Category Archives: Sales figures

Private Equity Firm Acquires Controlling Interest In Tomcar

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In February Markstone Capital Partners of Los Angeles acquired a controlling interest in Tomcar, which makes offroad vehicles for military and industrial applications.?? Terms of the agreement were not released.

Last year Tomcar had received an investment from Markstone and had opened up a 85,000 square foot contract manufacturing facility in Auburn Hills, MI in partnership with German-based EDAG.?? At full production the facility can produce just over 10,000 vehicles per year but initial production targets were for 2,000 vehicles in 2008 and 5,000 in 2009.?? According to reports, the first vehicles rolling of the line were for a custom order and vehicles for the general market start this month.

The vehicles, which retail starting between $14,000 and $15,000, come in two-seater, four-seater or mini-truck versions.?? They have applications in military, mining, security patrol, farm and ranch, recreation and tourism uses.

Total investment in the plant was estimated to be $9.5 million. Tomcar also has facilities in Israel and Phoenix, AZ.?? Learn more

BG Autmotive Looking For Manufacturing Sites

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A local news story reports that Philadelphia based BG Automotive is looking for manufacturing sites in the Boston area including Bridgewater, Taunton, Fall River and New Bedford. The facility will be for mass production of their C100 neighborhood electric vehicle and employ about 150 people per shift. The company is looking for a site for a 60,000 – 100,000 square foot facility and is currently seeking funding.

Since the vehicle’s parts are imported and most of the activity at the facility would be assembly the company expects vehicle production could begin in as little as four months once a facility is found. The chassis and body of the vehicle are imported while components like the motor, controller and batteries are manufactured in the U.S. Delivery of the first vehicle is expected to be in April or May of 2009 according to the company’s website.

Another news source also states that

The company is planning to develop six facilities in the next 24 months for a total production of about 100,000 vehicles by year-end 2010.

I thought these latter figures were quite aggressive so I placed a call with BG Automotive and was able to speak with Barry Bernstein, the founder of the company.

He confirmed that the company is looking to develop six facilities with the ability to produce around 15,000 vehicles each annually. While our estimates of the LSV market size the market at less than 10,000 vehicles a year, Bernstein noted that interest in their vehicle has been higher than expected with over 44,000 people signing up on their website. No deposit is required to sign up initially but as the actual production date moves closer a deposit is required.

Bernstein also noted that the facilities will be designed to easily switch over to highway-speed electric vehicle production which is in the company’s long term plans. Besides Massachusetts, the Philadelphia based company is also looking to place facilities close to major LSV markets including California, Georgia, Texas, Northern Florida, Pennsylvania and the Tennessee – Kentucky area. They are applying for loan guarantees and other support from both federal and state agencies but will be able to scale down their facilities if they cannot garner this support. Bernstein expects to have more information on their site selection in about two weeks.

Valmet To Manufacture Luxury Golf Car For Garia

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Valmet Automotive has won a contract to engineer and manufacture a luxury golf car for Garia A/S of Denmark.?? Production will begin in the third quarter of 2009 and the vehicle is expected to be on the market in 2009.

Garia Golf Car

Garia Golf Car

Total production is expected to be a “few thousand” per year in the next few years.?? Valmet reports that it is investing two million euros and committing 50 people to the project.?? A test fleet is already in use at a golf course in Denmark.?? The electric golf car will be introduced at PGA Las Vegas in late August and then in the Middle East.

In April of 2008 Garia, which was founded in 2005 to build high end golf cars, opened sales offices in the U.S. with plans to have 15 to 20 dealers within a year.?? The company is targeting the luxury golf car segment in Florida, Georgia, California and Arizona.

Valmet has previously produced vehicles for Porsche and recently won a contract to produce the Fisker Karma hybrid vehicle.?? Learn more

Army Leases The First Of 4,000 LSVs

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First Army NEVs Delivered (Molly Riley/Reuters)

The Army took delivery of six GEM LSVs, the first step towards eventually acquiring 4,000 LSVs. A total of 800 vehicles will be delivered in 2009, followed by 1,600 in 2010 and 1,600 in 2011.

