ZENN Announces Change In Strategic Plan

ZENN recently announced that they will not be mass producing the highway capable cityZENN and instead will focus on developing their ZENNergy Drive Systems, which incorporates EEStor technology.  The change probably means an exit from the LSV manufacturing business as well.  Management notes competition from a large number of well-funded new and existing automotive OEMs that have now entered the electric vehicle market as a factor in the decision to become more of a supplier to vehicle OEMs rather than a vehicle OEM itself.

This strategy plays into ZENN’s technology advantage arising from their relationship with EEStor, of which ZENN owns 10.7%.  Of course this relies on EEStor delivering on their promised technological advancements. With regards to the viability of EEStor’s technology, ZENN CEO Ian Clifford states,

EEStor has publicly stated that they expect to complete initial component testing in September 2009 and deliver functional technology to ZMC by the end of the year.

Learn more:  GM-volt.com

AMP Control Of Oklohoma To Assemble & Sell Wheego LSVs

AMP Control of Piedmont, OK has an agreement to assemble and sell Wheego Electric Car’s LSVs. According to Wheego management a significant factor in making this move was the sizable state tax credit for electric vehicles in Oklahoma. Wheego CEO Mike McQuary states that

…the Wheego Whip LSV qualifies for a state tax credit of 50 percent of the purchase price of the vehicle, which is $18,995, as well as a $7,500 federal tax credit.

A news conference on the agreement is scheduled for tomorrow Learn more: kfsm,com (5 News)

More Farm Equipment Manufacturers Enter Utility Market

Both New Holland and Case IH have decided to enter the utility vehicle market with the addition of their Rustler and Scout UTV product lines, respectively.

New Holland Ruslter 125 UTV

New Holland Ruslter 125 UTV

New Holland is targeting the rancher, farmer and property owner with their line-up of three Rustler utility vehicles:  Models 115, 120, and 125.

New Holland offers Rustler UVs with 4×2 or 4×4 axles. For extra traction on the 14-hp 4×4 115 (gas) model, simply engage the shift-on-demand four-wheel drive, while the larger models engage four-wheel drive automatically. The 20-hp 120 (diesel) and 23-hp 125 (gas) models feature an automatic, all-wheel-drive system that delivers the gear you need, when you need it.

Lean more:  Northwest Horse Source

Case IH Scout UTV

Case IH Scout UTV

Case IH offers their Scout and Scout XL utility vehicles.  The XL comes in a gas or diesel versions for 2 or 4 passengers. Key target segments for the Scout include crop and livestock farmers, contractors, and landscapers.

The two-passenger Case IH Scout offers premium features in a compact size, including: MacPherson Strut front suspension and best-in-class independent rear suspension; a wide ratio CVT transmission for fuel efficiency and smooth shifting; hydraulic, four-wheel disk brakes; ROPS protection, retractable safety belts and Halogen headlamps.

For all the comfort, safety and fuel-saving features in a bigger box, there’s the larger Case IH Scout XL. These also feature a wide ratio CVT transmission; hydraulic, four-wheel disk brakes; ROPS, retractable safety belts and headlamps; along with a double A-arm front suspension with coil overshocks for a comfortable ride; and a full-sized bed box with 800 lbs. (15.1 cu. ft.) of capacity – or 1,050 lbs. with the optional high capacity kit.

Learn more:  PRweb.com

Comment: I believe these new product line introductions are indicative of two trends in the utility vehicle market.  First, despite the economy and some declines in the market, the utility vehicle market is still relatively vibrant and poised for strong growth as the economy gains strength.  In part, this is because purchasing these vehicles  makes economic sense  since they  increase productivity.  In their July quarterly analyst conference call Arctic Cat reported positive comparative UTV sales figures for 9 of 13 weeks. In contrast, both Polaris and Arctic Cat have reported significantly sharper declines for ATVs than UTVs during the economic downturn.

