Electric Vehicles International opened up their new manufacturing facility in Stockton, CA yesterday.  EVI will design and assemble zero-emission, all-electric, medium-duty delivery vehicles and light-duty vehicles using EVI electric motors and controllers made at the location.  The Stockton location will also serve as the company’s world headquarters, previously located in Mexico.  Governor Arnold Schwarzenegger participated in the opening ceremonies.

The medium-duty vehicles are being produced in partnership with Freightliner Custom Chassis and EVI plans to ship 1,000 of the all-electric trucks in 2010.  The vehicles will cost $120,000 to $180,000 and have ranges of 60, 80 and 115 miles depending on the size of the lithium-ion battery pack chosen. The company also plans to enter the plug-in hybrid business, and possibly perform electric conversions of school buses and port equipment as well.  Learn more:  Collisionconcierge.com

From Club Car’s Press Release

Club Car announced that its first street-legal low-speed passenger vehicle will begin shipping this week, giving businesses and consumers time to take advantage of federal tax credits that amount to nearly 50 percent of the suggested retail price for the new Villager 2+2.
The zero-emission LSV from Augusta, Ga.-based Club Car carries up to four passengers and builds on the Villager’s history of providing dependable, energy-efficient transportation for thousands of businesses and consumers worldwide.
Customers have until the end of the year to take advantage of a federal tax credit – based on the Energy Improvement and Extension Act of 2008. The credit is equal to the sum of the base credit of $2,500 plus $417 for each kilowat hour of battery capacity in excess of four kilowat hours. For those who qualify, the credit would amount to $4,168, almost half the base price of the $8,876 Villager 2+2. Some states have additional tax credits that can lower the purchase price further. The credit amount is scheduled to reduce to a minimum of 10 percent of the MSRP at the end of 2009.
LSVs are the fastest-growing segment in what is known as the small task-oriented vehicle (STOV) market, increasing by nearly 50 percent in the last year, according to International Market Solutions, a NY-based research firm.
According to a study conducted by Green Car Institute, a nonprofit California research corporation, consumers and businesses are using LSVs instead of cars or trucks with gasoline internal combustion engines for daily short-distance trips and for cargo transport. In the same survey, LSV owners said they purchased the nimble street-legal vehicles because they offer an environmentally friendly mode of travel, save on gasoline and fit their lifestyle and business needs for economical transportation.
The four-wheeled motor vehicles weigh less than 3,000 pounds and have a top speed between 20 and 25 mph. Currently LSVs are allowed in 47 states and the District of Columbia on many roads where the posted speed limit is 35 mph or slower.
In accordance with LSV requirements, Club Car’s Villager 2+2 features headlights, taillights, brake lights, turn signals and a horn. In addition, a wrap-around impact-resistant bumper system and an onboard charger are standard. Colors include white (standard), beige and black (optional) and diamond white pearl, titanium silver, and desert sand (premium). Option packages are available.
Military bases, college campuses, residential neighborhoods and urban environments with congested driving and parking conditions are among the target markets for the new LSV, according to Robert McElreath, Club Car’s vice president of global marketing, who notes the vehicles’ wide-ranging benefits.
“Even when the purchase of an LSV does  not  replace a personal or commercial vehicle, it will replace many of the miles a vehicle with an internal combustion engine is used for, and that’s going to translate to fuel and energy savings as well as convenience,” said McElreath.
Club Car vehicles are sold through authorized dealers. To locate a dealer, go to clubcar.com and click on Dealer Locator.
Club Car, which is the world’s largest producer of four-wheel, small task-oriented electric vehicles, was one of the first manufacturers in the LSV market, partnering with General Motors in 2003 as part of a test program. In 2008 Club Car introduced LSV versions of its Carryall 2 and Carryall 6 utility vehicles aimed at commercial and government markets. The latest Villager model has been restyled to appeal to commercial and consumer users with a priority on comfort, convenience and efficiency.
Club Car’s more than 85 base models of small task-oriented vehicles serve thousands of commercial and consumer applications worldwide through more than 400 commercial and industrial utility vehicle dealers.

More about Club Car

Last week a story from a Chinese business news service reported that Textron, manufacturer of E-Z-Go vehicles is looking into establishing a plant in China for the production of LSVs.  The company would partner with a Chinese automaker and produce neighborhood electric vehicles powered by lead acid batteries.  The plant would have the potential to produce 10,000 vehicles annually.  The story noted that the Chinese market for NEVs could be ripe given government incentives and their desire for developing clean vehicles.  There was no mention of exporting the vehicles to the US.  Learn more:  blogs.edmunds.com/greencaradvisor

Discovery Energy of Vancouver has been named the exclusive supplier of batteries to LSV manufacturer e-Ride Industries. Discover Energy’s Clean and Green EV Traction Dry Cell Batteries will be used in the vehicles. The batteries are non-hazardous and maintenance free. For the transportation market e-Ride offers the exv4 and for the utility market the exv2. Learn more: EVWorld.com

