$230 Million for California’s Clean Vehicle Rebate Program (CVRP)

Posted on April 7, 2016 by Marc Cesare

Source: SVR based on CVRP data.

The California Air Resources Board (ARB) is proposing $230 million in funding for the California Clean Vehicle Rebate Program (CVRP) for fiscal year 2016-2017.

CVRP offers vehicle rebates on a first-come, first-served basis for light-duty ZEVs, plug-in hybrid electric vehicles (PHEVs), zero-emission motorcycles, and neighborhood electric vehicles. Rebate amounts are $2,500 for battery electric vehicles (BEVs); $1,500 for PHEVs; $5,000 for fuel cell electric vehicles; and $900 for zero-emission motorcycles and neighborhood electric vehicles. As of February 1, 2016, the CVRP has rebated over $291 million, covering 137,000 vehicles.

NEVs have been a small portion of these vehicles, totaling only 147 vehicles and just over $151,000 in rebates from 2010 to 2016, according to the CVRP statistics. One issue is that there have been only four brands that have been eligible for the rebates including GEM, Miles, Vantage and EVI eMega. By far GEM has been the most prevalent NEV in the program, accounting for 111 of the 147 vehicles. However, the model year 2014 and 2015 vehicles have not been eligible because the do not meet CVRP performance requirements. According to the CVRP website there are no current model year NEVs eligible for the rebate. As the above chart shows, there has been a significant drop-off in NEV rebates since 2013.

Source: SVR based on CVRP data.

Only 35% of the NEV rebates went to businesses, 34% to federal, state or local governments and 22% to individuals with the remainder to non-profits. These figures are not that surprising as GEM sells mostly to commercial customers. Learn more: Cleanvehiclerebate.org

Buying a Vehicle for Campus Use

Posted on March 30, 2016 by Marc Cesare

GEMs are popular for use on campuses for people moving and general utility work applications.

I recently interviewed Andy Kaplan of Dominion Utility Vehicles in Bedford, Virginia about buying a small, task-oriented vehicle for use on a college or university campus. Some common uses for these vehicles include people transport, campus security, general maintenance, grounds keeping and other heavier duty work. He sells the GEM, Polaris Brutus and Gravely Atlas JSV four-wheel drive utility vehicles.

In this and other commercial segments many dealers will bring vehicles to the customer to try out for several hours, a full day or even a few days if their interest is high. If you are in the market for a vehicle, it is wise to do so as it affords you the opportunity to drive and use the vehicle just as if you owned it. The best approach according to Kaplan is to use the vehicle just as you would during a typical work day. You can see how the vehicle handles the terrain, the various tasks, maneuvers in tight spaces and, if exploring electric vehicles, what type of range and charging time you will need on a daily basis.

Another consideration is what are all the tasks for which you will be using the vehicle on campus. If you are hauling material or equipment, how much cargo box and vehicle capacity do you need, how large a cargo box do you need in terms of dimensions and do you need a covered cargo area. If you are carrying tools do you need one or more toolboxes or a ladder rack. One of the advantages of these utility vehicles is that they can be customized to a great degree with many different options and accessories to perform a specific task or set of tasks. By investing the time up front thinking about how you will use the vehicle, you can purchase a vehicle that can be highly versatile, productive and cost-efficient.

Other important considerations include:

Campus terrain: Do you need 4WD for hills, off-road capabilities, turf sensitive tires and handling capabilities, LSV features for public road use, etc.
Weather protection: Do you need protection from the sun or rain, harsh winter weather, allergy issues when mowing, etc
People moving: How much seating capacity do you need? What about creature comforts? If you will be transporting clients or customers, what image and branding reinforcement do you want to convey with the vehicle?

For the complete interview visit our buying guide section.

NFMT Trade Show

Posted on March 28, 2016 by Marc Cesare

Last week I visited the NFMT trade show in Baltimore at the invitation of Andy Kaplan of Dominion Utility Vehicles, a Polaris commercial dealer who carries the GEM, Brutus and Gravely vehicle lines. The National Facilities Management and Technology Conference & Exposition (NFMT) brings education, networking and new products to facilities professionals nationwide. While a host of products and services from lighting, energy, air systems, roofing, HVAC, etc are on exhibit, I was there to check out the handful of utility vehicle brands on display including the GEM and Brutus from Polaris, Club Car, Taylor-Dunn and Vantage Vehicle.

The Polaris Brutus HDPTO Deluxe with an angle broom attached on display at the NFMT expo.

