Arizona Promising Stronger Enforcement of OHV Laws

The Arizona Game and Fish Department is increasing their enforcement efforts to ensure compliance with off-highway vehicle(OHV) laws.?? In Arizona OHVs are required to have decals but the department reports that less than 25% of OHVs have them.?? The annual decals cost $25 and are part of a program that started in January, 2009.?? The program covers most ATVs, utility vehicles, dirt bikes and some sand rails and revenues pay for information booklets and riding maps as well as clean up and restoration efforts.?? Learn more:?? KTAR.com

Polaris Defense Introduces LSV For Military Market

New Polaris EV LSV For The Military Market

Earlier this week Polaris Industries Defense division introduced the Polaris EV LSV which is targeting the military market and other government agencies.?? The vehicle is based on the Range EV utility vehicle.?? Key features besides basic LSV requirements include:

  • 48 volt AC induction motor with 30 horsepower
  • 50 mile range and 25 mph top speed
  • Three driving modes:?? High for speed, Low for towing and hauling, and Max for maximum range
  • 1,000-pound payload capacity
  • 1,250 lbs. of towing capacity

The Polaris EV LSV will enable the company to bid for the contracts that the various US Armed Forces have started to award for LSVs.?? These contracts could be for as many as 30,000 vehicles over the next 5 to 10 years. Columbia ParCar has won contracts for almost 1,000 LSVs in the past year.?? In presentations for investors Polaris has pointed to the military market a an important growth driver for the company.?? Learn more:?? PolarisIndustries.com

On a related?? note, in October, 2009 Polaris Defense was awarded a $2.4 million contract by the National Guard Bureau for their Ranger 800 Crew utility vehicles.?? This contract probably represents about 200 vehicles.?? Learn more:?? MSN.com

Comment: This vehicle introduction continues a trend of utility vehicle manufacturers making their rough terrain utility vehicles LSV compliant.?? Others that have done so previously include Bad Boy Enterprises, Stealth, HuntVe and Titan.?? You might consider these crossover LSVs.?? Although this market is in part driven by recent government tax cuts, I believe the need is real for a versatile vehicle that can handle rough terrain as well as street duties.?? While Polaris is targeting the military market, their vehicle can easily be sold into this crossover market on the consumer side. – Marc Cesare

A Basic Utility Vehicle For The Developing World

I recently came across a story about a Basic Utility Vehicle (BUV) developed by The Institute for Affordable Transportation.???? The organization’s mission is?? “… to improve the lives of the world???s poor by providing simple, low-cost vehicles to facilitate community transformation.”?? The BUV is a no frills but practical utility vehicle.?? The institute has developed a whole turnkey type program that allows local entrepreneurs to become a local distributor or assembler of the vehicles. They typically will assemble, sell and service the vehicles.?? Some parts are expected to be sourced locally and the vehicle can use 20 different engines without modification.?? A starter kit for six vehicles can be shipped in one twenty foot shipping container.

BUV at work in Honduras

The first overseas BUV factory is in Honduras and five other groups are planning to launch in Ghana, Senegal, Liberia, Haiti, Ethiopia and D.R. Congo.?? Learn more:?? www.drivebuv.org/

Company News

Polaris – The Ranger HD has been named the “Best of the Best” by Field & Stream magazine. Learn more:?? UTVWeekly.com

Nemo Motors – As part of a pilot project started in early 2009 Nemo Motors recently delivered an electric truck to the Quebec government.?? The company is headqurtered in Redwood City, CA but produces vehicle in Quebec.?? Learn more:?? Sanfrancisco.bizjournals.com

CPSC Extends Comment Period For Recreational Offhighway Vehicles

The Consumer Products Safety Commission is extending its comment period for 75 days related to the advance notice of proposed rulemaking for Recreational OffHighway Vehicles (ROVs).?? The extension comes at the request of Honda, John Deere, Kawasaki and the Recreational OffHighway Vehicle Association.?? The original deadline was December 28, 2009 and the new deadline is now March 15, 2010.?? Learn more:?? Federalregister.com

