Bloomberg News reports on the current difficulties golf car manufacturers are facing. The industry is dominated by Club Car and E-Z Go which account for nearly all the fleet sales to golf courses. Besides the recession, these companies have also been dealing with pre-existing negative trends of declining golf course construction and fewer rounds played. The former is in part a market response to record course construction in the preceding years. Some courses are turning to refurbished rather than new vehicles to lower costs.
According to the story the manufacturers have reduced their work forces by about 3% and Club Car states that “orders for new carts have fallen by as much as 20 percent.”
I have started conducting some dealer interviews for a new version of our market study covering small, task-oriented vehicles like golf cars, NEVs and utility vehicles and have identified similar themes. In addition, some dealers told me that some courses are extending by a year the leases for their existing fleets. They also report that the once tight supply of used vehicle has now swung in the opposite direction. While golf course driven demand is not likely to improve in the short term, my interviews indicate that the utility vehicle and NEV markets will provide some growth.