The Polaris display had one of the larger footprints on the NFMT expo floor and had on display the GEM eL XD, Polaris M1400 and Brutus HDPTO Deluxe. The latter probably received the most attention on the day I was visiting. (The NFMT ran for three days) The Deluxe is an impressive vehicle with a factory installed cab with heat and A/C standard, integrated front PTO, 24 hp Kohler diesel engine, hydrostatic drive, and 1,250 lb. cargo box. The model also has a treadle pedal so you don’t have to shift gears back and forth during tasks like plowing snow, and with the hydrostatic drive the hydraulic fluid absorbs the changing forces rather than gears. The display model had an angle brush attachment mounted on the front. Starting at around $24,000 with the attachments extra the vehicle may appear to be pricey, but the Brutus HDPTO Deluxe is a commercial level work utility vehicle and the versatility provided by the attachments allow the Brutus to do the work of several vehicles on all types of terrain.

An interior view of the Brutus shows the joystick for controlling attachments.

For example, with the finishing mower attachment you can mow even on steep terrain and do so in a climate controlled cab. The angle brush can sweep sidewalks of dirt and debris in the summer and snow in the winter. For other snow removal applications there is a snow blade or snow blower. The attachments can be controlled from the cab and can be moved up, down, left, right and tilted forward or backward. A cargo box spreader attachment was added last year with cab controls for adjusting the area of the spread, the volume of material, and the vibration of the auger to prevent clogging. The PTO also has a separate throttle control so the vehicle can be operated at a slower speed but the attachment can be operated at higher power. Other attachments include a landplane, grapple, pallet forks and materials bucket. According to recent Polaris earnings calls the higher end Brutus vehicles have been selling well.

The recessed bed in the new 2016 GEM eL XD.

A shot of the interior of the GEM eL XD on display at the NFMT expo.

I was also able to see the new 2016 GEM eL XD up close. As advertised the new doors feel really solid. I met another GEM dealer who expressed optimism about sales for the new line in the coming year. The recessed bed on the eL XD is one of the new features for 2016. I sat in the cab and the overall look and feel of the vehicle is solid and gives the impression of a quality build.

A Club Car Carryall with the VersAttach system installed.

At the Club Car display they had their relatively new Carryall 500 and 700 on display but were focusing more on their VersAttach Bed System, a configurable and removable track-based bed attachment system for carrying tools and equipment. The commercial focused team was representing Club Car at the event. They are focusing products and services on specific vertical market segments such as education, resorts and government.

The electric powered Vantage Vehicle is proving to be a popular alternative to pickup trucks in certain applications.

Werres Corporation, a distributor of Vantage Vehicles, had one of the vehicles on display at their booth. The electric powered vehicle features a long truck bed and an enclosed cab with a design similar to mini-trucks. The Vantage Vehicle has been a big seller for Werres, and often displaces pick-up trucks for campus applications.

The electric powered Taylor-Dunn Bigfoot has a 3,000 lb. load capacity.

Taylor-Dunn was featuring one of their relatively new vehicles, the Bigfoot. The Bigfoot features 48V AC power, hydraulic brakes, 12 mph top speed, a 44″x77″ flatbed and a 3,000 lb. load capacity. Other amenities include dual USB charging ports, LED lighting, adjustable seats, tilt steering and recessed tie-downs. The Bigfoot has a range of up to 40 miles and can be configured with a cab, stake sides or aluminum drop-down sides.

2016 GEM Line Looks Like A Success

Posted on March 2, 2016 by Marc Cesare

The new GEM product line for model year 2016.

The new GEMs for model year 2016.

A recent conversation with a GEM dealer indicates that the newly designed 2016 GEM product line will be a success. In November I spoke with John Stockman, Director of GEM about the new 2016 line of GEM vehicles. I wanted to follow-up that article with a dealer’s perspective of the line now that it has been in the market. To that end I spoke with Andy Kaplan of Dominion Utility Vehicles of Bedford, Virginia, which carries the GEM line along with Gravely and Brutus utility vehicles. Polaris manufactures all three of these brands.

While December through February are typically a slow season for Kaplan, he has been selling GEMs at a rapid rate this year. In fact, we conversed while he and his loaded vehicle trailer were calling on customers for test drives and to deliver a price quotes. He is still following up leads from a trade show six weeks ago. Kaplan typically sells vehicles to colleges and universities, hospitals and real estate developments where GEMs are used for security, maintenance and people transport.