This leads me to the second trend in the market – utility vehicles “stealing” market share from other vehicle classes.  One class being affected is ATVs.  Polaris estimates a third of side-by-side vehicles are displacing ATVs.  The other class of vehicles is tractors in the farm segment.  I have picked this trend up in interviews with farm equipment dealers and I speculate that these new product line introductions are, in part, a response to New Holland and Case IH experiencing a negative impact on tractor sales.  The  other reason for the introductions is that the utility vehicle market represents a good growth opportunity, one which competitors like John Deere and Kubota have already been exploiting for a number of years. – Marc Cesare

Electric Vehicles International Moving Headquaters To California

Mexico based Electric Vehicles International is moving their headquarters to Stockton, CA where they will also be building a manufacturing facility for their electric powered light truck.  The EVILightTruck has a top speed of 45-60 mph, depending on the version, and is available as a class 3,4,5 or 6 truck.  There is also a hybrid  option.  The all electric model has a 100KW motor and is powered by a lithium phosphate battery supplied by Valence.  EVI also sells drive trains and controllers for electric vehicles.  Since its founding in 1989 the company reports selling over 1,000 vehicles.  Production in the new facility will begin in 2010 and will employ up to 100 people when operating at peak production.  Learn more:  Centralvalleybusinesstimes.com

Polaris Announces Layoffs

In response to lower sales Polaris Industries will be laying off 50-60 people next month at it’s Spirit Lake, Iowa facility.  The company is reducing production at the facility by combining the Ranger utility vehicle and Victory motorcycle production lines into one line that will only produce one type  of vehicle at a time.  The change is designed to help maintain lower dealer inventory levels during this economic downturn which has hit markets driven by discretionary spending, like the utility vehicle and motorcycle markets, hard.  Kawasaki, maker of the Mule utility vehicle, has also reduced their work force this year.  On a more positive note Polaris announced a $6 million contract with the US military for Ranger utility vehicles and service.   Learn more:  SiouxCityJournal.com

Long Drive Solar Looking To Supply LSVs To Atlanta Area Developments

Long Drive Solar a marketer of solar-powered LSVs from Cruise Cars is in talks with the Jacoby Group to provide the vehicles for two of Jacoby’s real estate development projects.  One project is the Atlantic Station in midtown Atlanta and the other is the Aerotropolis Atlanta near the Hartsfield-Jackson Atlanta International Airport.  The deal would involve potentially hundreds of vehicle according to the companies.  The Jacoby Group is considering offering vehicles as an incentive for those purchasing condos in the developments.  Long Drive Solar’s management also stated that they are “…in negotiations to supply about 3,000 solar LSVs to a nonprofit in Oklahoma.”  Learn more:  Atlanta Business Chronicle

SolarMotion Laboratories Partners With Southwest Section PGA

Arizona based SolarMotion Laboratories has become a Technology Sponsor  of the Southwest Section PGA.  The company makes solar powered golf car roofs that are compatible with golf cars from the three leading manufacturers, E-Z-Go, Club Car and Yamaha.  SolarMotion plans to launch their product in the next two months and the solar roofs will come with a four year warrantee.  According to management, the company has partnered with Standard Renewable Energy and Kyocera Solar. Learn more:  Russellchrist.wordpress.com

Modec & Navistar Forming A Joint Venture

Modec and Navistar recently announced that they will soon finalize a joint venture that will produce class 2c-3 commercial trucks.  The trucks will have the Navistar brand and will be assembled in Indiana.  Navistar recently won a $39.2 million grant from the US government’s Recovery Act funds targeting battery technology and electric vehicles.  The grant will be used by the joint venture to develop 400 electric commercial trucks in 2010 with a range of 100 miles.  In the following years the JV is expected to produce thousands of vehicles annually.  Modec currently sells electric trucks to companies such as Fedex, UPS and supermarket chains.  Learn more:  Autogreenmag.com

CT&T Announces Manufacturing & Distribution Approach To US Market

CT&T, manufacturer of the eZone NEV, recently announced their Regional Assembly and Sales System (RASS) approach for selling electric vehicles in the US.  RASS will utilize multiple assembly plants, each located near key electric vehicle markets.  Vehicles will be  assembled using parts sourced by CT&T.  Retail networks will be developed by each RASS for their designated region.  Each RASS is expected to cost between $8-$10 million to create according to management.  Learn more:  www.prweb.com

Comment: BG Automotive has also talked about building multiple assembly plants near key markets but has not mentioned separate retail networks as well. They are also still looking for funding to carry this out. – mc

Wheego Eyes Shuttered Car Dealerships

According to reports the LSV manufacturer Wheego is looking at some of the recently closed car dealerships as an opportunity to build their distribution.

Wheego considers its cars the perfect product for these dealerships to preserve local employment and keep local economies from falling into further trouble.

As the story notes the dealerships may be too large for Wheego’s limited product line and some may be located in communities that do not allow LSVs.  Learn more:  Tech.blorge.com