ZAP has announced that it has entered into the China Electric Vehicle market with Holley Group. The two companies have entered into a joint venture in China from venture capital firm Better World International. The joint venture company is named ZAP Hangzhou, and is intended to design and manufacture electric vehicles, in addition to developing infrastructure technology for the Chinese market. Learn more: transworldnews.com
Navistar and Modec complete joint venture agreement – Navistar International and Modec completed their joint venture agreement for the production of Class 2c-3 commercial trucks. The all electric trucks will be produced in Elkhart, Indiana. In 2010 400 of the trucks are expected to be produced. Learn more: Tradingmarkets.com
Northwire introduces charging cable for electric vehicles – Northwire, Inc. announced the availability of CoilBoss Retractile Cords for use in electric and hybrid vehicles. All EV Cable options are available in standard or custom configurations. Customization includes hybrid designs, colors, private labeling and more. Learn more: Northwire.com
GM & SAIC Motor Corp pursuing venture – GM and SAIC Motor Corp, China’s largest automaker, are looking to create a joint venture to sell minivans, mini-trucks and mini cars in the Indian market. It would be a 50-50 joint venture. Learn more: Wheels.unwireindia.com
Smith Electric Vehicles places battery order with Valence Technology – Smith Electric Vehicles placed a $1.4 million order with Valence Technology for batteries to be used in their Newton electric truck being produced in Kansas. Learn more: austin.bizjournals.com
Think thinking of Indiana for plant site – Think North America is in negotiations with officials from the state of Indiana and Elkhart County as it tries to decide on where to locate a manufacturing plant. Besides Indiana, Oregona and Michigan have been on their short list. Elkhart County is considering ten years of tax abatements to attract the company. Learn more: WSBT.com
A recent story in the Wall Street Journal focuses on a back to the country movement by “ruralpolitans”, people moving from cities and towns into more rural areas. The ruralpolitans can be split into three groups: young people buying land as an asset or investment, exurban commuters hoping to escape sprawl; and back-to-the-land types, sometimes referred to as hobby farmers. The trend is being driven by both the old and young. Baby boomers are the biggest driver but 20 and 30 somethings whose less tangible investments took a hit in the recession are also a force.
The ruralpolitan trend is impacting not only rural real estate markets but ancillary markets like utility vehicles. Manufacturers are taking notice and responding to this growing segment.
Manufacturers also are tweaking seats and designs to suit this new generation of first-time users, including females. “We took a lot of women out on tests to make sure the vehicles are still badass for guys but comfortable enough for a woman to drive every day,” says Aaron Hanlon, product manager for Cub Cadet Utility Vehicles, a brand of MTD Products Inc. Polaris Industries Inc., known for its powerful off-road utility vehicles, this month is rolling out its first low-maintenance, eco-model: an all battery-powered ride called the Ranger EV.
Kawasaki has added four special edition graphic packages for their 2010 Teryx 750 FI 4×4.
These unique new immersion graphics packages offer a unique diamond plate pattern that is chemically bonded to colored basecoat paint. The finished product offers a durable, high-gloss, automotive quality surface that looks similar to anodized aluminum diamond plate, but is actually smooth to the touch and easy to clean.
The graphic packages are available in Diamond Blue, Diamond Red, Diamond Silver and Diamond Black and increases the color options for the Teryx recreation utility vehicle to ten in total. Learn more: UTVWeekly.com
Bad Boy Enterprises just announced that three of their vehicles, the Classic, XT and Stretch, are now qualified by the IRS as street-legal LSVs. Each vehicle is eligible for a federal tax credit of $5,590. Management reports that tax credit driven sales have, in part, caused them to increase their projected annual sales from $17 million to $20 million. In addition, they report a 1,000 orders for their new XT vehicle and a positive response from their five-store market test with Bass Pro shops. The retailer wants to roll-out the program with an additional 15 stores in the next three months. Bad Boy is also talking with retailer Cabela’s about selling their vehicles. Learn more: Natchezdemocrat.com
Despite the economic downturn the market for off-road electric utility vehicles, especially for hunters, is experiencing strong growth. A recent story about Stealth Manufacturing reports that in 2008 the company sold 600 vehicles, five times the sales management expected. Demand has continued to be strong in 2009 with management reporting that their
..entire production is sold out through Dec. 31. We’ve outrun virtually every supplier we have.