Not all of the vehicles will necessarily be GEMs which were procured through the GSA. The GSA currently lists GEM, Columbia ParCar, E-SUV and ZENN as LSV vendors. In an interview with bloggers, Paul Bollinger, Deputy Assistant Secretary of the Army for Energy and Partnerships, remarked that he expected to see more manufacturers to join the GSA list. The GSA posted a request for vendors on Fedbizopps.com today.

He also noted in the interview that the Army had identified 28,000 sedans and light trucks that could potentially be replaced by electric vehicles, either LSVs or higher speed vehicles. Part of the reason they have moved to LSVs is that fueling station infrastructure for alternative fuel vehicles has not been able to keep pace with vehicle acquisition. The necessary infrastructure costs would be in the millions of dollars while the installation of three-prong outlets for charging the LSVs will only cost an estimated $200 per vehicle.

The Army estimates an LSV saves them $3,300 compared to a full-size sedan. The LSVs will be leased for six years and maintenance and battery replacement are included in the lease. Bollinger remarked that not only will the Army save on fuel costs but also produce lower emissions and help drive the market for LSVs and battery technology. The Navy has directly expressed interest in “piggybacking” on the Army program and while the Air Force has used back channels to show their interest in joining forces.

More…

Air Force Base Takes Delivery of Mini-Trucks

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Kadena Air Force Base in Okinawa, Japan took delivery of 49 mini-trucks from California-based Mag International. The delivery is part of a $7 million contract that Mag International was awarded in February, 2008. The vehicles will replace standard-size utility vehicles and is part of an overall goal of the Pacific Air Forces to replace 50 percent of their general purpose fleet with LSVs. This is expected to happen by fiscal year 2010. The vehicles are replacing panel vans and pickups. The Air Force estimates that the gas powered mini-trucks with a top speed of 25 mph will save about $200 per vehicle. More….

Korean Manufacturer Offers New LSV

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CT&T, a Korea based electric vehicle manufacturer, has developed the e-Zone EV low speed vehicle (LSV).

The vehicle comes with a 72 volt electric motor which can be powered by one of three battery pack options, flooded lead acid with a range of 35 miles or two different lithium ion packs with ranges of 45 and 75 miles. The company is establishing an assembly plant in Fiji which will be able to produce up to 10,000 vehicles annually. For North America, CT&T reports it is building an assembly line in conjunction with Royal Laser Mfg. in Toronto, Canada with an annual capacity of up to 15,000 vehicles and a projected start date in March 2009.

In the US the vehicle will be marketed as the CT Series Micro Car by T3 Motion. The company is targeting the public safety and private security markets and has contracted for 4,000 vehicles from CT&T. The deal is reported to be worth $50 million or about $12,500 per vehicle. The company reports orders for 100 vehicles already.

More from greencar.com

Consumer Product Safety Commission Investigates UTVs

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According to a story in the Wall Street Journal, the US Consumer Product Safety Commission(CPSC) has started an investigation into UTVs like the Yamaha Rhino and similar vehicles from other manufacturers. There have been 30 deaths reported involving the Rhino and the company has had more than?? 200 lawsuits filed against it related to the vehicle. There currently aren’t any safety standards for these type of vehicles?? because they are essentially a new class of vehicle. According to the article:

They aren’t subject to ATV safety standards because of design differences such as having a steering wheel, in contrast to the ATVs’ handlebars. But the novel off-road vehicles also aren’t subject to the much-tougher standards for cars. Owners of UTVs don’t have to register them.

“When there is no standard in place, we have to basically determine if there’s a substantial risk of injury and death, and there’s a hurdle there that has to be met,” says Jay Howell, acting assistant executive director of the CPSC’s office of hazard identification and reduction.