Polaris significantly re-engineered the GEM line for 2016. They made changes to the body design, added more cabin space, improved the doors and added more door options, introduced their Smart Power concept, and expanded options and accessories for the utility model. According to Kaplan, the changes have all hit the mark and are winning over customers. The new doors and additional cabin space are probably the most critical changes driving customer interest. As Kaplan observes, these changes give the GEM a more car-like feel. He believes they have helped position the GEM in it’s own market niche between golf car based vehicles and fully functional automobiles.

Kaplan expects to double his GEM sales this year driven by both the new 2016 line, and by virtue of the new line being part of a Virginia state purchasing contract. The latter allows state colleges, universities and other agencies to more easily purchase GEMs without having to conduct a complex purchasing process.

I’ve posted a more in-depth article from my discussion with Mr. Kaplan in our buying guide section.

What’s Cooking on the STOV: Electric Food Truck

Posted on February 22, 2016 by Marc Cesare

Highlighting some of the many applications for Small, Task-Oriented Vehicles

Chef Greg Steel and his Philly Greens food truck built on a GEM LSV.

In Philadelphia Chef Greg Steele is using a solar-powered Polaris GEM EL XD LSV as the basis for his Philly Greens food truck. With a top speed of 25 mph and range of up to 30 miles, the electric powered food truck suits his needs for urban/suburban mobility. The electric power plant cannot provide enough power for cooking as well, so he also uses a small gas generator.The Philly Greens truck started out as flatbed and then a metal frame was added followed by what looks like a stainless steel or aluminum skin. Custom paint and graphics made the truck complete.

The metal framework that provides the foundation for the custom food service area.

The GEM customized and ready for paint and graphics.

The vehicle is an integral part to Chef Steele’s goal of creating a sustainable food truck business. He offers a seasonal menu made with non-GMO, high quality, healthy food and sources ingredients locally. The menu changes frequently and includes what is referred to as a Jawn, which his website describes as “A word used by Philly cats to describe anything and everything. It fills in for another word, handy in a brain-freeze moment, or comes out as an expression of enthusiasm.” It also seems to include leafy greens and other ingredients of the moment. Other menu items include chili, nachos and recently sweet potato, coconut soup with sunflower chili, topped off with spiral cut turnip. Learn more: Phillygreens.com

Comment: Whether it is taxi services, tourist rentals or now food trucks, electric powered LSVs appear to be slowly carving out a niche in urban environments. The slower speeds, shorter distances, and limited parking space in these areas make these vehicles an ideal choice. The drive for sustainability by many local governments and citizens makes these electric powered vehicles appealing as well.

Polaris Q4 2015 Results Point To Slowing UTV Market

Posted on February 10, 2016 by Marc Cesare

The base model General 1000 EPS is Indy Red with an MSRP of $15,999.

Despite a good start for the new General crossover utility vehicle, Polaris had a tough fourth quarter in 2015 as the UTV/side-by-side market showed weakness.

Polaris reported their worst year-over-year quarterly performance since 2009 with their recent Q4 2015 results. Fourth quarter sales were down 13% to $1.1 billion with net income of $110.7 million, down 18% as all businesses except Indian motorcycles and Slingshot fell short of expectations. Management expects a slowdown in the UTV/side-by-side market faces tough macroeconomic conditions in North American and abroad, as well as currency headwinds. The following are highlights of the earnings call as they relate to the UTV/side-by-side market.

