Some other highlights from the conference call:

Revenue in the Off-Road Vehicle (ORV) segment grew 22%, powered by over 20% growth in North American side-by-side sales which outpaced the expansion of the overall market that was estimated at low teen percent.
While fourth quarter wholesale sales to Bobcat decreased, the full year retail sales there increased upper-single digits. 2012 milItary segment sales were flat.
Sales from GEM and Goupil increased over 50% in the fourth quarter with GEM up double-digits and orders up even more as distribution increased and a revamped 2013 model line-up was introduced.
Overall revenue is expected to increase 7-10% in 2013 with net income and earnings per share projected to increase in the range of 10% to 15% over 2012.
The management expects a slowdown in the rate of growth in the UTV/side-by-side market but still expects the overall market to grow.
Sales of Off-Road Vehicles are expected to increase in the high-single digits percent range with retail sales of side-by-side vehicles and ATVs continuing to outpace the overall market, both in North America and internationally.
Europe and Middle East sales in the ORV market are expected to decline because of economic conditions.
A new $50 million manufacturing facility will begin construction in Europe in the first half of 2013 to cut costs, better match products to the local markets and alleviate anticipated production constraints in current facilities. It will be a 325,000 square foot facility for welding, painting and assembly of ATVs and UTVs. Production will begin in the second-half of 2014.
An India plant will also be built as part of their joint venture with Eicher with production expected to begin in 2015.
The new RZR XP900 Jagged X was well received by dealers and sold out of it’s initial allotment within 24 hours.
Over 150 GEM dealers were added in 2012 and 2013 revenue is expected to grow double digits with a focus on growing B2B customers.
For Goupil, a new G5 hybrid product is launching in 2013.

Read the earnings call transcript: Seekingalpha.com

Virginia Rejected Factory Incentives for MyCar LSV Manufacturer

Posted on December 19, 2012 by Marc Cesare

Greentech Automotive, maker of the MyCar LSV, had their request for incentives to build a factory rejected by the state of Virginia before receiving help from Mississippi where they opened a plant in Tunica last summer. The rejection, based on the lack of viability of their business plan, is currently of interest because the company chairmanTerry McAuliffe, formerly Chair of the Democratic National Committee, is now a gubernatorial candidate for Virginia. Virginia officials questioned whether the goal of selling 100,000 MyCars was realistic given that the company “… lacked brand recognition, had not demonstrated anything about the vehicle, did not have emissions approval from the EPA, had no distribution network, and had nobody in executive management with experience in automobile manufacturing.” Greentech Automotive is positioning the $10,000 MyCar as an affordable electric vehicle alternative to much higher priced highway speed EVs. Learn more: Torquenews.com

Comment: While LSVs have developed their niche and can be used in a variety of commercial and consumer applications, their sales have never approached the level that MyCar is predicting. Their target of 100,000 would surpass what has cumulatively been sold in the US to date.

Honda Moves UTV Production To South Carolina

Posted on November 1, 2012 by Marc Cesare

I’ve seen a number of stories in the past year from various industries about companies moving production back to the US. Usually they are moving back from China but in this case Honda is moving their UTV production from Mexico to South Carolina. The Timmonsville, SC location is expected to be ready for UTV production in the summer of 2013. The Honda Big Red UTVs will be for the US and global export markets. Currently the facility is dedicated to ATV production but the UTV market has outpaced and surpassed the ATV market in recent years. The Mexico facility will produce two-wheeled products for the Mexican market. Learn more: Roadracingworld.com

Green Tech Starts NEV Production

Posted on July 13, 2012 by Marc Cesare

Green Tech Automotive starts production of their MyCar NEV

A visit from former President Bill Clinton kicked off production at Green Tech Automotive’s Horn Lake, MS plant. The production line will manufacture the company’s MyCar NEV. Management, which includes former Democratic National Committee chief Terry McAuliffe, hopes to produce 10,000 vehicles in their first year. Many of these are destined for Denmark where Greenabout will distribute the vehicles. Pizza chain Domino’s will also use some of the vehicles. The company is targeting the fleet market with the vehicle which is priced at $18,000 and claims a maximum range of 95 miles for the top of the line model. The vehicles feature lithium batteries from Flux Power of California. Future plans include shipping vehicle components to China for final assembly in a to be built plant there as well as 300,000 square facility in Tunica County to produce up to 16,000 vehicles per year. Learn more: ClarionLedger.com

News Briefs

Posted on April 27, 2012 by Marc Cesare

Polaris Adds Jobs – Polaris will be adding 89 jobs in their Osceola, WI plant for work related to their Indian Motorcycle and GEM product lines that were acquired last year. Work at the plant will include engine production for motorcycles and R&D for GEM vehicles. The company has also added 200 jobs over the last 18 months at their Spirit Lake facility which is ramping up to full production of Indian motorcycles and GEM vehicles. Learn more: Startribune.com

Campus Sustainability Drives Electrics – Washington State University is another example of how sustainability initiatives on campus are driving electric STOV purchases. The university recently purchased the three GEMs for transportation and general fleet use. The vehicles help the university meet the governor’s mandate that state entities reduce their carbon footprint. Learn more: News.wsu.edu

A Case For NEVs/LSVs – In this brief interview an author in the renewable energy space makes the case for NEVs/LSVs and the role for STOVs. Learn more: 2greenenergy.com

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