Stealth Manufacturing Shuts Its Doors

Posted on March 14, 2013 by Marc Cesare

Stealth Manufacturing, a maker of electric powered utility vehicles for hunting, has gone out of business. According to management they simply did not sell enough product and pointed to range and cost issues as well as a small developing market as reasons for their difficulties. A last minute investment or sale of the company could not be arranged. While some dealers are left with inventory and are out some money, they generally liked the latest line of vehicles.

The company started in 2007 in Louisiana before moving operations to Georgia in 2010. Stealth had become the main competitor to Bad Boy Buggies in the burgeoning market segment for electric hunting vehicles. Learn more: Dealernews.com

Comment: The relatively recent acquisition of Bad Boy Buggies by E-Z-GO is looking like a smart move. They are now in a dominant position in the segment and our interviews with dealers for our latest market study indicate that their product line upgrade has been well received. With E-Z-GO behind it, Bad Boy Buggies now has access to a large dealer network across the country, production and engineering expertise and the financial resources to develop as the segment grows.

While we have heard some remarks about the quality of Stealth vehicles, this may provide an opportunity for another manufacturer in the market to grab a fairly well-established brand in this sub-segment for a limited amount of money. In general, STOV manufacturers are diversifying into other market segment and an acquisition of Stealth assets could fit into that strategy. A couple of possibilities that come to mind are another golf car manufacturer looking to leverage their electric vehicle expertise and further expand into off-road utility vehicles. Another would be Polaris that has been making acquisitions in the electric vehicle and technology space with acquisitions such as GEM. As their dealers develop expertise in selling one electric vehicle line, they could leverage that experience as well as their access to recreational market segments by adding an electric hunting vehicle line.

Arctic Cat Earnings Call Recap

Posted on February 22, 2013 by Marc Cesare

Here are some of the highlights from Arctic Cat’s most recent earnings call. They focus on the side-by-side part of the business. Their fiscal year ends March 31.

ATV sales (includes ATVs and side-by-sides) increased 28% to $69.6 million from $54.4 million for the quarter compared to last year driven by strong Wildcat side-by-side sales. ATV sales increased 40% year to date to $212.2 million from $151.1.
North American side-by-side retail sales increased over 35% for the quarter and year-to-date retail sales increased over 50% driven by both our Wildcat Sports side-by-side and Prowler HDX utility vehicle.
Recently announced a new 4-seat Wildcat 1000 model and a new high performance 90-plus horsepower Wildcat model. Both of these will begin shipping in the fiscal fourth quarter.
Expect the ATV and side-by-side business to grow sales 36% to 41% for the full year driven by shipments of the Wildcat side-by-side models.
“Extremely positive” feedback received from dealers on the new Wildcat models. Extra horsepower is good for dune riding.
Demo rides for media and customers went “extremely well” for Wildcat X and Wildcat 4
Side-by-side market as a whole is up and estimated 10% and 20% for the year.
On option and accessory spending: Maybe spend $300 or $400 on Prowler or but “…you’re seeing customers that will come in and spend over $1000 and $1500 putting on roof, windshield, things of that nature on a Wildcat.“
The 64.5-inch width of the Wildcat makes it more suitable for out west on dunes and more wide open trails rather than narrower ATV trails in the east.

Learn more: Seekingalpha.com

Virginia Rejected Factory Incentives for MyCar LSV Manufacturer

Posted on December 19, 2012 by Marc Cesare

Greentech Automotive, maker of the MyCar LSV, had their request for incentives to build a factory rejected by the state of Virginia before receiving help from Mississippi where they opened a plant in Tunica last summer. The rejection, based on the lack of viability of their business plan, is currently of interest because the company chairmanTerry McAuliffe, formerly Chair of the Democratic National Committee, is now a gubernatorial candidate for Virginia. Virginia officials questioned whether the goal of selling 100,000 MyCars was realistic given that the company “… lacked brand recognition, had not demonstrated anything about the vehicle, did not have emissions approval from the EPA, had no distribution network, and had nobody in executive management with experience in automobile manufacturing.” Greentech Automotive is positioning the $10,000 MyCar as an affordable electric vehicle alternative to much higher priced highway speed EVs. Learn more: Torquenews.com

Comment: While LSVs have developed their niche and can be used in a variety of commercial and consumer applications, their sales have never approached the level that MyCar is predicting. Their target of 100,000 would surpass what has cumulatively been sold in the US to date.

