Category Archives: globalization

News Briefs

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Milford, Detroit Test GGT Electric LSVs – Milford, Detroit city officials have started a trial run to evaluate the use of LSVs as a replacement for some of their existing fleet. The town’s ordinance officers will use GGT Electric’s commercial truck model for several weeks to test their viability.  Officials estimate that fuel costs would be $200 per year for the electric vehicle compared to $1,500 for the gas vehicle that otherwise would be used.  Learn more:  Hometownlife.com

Electric Car Sharing In San Diego – Car2go, a subsidiary of Daimler, is launching an electric fleet for their car sharing program in San Diego.  The fleet will consist of 300 of Daimler’s Smart ForTwo Electric Drive vehicles by the end of the year. The Car2go sharing model is designed to meet the needs of urban drivers who want to make spontaneous short one-way trips. In other cities their vehicles are typically used for trips of 6 miles or less. The vehicles will be located at various designated spots around the city.  Learn more:  Wired.com

 

 

 

 

 

 

 

 

 

 

 

Polaris Reports Record 2Q Earnings

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Polaris reported record 2Q earnings driven by growth across product lines and geographic areas with North American sales increasing 43% and International sales increasing 35%.  Management now expects full year sales growth to be in the 25% to 28% range.

Off-road vehicle sales which includes ATVs and UTVs were $482 million for the quarter and $870 million for the first six months of 2011 compared to $342 and $592 million for 2010 respectively.  These figures represent 41% year to year quarterly growth and 47% year to year six month growth.  Management reports gaining market share in both the ATV and side-by-side market segments in North America with ATV sales up less than 10% for the quarter.  Side-by-side sales were not specified but likely increased by over 20% for the quarter.  Off-road military, Bobcat related sales and international sales all increased for the quarter, the latter by 35%.  Learn more:  Marketwatch.com

Frost & Sullivan Asia Pacific NEV Report

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A new report from Frost & Sullivan, Strategic Analysis of Asia Pacific Market for Neighborhood Electric , projects that China and India will be the leading sources for NEVs in 2016, accounting for over 50% of global production.  The market is currently dominated by Chinese and other Asian Pacific OEMs who largely export the vehicles to the US and Europe. According to the report, production of NEVs from the region is expected to grow to 116,900 units in 2016, representing a compounded annual growth rate of 39% since 2009.  Learn more:  Newswiretoday.com

Worldwide Forecast For NEVs

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Worldwide NEV Market

Worldwide NEV Market Forecast

Pike Research predicts that the number of NEVs on the road worldwide will grow from 479,000 in 2011 to 695,000 by 2017.  This represents a 45% increase in total over the trend period and a compounded annual growth rate of 6.6%.  North America will remain the largest NEV market with the Asia Pacific region the second largest.  During that period, annual NEV sales will rise from 37,000 vehicles to nearly 55,000 units by 2017 with the North American market accounting for 45% of sales or approximately 25,000 units in 2017. Fleet sales are predicted to remain the leading market for NEVs. The report had to take into account some of the different definitions or lack thereof for neighborhood electric vehicles across regions and countries.  Learn more:  Greencarcongress.com

UK Hotel & Resort Group Places Large Order With Club Car

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The De Vere hotel and resort group based in the UK recently completed an order with Club Car for 227 electric vehicles. The order includes 203 Precedent i2 golf cars plus a range of turf utility vehicles and Café Express mobile refreshment vehicles. The De Vere real estate portfolio consists of 11 golf properties and 16 courses.  Club Car management points to deal as a sign of continuing growth in the demand for golf cars in the European golf market where historically the number of golfers that want to ride golf cars has been a minority.  Learn more:  Todaysgolfer.co.uk

Polaris News

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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

Rinspeed BamBoo Concept Electric Vehicle

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Rinspeed Bamboo Concept Vehicle

BamBoo Concept Electric Vehicle From Rinspeed

An auto tuning company, Rinspeed, debuted their BamBoo Concept Electric Vehicle at the recent Geneva Motor Show.  The European-based company was showcasing technologies for the NEV market.  The BamBoo features…

….a 54kW electric motor and enough battery capacity to give it a 104 km (65 mi.) range. The German made high-torque motor can accelerate the 1,090Kg vehicle to a top speed of 120 km/h. This lightweight vehicle features a steel chassis with horizontal shock absorbers with a sturdy composite body and extensive use of polymer plastic materials. The BamBoo sits on 17″ AEZ three-spoke billet aluminum wheels and eco-friendly Goodyear “EfficientGrip” energy-saving tires.

While not likely to ever be put into production, the vehicle’s styling continues to point to a movement in some parts of the NEV market away from the golf car look and more towards the styling of highway capable vehicles.  In addition, the effort shows that Rinspeed, which usually works with companies such as Porsche and BMW, sees potential in the NEV market.   Learn more:  Golfcartcityonline.com

China Targeting Low speed Vehicles?

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According to one analysis, China will reach their 2020 goal of being the largest manufacturer of electric vehicles in part by focusing on low speed vehicles.  The author states that the Chinese government believes this will help them develop expertise for highway capable electric passenger vehicles. This reasoning is disputed in the analysis and I would agree.  In fact , one of the reasons California reduced how many credits an LSV is worth in their vehicle emissions regimen is that they did not believe the technology developed for LSVs was transferrable to highway capable electric vehicles. What will be interesting to see in China, where LSVs are more likely to be a consumer’s first vehicle ownership experience, is if LSVs will have greater traction than in the US, where they are typically being purchased by consumers with a lifelong experience with highway capable vehicles.  Learn more:  Plugincars.com

 

News Briefs

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Applied Geo Technologies Wins Club Car Supplier Award – Applied Geo Technologies recently received the 2011 Overall Operations Excellence Award from Club Car. The company supplies Club Car with cabling and wiring harnesses for all of Club Car’s golf, transportation and utility vehicles.  Learn more:  Cisionwire.com

Garia Review – Last week the Los Angeles Times published a short review of the Garia LSV.  Learn more:  LATimes.com

Tata Motors Launches Two Light Commercial Vehicles – Today Tata Motors launched the passenger carrier Magic Iris and a micro truck the Ace Zip.  Both vehicles are for India’s domestic market.  The vehicles are lesser versions of the Ace Magic and Ace respectively.  The company plans to launch CNG powered variants in the future.  Learn more:  Business-Standard.com

Polaris Reported Record Earnings

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Polaris Industries recently reported record earnings for the first quarter of 2011.  Management reported sales of $537.2 million  and net income of $47.3 million for the quarter compared to $361.7 million and $19.8 million in the first quarter of 2010.  For the full year 2011 management expects sales to increase 17%-20% compared to 2010.

I listened to the earnings conference call and here are some of the highlights as it relates to the STOV markets.

  • Off-road vehicles which includes UTVs and ATVs exceeded expectations
  • International sales were up 21% in part do to side by side sales increasing 50% in Europe where these vehicles are supplanting ATVs as they have been in North America
  • Polaris is gaining market share in UTVs and ATVs as they outperform the market domestically and internationally.
  • Management reports side by side sales increasing more than double the overall market rate
  • RZR XP 900 launched in January is selling well
  • Bobcat branded vehicles they supply “ramped up nicely” and is gaining retail momentum
  • Military sales which includes some STOV products doubled in the first quarter
  • Diesel product started nicely and is expected to slowly but steadily develop with good opportunities in the UK, military and single fuel use segments such as farming and construction
  • Off-road parts, garments and accessories sales increased 22% in Q1