Category Archives: Investment & financing

Polaris Makes Another Move In The EV Market – Acquires Goupil Industrie of France

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Goupil industrie electric truck

Goupil Industrie electric truck

Diversifying their portfolio of electric vehicle offerings, Polaris Industries recently purchased Goupil Industrie SA.  The privately owned French manufacturer produces a line of light duty electric trucks for a variety of commercial uses.  There were no comments by management on whether the Goupil product line would be exported to or produced in the US.

This is the third major transaction in the small electric vehicle space by Polaris this year following the acquisition of GEM and a major investment in Brammo, an electric motorcycle manufacturer known for electric powertrain expertise. The work and hauling oriented Goupil product line will complement the more people mover oriented GEM line.   Goupil’s estimated annual sales of $25 million adds to the estimated $30 million in annual sales that Polaris gained from the GEM acquisition.

Comment:  After testing the LSV market with their Breeze model for personal transportation and the electric UTV market with their electric Ranger, Polaris has now moved decisively into the space.  Management sees the global market for small electric vehicles as a growth area and have executed on that belief by purchasing this manufacturer in France and initiating GEM distribution in India.  Polaris now has a range of small EV product offerings spanning off-road and on-road, consumer and commercial, as well as work and transportation applications.  Learn more:  BizJournals.com

In related news, I noticed that Polaris also has a new website for GEM.  On their home page it is accessible under the tab “Low Emission Vehicles” along with the Breeze LSV.

Polaris Invests In Electric Motorcycle Manufacturer Brammo

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Polaris Industries is the lead investor for Brammo’s second round of financing totaling $28 million.  Existing investors Alpine Energy and Northport Investments are also involved in supporting the electric motorcycle manufacturer for this round of financing.  In total the company has raised nearly $40 million in financing since 2008.

Brammo is known for their battery and electric powertrain technology.  The investment by Polaris should not only have synergies with their motorcycle products but with their electric utility vehicles and recently acquired GEM product line.  Brammo has also partnered with Flextronics for manufacturing.  Learn more:  Techcrunch.com

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

Polaris Acquires GEM

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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 .

Clean Cities National Parks Initiative

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In 2010 Clean Cities partnered with the National Park Service to develop the Clean Cities National Parks Initiative to support the use of renewable and alternative fuels, electric vehicles, and other vehicle energy-saving practices to help preserve air quality and promote the use of domestic energy resources in the parks.  The program will run for five years and will have between $1 million and $5 million in funds available annually.  The funds can be used to:

  • Purchase electric drive, alternative fuel, and advanced technology vehicles
  • Install electric vehicle charging stations and other alternative fueling infrastructure
  • Implement petroleum-reduction programs, such as idle reduction
  • Educate park visitors, employees, and others about the benefits of using cleaner, more efficient vehicles and renewable and alternative fuels.

A number of parks have initiated projects including the purchase of electric LSVs and utility vehicles.  Learn more:  USDOE

California Energy Commission Awards EV Grants

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The California Energy Commission recently announced grants totaling $9.6 million for projects involving electric vehicle manufacturing, charging stations and biofuels.  Projects most relevant to the STOV market include:

  • $505,381 to San Francisco-based Mission Motor Company to help it bring its prototype electric vehicle battery packs and motor control modules to commercial production.  The components will work in electric motorcycles, scooters, cars, buses and outdoor power equipment.  The assembly facility in downtown San Francisco are expected to be capable of producing 30,000 battery packs and motor control systems each year by 2015,
  • $2,962,743 to Leyden Energy, Inc., for a production line capable assembling its lithium battery packs for its partner in the project, electric vehicle manufacturer Green Vehicles of Salinas.

