Category Archives: market trends

E-Z-GO Introduces Redesigned TXT Golf Car

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Newly redesigned E-Z-GO TXT golf car

E-Z-GO has introduced a newly redesigned TXT golf car featuring updated styling and new features to improve durability and performance. The press release follows with more details but some of the major themes of the redesign include:

  • New features to better incorporate usage of personal electronic devices
  • Refinements of existing features for increased usability and easier maintenance
  • Updated styling
  • Stronger components for increase durability

Comment: ??The level of the refinements speaks to the competitive nature of the fleet golf car market where small incremental changes can lead to a competitive advantage. Some of these incremental changes in this case include an optional USB port, larger and repositioned cup holders, repositioning key control switches, slight changes in canopy angles and bagwells that drain water better. Taken individually they may not seem like much but collectively they can produce a better vehicle for both the owner and the user. This level of refinement also takes a certain level of investment and resources to study vehicle usage in great detail and develop appropriate changes at a high level of refinement.

FOR IMMEDIATE RELEASE:
June 18, 2013

Contact: Brandon Haddock
Director, Communications
706.772.5931
bhaddock@textron.com
E-Z-GO?? Introduces Redesigned TXT?? Golf Car
to Deliver a Better Golf Experience and Proven Performance

AUGUSTA, Ga. ??? E-Z-GO is pleased to introduce its redesigned TXT?? golf car, updating the model???s classic look and proven performance while delivering a host of refined features to offer a better golfing experience, increased fleet durability and simpler maintenance.

???We remade the TXT to give our customers a golf car that was even easier to maintain, and to provide the premium features and conveniences expected by today???s golfers,??? said Michael R. Parkhurst, vice president, golf for E-Z-GO. ???The refined TXT has more of what you need, while still providing the unmatched level of performance that???s made our TXT the industry???s most trusted golf car for more than 15 years.???

Multiple design updates were developed to increase golfer enjoyment and make the car simple to use and maintain. The dashboard can be equipped with an optional USB port to recharge mobile phones, rangefinders and other small electronics, while also providing 30 percent more storage ??? enough room for an iPad. Storage pockets are placed higher in the dash to protect stored items from the elements.

Cup holders provide 45 percent more volume and are relocated to a more central position in the vehicle to prevent spills. Seatbacks are 23 percent larger to make every round a more pleasant experience. Ball holders are now mounted in the outside dash pockets for easy access from outside the vehicle. The oversized bagwell accommodates larger golf bags, has fewer places for dirt to collect, and new drainage holes to help eliminate standing water.

The new TXT???s updated styling follows modern automotive design cues, giving the vehicle a sleek, contemporary appearance. The forward-neutral-reverse switch has been relocated to a central location along the spacious bench seat???s centerline, placing controls at the driver???s fingertips for easier access and quick changes of direction.

Many new features of the TXT redesign increase the unit???s durability and make cleaning and maintenance easier. The vehicle???s front struts are 25 percent thicker for longer life, and the TXT???s front cowl and body panels are crafted from durable automotive-quality materials with an attractive, painted finish resistant to scratches and fading. An optional front bumper withstands repeated 5-mph impacts, and the TXT???s steel-reinforced rear bumper is the strongest in the industry.

The new sun top boasts a double-walled construction and an industry-first molded-in grab handle. The canopy is angled downward three degrees to eliminate standing water. Built-in drainage channels and a 360-degree drip edge are placed at the top???s corner to funnel water away from golfers, while lack of an internal drainage channel ensures no clogging.

The redesigned TXT golf car retains its predecessor???s proven performance and standard features still not found anywhere else in the industry. TruCourse Technology allows golf course owners to tailor speed, acceleration and regenerative braking characteristics to optimize the vehicle???s performance for safe, efficient operation on their course, and also reduces energy costs and improves battery life and daily range. The new TXT???s 48-volt DC technology offers the most efficient and effective DC power in the industry, maximizing battery life and using less energy than competing models.

For more information about the redesigned TXT, visit ezgo.com or follow E-Z-GO on Facebook. To receive a demo of the new TXT, contact your local E-Z-GO sales representative or authorized distributor.

About E-Z-GO
E-Z-GO, a Textron Inc. (NYSE: TXT) company, is a leading global manufacturer of golf cars, utility and personal transportation vehicles. Products sold under the E-Z-GO brand include RXV?? and TXT?? fleet golf cars, Freedom?? RXV and Freedom TXT personal golf cars, E-Z-GO Terrain??? and Express??? personal utility vehicles, and the 2Five?? street-legal low-speed vehicle. E-Z-GO also produces the Cushman?? line of heavy-duty material carriers and utility vehicles, and the Bad Boy Buggies?? line of off-road utility vehicles for hunters and outdoor enthusiasts.

