Garia Pushes Back On LSV Critics

I received a press release from luxury golf car/LSV manufacturer Garia last month that pushes back on some of the safety focused critics of LSVs. What is interesting to me is not so much their arguments but that a LSV manufacturer is actively confronting LSV critics.  LSV manufacturers do not have a trade association to speak with one voice for the industry and only a few of the manufacturers, Tomberlin being another one that comes to mind, have tried to combat some of the negative arguments against LSVs.  Manufacturers would certainly help their cause by coordinating some type of response to the various charges and misinformation.  Local debates concerning ordinances for using LSVs on public roads often center on safety concerns and frequently equate LSVs with golf cars.  The Garia press release follows below:

Critics of small electrical vehicles such as street legal golf carts seem to have the carts’ alleged shortcomings as their sole focus rather than the needs of consumers. However, a closer look at consumers’ needs paints a different and much more positive picture of the future of these traffic newcomers.   

Getting consumers to fully embrace the electrical vehicle as a viable alternative to gasoline driven vehicles has proven to be an uphill battle. This is especially so when it comes to street legal golf carts such as LSVs (low speed vehicles) that have been charged with criticisms on speed and safety.

This is a valid argument when comparing a battery-driven LSV; most often a golf cart that has been made street legal by adding safety features such as side mirrors and seat belts, to a big gasoline-driven vehicle designed for hour-long road trips.

“We hear the same arguments over and over again, but our product was never made for the highway. It was made for short distance transportation in an urban area”, says Henrik Hansen, President of Garia Inc., a European manufacturer of luury street legal golf carts.

A recent project* aimed at demonstrating how electrical vehicles can be used to reduce greenhouse gas emissions, air pollution, and gasoline consumption in selected suburbs in California shows that trip destinations of the participating households were mostly within 3 radial miles of home, a distance that can easily be accomplished by a LSV or another electrical vehicle.

This is as good news for advocates of electrical vehicles as it is for consumers. It shows that consumers’ current driving needs matches the capability of a LSV, for example, and that consumers can cut down their gasoline budget and CO2 rate without compromising on their daily needs.

Some critics have pointed out that the rather slow speed of the LSVs (allowed to drive on public roads with a max speed of 35 mph or less) make them less safe in the traffic than traditional cars.

However, with the lower speed also comes a lower risk for the surroundings – pedestrians or cyclists – and many cities have now implemented designated lanes for LSVs.

In Surfside Beach, South Carolina, where “the golf cart is the national vehicle”, Mike Frederick, chief of Surfside Police says that “Unlike large vehicle accidents involving SUVs and motorcycles, the S.C. Highway Patrol doesn’t see many accidents involving golf carts”**.

Although safety concerns should always be taken seriously, a sensible driving style applies in all kinds of vehicles.

And what the LSVs do particularly well is meet consumers’ needs and offer a form of personal transportation that suits the green lifestyle of the future. This is guaranteed to be the key to their success.

“The Garia LSV is a luxury and quality alternative to the traditional LSV. The increasing popularity of the LSV will produce a natural need for a product that stands out from the rest and has the quality of other luxury products”, says Mr. Hansen.  

To find out more about Garia, please visit www.garia.com

Garia Press Contact: press@garia.com

*Source: “Neighborhood Electric Vehicles in Mature Suburbs”, Demonstration and Preliminary Evaluation, South Bay Cities Council of Governments, July 2011, www.southbaycities.org

**According to The Sun News: “Golf Cart Safety Not a Worry in Myrtle Beach Area”, July 2nd 2011, www.thesunnews.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)

Cycle Country Accessories Reports Losses

In late August Cycle Country Accessories, a designer and manufacturer of aftermarket products for ATVs and utility vehicles, reported a net loss of $431,191 for the three months ending June 30, compared to $583,541 in the same quarter a year ago.  For nine months ending June 30, sales were $7.7 million and net loss $2.1 million vs. sales of $7.9 million and a $0.6 million loss the previous year.  The company makes products such as snowplow blades, lawnmowers, spreaders, sprayers, tillage equipment, winch mounts, and utility boxes.  Learn more:  Siouxcityjournal.com

Bad Boy Gets Disciplined By The CPSC

Bad Boy Enterprises recently announced that they would pay a civil penalty of $715,000 to settle allegations by the Consumer Product Safety Commission that

Bad Boy Enterprises failed to immediately report, as required by federal law, a defect involving Classic Buggies off-road utility vehicles with Series brand and SePex brand electric motors that resulted in sudden acceleration incidents and injuries to consumers. 

The defect occurred in vehicles produced from 2003 to 2010.  In agreeing to the settlement, Bad Boy Enterprises denies CPSC staff allegations as to the existence of a defect or hazard or that it violated the law.  Learn more:  CPSC.gov

Artic Cat Reports Fiscal 1st Quarter Results

Arctic Cat reported that net sales increased 18 percent to $74.9 million in the fiscal 2012 first quarter ended June 30, 2011, up from net sales of $63.4 million in the prior-year first quarter. The company’s first quarter net loss improved to $2.3 million versus a net loss of $4.5 million. Arctic Cat typically reports a first quarter loss because most of its revenue is seasonal, occurring in their fiscal 2nd and 3rd quarters. Management reported that “Revenue grew across all product lines, with particularly strong sales of our Prowler side-by-side utility vehicles contributing to the quarter’s results.”  Management also raised their guidance for full year sales to $520 to $530 million or a 12-14% increase over 2011.  The increase is expected to be driven in part by the launch of their new sport utility vehicle the Wildcat.  Learn more:  Marketwatch.com

Polaris Reported Record Earnings

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

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 .

Bad Boy Buggies Production Moves To Georgia

Production of the recently acquired Bad Boy Buggies has moved to E-Z-GO’s manufacturing facilities in Augusta, GA from Natchez, MS.  The same facilities are used to produce E-Z-GO’s Cushman line of industrial vehicles as well as E-Z-GO golf cars, utility vehicles and LSVs.  The move is not a surprise since Bad Boy Buggies previously has had some quality issues and E-Z-GO is known for their manufacturing prowess.  The Augusta plant was

..named one of Industry Week magazine’s top 10 plants in North America in 2009, and also received the Shingo Prize for Operational Excellence, often called “the Nobel Prize of manufacturing,” that same year. The facility is ISO 9001 and ISO 14001 certified, meaning that it has world-class procedures for manufacturing and environmental protection.

The new location also offers better supply and distribution logistics.  Learn more:  Ammoland.com

GGT Electric Looking For University Partners

GGT Electric recently announced that they are looking to partner with two US universities for the research and development of electric trucks, electric cars and electric delivery vans.  The Milford, MI based electric vehicle manufacturer is conducting a nationwide search and is considering universities with existing expertise or the willingness to develop expertise in electric vehicles.  According to CEO Ray Leduc,

GGT’s future partners will search for improvements in the electric vehicle drive train space in the areas of low voltage motors, controllers, batteries and battery management systems.

Learn more:  PRWeb.com

Clifford Resigns As ZENN CEO

Ian Clifford has resigned from his position as Chief Executive Officer (CEO) of ZENN Motor Company Inc (ZMC) and has assumed the role of Founder and Vice-Chair of the Board of Directors of ZMC. Clifford, who founded ZMC in 2001, will continue to play a key role in defining ZENN’s future vision and strategic plans, the company said.

Brian Cott, who joined ZMC in 2006 as President and Chief Operating Officer, shortly after ZMC became a publicly listed company, became President and CEO on CLifford’s resignation. Learn more:  Greencarcongress.com