GEM To Use ARI PartSmart

Polaris announced that they have selected ARI’s PartSmart to provide their GEM dealers with parts and service information for the complete line-up of vehicles.  PartSmart is already used by Polaris and Victory motorcycle dealers.  From the press release:

PartSmart is ARI’s premier parts lookup software known to more than 50,000 users worldwide. It provides the fastest way to find the right part the first time by providing more information with fewer keystrokes and mouse clicks. PartSmart interfaces with more than 90 dealer business management systems to drive even more efficiency. PartSmart offers time-saving features, including easy navigation, a single log in, a single and familiar user interface, updates via the Internet, and thumbnail browsing.

Learn more:  PRNewswire.com

ePower Trucks: Exclusive GEM Distributor in UK

ePower Trucks of Oldham, Greater Manchester in the UK has been named the exclusive distributor for GEM vehicles in the country.  The company already sells a wide range of electric vehicles for commercial utility and transportation applications.  Learn more:  Fleetnews.co.uk

STOV Market Trender: Solar Powered EVs

In Huntsville, AL a local hospital purchased three GEMs and are using solar power as their electricity source.  In some instances solar panels are being installed on the roof of LSVs, golf cars or electric UTVs but in this case the solar panels are installed on top of a parking deck.  They are attached to a bank of eight batteries that are used to store the electricity until the GEMs need to be recharged.  As a side note, the GEMs were purchased to replace two gas powered vehicles.  Learn more:  blog.al.com

Polaris Reports Record Results In 3Q

Polaris Industries continues exhibiting strong growth in a down economy, increasing sales 26% in the 3Q to reach $729.9 million and increasing net income to $67.6 million from 47.2 million year over year.  Year to date sales increased 37% to compared to last year.  Management expects full year sales to increase 32% over 2010 figures to reach over $2.5 billion.  Gains were made in a number of areas including net income, earnings per share, margins and in overseas markets, including the sluggish European market.

The Off-road division grew 25% for the quarter and 38% year to date based on gains in side-by-sides, military and international markets.  Side-by-sides business increased over 20% in the quarter for Polaris compared to “low double digits” for the North American market as a whole.  The ATV market continues to decline but Polaris is still gaining market share.  Management also reports continuing success in penetrating commercial and rental markets through their partnership with Bobcat.

Learn more:  Seekingalpha.com (conference call transcript)

News Briefs

Group Promotes LSVs in Augusta, GA – A newly formed group, the Augusta Greenway Alliance, has been formed to help increase awareness and support of LSVs.  One vision includes linking the medical and downtown districts with LSV lanes.  Learn more:  Chronicle.augusta.com

Polaris Chooses Agency for GEM – Polaris Industries has chosen Nelson Schmidt Inc as the new agency to provide marketing and sales support for the recently acquired GEM business.  Learn more:  Wisbusiness.com

GM’s EN-V for China’s Eco-City – GM’s trio of two-wheeled neighborhood electric vehicles are being incorporated into plans for Tianjin, China’s futuristic eco-city.  Being developed in conjunction with partners from Singapore, Tianjin will be

“…a large-scale prototype for the sort of sustainable, high-density communities we’re expected to see in the coming decades. Key features include a focus on renewable energy, mass transit (in the form of a light rail system) and – you guessed it – a development of GM’s EN-V.”  

Learn more:  Carscoop.blogspot.com

 

 

 

 

 

 

 

 

 

Polaris Targets India For Growth

In August Polaris introduced a broad selection of their off-road vehicles (ORVs) to the Indian market.  The company expects to have twenty-five “sales touch points” in the country by the end of the year.  Management has a goal of $100 million in ORV sales by 2016.  They are also studying the feasibility of selling LSVs, leveraging their recently acquired GEM product line.  Mahindra Reva is currently selling similar vehicles with a sales target of 3,000 vehicles per year.  The government provides some incentives but infrastructure issues are an obstacle as well.  Learn more:  Business-standard.com

NEV Demonstration Project: Preliminary Report

Last month the South Bay Cities Council of Governments released a preliminary report about their NEV demonstration project.  The report was published after only 12 months of data because of “extraordinary positive results.”