Founded in 1954 in Augusta, Ga., E-Z-GO became part of Textron Inc. in 1960.

About Textron Inc.
Textron Inc. (NYSE: TXT) is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron in known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems. More information is available at www.textron.com.

Yamaha Announces New Viking UTV

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Yamaha’s new Viking utility vehicle

Three person seating in the Yamaha Viking

Yamaha Motor Corp USA has announced their new side-by-side vehicle, the Viking. A key feature of the Viking is the three person seating. The??pass-through bucket seating has an center position set back 5 degrees to improve comfort with maximum shoulder room for all three occupants. The new utility vehicle also features??686cc liquid-cooled 4-stroke, SOHC, single-cylinder, 4-valve fuel-injected engine that delivers a top speed of 50 mph. A crossover vehicle, the Viking is targeted towards work and trail riding applications. Other key features include:

  • Fuel injection
  • 9.7 gallon fuel tank
  • Electric power steering
  • Driver controlled On-Command?? system, featuring 2WD, 4WD and 4WD with differential lock selections
  • ??Ultramatic??? transmission with dual speed gearing and an automatic centrifugal clutch
  • 12 inches of ground clearance
  • Full steel/composite smooth skid plate front to back and side to side
  • Assisted dump bed with 600 lb payload capacity
  • 1,500 lb towing capacity
  • Maxxis Big Horn 2.0 tires were designed specifically and exclusively for the Viking
  • 4 wheel disc brakes

The Viking will be available in August with standard models coming in Steel Blue, Hunter Green (with sun top), Red (with sun top) and Realtree AP HD camo (with sun top). ??The non-EPS models start at $11,499 MSRP while the EPS models start at $12,499 MSRP. ??A Special Edition Tactical Black model will be available in spring 2014. Learn more: ??Agweb.com

In a related note Yamaha is expanding production at the Newnan, GA facility, in part to build the new Viking utility vehicle. The company will hire 100 people to work on the vehicle. The facilities will also be producing all of the company’s ATVs. ??The US market represents 70% of their ATV sales. Learn more: ??AJC.com

Comment:?? It has been a few years since Yamaha has come out with an entirely new utility vehicle. This is another sign of the strength of this market. In the last few years all the major players are not only upgrading existing lines but pushing into new market segments: ??Yamaha with the Viking, Polaris with the Brutus, John Deere with their RSX line, etc. The additional marketing dollars and new features coming into the market should help grow the market further and offer good values for customers.

Homeland Security: A Good STOV Market

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US Border Patrol to purchase Kawasaki Mules

A couple of news items I came across indicate that homeland security continues to be a good market for STOVs. One involves the Army purchase of a couple of GEM LSVs. While obviously not a large purchase, these type of small volume purchases occur on a regular basis at various bases. At one time the Army had made plans for purchasing a large volume of LSVs, in the thousands, and had started that initiative before other priorities apparently squeezed out spending for them. Nonetheless, reducing petroleum use remains an important goal for the armed forces and replacing some vehicles with LSVs helps towards that goal. It is also possible that if more funds become available then larger volume purchases may start up again.

The other news item involved STOVs in action closer to actual battlefields. The??U.S. Customs and Border Protection (CBP) is planning to purchase six 4×4 Mule UTVs for their operations in??Afghanistan using a reverse bidding process. The demanding terrain in both Afghanistan and Iraq has lead to significant purchases of off-road vehicles of both the UTV and ATV variety. Among the groups using the vehicles are Special Operations forces. While the drawdown of troops in those??theaters??of operation will likely decrease the demand for those vehicles, they have proven valuable in difficult terrain and are likely to be continued to be used in other operational areas. ??Learn more: ??FBO.gov?? and??GSNmagazine.com

Indian Government Approves Limited Quadricycle Use

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Bajaj Auto RE60

Bajaj Auto’s Quadricycle the RE60

A special inter-ministerial group in India has approved the use of quadricycles for public transport within city limits. The effort has been spearheaded by Bajaj Auto, the leading three-wheeler manufacturer in India. Quadricycles are similar to low-speed vehicles in the US, although they are more likely to be powered by internal combustion engines and operate at slightly higher speeds. ??They are already prevalent in Europe. Similar to LSVs in the US, there has been some objection to the quadricycles because they do not have to meet the same safety standards as higher speed autos but share the same roads. In India some of this criticism has come from the manufacturers of higher speed autos. Bajaj Auto management reports that they will beging production of their RE60 quadricycle very soon.