Despite solid demand for the new GENERAL and improving interest in the RZR Turbo, Polaris lost side by side market share in the fourth quarter.
To keep dealer inventory low the company cut shipments of higher margin RZRs and Rangers.
Off-road vehicle dealer inventory including ATVs was down year-over-year for the first time in six years
Side-by-side dealer inventory was up slightly for the year
Management reported a “more cautious” consumer in the ORV channel
Polaris side-by-side revenue for 2015 grew “modestly”
4th quarter side-by-side retail sales in North America declined mid-single digits as the industry grew slightly
The new GENERAL vehicles began shipping in December, and initial consumer and dealer response was positive
ORV sales in oil producing states declined 10% while other areas of the market increased mid-single digits
For the full year 2015, Polaris again grew side-by-side market share.
Side-by-side retail sales increased mid-single digits in a side-by-side industry that grew slightly slower
Camp RZR in Glamis, California had an all-time record attendance, over 17,000 strong, which was up 45%
Q4 North American work and transportation revenue decreased low 20s percent as difficult comparables included the Ariens partners launch
GEM sales declined due to the transition to a completely redesigned GEM product platform during the quarter
Initial GEM orders are solid and a strong 2016 is expected
Q4 European Work and Transportation revenue declined low single-digits percent due primarily to currency weakness and some softness in Goupil and Mega
Aixam sales grew high single digits and the European quadricycle industry grew in both fourth quarter and for full year 2015, up low single-digits with Aixam retail up slightly more increasing their leading market share
Vehicles sales in Q4 and 2015 to Department of Defense and GSA related accounts were hurt by stop gap funding measures, but 2016 backlog is “healthy”
The European ORV industry grew mid-single digits in the fourth quarter and for the year.
Polaris gained share in the fourth quarter, as retail was up mid-teens percent and for the full year retail increased mid-single digits.
Multix, the three-in-one personal transportation vehicle from the Polaris-Eicher joint venture in India is retailing vehicles.
Multix customers are satisfied although currently the retail ramp remains well below management expectations, but they expect to accelerate retail in 2016 with key product improvements and further distribution expansion.
Huntsville plant will start production in Q2 and will initially produce RANGER side-by-sides
Huntsville incorporates the company’s most advanced Lean flow and state of the art manufacturing technologies and improves throughput times by approximately 80% compared to existing facilities
Management expects continued macroeconomic headwinds with ongoing currency issues overseas, a slight slowdown in global economies and a low growth economy in North America
Total company sales are expected to be in the range of down 2% to up 3%
ORV market share is expected to be maintained while gains are expected in global adjacent markets
ORV/snowmobiles revenue is anticipated to be flat to down mid-single digits and global adjacent markets up mid-single digits
Management continues to forecast strong competition in the side-by-side market
Q1 for 2016 side-by-side revenues is expected to be down because of Canadian currency issues, a weaker retail environment and tough prior comparables

Learn more: Seekingalpha.com (Earnings call transcript)

GEM Director John Stockman Talks About the New Model Year

Posted on November 17, 2015 by Marc Cesare

The new GEMs for model year 2016.

I recently interviewed GEM Director John Stockman about the changes to the GEM lineup for model year 2016, the vision for the brand and how it fits within the overall small vehicle portfolio of Polaris. Here is an excerpt from the larger article posted in our Buying Guide section:

Polaris has made extensive changes to the GEM lineup for the 2016 e2, e4, e6 and eL XD models. Stylistically the iconic “bubble” design is still noticeable from a side view, but a frontal view reveals significant changes. The new design was in large part based on customer research. According to Stockman, in the neighborhood of 10 different designs were vetted by customers and consumers before a final design was chosen.

Even more important than stylistic changes, were the engineering changes made under the skin in direct response to several phases of customer research, including multiple ride clinics with dozens of customers and consumers, feature and finish related research, as well as feedback from dealers. The research focused the product development process on a number of key areas. One was the comfort of users as they ingress and egress from the vehicles all throughout their day. Towards that end, more legroom and headroom has been created. A past complaint about hot seats was also addressed as well as items as minor as having self-canceling turn signals.

A second issue highlighted by the research was vehicle safety. Stockman states that, “We are hearing more and more from corporate campuses, colleges and universities, hotel and resorts, that they are moving away from the traditional golf carts towards LSVs because of their safety features.” With that in mind the safety features the GEM is known for were kept but also improved. This included better brakes, vehicle handling in evasive situations and seatbelts. “We really focused on making sure that this was the safest LSV you could get”, remarked Stockman.

Another focus… View Full Article

I will be following up this article with some impressions from GEM dealers on the changes for the 2016 model lineup. For detailed vehicle specifications for the 2016 and past GEMs, search the SVR vehicle database.

Polaris Introduces All-New GEM Lineup For 2016

Posted on October 30, 2015 by Marc Cesare

The all new 2016 GEM e2.

The 2016 GEM e2 with an enclosed cargo box.

The 2016 GEM eL XD with an enclosed rear cargo area.

Polaris Industries has announced an all new GEM lineup of vehicles for model year 2016. According to John Stockman, GEM director at Polaris. “The all-new GEM takes what our customers already love about these vehicles and improves the ergonomics, ride and range. We’ve also added more comfort and safety features to provide an even better experience for both rider and driver, with the added benefit of just $.03 per mile cost of ownership.” Some of key features for the all new GEM include:

Aluminum chassis that passes SAE roof-crush-test standards
Front-wheel disc brakes
Automotive style suspension
High-back forward-facing seats
3-point seat belts
Automotive glass windshield
LED signal lights
Optional RiderX app provides free access to road maps
Smart Power which matches the power to the task with the ability to choose the best combination of battery and charge options.
Optional Li-ion battery
The eL XD model offers a recessed bed option to lower loading height and maximize hauling capability, and a tailgate ramp.

