Financial reports for the Yamaha Motor Co., Ltd. for the first nine months of fiscal year 2012 indicate an increase in golf car sales in the US market. While Yamaha overall reported decreases in revenue and income the US market represented an area of strength across a number of their segments including motorcycles, marine and power products. In the latter, stronger golf car sales offset a decrease in ATV sales. Learn more: Powersportsbusiness.com
Virginia Rejected Factory Incentives for MyCar LSV Manufacturer
Greentech Automotive, maker of the MyCar LSV, had their request for incentives to build a factory rejected by the state of Virginia before receiving help from Mississippi where they opened a plant in Tunica last summer. The rejection, based on the lack of viability of their business plan, is currently of interest because the company chairmanTerry McAuliffe, formerly Chair of the Democratic National Committee, is now a gubernatorial candidate for Virginia. Virginia officials questioned whether the goal of selling 100,000 MyCars was realistic given that the company “… lacked brand recognition, had not demonstrated anything about the vehicle, did not have emissions approval from the EPA, had no distribution network, and had nobody in executive management with experience in automobile manufacturing.” Greentech Automotive is positioning the $10,000 MyCar as an affordable electric vehicle alternative to much higher priced highway speed EVs. Learn more: Torquenews.com
Comment: While LSVs have developed their niche and can be used in a variety of commercial and consumer applications, their sales have never approached the level that MyCar is predicting. Their target of 100,000 would surpass what has cumulatively been sold in the US to date.
What’s Cooking on the STOV
Highlighting some of the many applications for small, task-oriented vehicles: Park Maintenance & Emergency Response – Barkcamp State Park in Ohio recently acquired a Polaris UTV for use in the park. The vehicle will primarily be used for park maintenance, trail upkeep and emergency response. The park features hiking, equestrian and snowmobile trails for public use. Funds for the vehicle were provided by the organizers of the Barkcamp Race, a running race and challenge walk event. Learn more: Timesleader.
Comment: This continues to be a strong market segment for UTVs and STOVs in general. Vehicle purchases are often funded by grants or donations from local organizations. However, even if funded by the organizations themselves, STOVs also represent an opportunity for parks to cut costs by replacing pickup trucks with STOVs which are less costly to purchase, cheaper to maintain and have features and functionality that better suit the jobs to be done.
Polaris Adds To PG&A With KLIM Acquisition
Polaris Industries announced that they have acquired Teton Outfitters, LLC, a privately owned, Rigby, Idaho-based company which designs, develops and distributes KLIM Technical Riding Gear. The company’s 2012 sales are expected to reach 30 million, primarily in North America and from the snowmobile market. KLIM has a presence in the snowmobile, off-road and adventure touring motorcycle markets and a network of 850 dealers. Polaris management expects to leverage KLIM’s design capabilities and strong brand with the global resources, infrastructure and dealer networks of the various Polaris Industries brands to further boost their growing and highly profitable PG&A business. The KLIM CEO will remain with the company which will operate as a stand alone business. Learn more: Seekingalpha.com
Arctic Cat Announces 4-Seat Wildcat
Arctic Cat will be launching a 4-seat Wildcat 4 1000 in February 2013. The new model will include a new clutching system from Team Industries and have a MSRP of $19,599. Other changes include a new sway bar paired with PODIUM FOX SHOX and a 29 inch longer frame to accomodate the additional passengers. Additional key features include a 951cc engine, EPS and three metallic paint options: Sunset Orange, Black and Arctic Green. Learn more: Arcticcat.com
Registration Data Shows Continued Polaris UTV Growth
Comments from BMO Capital Markets analyst Gerrick Johnson and Polk registration data for UTVs indicate a strong September for the UTV market and Polaris outperforming the market. The data shows UTV registrations increased 19.1% for the industry and 21.6% for Polaris. (The story does not specify but it is assumed that comparisons are for the same time periods from the prior year.) Dealer interviews point to a strong showing for Polaris’s Ranger XP 900 and the Ranger 800 mid-size UTVs. The analyst predicts 18% growth for the company’s ATV and UTV sales in the 4Q, which translates into growth of over 20% for the UTV segment based on recent sales patterns. Growth is being driven by replacement demand, new riders and share starting to being taken from Jeeps, pick-ups and SUVs. It is unclear from the article if the latter is specifically referring to the recreational end of the UTV market or from the market in general. If it is the general market, this is not a new trend, as municipalities, universities and the like have been replacing pickups with UTVs and other STOVs for a number of years. We believe this is one of the reasons why UTVs continued to have strong growth despite the recession. For both fiscal reasons and to meet ‘green’ or sustainability goals institutions have been replacing pick-ups with gas or electric powered UTVs and other STOVs. Learn more: Powersportsbusiness.com
EV Green USA Opens Second EV Franchise
EV Green USA, a manufacturer of small electric vehicles, has opened their second sales location in Cathedral City, CA. Franchise owner Darryl Atkinson sees the economic advantages of the vehicles as the primary driver for demand with environmental benefits as secondary. EV Green USA produces a wide range of electric LSV models from those used for personal transportation to commercial shuttles to work utility vehicles and off-road hunting vehicles. Prices range from $10,500 to $14,500 for the vehicles that are assembled in Norco, CA from a mixture of mostly China sourced components and some US sourced parts. Learn more: Mydesert.com