Comment: ??This may be a potential win for Polaris in the long term. They recently purchased a leading quadricycle manufacturer in Europe, Aixam Mega, and have also entered the Indian market with their UTVs and GEM vehicles. A quadricycle product line could be a nice addition for their dealer network, especially if their use is allowed to expand beyond the current limitations.

Another consideration is whether this is the beginning of a trend towards wider quadricycle use around the world. And if it is, does it put pressure on US regulatory bodies to approve the use of medium speed vehicles and/or wider use of low speed vehicles?

Learn more: ??Economictimes.com

Arctic Cat Earnings Call Highlights – F4Q 2013

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Arctic Cat Wildcat Side-by-Side

The following are some of the highlights from Arctic Cat’s earnings call for their??fiscal 2013 fourth quarter ended March 31, 2013 with an emphasis on side-by-side related information.

  • Net sales for the fourth quarter increased 15% to $113.2 million from $98.5 million
  • Full year net sales increased 15% to $671.6 million from $585.3 million
  • Net earnings increased 33% to $39.7 million from $29.9 million
  • ATV and side-by-side sales increased 32% to $299.8 million from $226.9 million for the year and increased 16% to $87.6 million from $75.8 million for the quarter
  • ATV and side-by-side business sales increases were driven by Prowler models as well as the launch of the new Wildcat Four, a new four seat version of the Wildcat Four side-by-side and Wildcat X a high horsepower version of the Wildcat Sports side-by-side
  • Management reports taking more market share in the side-by-side category during the year
  • Wildcat parts and accessories business was strong
  • ATV industry retail sales for North America were flat as retail sales decreased by 2% during fiscal year 2013.
  • The new 50 inch trail legal Wildcat is expected to ship in the 4th quarter of 2014 and allows Arctic Cat to enter this segment of the side-by-side industry
  • Next year the North American ATV industry retail sales are expected to grow between zero to 5%
  • The side-by-side market is expected to grow in the 15% to 25% range.
  • Management expects net sales in the range of $754 to $768 million based on an increase in ATV and side-by-sales in the 25% to 29% range for the full year driven by shipments of Wildcat sport side-by-side models including the new Wildcat 50
  • Management expects at least 90% of our dealers to pick up the trail version of the Wildcat

Complete earnings call transcript: ??Seekingalpha.com

John Deere To Expand Gator RSX Line

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John Deere RSX850i

John Deere plans to add new models to their RSX line of utility vehicles. The current RSX 850i pictured here.

John Deere has plans to add new models to their Gator RSX line that targets the recreation/sport side-by-side segment. The current line features three models: ??the Base, Trail and Sport. The RSX line was specifically developed to appeal to recreational riders and expand John Deere’s presence in the UTV market beyond their traditional work segments. John Deere started the UTV market with their early Gators focusing on work applications and expanded their reach in 2007 with the Gator XUV line which appeals to crossover users that want vehicles for a combination of work and play. ??The Gator RSX line is a natural progression towards the pure play applications. It is also a higher priced, highly profitable and becoming a highly competitive segment. ??Management reports that the RSX models have brought in new customers to the brand and is??particularly??strong in the West Coast market, a major recreational side-by-side market. ??Learn more: ??Powersportsbusiness.com

Comment:?? It’s not surprising to see John Deere expanding the RSX line. ??This segment of the market is performance and feature driven and highly competitive. ??Polaris, Arctic Cat and Can-Am are considered the leaders and continuously trying to one-up each other so product development must be relatively fast and ongoing. ??On the other hand, vehicles in this fast growing segment sell for upwards of $15,000 to $20,000 or more and buyers frequently spend thousands more on accessories and options so there is a lot of profit to be made. ??I see two challenges for John Deere in this segment. ??First their brand is associated more with work applications than sport, especially in light of their main competitors that come from a powersports heritage. ??Second, their distribution network is, not surprisingly, designed to reach customers buying work related vehicles. However, their ??original RSX line had solid reviews, and with customers using so many online resources to research vehicle purchases, distribution alignment issues can be mitigated to a certain extent.

Congressional Bill Would Impact Utah Off-road Riding

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If a new Congressional bill passes more of these signs may appear on Utah public lands.

