Category Archives: Investment & financing

Cenntro Motor To Produce Electric Utility Vehicles At Nevada Facility

Posted on by
Reply
Cenntro Motors Kombi EV electric utility vehicles to be produced in Nevada.

Cenntro Motors Kombi EV electric utility vehicles to be produced in Nevada.

Cenntro Motor plans to begin production of 1,650 electric vehicles at a Sparks, NV facility by August or September of this year. The $20.1 million, 150,000 square foot facility will also serve as the company’s headquarters. The facility will employ approximately 100 people and training grants along with tax deferrals were part of a $1.2 million incentive package to attract the company.

Cenntro Motors designs and builds lightweight electric commercial and passenger vehicles and their first vehicle is the Kombi EV designed for maintenance, delivery and light cargo transport. The vehicle currently comes in two configurations, the Green Space Version with a cargo bed and the City Version with a van box. Both vehicles are 2WD and use a 10 Stator KLD DC motor with max power of 12.5 kW. The vehicle’s KLD Energy Technologies oneDRIVE™ propulsion system uses a 48V system with a 6.8kW KLD Li-ion battery pack. Other key features include 800 payload capacity, 4-wheel hydraulic disk brakes, a range of 50 miles and top speeds of 31 mph for the Green Space and 25 mph for the City.

Cenntro Motors also recently acquired SITL-Brandt Motors located in Lyon, France, which will be the headquarters for their European operations. The acquisition was valued at $50 million and management plans to invest an additional $20 million. With the acquisition Cenntro’s lineup in Europe will include an all-electric CITELEC commercial truck, a two-person quadracycle and electric scooters. Learn more:  Reviewjournal.com and Cenntromotors.com

Comment:  The commercial/government market for small electric vehicles is attracting more attention as many companies believe this is where the growth is. From colleges and universities to municipalities and commercial entities organizations are finding these vehicles to be green, safe and cost-effective for applications that do not require traditional passenger vehicles or pick-up trucks. It continues to represent a growth segment for the STOV industry. It is also an international market with arguably better opportunities in European and Asian markets where smaller vehicles are more accepted, prevalent and have been used effectively for many years.

 

E-Z-GO Acquires Tug Technologies Corporation

Posted on by
Reply
The TUG Technologies Corp. M1A tow tractor is used at airports.

The TUG Technologies Corp. M1A tow tractor is used at airports.

E-Z-GO recently announced the acquisition of Tug Technologies Corporation, a manufacturer of ground support equipment for the aviation industry. TUG Technologies Corporation, based in Kennesaw, Georgia, manufactures ground support equipment servicing airlines, air-freight companies, ground handlers, government agencies and airports worldwide. TUG’s extensive product line includes cargo tractors, belt loaders, tow tractors, pushback vehicles, air-starts, ground power units, and mobile heating and air-conditioning units. The company was acquired from a New York based private equity firm but their manufacturing is based in Kennesaw, GA along with approximately 200 people. The terms of the acquisition were not released. Learn More:  Marketwatch.com

Comment:  The acquisition makes sense for E-Z-GO on a number of fronts. They already serve the same markets with E-Z-GO and Cushman vehicles but for different applications with minimal overlap and they are also both Georgia based companies. The greater resources that E-Z-GO has at it’s disposable in terms of product development, manufacturing expertise, sales force and existing relationships should help grow the company. Tug Technologies is a strong brand in their markets that can be leveraged for new products and new markets.

Polaris Posts Strong First Quarter 2014 Results

Posted on by
Reply
Beauty shot of the new Sportsman ACE from Polaris.

The new Sportsman ACE from Polaris is one of the reasons for the company’s strong financial results for Q1 2014.

The following are some of the highpoints of the Polaris earnings call discussing their first quarter 2014 financial results with a focus on aspects relevant to the STOV market.