The companies receiving the grants are providing matching funding for their respective projects.  Learn more:  Favstocks.com

Company News Briefs

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Cub Cadet Sponsors Design Contest – Outdoor Power equipment maker Cub Cadet is sponsoring the Cub Cadet Future Vision Design Contest.  The contest is open to anyone with a vision for futuristic lawn mowers, tractors or utility vehicles.  Learn more:  Designcrave.com

Yamaha’s Kevin Norcross Gets Expanded Duties – Yamaha Golf-Car Company has put Kevin Norcross in charge of their National Direct Sales team.  The new duties will be in addition to his current work as Marketing Department Manager.  Learn more:  Worldgolf.com

Ladybug Resource Acquires Mag International – Ladybug Resource, a company that acquires and licenses technologies, patents, patents-pending and trade secrets in the energy, health and intellectual property sectors, has acquired controlling interest in Mag International, Inc., a manufacturer and distributor of gasoline and electric mini-utility vehicles.  Learn more:  Tradingmarkets.com

ZAP and Remy Electric Motors Partner – Remy Electric Motors will be the new electric motor suppler for ZAP.  The companies will also work together on developing a drivetrain for other ZAP automotive platforms and for vehicles related to ZAP’s joint venture in China.  Learn more:  Indianapressreeleases.com

Zap Acquires 51% Stake In China’s Jonway Auto

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EV manufacturer Zap recently announced an agreement to purchase a 51% stake in Zhejiang Jonway Automobile Co. Ltd for $29 million.  The deal gives Zap an entry into the fast growing electric vehicle market in China and access to high volume production capacity.  According to Zap,

The ZAP Jonway merger accelerates cost-effective manufacturing of ZAP’s electric vehicles and gives ZAP access to the Chinese market through Jonway’s distribution channels of more than 80 factory direct dealerships that feed into hundreds of factory authorized dealers. Jonway’s volume manufacturing capacity gives ZAP a strong manufacturing base with the means of commercializing its innovative EV technologies.

Zap will be able to purchase the remaining 49% of the Jonway by march, 2011 at  the same evaluation.  Jonway had revenues of $40 million in 2009 and $20 million in the first quarter of 2010 alone.

Jonway Automobile, with approximately 800 employees, is currently manufacturing approximately 1,000 vehicles per month and has a capacity to produce up to 30,000 vehicles per year at its modern, 3.6 million square foot plant in Sanmen on approximately 141 acres of land. Focused on quality, Jonway is ISO 9000 and China Compulsory Certification (CCC) certified. Jonway distributes through a nationwide network of auto dealerships in China and distribution partners in Europe and Egypt. Jonway’s 3-door SUV has been CE approved in Italy by its European partner for the European market.

Learn more: Zapworld.com


EVI Announces $1.5 Million In State Grants For Vehicle Development & Job Training

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Last week, Electric Vehicles International (EVI) announced grants to develop two demonstration vehicles and provide job training for new workers. Some new workers will come from the recently closed NUMMI auto plant and suppliers as EVI has an agreement with Kyoho Manufacturing California, an auto parts supplier which shutdown when NUMMI closed.  The grants total over $1.5 million with about two-thirds targeted for the development of two medium-duty pickups for Pacific Electric & Gas and the remainder for job training. EVI currently offers a medium-duty truck, a walk-in van and a light-duty utility vehicle. The company has a number of demonstration vehicles currently out in the field. Learn more: Recordnet.com

CT&T Chooses South Carolina For EV Production Facility

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After looking at a number of different cities and states over the past year, CT&T has chosen the city of Duncan in Spartanburg Count, South Carolina for their first US based production facility.  Korea-based CT&T is partnering with the 2AM Group of South Carolina to develop the electric vehicle production facility.   Operating under the name CT&T Southeast LLC, the joint venture will produce CT&T’s eZone and cZone electric vehicles.  The vehicles will target the NEV market as well as commercial uses such as security, maintenance and utility applications.  CT&T will invest $21 million and create 370 new jobs to support its production over the next five years and expects the facility to be operational in the fourth quarter of this year.

2AM Group, LLC is a premium technical service provider in the fields of project management, engineering, assembly, quality assurance and logistic services for Original Equipment Manufacturers (OEMs) and their suppliers in the Automotive, Aerospace, and Marine Industries.

Learn more:  Businesswire.com