There are seven models in the product line. There are three passenger vehicles, the e2, e4 and e6, as well as four utility vehicles, the eL XD, eM 1400, eM 1400 LSV and the Polaris M1400. The Polaris M1400 is a gas powered vehicle. Pricing starts at $8,999 for the GEM e2 and increases to $12,999 for the GEM eL XD. A range of factory installed options are available including but not limited to in-windshield defrost, electronic power steering, integrated doors and a full range of rear carrier options. Learn more: Polaris.com

Comment: I spoke with a GEM dealer who has some limited knowledge of the vehicles at this point and he gave me his first impressions:

The redesigned doors are the most significant improvement, addressing hardware problems, water intrusion, ease of entry/exit, line of sight issues and lack of availability for 6 passenger models.
The redesigned interior addresses driver comfort issues with more legroom and headroom.
The new AGM and Lithium ion battery options are a significant improvement and allow for better matching of batteries to vehicle application.
The additional options for the popular eL XD model will allow for more customization for the wide variety of uses for which customers currently use the vehicle.

What’s Cooking on the STOV: Ordinance Enforcement & Off-Road Emergency Response

Posted on August 28, 2015 by Marc Cesare

Highlighting some of the many applications for Small, Task-Oriented Vehicles

One of the GEMs being used by local police for ordinance enforcement. Photo: Kendra Peek

Ordinance Enforcement: In Lancaster, KY the local police department received a donation of two military surplus GEM vehicles from the US Defense Department. They are putting the vehicles to use to patrol for ordinance violations and for use at community events. While not appropriate for instances where they need to transport someone who has been arrested, the vehicles have so far been a good fit for their current tasks. The police chief finds the GEM vehicles make officers more approachable when interacting with the public. Other positives include less pollution and lower fuel costs. The chief estimates that fuel savings for the year will be about $3,000 when compared to a full-size patrol vehicle. The vehicle’s low traveling speed is not an issue since most of the small town’s roads have speed limits of 30 mph or less. They will assess the vehicles after a year but are already looking for a larger electric vehicle to pilot test, one that is more truck like and could haul barricades, signs and other items. Learn more: Centralkynews.com

The recently acquired Polaris Ranger for use in off-road emergency response.

Off-Road Emergency Response: In Mokena, IL the local fire department used a grant to purchase a Polaris Ranger for emergency response in difficult to access areas. The Mokena Fire Protection District includes 2,000 acres of forest preserves as well as some trails and 15 parks. The six-wheeled Ranger will now provide them with a greater ability to respond to emergencies in these areas. Learn more: Mokenamessenger.com

Comment: These are great examples of how STOVs can be used in very specific applications that are more effective and cost efficient than traditional vehicles. The six-wheeled Ranger vehicles have been used by the US Forest Service for many years. The use of LSVs for specific aspects of local police enforcement represents a potentially very large market for these vehicles.

Polaris India Expects Strong Revenue Growth In India

Posted on August 21, 2015 by Marc Cesare

Executives at Polaris’ subsidiary in India, Polaris India, expect strong revenue growth over the next three to five years. By 2020 they are targeting a 100% to 200% sales increase at the subsidiary which sells ATVs, UTVs and motorcycles. The long term strategy is to build up enough volume to justify investment in local assembly plants. This would be the plan for motorcycles and off-road vehicles. Currently Polaris India imports all the Polaris vehicles they sell including the complete line of Indian motorcycles.

The management reports good sales of the Ranger EV in certain parts of the country and is exploring adding the GEM line of vehicles to their offering. Off-road vehicle sales are helped by the 39 Polaris Experience Zones, which are off-road vehicle tracks. They have also made sales to the Indian army and police. Polaris India distributes products through 16 dealerships in India and two more in Nepal and Kazakhstan. Export sales are made to Nepal, Bangladesh, Bhutan, Sri Lanka, Kazakhstan and Pakistan. Unrelated to Polaris Inida is the Polaris joint venture with Eicher. Learn more: Timesofindia.com

Comment: Of course, having sales targets and meeting them are two different things, but Polaris has consistently hit most of their long term strategic goals across many products. A lot will depend on how well the Indian economy grows but even slower growth in such a large market offers great potential.

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