The demonstration project focused on assessing the viability of NEVs on typical suburban streets in today’s development pattern.  A total of 15 households were involved  and 7 vehicles including a Vantage Crewcab,  a Columbia Summit, two Wheego Whips, a GEM e4, a GEM e2 and a Miles sedan.  The project addressed three questions:

1. Will residents regularly drive NEV/LUVs on typical suburban streets without special lanes or signage?

2. Will NEV/LUV usage produce significant environmental and economic benefits?

3. Is large-scale deployment of NEV/LUVs feasible?

The answers to the first two were a resounding ‘Yes’ and a conditional ‘Yes’ for the deployment question.  Data from the project showed that “…the average percentage of all household travel (VMT) taken in an NEV/LUV was consistently 22% across all groups. In terms of vehicle trips, the NEV/LUVs mode share averaged 26% of the round trips.

In terms of environmental impacts “…Average participating households criteria air pollutants were reduced by 26% – 33% depending on the specific pollutant being measured.

To facilitate deployment a number of barriers need to be lessened including vehicle price, vehicle quality, consumer education and local government incentives.  The authors also suggested a medium speed vehicle class would help the transition away from gas autos.  The project will run a total of 18 months until October 31, 2011.  Learn more:  Southbaycities.org

GEM’s Fargo Plant To Close

Polaris Industries, which recently acquired Global Electric Motorcars, will be closing GEM’s manufacturing facility and offices by the end of the year.  GEM’s operations will be integrated into Polaris’ Spirit Lake, IA manufacturing plant, product development facilities in Wyoming and corporate headquarters in Medina, MN.  Some of the 80 people now employed at the Fargo location have been offered jobs at these new locations.  Learn more:  Startribune.com

Polaris News

Australian Market – Polaris introduced their Ranger Diesel utility vehicle in the Australian market not too long ago.  Reports are that New Zealand and the Australian outback serve as a testing ground for some of the companies vehicle prototypes.  International sales have been a significant growth area for Polaris UTVs and other vehicles as well.  Learn more:  Ferret.com.au

GEM Acquisition – In a recent interview Polaris CEO Scott Wine discussed the company’s recent GEM acquisition.  Commenting on the potential GEM under the Polaris umbrella he stated “…if you think about Polaris’ ability to drive innovative design and performance, we really like what we can do with the GEM technology and brand.”  He also remarked that they view the GEM as a vehicle for the electric city car/commuter car market, which they expect to grow “significantly faster” than GDP.

What’s interesting is that historically the majority of GEM sales have been to parks, colleges and other commercial customers.  If Polaris is looking to push more into the commuter market they could add some muscle to lobbying efforts to push NHTSA to develop a medium speed vehicle standard, which they have resisted to date.  Learn more:  Dealernews.com

Polaris Acquires GEM

Yesterday Polaris Industries announced that they will acquire Global Electric Motorcars, LLC (GEM) from the Chrysler Group.  GEM has annual sales estimated to be $30 million and has been the leading LSV manufacturer.  IMS estimates their annual sales volume to be around 3,000 units, although they have been under pressure lately as more manufacturers have entered the market.  The sale will take about two months to complete and will strengthen Polaris’s On-Road division.  Polaris also recently acquired Indian Motorcycle.   Learn more:  Tradershuddle.com

Comment:  GEM is strong in the commercial LSV segment particularly in government and fleet sales to end user such as parks and universities.  Polaris already has their Breeze LSV for the consumer personal transportation market and an LSV version of their Ranger EV which originally targeted the military segment but has commercial applications as well.  The acquisition gives Polaris probably the most recognized brand in the LSV market and saves them time and money spent developing a brand of their own.  GEM has not substantially changed their vehicles in recent years so they will definitely benefit from high level and continuous innovation that Polaris puts into their product lines, as witnessed by their model development in the UTV market.  In addition, Polaris has an existing network of dealers that is around ten times the size of GEM’s current network.  The acquisition could add a real boost to the level of competition in the LSV market.

Another question is whether Polaris will be seeking more acquisitions in this space.  While GEM is more oriented to the commercial market, a company like Tomberlin produces LSVs targeting the consumer market.  Tomberlin’s management has a relationship with Polaris from helping them develop some of their off-road products in the past.  Tomberlin also has other products such as the Vanish electric UTV, electric ATVs and the Schwinn brand of scooters that could supplement Polaris’s existing product lines .