Category Archives: globalization

Renault Debuts Twizy Delivery Concept

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The Twizy Delivery Concept vehicle from Renault.

The Twizy Delivery Concept vehicle from Renault.

Renault has introduced a concept delivery vehicle based on their Twizy two seat passenger vehicle. The Renault Twizy Concept has a specially-modified short-cab big enough for just the driver. Instead of a second seat behind the driver as in the regular production Twizy — or the small cargo-carrying space found in the single-seat Twizy Cargo — the Delivery concept features a flat pickup-style bed onto which a tiny two-wheeled trailer is hitched. A one meter square cargo box fits on the rear trailer platform which is rigidly attached to the front. The vehicle has six wheels instead of four and the middle axle provides motive power. The vehicle will be used in a pilot project in Paris to test the viability of using the vehicle for deliveries where larger vehicles can’t go. Learn more:  Transportevolved.com 

Comment:  The vehicle, although small, looks like it might be slightly oversized for its intended use and maneuvering the six-wheeled vehicle in tight spots might be difficult. It will be interesting to see how the pilot project turns out. The article notes that the passenger version has very low sales but I think that requirements for a passenger vehicle are much more demanding. A smaller, niche application such as “final kilometre” delivery may prove to be a more viable market for the Twizy vehicle platform, but perhaps not with this specific design.

Polaris Reports 2014 Q4 Earnings

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The new four passenger RZR 4 EPS in Havasu Red Pearl from Polaris.

A constant stream of new models like the new four passenger RZR 4 EPS in Havasu Red Pearl help keep Polaris growing.

Polaris continued on the path of strong growth with another record quarter. Managment reported net income was $135.4 million for the fourth quarter of 2014, up 25 percent from the previous fourth quarters net income of $108.7 million. Sales for the fourth quarter of 2014 totaled a record $1,275.0 million, an increase of 18 percent over last years fourth quarter sales of $1,083.7 million.

For the full year ended December 31, 2014, Polaris reported net income from continuing operations of $454.0 million for the full year 2014, up 19 percent from the previous years net income from continuing operations of $381.1 million. Sales for the full year 2014 totaled a record $4,479.6 million, an increase of 19 percent compared to sales of $3,777.1 million for the full year 2013. Some of the highlights related to small, task-oriented vehicles follow.

  • Off-Road Vehicle sales , which includes ATVs and UTVs or side-by-sides, increased 19% from the fourth quarter 2013 to $781.5 million. This increase reflects continued market share gains on strong demand for both ATVs and side-by-sides.
  • Polaris North American ORV unit retail sales were up low-double digits percent from the 2013 fourth quarter with consumer purchases of side-by-side vehicles up double-digits percent and ATV retail sales up high-single digits percent for the 2014 fourth quarter.
  • Polaris introduced over twenty new MY14.5 and MY15 ORV models in 2014, including the all-new RZR® XP 900 trail and RZR® XP4 900 trail, several new value models, and two models in a newly defined category of single-seat, ride-in ATVs, the Polaris ACE.
  • Polaris extended their market share lead in the North American ATV industry for the fourth straight year with retails up mid-single digits in an industry that only rose slightly.
  • ACE sales accelerated notably in the fourth quarter as marketing and the new 570 model began to impact the marketplace.
  • Four recent model year ’15 introductions include the new electronically fuel-injected RZR 170 and the new RZR 900S4, both of which have already begun to ship.
  • Commercial. Sales increased by over 80% in the fourth quarter driven by initial Ariens-Gravely supply vehicle shipments, strong national accounts growth and notably improved BRUTUS and Bobcat retail performance.
  • In the Small Vehicle division which includes GEM, Aixam and Goupil, fourth quarter revenue declined 11% due to the weak French economy afflicting both Aixam and Goupil. For the full year 2014, sales increased 28% fueled by Aixam market share gains and increased sales from both our GEM and Goupil businesses.
  • Polaris significantly outperformed in the ORV market in Europe.
  • For 2015 management expects ORV is expected to grow mid-single digits, driven by new products but offset by further implementation of RFM, their new inventory management program, and slower international demand.

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  Polaris continues to dominate the market, although like other manufacturers they have been hurt by slower sales in Europe and in countries like Russia. Expect more of the same in 2015 as they continue to rollout products to segment the market and cover a range of price points. They are likely to add more models for their push into the commercial segment as well.