A bill introduced in the House and the Senate would designate over 9 million acres of public land in Utah as Wilderness, effectively closing off that land to any off-road riding. If land is designated as Wilderness then??no vehicles, including motorcycles, ATVs, UTVs or bicycles, are allowed on that land. Called the America’s Red Rock Wilderness Act, the bill includes riding areas around Moab, the San Rafael Swell and Chimney Rock. The Utah congressional delegation opposes the legislation and some of them are working with local stakeholders to develop a separate lands bill. ??The American Motorcyclist Association is encouraging off-road riders to oppose the legislation. ??Learn more: ??Powersportsbusiness.com

Comment:?? Besides the riders themselves this legislation can impact dealers as well. In some recent interviews, dealers have told me about the negative effect on their business of local land access rules. In one case it was land use rules passed by the local municipality and in other it was a long-term trend at the state level. In the latter case the dealer stopped carrying an off-road line of UTVs because of poor sales he attributed to the very limited areas available for off-road riding.

Highlights from the Polaris Earnings Call – Q1 2013

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The following are the highlights of the Polaris earnings call for their first quarter 2013 earnings report as it relates to the STOV market.

  • Total sales for the first quarter increased 11% to a record $754.9 million
  • First quarter net income increased 26% to $75.5 million
  • Gross profit margins were up a modest 10 basis points to 29%
  • Full year sales expected to be up 12% to 15% over 2012.
  • Polaris’ first quarter Off-Road Vehicle (ORV) revenue increased 7% driven by side-by-side sales.
  • In the first quarter consumer demand for the RANGER 900XP outpaced all other ORVs in the industry.
  • Polaris gained market share in both ATVs and side-by-sides.
  • ATVs down low single digits and for industry as well
  • Polaris side-by-side retail grew mid-single digits in an industry estimated to grow low single digits.
  • The new RZR XP 900 Jagged X has been a hit with consumers
  • Major strategic initiatives included launch of Brutus commercial line, acquisition of Aixam and start of plant construction in Poland
  • Brutus line will be sold through dedicated new Polaris commercial channel that already includes 400 dealers
  • Initial orders for both the Brutus product and the attachment have been better than are than expected.
  • Small vehicle business consisting of GEM and Goupil grew double digits
  • GEM and Goupil both had good quarters, as GEM retail more than doubled in its best first quarter since 2008, while Goupil retail orders were up about 20%, significantly outperforming the European economy.

Looking Forward

  • Sales of Off-Road Vehicles are expected to increase in the 8% to 10% range, with retail sales of side-by-side vehicles and ATVs outpacing the overall market in North America and internationally.
  • Management expects to increase ORV market share in 2013 although at a more moderate rate than the past 3 years.
  • Management optimistic about new model introductions for model year 2014
  • Poland facility to be online in the 2nd half 2014 mainly for producing ATVs for the European market with some side-by-side capability as well.
  • Management expects to realize sourcing and engineering synergies between Goupil, Aixam and Gem
  • Goal is to decrease the delivery time of for side-by-side products to dealers from 6 weeks down to 4 weeks

Learn more: ??Seekingalpha.com??(earnings call transcript)

Polaris Reports Another Strong Quarter

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Ranger XP 900 helped drive Polaris sales in Q1 2013

Polaris reported strong financial results for the first quarter of 2013. Management reported sales of $745.9 million and net income of $75.5 which were 11% and 26% higher than the prior year’s first quarter, respectively. A major contributor to the record earnings was a better winter for the snowmobile business compared to the previous winter. ??The off-road division, which includes side-by-sides, increased revenue by 7% compared to the Q1 2012 on the strength of new products and mid-size utility vehicles like the Ranger XP 900. Management also raised their full year projections, forecasting an??increase of 15 to 18 percent from 2012 earnings and sales for the year to grow around 12 to 15 percent, up from its previously projected increase of 7 to 10 percent. Learn more: ??TCBmag.com

LSV Manufacturer GreenTech Automotive to Make Highway Capable EV

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GreenTech Automotive plans to produce a highway capable electric sedan

GreenTech Automotive (GTA), the Virginia-based manufacturer of the MyCar LSV, is partnering with China-based JAC to build a 5-person electric powered sedan. JAC’s Rejoice platform will be used for the vehicle which will likely feature a 19 Kwh lithium battery power source and have a range of over 100 miles. According to executives they have distribution agreements in place to sell 30,000 vehicles over three years. Vehicle assembly will be carried out in Mississippi at the same facility as the MyCar with a dedicated new facility for the sedan in the plans. Production is scheduled to begin in late 2013. There is no information on the pricing of the vehicle.

Comment:?? This is another LSV manufacturer that is trying to make the move from producing LSVs to producing highway capable EVs. None have met with any great success so far. From what we’ve seen, the sales of the MyCar has not met the hype about the company. Given the sales levels of the Nissan Leaf which is produced by a well-established company with an extensive distribution network, 30,000 units in three years for this sedan appears to be very optimistic.