Part of the growth of the Louisiana based company is attributed to their television sponsorship program with Primos Hunting Products. Stealth produces the Predator XR, Apache XR and the “Izzy” an industrial vehicle. They are also planning to launch the Patriot LSV which went into production last week. The company employs 38 people in a 82,000 square foot facility and is looking to expand their distribution beyond the current 70 dealers and distributors in 28 states. On the horizon is a new vehicle about which the CEO Bill Krutzer states
It’s probably going to change the complexion of the electric vehicle industry, and we’re testing it right now. It’s a completely different electrical platform. We’re going to bring some pretty sophisticated technology to the game, and we’re not going to do anything but improve the price.
Stealth Manufacturing is not the only electric utility vehicle manufacturer with a positive outlook. The leader in the electric utility vehicle market for hunters, Bad Boy Buggies, is expected to reach sales of $17 million this year, up from 2008, but down from a peak in 2007 of $20 million. Despite a recent recall of their standard model the company is reports that their new XT model has been well received. They are also launching an LSV model and have had success selling their utility vehicles outside the hunting market. A key marketing effort for them is teaming up with Bass Pro Shops which is running a test campaign in five markets.
Learn more: Natchezdemocrat.com
A few weeks ago I had the opportunity to talk with Eric Burns of Bad Boy Buggies. He talked about some of their improvements in their new XT model which at the time had a waiting list of customers. The improvements include:
Some of the non-hunting markets they are looking for gains in include agriculture such as dairy farms, government fleets and construction. Burns noted that in some of these environments the electric utility vehicle allows an operator to more easily hear other vehicles in the work area, use walkie talkies or other communication devices without turning off the engine and avoid the necessity of storing fuel on site. Key obstacles for electric utility buyers are battery replacement costs and the range of the vehicle, which in many instances may be a perceived issue rather than actual. Bad Boy Buggies is looking to expand their distribution network in the Western US from their current strongholds in the South, Southwest and Midwest, usually centered around hunting communities.
Additional signs of strength in the electric utility vehicle market include the recent entry of Polaris, the utility vehicle market leader, and Tomberlin’s plans to launch their electric utility vehicle, the Vanish.
On a related note, the fact that both Stealth and Bad Boy Buggies are coming out with LSV versions indicates an interesting sub-segment is developing in the LSV market. Rather than vehicles that are primarily or exclusively used on-road, another segment of users that need a mix of off-road/rough terrain capabilities and public road access is emerging. Burns of Bad Boy Buggies noted military bases, farms and college campuses as potential buyers of these street legal UTVs. – Marc Cesare
Last week Wheego Electric Cars announced their trade-up program that will allow customers to trade up their Wheego Whip LSV for Wheego’s Full Speed Vehicle (FSV) that is expected to launch in 2010.
Anytime within 24 months of their purchase of the Wheego LSV, a customer may trade up their Wheego LSV for a full speed Wheego (when available) and receive a trade-up credit of 50% of the original purchase price of their LSV toward the purchase of a full speed Wheego.
Any Federal or State tax credits that the customer received on their purchase of the LSV or on a new full speed car are theirs to keep and are not deducted from the trade-up value.
If the company can meet their price points for the FSV, the cost of the vehicle becomes quite attractive with the currently available federal tax credits. The company provided the following trade up example.
Example (for illustration only; prices may vary):
Customer purchase price of Wheego LSV: $22,000
Fed Tax Credit: -$7,500
Net customer price for LSV: $14,500
Customer sample purchase price of Full Speed: $30,000
Wheego LSV Trade-up allowance: -$11,000
Fed Tax Credit: -$ 7,500
Net customer price for Full Speed Wheego: $11,500
As you can see in the example, a customer would end up spending more for the LSV than the FSV. The total cost to obtain the FSV in this example is $26,000, which is quite attractive for a full speed electric vehicle, and you get the use of an LSV for awhile. – Marc Cesare Learn more: PRweb.com
Previously I posted a story about GEM stating their vehicles qualified for a federal plug-in electric vehicle tax credit. I have since checked on other manufacturers such as Tomberlin, Columbia ParCar and Wheego and they are also claiming their LSVs qualify for the tax credit as well. Columbia ParCar’s website has some good information on the subject. LSVs are apparently eligible for two tax credits in 2009, the larger EESA or plug-in tax credit and the smaller ARRA LSV tax credit, but taxpayers can only claim one for a given vehicle. The EESA tax credit should provide a significant boost to sales of LSVs for the remainder of 2009.
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)
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