ZAP Forms Joint Venture In China

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

Road Use Regulations Roundup – December

Some trends in this latest regulation roundup:

  • Continued passage of ordinances allowing?? LSVs and/or golf cars on local streets
  • Municipalities considering regulations that will allow the use of LSVs as taxis or rental vehicles
  • Trends towards expansion or restriction, depending on the locality, regarding the use of UTVs and/or mini-trucks on public streets

Illinois – Effective January 2010 Illinois will allow low-speed vehicles on any road with a posted limit of 30 mph or lower, effective January 2010. Previously, individual communities had to adopt laws to permit the use of low-speed vehicles on local roads.

Orting, WA – Passed an ordinance to allow golf cars on city streets as part of a one year pilot program.

Manhattan, KS – Amendment allows citizens may operate golf carts and ???work-site utility vehicles??? on city streets marked with speed limits of 30 mph or less.

Austin, TX – City officials considering legislation that would allow the use of LSVs as taxis in downtown area.

Austin, MN – Responding to farmer requests, Mower County officials drafted an ordinance that allows the use of mini-trucks on county and township roads.

Ocean City, NJ – City council voted to allow local business to rent out LSVs.

Wisconsin – Two representatives from the state legislature are sponsoring a bill to allow the use of light utility vehicles on some public roads for agricultural purposes.

West Vancouver, CA – City officials pass ordinance allowing NEVs to be used on roads with speed limits of 50 km/hr or less.

Hamlin, West Virginia – Town council approved the changes to the town’s ordinance dealing with ATVs, utility-terrain-vehicles (UTVs) and off-road motorcycles that specifically prohibits the operation of the vehicles on any streets.

Oregon – Rule change requires that as of January 1, 2010 anyone under 18 years old riding in an off-highway vehicle such as a side by side will have to wear a helmet.

Recent Company News

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

E-Z-Go Wins IndustryWeek Best Plants Award

E-Z-Go’s Augusta, Georgia plant that produces golf cars and turf utility vehicles earned a 2009 IndustryWeek Best Plants Award.?? Using a continuous improvement process management dramatically improved a number of operating benchmarks and even brought some parts manufacturing back in-house. Key improvements from 2005 to 2008 include:

Plant specific

  • 90% increase in plant-level profitability in past three years
  • Inventory turns improved by 30% between 2005 and 2008
  • More than 1 million hours without a lost-time injury using a behavior based safety program

Company wide

  • Increased profitability 200%
  • Cut its supplier base by 60%
  • Improved first-pass yield by 24%

One highlight for the plant was the introduction of E-Z-Go’s new AC drive golf car, the RXV.?? The company used benchmarks from BMW, Harley-Davidson and Honda to build a new production line and then ramp up?? to full production in only seven weeks.?? Management makes several benchmarking trips to other companies during the year. Learn more:?? IndustryWeek.com

Columbia Lands Another Government LSV Order

Columbia ParCar announced today that the company had been awarded an order for 192 vehicles by the US government.?? This follows on the heels of a previous order for the US Army of 799 vehicles.?? The vehicles for the latest order are destined for U.S. Air Force, Navy and Marine installations, as well as certain FAA installations, Kennedy Space Center and numerous National Parks.?? The mix of LSVs include a four passenger vehicle for transporting personnel and a utility vehicle that can carry cargo and two passengers.?? Both orders are required and expected to be fulfilled by March 2010.?? The Army reports an annual energy savings of $740 for each vehicle compared to a gas powered car.?? Learn more:?? AMTOnline.com

Comment: I find two aspects of this order that are significant.?? First, the speed with which the government has followed up on the previous order I believe is an indication that they are pleased with how well the vehicles fit their needs.?? Second, that some of the vehicles are headed for other branches of the Armed Forces points to a much greater market potential.?? The Army originally noted that beyond their initial plan for 4,000 vehicles they could envision ordering another 6,000 vehicles, and 10,000 vehicles each for the Navy and Air Force.?? This order could be an early sign of those projections coming to fruition, and driving growth in the LSV market for a number of years. – Marc Cesare