  • Polaris first quarter sales increased 19% to $888 million.
  • Net Income increased 7% to $80.9 million.
  • Management is raising their expectations for full year revenue and earnings to increases of 14%-16% and 17%-18% compared to 2013.
  • Off-Road Vehicle sales which includes UTVs and ATVs increased 11% and market share improved with good demand for the RZR XP 1000 and the new Sportsman ACE.
  • In North America management estimated that side-by-side sales retail grew upper single digits in an industry that grew similarly.
  • The new Sportsman ACE has gotten off to a good start.
  • PG&A momentum remains very strong with first quarter sales up 20%, parts accessories and apparel all grew strong double-digits led by strength in both ORV and Motorcycle related products.
  • First quarter Polaris commercial revenues increased by over 60% with sales to Bobcat Polaris national accounts and BRUTUS up notably year-over-year. Commercial segment has grown more slowly than expected by management but they will continue to put resources into this segment.
  • Small Vehicle first quarter revenue increased by 248% as all three brands, GEM, Goupil and Aixam grew year-over-year. The increase includes the addition of revenue from recently acquired Axiam, which also increased market share in Q1, and an increase of over 20% from the GEM product line.
  • International business had another strong quarter with sales increasing 44% led by nearly 50% and 60% growth in the EMEA and Asia Pacific regions respectively. Small Vehicles, PG&A and side-by-side sales all grew over 30%.
  • ORV is now expected to grow 9% to 11% in 2014.
  • Small Vehicles guidance is unchanged up 25% to 30% which includes the full year of the Aixam acquisition.
  • ACE orders in both North America and internationally have been better than expected with only minimal signs of cannibalization of either ATVs or side-by-sides.
  • There is broad based strength across many ORV products.
  • Management is seeing increased competitiveness and promotions in the side-by-side market.
  • Management is disappointed in Brutus sales into the commercial segment so far but expect to see improvement over the next 12 months as dedicated sales staff, partnership with Ariens and other efforts help them adjust to the longer B2B and B2G selling cycles in this segment.

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  The early signs that the ACE is not cannibalizing ATV and UTV sales is an indicator that Polaris is creating another vehicle category. More time will be needed to see how sales play out over the next 12 months to see if this theses remains true. It’s not only a question of cannibalization but how buyers are actually using the vehicles – what market segments, what applications, etc.

Green Automotive Company Buys Stake In Electric Truck Maker Viridian Motors

Posted on by
Reply
A low speed electric powered utility truck produced by Viridian Motors.

A low speed electric powered utility truck produced by Viridian Motors.

Green Automotive Company (GAC) has acquired nearly 22% of Viridian Motors, a Virginia based maker of low speed electric utility trucks. GAC previously acquired the UK-based Land Rover-conversion company Liberty. GAC has three divisions:  Liberty Electric Car which designs, engineers and manufacturers EV technologies, Newport Coachworks which builds shuttle buses powered by a variety of fuels and Going Green Ltd. which sells and sevices a variety of electric vehicles. The Newport Coachworks division is launching an electric powered shuttle this year and Viridian Motors will be involved in the roll-out on the East-coast. Currently Viridian produces two electric utility trucks, the WR100 and WR200. Both have a top-speed of 25 mph with ranges of 90 and 75 miles respectively. Learn more: Autobloggreen

 

BRP Inaugurates New Mexican Facility

Posted on by
Reply

Aerial view of part of the Queretaro industrial park in Mexico. BRP’s new facility is located in the park.

BRP, manufacturer of Can Am side-by-sides, last week inaugurated their new manufacturing facility in Queretaro, Mexico. The facility assembles Rotax engines for its Can-Am off-road vehicles, assembles the Sea-Doo Spark watercraft and manufactures composite hulls and decks for Sea-Doo watercraft. By 2015, a total of $100 million (Canadian) will have been invested in the facility and 1,100 people will be employed. A sister facility in Juarez, Mexico has been assembling Can Am ATVs and side-by-sides since 2001.  Learn more:  BRP.com

Comment:  BRP isn’t the only UTV manufacturer in Mexico. Polaris has a presence there as well. Part of the move is driven by production cost savings but the other reason is geography and distribution. The Southwest US and in general the South are an area of growth for the UTV market. These facilities put manufacturers closer to these markets as well as expanding markets in Latin and South America. As manufacturers try to shorten ordering cycles for dealers and better manage inventory while more closely aligning product supply to market demand these facilities can offer improvements in those areas.

GE Capital to Provide Dealer Financing to Massimo Motor

Posted on by
Reply

UTV from Massimo Motor

Massimo Motor’s dealer network will now have access to inventory financing from GE Capital’s Commercial Distribution Finance division. Massimo Motor is based in Irving, TX and was started in 2009. They produce ATVs and UTVs which primarily serve the agriculture and hunting markets but are looking to expand their appeal. The company produces 500cc and 700cc UTVs and are developing a 1000cc product for the race/high end recreational market segment. Learn more:  Businesswire.com

Comment:  The high-end recreational market segment has been getting more and more competitive as competitors like Polaris, Arctic Cat and Can Am continue to pump out new models for the segment. The entry of Massimo Motor into the segment will only increase the competition. One challenge they will face is their relatively small dealer network in comparison to their more established rivals.