Team Industries Licenses Fallbrook’s Transmission Technology for STOV Market
Fallbrook Technology and TEAM Industries announced an exclusive licensing agreement for Fallbrook’s NuVinc CVP (continuously variable planetary) technology in North America and Europe for the STOV market. Under the agreement, TEAM will have “…manufacturing rights for their light utility and recreational vehicle families for North America and Europe and includes an engineering services agreement (ESA) for the development of a NuVinci vehicle transmission, with development running through 2013 and into 2014. The agreement also provides for royalties with commercialization volume milestones beginning in 2015.” The agreement covers the ATV, UTV, LSV and NEV markets. The companies have been working together since 2011. Learn more: Marketwatch.com
Kawasaki Motors Recalls Fuel Filters for Lawn Mower and UTV Engines: Impacts Some John Deere UTVs
The U.S. Consumer Product Safety Commission, in cooperation with Kawasaki Motors, today announced a voluntary recall fuel filters and tune-up kits with fuel filters. The recalled fuel filters are white translucent plastic and attach to the fuel tubes on Kawasaki lawn mower and utility vehicle engines. The fuel filter can leak, posing a fire hazard. To date all the reported leaks caused by the fuel filter have been on lawn mowers. Learn more: CPSC.gov
Related to this recall John Deere announced a recall of approximately 4,340 utility vehicles using this type of fuel filter. This recall involves John Deere TH, TS and TX-model Gator™ utility vehicles that have Kawasaki FE, FH and FJ series engines. The serial numbers of the UTVs included in the recall are:
1M04X2SJ++M070915 to 1M04X2SJ++M072247
1M04X2XC++M070040 to 1M04X2XC++M070213
1M04X2XD++M070314 to 1M04X2XD++M072731
1M06X4HD++M070049 to 1M06X4HD++M070372
They were sold nationwide from November 2011 to August 2012. Owners should stop using utility vehicles with the recalled engines and contact a John Deere dealer to have the fuel filter replaced. John Deere is contacting all registered owners of the recalled utility vehicles directly. John Deere can be contacted at (800) 537-8233. Learn more: CPSC.gov
Road Use Regulations Roundup – November, 2012
Some trends in this latest regulation roundup:
- The few remaining states without LSV laws have enacted laws allowing the vehicles or are moving in that direction.
- A majority of the local municipalities noted below are passing ordinances that allow both LSVs and golf cars to be used on public roads.
- There appears to be less concerns being raised about safety issues of the vehicles in mixed traffic.
- More municipalities are passing ordinances that allow UTVs and/or ATVs on public roads but in some areas there are some restrictions.
- Municipalities across a number of states are passing ordinances with the highest activity in Florida, followed by Nebraska, whose state law just went into effect this year.
State Level Regulations
Nebraska – Nebraska’s state law allowing LSVs on streets with a posted speed limit of less than 35 mph went into effect at the beginning of 2012. The law requires drivers to carry liability insurance coverage, hold a valid operator’s license and register.
West Virginia – A State Senate bill was moving through the legislature again to allow LSVs on roads with speed limits of 35 mph or less.
Mississippi – State lawmakers are debating a law to allow LSVs on public roads.
New York – The State Senate passed two bills aimed at making it easier for drivers to register UTVs and for farmers to use ATVs on public roads for agricultural purposes.
Vermont & New Hampshire – The states passed legislation that allows properly registered ATVs in one state to use the authorized state ATV trails in the other state. The legislation does not apply to UTVs.
Municipality Level Regulations
Tradition, FL – Residents are discussing allowing both LSVs and golf cars on public roads. Some residents are concerned about the safety of mixing lower speed vehicles with regular traffic and that golf cars do not have the same safety features as LSVs. Others see the vehicles a way to lessen traffic, reduce gas emissions and allow for older residents to get around independently. The lower costs of insuring golf cars is seen as more manageable for fixed income seniors.
DeFuniak Springs, FL – The city is considering allowing LSVs and golf cars on certain public roads. One reason is to make the community more retirement friendly.
Holtville, CA – A new sub-committee was formed to work on an ordinance that would approve the use of electric vehicles and golf carts on city streets
Clearwater, FL – The city passed an ordinance to regulate LSVs/golf cars and other alternative transportation vehicles for higher. “The regulations would require business owners to register with the city, carry a minimum of $500,000 insurance, and show a mechanic’s certification that their vehicles are in safe condition. Aside from costs to meet those requirements, business owners also will be looking at paying a $75 application fee and $50 permit fee for each driver of the for hire vehicles.”
Vernon, British Columbia – The town council will consider an ordinance that allows LSVs on public roads.
Rockport, TX – The city passed an ordinance allowing golf cars and LSVs to be used on streets with speed limites of 35 mph or less.
Bristol. TN – The city Council rejected an ordinance that would have restricted LSVs to roads with speed limits of 25 mph or less compared to the current 35 mph or less.
Herington, KS – City officials passed an ordinance that allows golf cars and similar on-road utility vehicles to use public roads during daylight hours.
Enon, OH – Legislation is moving forward that would allow golf cars and UTVs, referred to as under-speed vehicles by the city, to use city streets with speed limites of 35 mph or less.
Crothersville, IN – A City Councilman introduced a bill that would allow ATVs and UTVs to operate on city streets. The law is modeled on the city’s current ordinance that allows golf cars on city streets.