GPS Industries Introduces New Fleet Management System

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GPS Industries has introduced their Visage Resort Edition fleet management system for golf car fleets. The Visage Resort Edition includes navigation tools, maps and two-way communication capabilities, and the recently-launched Visage Media Network. The Visage Media Network consists of 10-inch color touchscreens affixed to guest-assigned cars and can deliver a range of content such as resort news, internal promotions for resort restaurants, special events like concerts and off-site excursions and information on resort real estate for sale. Sponsored content provides an additional revenue opportunity for the resort or golf course, and access to an affluent audience for advertisers. The Visage Resort Edition was launched at the high end Casa de Campo Resort in the Dominican Republic. According to management Visage  is installed in 900-plus golf-car fleets, primarily in North America, Europe and the Middle East for 80% global market share, GPSI predicts 35% annual growth over 2014.  Learn more:  Worldgolf.com

 

Comment:  Golf courses are still experiencing a tough market and the net number of golf courses in the US are expected to decline slightly over the next few years. Products like Visage help course managers squeeze some more revenue out of their existing base of participating golfers. The fleet data can also help them manage their fleet more efficiently. The market for these type of products has grown significantly in the last few years.

Kulan Electric UTV Concept Vehicle

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The Kulan electric UTV concept vehicle designed for farm use.

The Kulan electric UTV concept vehicle designed for farm use.

The Kulan electric UTV is a concept vehicle designed for use on farms. Kulan derives its’ name from a Central Asian donkey. The uniquely designed vehicle is made to be a beast of burden for payloads up to 1,000 kg. The vehicle is powered by a lithium ion battery pack paired with two 2KW electric motors on the rear wheels which generate 5 hp and a top speed of 50km/hr. The body panels are plastic and the frame is made of tubular steel. The stated range is up to six hours of run time or 300 km depending on load and driving conditions. The vehicle is being developed by Poly-Lab.net, a consortium of 14 companies based in Germany. The consortium is looking to move the vehicle from concept into production.  Learn more:  Greencarreports.com

Comment:  A unique and “bare bones” design. I’m curious to see if the Kulan will move into the production phase. While the design appears to lend itself to low-priced production costs, the lithium battery pack could prove to be expensive given the reported vehicle range. Nevertheless, the focus on farm application is another indication of how UTVs are becoming more specialized for specific end-user segments.

Ecocruise Set To Enter NEV Market

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The new Cruser Sport NEV from Ecocruise will be launched in January 2015.

The new Cruser Sport NEV from Ecocruise will be launched in January 2015.

Ecocruise based in Washington is set to enter the NEV market in January 2015 when they start shipping their Ecocruise Cruser Sport. The decidedly sporty model features a carbon fibre body over exposed tubular steel,  exposed suspension and 14in aluminum wheels along with a covered rear hatch and T-tops. While built for the road, the design evokes off-road vehicles and reflects the off-road motorsports experience of company founder Steve Leighty who spent many years designing and building dirt bikes and ATVs.

The Cruser Sport features a ​Lifepo4 72v 62AH battery, 5kW brushless DC motor, 4-wheel disc brakes, dual A-arm front suspension and swing arm rear suspension. Other amenities include AM/FM radio, bucket seats and LCD instrument display. The Cruser Sport will retail for $8,500 to $11,900 depending on the battery and motor options.

Management expects their model lineup to be expanded shortly after the Cruser Sport launch with a one-seater EZIP-4 for around $3,800. In addition a line of service and utility vehicles, including electric scooters, will follow as well as a golf version of the Cruser Sport.  Learn more:  BBC.com

Comment:  The Cruser Sport definitely has a different look than most of the NEVs on the market. While the consumer NEV market has grown, it has not been an explosive growth rate and in many areas has been eclipsed by commercial demand from institutions such as schools and parks looking for green and safe transportation alternatives. The consumer NEV market has been undercut, in part, by local regulations allowing expanded use of lower cost golf cars on public roads. In areas  requiring compliance with NEV-type safety regulations NEVs have had more success. The design of the Cruser Sport may help it garner more sales than the typical NEV.