Polaris Adds To PG&A With KLIM Acquisition

Posted on December 7, 2012 by Marc Cesare

Polaris Industries announced that they have acquired Teton Outfitters, LLC, a privately owned, Rigby, Idaho-based company which designs, develops and distributes KLIM Technical Riding Gear. The company’s 2012 sales are expected to reach 30 million, primarily in North America and from the snowmobile market. KLIM has a presence in the snowmobile, off-road and adventure touring motorcycle markets and a network of 850 dealers. Polaris management expects to leverage KLIM’s design capabilities and strong brand with the global resources, infrastructure and dealer networks of the various Polaris Industries brands to further boost their growing and highly profitable PG&A business. The KLIM CEO will remain with the company which will operate as a stand alone business. Learn more: Seekingalpha.com

Team Industries Licenses Fallbrook’s Transmission Technology for STOV Market

Posted on November 20, 2012 by Marc Cesare

Fallbrook Technology and TEAM Industries announced an exclusive licensing agreement for Fallbrook’s NuVinc CVP (continuously variable planetary) technology in North America and Europe for the STOV market. Under the agreement, TEAM will have “…manufacturing rights for their light utility and recreational vehicle families for North America and Europe and includes an engineering services agreement (ESA) for the development of a NuVinci vehicle transmission, with development running through 2013 and into 2014. The agreement also provides for royalties with commercialization volume milestones beginning in 2015.” The agreement covers the ATV, UTV, LSV and NEV markets. The companies have been working together since 2011. Learn more: Marketwatch.com

Nidec Acquires Kinetek

Posted on November 6, 2012 by Marc Cesare

Nidec Corporation, a multi-billion dollar global manufacturer of small and medium sized motors, recently completed their acquisition of Kinetek, Inc., a developer of custom engineered control, motor and drive system solutions. Kinetek will operate as an independent business unit as part of Nidec Motor Corporation (NMC), which manufactures commercial, industrial, and appliance motors and controls. Kinetek sells to the golf car market as well as the elevator, floor care, commercial food/refrigeration, material handling and aerial lift markets. Kinetek product lines include AC, DC, and brushless DC electric motors, pumps, gearing, gearboxes, fans, transaxles, human machine interface products (membrane switch assemblies, graphic overlays), electronic controls/systems and end products. Learn more: Kinetekinc.com

Clark Material Handling Acquires EverGreen Electric Vehicles

Posted on October 19, 2012 by Marc Cesare

Clark Material Handling Company recently acquired EverGreen Electric Vehicles which produces industrial and utility vehicles as well as golf cars. Clark management sees a good alignment between their current dealer network and the markets that EverGreen serves. They also believe they can provide engineering, financial and purchasing advantages to EverGreen.

EverGreen has an estimated 25-35 employees across offices in Grand Junction, Colorado and a 30,000 sq ft. production facility in Compton, California. EverGreen brands include EVE low-speed vehicles, Legacy golf cars, Hoss commercial and industrial vehicles and Goat off-road vehicles. There was no details on the acquisition costs. Learn more: ForkliftAction.com

Polaris Posts Record 3Q Results

Posted on October 18, 2012 by Marc Cesare

Polaris Industries continues to charge ahead with another quarter of record results. For the 3Q 2012 the company reported net income increased 39% to $94.3 million and sales grew 21% to $879.9 million. North American retail unit sales climbed more than 10% on strong contributions from side-by-sides and motorcycles. Management reports market share gains in their Ranger and RZR side-by-sides as their Off-road division grew sales 18% in the quarter and 22% for the first 9 months of the year compared to 2011. Full year sales are expected to be up 19% to 20% from 2011. Learn more: Dailyfinance.com

Green Tech Starts NEV Production

Posted on July 13, 2012 by Marc Cesare

Green Tech Automotive starts production of their MyCar NEV

A visit from former President Bill Clinton kicked off production at Green Tech Automotive’s Horn Lake, MS plant. The production line will manufacture the company’s MyCar NEV. Management, which includes former Democratic National Committee chief Terry McAuliffe, hopes to produce 10,000 vehicles in their first year. Many of these are destined for Denmark where Greenabout will distribute the vehicles. Pizza chain Domino’s will also use some of the vehicles. The company is targeting the fleet market with the vehicle which is priced at $18,000 and claims a maximum range of 95 miles for the top of the line model. The vehicles feature lithium batteries from Flux Power of California. Future plans include shipping vehicle components to China for final assembly in a to be built plant there as well as 300,000 square facility in Tunica County to produce up to 16,000 vehicles per year. Learn more: ClarionLedger.com

Ransomes Jacobsen to Import Mega Trucks into UK

Posted on May 11, 2012 by Marc Cesare

Ransomes Jacobsen has signed an agreement with Axiam Mega to become the sole importer into the UK of the Mega Professional line of eco-friendly utility trucks. The product line includes the Mega e-Worker electric truck and Multitruck 600 low emission diesel truck. Ransomes will continue distributing to the current network of Mega dealers in the UK and expects to expand distribution as well. Both company’s management see synergies between the Mega product line and the golf cars and utility vehicles sold under the E-Z-GO and Cushman brands. Learn more: Pitchcare.com

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