This is how consumer regulation often works: Products hit the market governed by no particular safety standards. If injury reports later arise concerning a product, these gradually get the attention of both manufacturers and regulators — often with a spur from lawyers for those injured.

Based on figures provided by Power Sports Marketing for the article, approximately 150,000 Rhinos have been sold since 2003. Yamaha incurred a charge of $136 million in 2007 related to potential product liability expenses. Last month, most of the leading manufacturers of UTVs (Arctic Cat, BRP, Honda, Kawasaki, Polaris, and Yamaha) started the Recreational Off Highway Vehicle Association which has put out a set of safety rules and received ANSI accreditation to develop standards for the vehicles which they now refer to as Recreational Off-highway Vehicles (ROV).

Army NEV Purchase Update

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Starting with 800 vehicles in fiscal year 2009 the Army expects to acquire 4,000 NEVs in the next three years for use at 44 installations. The vehicles will be leased through the General Services Administration(GSA) from US golf cart companies like E-Z Go. According to Paul Bollinger, U.S. Army Deputy Assistant Secretary, Privatization and Partnerships, the acquisition is expected to be only a start as he anticipates the Army eventually acquiring 10,000 vehicles. In addition, the Air Force and Navy have reportedly expressed interest in “piggybacking” on the Army program and Bollinger expects that they will have a need for 10,000 vehicles apiece themselves.

The vehicles are reportedly street legal and if this is the case, then they must meet the LSV regulations and this will mean a significant boost to the NEV/LSV market.

via Paul Bollinger – Defense News

Kentucky Moves Quickly To Lure Electric Vehicle Production

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According to various news reports, ZAP and their partner Integrity Automotive announced that initial construction has started on a facility in Franklin, Kentucky for the production of electric vehicles. ZAP is a minority stakeholder in the venture. Randall Waldman, Integrity’s CEO expects production at the one million square foot facility to start in approximately one year with a work force of 1,250. While plans are still in the development stage, Integrity management states that the plant will make electric buses in addition to ZAP???s product line. A possible scenario is to have the facility replace all of the production from ZAP???s China facility. Management cited the logistics expense of shipping vehicles from China to California to the East Coast as a factor in building the facility. ZAP had previously made vehicles in the US but lower labor costs in China made manufacturing overseas more cost effective. Government incentives are making US based manufacturing more feasible.

Integrity Automotive is reportedly investing $125 million in the facility and quickly garnered government assistance which came from all levels including:

  • $84 million of tax-exempt industrial revenue bonds for construction of the plant from city an county governments
  • $48 million in tax incentives from the state based on the company’s commitment to create 4,000 full-time jobs within the first four years
  • An executive order from Kentucky???s governor permitting the use of low-speed vehicles on Kentucky highways with a posted speed limit of 45 miles-per-hour or less.

While the production will serve the global market, in some respects, the shifting of production from China to the US is a reversal of the globalization trend I have been seeing in the market in general. I followed up the story with a call to ZAP to understand more about the situation. According to ZAP, the venture came together very quickly and the details of what vehicles will be produced and how many are still being worked out. Like some other electric vehicle manufacturers ZAP is reporting strong sales increases. In the quarter ending September 30th, 240 vehicles were sold including 121 in September compared to just 80 vehicles in the 3rd quarter last year. Most of the vehicles are sold in the US to consumers as well as some municipalities and are primarily the Xebra truck model. The company has increased their headcount by 30% this year and recently opened up a $10 million line of credit to fund expansion. The company is also planning on adding an NEV to their product line.

Army To Purchase Thousands of NEVs

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According to a U.S. Army press release, a Senior Energy Council has been established to “…serve as a board of directors focusing on Army energy policy, programs and funding to leverage the Army’s nationwide energy-conservation efforts.” One of the pilot projects underway is the purchase of 4,000 NEVs to replace gas-powered vehicles on various posts. There was no information available on how many vehicles have been purchased so far and what the time line is for purchasing all the NEVs. more info