Tata Motors Showcases 2 New Ace Mini-Truck Variants

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Tata-Motors-Municipalika-2014

Tata Motors vehicles display at Municipalika-2014

India-based Tata Motors used the Municipalika 2014 international conference to showcase their Tata ACE Hopper Tipper BS IV – Waste Segregation and Super ACE Suction Machine BS III mini suction vehicle. The ACE Hopper Tipper BS IV is suited for door-to-door garbage collection and the Super ACE Suction Machine BS III mini suction vehicle for door-to-door sewage cleaning. According to the company the “Tata ACE Hopper Tipper BS IV – Waste Segregation fully- built Mini Garbage Tipper is available in BS III & BS IV variants, suitable for hilly terrains, and uses cathodic Electro Deposition (CED) treated body for corrosion prevention. Super ACE Suction Machine BS III is equipped for high pressure suction operation for a depth of upto 25 feet and diameter upto 75 mm – to clean thick sludge, and offers 39% vehicle gradeability making it suitable for hilly terrains” Both vehicles are small enough to operate in narrow lanes found in the dense urban areas of India.

Municipalika is an international conference and exhibition that focuses on emerging trends in sustainable habitat and integrated cities. India has experienced rapid population growth in urban areas in recent years and that is expected to continue for some time.  Learn more:  Rushlane.com

Comment:  These products are a good example of the differences between the US and other markets such as Asia when it comes to small, task-oriented vehicles. The US cities are neither as physically cramped or densely populated as some of the “mega” cities in other parts of the world. The characteristics of these cities create a greater demand for smaller vehicles that require lower speeds and smaller dimensions.

 

Polaris Reports Strong Quarterly Earnings for Q3 2014

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New 2015RZR XP 1000 EPS Desert Edition

RZR XP 1000’s like the new 2015 RZR XP 1000 EPS Desert Edition helped drive sales.

Polaris reported an 18% year over year increase in revenue for third quarter 2014 driven by increases in their motorcycle, PG&A and Off-road Vehicle (ORV) divisions. ORV which includes side-by-sides and ATVs recorded a 17% increase. With another strong quarter, management raised their guidance for full-year results in 2014. Some highlights of the earnings call as it relates to Small, Task-Oriented Vehicles include:

  • ORV revenue up 14% year-to-date
  • Market share gains in the quarter for both side-by-sides and ATVs in North America adds to their #1 positions
  • ORV revenue was driven by side-by-sides that outpaced the industry believed to be growing at 10%
  • The 2 and 4 seat RZR XP 1000’s as well as the RZR 900 Trail are selling well
  • In the commercial UTV segment Brutus retail sales continue to grow sequentially and year-over-year for both Polaris and Bobcat
  • Commercial national accounts and fleet sales were strong
  • The Gravely Atlas UTV was launched in the quarter
  • Defense related ORV revenue was flat for the quarter but up 25% year-to-date with international sales of the MRZR contributing
  • The Small Vehicle division reported an 8% revenue increase in the quarter due to GEM and Aixam
  • Year-to-date Small Vehicle revenue is up 52%
  • GEM reported retail sales increase of 20% on action in B2B and GSA sales
  • While Aixam grew despite a weakening European market, Goupil revenue decreased with softness in the French economy, their major market
  • The Opole, Poland factory opened and will produce ORV and other products for the European and Middle East markets
  • International sales were helped by strong ORV sales in India and Australia
  • Currency issues provided some headwind in foreign markets

Learn more:  Seekingalpha.com (earnings call transcript)

Comments:  Despite some macro economic issues the Polaris juggernaut keeps on rolling as they continue to add market share despite increased competition in the side-by-side and ATV markets. Their large market share and subsequent production volume gives them an advantage in driving down vehicle costs and provides funding for their robust R&D budget and new model pipeline. The large number of models they market allows them to target specific sub-segments with specific vehicle capabilities and characteristics. In turn this makes it more difficult for competitors to match up on a vehicle to vehicle basis in each sub-segment.