Polaris Acquires Navigation Software Company Primordial

Posted on by
Reply

Screenshot from Primordial’s flagship Ground Guidance software product.

Polaris Industries announced the acquisition of Primordial Inc, a Minnesota-based software company known for navigation software used by the military in off-road environments and a crowd sourced mapping application. Ground Guidance is used by soldiers to map fast and stealthy routes in difficult terrain. Ooze is a crowd-sourced mapping application that it sells to businesses and government agencies.

Ground Guidance is a good fit for Polaris’s military segment which has been a long term strategic growth segment. Ooze could have synergies with their RiderX mobile apps, which snowmobilers use to navigate trails. Long-term there could be potential in the off-road recreation segment for both products.  Learn more:  Bizjournals.com

Comment:  You have already seen improving electronics in utility vehicles and the trend has been for these vehicles to eventually adopt many of the advanced features of automobiles. It will not be surprising to see OEMs offering more electronic gear and software as optional and eventually standard equipment. Polaris vehicles are also frequently used by firefighting teams for the Bureau of Land Management and Forest Service. These software applications may have some application in the off-road emergency response/fire/rescue market as well.

Indian Start-Up Gets Funds For Low-Cost Rural UTV

Posted on by
Reply

Evomo Research & Advancement Pvt Ltd of India has received funds from a local business incubator for development of a low-cost rural utility vehicle. Started in 2010, Evomo, will use the unspecified amount of funds to get to a stage where it can take preorders for actual sales. The management, in part, sees the vehicle as a safety issue since it can replace many of the dangerous makeshift vehicles that are now used in many rural areas.

The Evomo UTV is an off-road vehicle for both passengers and goods in rural areas. Management claims the vehicle is legal, less polluting, handles rough terrain, can be transformed from people carrier to goods carrier and performs some of the agricultural functions like pumping water and carrying cargo. Powered by a diesel engine it has a top speed of 50-60 km/hour.

Learn more:  VCCircle.com

ARPA-E Funding More EV Battery Research

Posted on by
Reply

ARPA-E RANGE program $36 million into more EV battery technology projects.

The US Department of Energy (DOE) Advanced Research Projects Agency – Energy (ARPA-E) will award approximately $36 million to 22 projects to develop transformational electric vehicle (EV) energy storage systems using innovative chemistries, architectures and designs. While the research is predominantly targeting highway capable vehicles, any significant advancements in battery performance and/or cost reduction will work its way down to the STOV market eventually. There are already lithium battery pack options available for some STOVs with more expected to hit the market in the next one to two years. Any trickle down technology will likely impact niche markets or particular applications that require better battery performance first. For example, an organization with “green” or sustainability mandates may be willing to pay the price premium for new better performing battery packs.

The projects being funded cover a range of battery technologies including lithium, lead acid, zinc-air, metal hydride and flow batteries. Some of the projects focus on integrating the batteries into the structure of the vehicle itself and/or changing the placement of batteries to increase battery safety in the event of a collision. Others focus on developing solid state lithium battery technology that is non-flammable and safer.  Learn more:  Greencarcongress.com

Bad Boy Mowers Expands: Targets UTV Market

Posted on by
2

Intimidator multi-terrain vehicle from Bad Boy Mowers

Bad Boy Mowers of Arkansas has announced plans to hire more than 200 people in the next three to five years as the company expands it’s offerings in the UTV market. The manufacturer of lawn mowers also started producing utility vehicles several years back but has moved more aggressively into the UTV market with the launch of the affiliated company and brand, Intimidator in 2011. The company spent $7.5 million to expand their plant for the new product line.

The Intimidator series features a 1,600-pound payload and a 2,100-pound towing capacity. The company will be producing 10 new multi-terrain vehicles, as they like to call them, expanding the total number of models they offer to 16. The Intimidator product line includes diesel, gas and electric versions. Previously, under the Bad Boy Mower brand the company has also offered a range of UTVs including some that are LSV compliant UTVs. Learn more:  PBCommercial.com

Comment:  And the competition in the UTV market continues, this time in the work UTV segment. Creating a new brand is probably the best way to go as UTVs do not initially come to mind with the name Bad Boy Mowers. There could also be some confusions and possibly even legal issues with the Bad Boy Buggies brand owned by E-Z-GO. However, the company should still be able to leverage the Bad Boy Mower dealer network, which at first glance seems concentrated in the Midwest and East, to grow the Intimidator line. Distribution is key in this market as so many manufacturers entered from adjacent markets like powersports, farming, power equipment, golf, etc. They often can reach parts of the market or certain segments with their traditional distribution networks but then have trouble expanding further.