Polaris Opens Manufacturing Facility In Poland

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Polaris's new manfuacturing facility in Opole, Poland. (Photo: Business Wire)

Polaris’s new manfuacturing facility in Opole, Poland. (Photo: Business Wire)

Polaris announced the opening of their new 345,000 square foot manufacturing facility in Opole, Poland. The company will manufacture ATVs and utility vehicles at the site for Europe, Middle East and Africa (EMEA) region. Opole will also house research and design for the Europe, Middle East and Africa markets allowing vehicles to be tailored to local needs. The building features include a 2,500 meter product test track and energy saving paint systems. Products should begin shipping from the facility in early 2015. Learn more:  Seekingalpha.com

Comment:

Polaris Industries continues to lead the small, task-oriented vehicle (STOV) industry in an aggressive and highly effective strategic vision. This could not be better demonstrated than by its groundbreaking initiative to put engineering and manufacturing assets in Poland and to tie Opole-based production to a logistics and marketing strategy for the entire EMEA region. Management has made increasing international sales a long term strategic goal and has steadily been taking steps towards that end over the last few years. The new facility is testament to the growth they have experienced in the EMEA region.

It has to be said that Polaris is, far and away, the leader in terms of strategic vision, implementation (in engineering, production, and distribution systems), and market development. Moreover, Polaris is not wedded to ICE technology. It’s acquisition of GEM Electric Vehicles, a company long-established, but treading water for years, constituted a strategic move into electric power (along with their investment in Brammo). Polaris immediately upgraded the look of the product line with the eM1400–and gave its dealers more flexible offerings with the gas-powered M1400 series.

 

Kandi Technologies Delivers First NEVs For Shanghai’s Car-Share Program

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Kandi Technologies NEV

Kandi Technologies NEV

Last month Kandi Technologies announced the delivery of 208 neighborhood electric vehicles for the launch of the Shanghai Jinshan“Car-Share” Program. The program’s manager plans to have 3,000 to 5,000 vehicles in service by the end of 2014. The first car-share program was launched last year in Hangzou.

The car-share stations which provide a variety of services, such as charging, maintenance, battery recycling, are located at airports, train stations, hotels, business centers, selected residential areas and other places that are typically congested. A network system provides EV rental service to individual drivers in and around the city. It also provides EV maintenance and battery charging to self-service users. Lastly, a tracking system allows the Car-Share Program management to keep a close watch at the status and precise location of each vehicle.

The company expects to roll-out the program to many more cities in the next few years.

In China the vehicles for this program are sometimes referred to as neighborhood electric vehicles, they are similar but not the same as NEVs in the US. While they are small and lack some of the features of a fully functional highway capable vehicle like NEVs in the US, these vehicles from Kandi Technologies have a reported top speed of 80 km/hr compared to 40 km/hr. Learn more:  Kandivehicle.com

Work Utility Vehicle Reviews From The UK

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Workman HDX-D 4WD from Toro on a test drive.

Workman HDX-D 4WD from Toro on a test drive.

Horticulture Week based in the UK test drove a Toro Workman MDE and HDX-D 4WD utility vehicles as well as a Brutus HD PTO from Polaris. They were operating in the vehicles in a golf course and park grounds type setting. In general they liked how all the vehicles performed. Here are some highlights from their review.

Toro Workman MDE (electric powertrain)

Likes

  • “nippy and grippy”
  • Low noise
  • Regenerative braking
  • Comfortable and ergonomic layout for driver
  • Performed well on hills
  • Comfortable ride and good handling

Dislikes

  • Play in the accelerator pedal
  • Steel diamond-plate floorboards slippery when wet

Toro Workman HDX-D 4WD (Diesel)

Likes

  • Easy to read gauges
  • 4WD on hills
  • Low engine noise
  • Good turning circle for a long vehicle
  • “But it’s a smooth ride. The steering is light, gear changes smooth and the seats comfortable. It’s a very stable vehicle.”
  • Third gear lockout for novice users cuts out engine
  • 1,229kg cargo bed capacity

Dislikes/Other

  • Looks like an airport baggage-handling vehicle

Polaris Brutus HD PTO

Likes

  • Easy to drive
  • Functionality of the PTO and attachments especially the angled broom
  • Ease of switching attachments
  • Ergonomic seats and controls
  • Smooth ride and light steering

Dislikes/Other

  • Noisy going up hill
  • Some limits to suspension
  • Niche vehicle for those who need attachment specific functionality – sweeping, pallet moving, snow removal and sanding/de-icing

Learn more:  Hortweek.com