National Scooter Company based in Nacogdoches, Texas is looking to break ground on a manufacturing plant for electric scooters next March.  The CEO Greg James is trying to secure federal grant money and finalize negotiations to buy a portion of Twist N’ go Scooters of Seattle.  Currently the vehicles are made in China. Plans call for the plant to be operational in March 2011.  The company will also make gas powered scooters.  The future could also include three-wheeled vehicles, collapsible vehicles, five-wheelers, off-road two-wheelers for hunters and street-legal neighborhood electric vehicles.  Learn more:  Dailysentinel.com

Yesterday a county judge in Oklahoma ruled in favor of vehicle purchasers, declaring that they could receive the state tax credit for the LSVs that they purchased.  The lawsuit was brought by Ada Electric Cars and H20 Sports Unlimited and other dealers joined as well including GKU Electric Vehicles LLC, Heartland Outdoors LLC, Pat’s Archery Inc., and Xtreme Cycle and ATV LLC.

The judge’s order states low-speed vehicles sold by manufacturers Tomberlin, Ruff & Tuff, Stealth, Fairplay and Bad Boy Buggie qualify for a state tax credit.  The order also includes, “any other low speed vehicles similarly equipped as those described above qualify for … ‘ the state tax credit. Specific models noted in the order include Tomberlin E-Merge E-2, Tomberlin E-Merge E-4, Tomberlin Anvil, Tomberlin E-Merge Classic, Ruff & Tuff NEV2, Ruff & Tuff NEV4, Ruff & Tuff Cruiser EV2, Ruff & Tuff Cruiser LX2, Ruff & Tuff Cruiser LX4, Ruff & Tuff Hunter 4×4, Stealth Patriot LSV, Stealth Patriot LSV 4 X 4, Fairplay EVE, Fairplay Goat and Bad Boy Buggie XT LSV.

The Oklahoma State Tax Commission responded to the announcement by stating that it would appeal the ruling.  The commission stated that the tax credits could cost the state more $40 million.  If this is true, at the high end an average tax credit of $8,000 per vehicle translates into 5,000 vehicles sold in the state and at the low end an average tax credit $4,000 per vehicle translates into 10,000 vehicles sold in the state. In either case the figures represent an enormous boost to the LSV market. – Marc Cesare

Learn more:  Enidnews.com Stilwater-newspress.com

Enidnews.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.

Learn more:  Thenewstar.com

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:

• An independent suspension for better performance and comfort in extreme conditions and/or extended operating times
• Better turning radius
• Re-routing of electrical cables to protect them from the elements
• Improved distribution of battery weight that impacts performance on  steep climbs
• General improvements to the construction and design of the vehicle

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

Reva NXR EV To Be Produced In Upstate New York

Bannon Automotive of Freeport, NY has announced plans to manufacture the Reva Electric Car Company’s NXR electric vehicle in Onondaga County in upstate New York. The Governor of New York reported that assembly of the vehicles would take place in Clay in an existing 150,000 square foot building.  Targeted for metropolitan markets as a city car, the two-seat Reva NXR will have a top speed of 50-55 mph, a range of 50 miles and be priced at $17,000. A four passenger hatchback version will sell for between $20,000 and $25,000.  The plan is to have the vehicle on the market in the third quarter of 2010.

To start, the company will import the vehicle parts from India and assemble them in the US.  Eventually, management expects to identify US suppliers and source 80 to 90 percent of the vehicle.  The state is providing $3 million grant and $3.76 million in wage and tax credits, and federal loans and guarantees of $52 million are expected as well.  Initially the plant will employ 100 people and up to 250 if maximum annual plant production of 15,000 to 20,000 vehicles is reached.  Learn more:  Syracuse.com

At the Tokyo Motor Show last week South Korea based CT&T announced orders and distribution agreements worth $400 million for 38,000 of its e-Zone EVs.  The e-Zone is configured as an LSV for the US market but can have a top speed of 44 mph. The vehicle’s range is 41 and 68 miles with the lead-acid and lithium in battery packs respectively.

The vehicles are expected to begin shipping next month with 27,000 bound for the US.  Another 5,000 are headed for Canada, 4,000 for Japan and 2,000 for Taiwan.  This production volume is expected to be fulfilled at the end of first quarter 2010.  The vehicles will be delivered as complete units until CT&T’s Regional Assembly and Sales Systems(RAS) are developed.  The company is currently looking in the Pittsburgh and Philadelphia areas to locate two such regional assembly and distribution centers.  Learn more:  Greencarcongress.com

Recent articles from the Wall Street Journal and ABC News have characterized the EESA federal tax credit for LSVs as a stimulus or bailout for golf cars.  The term “golf car” or “golf cart” is used in the headlines in both the stories, and not for the purposes of flattery.  This is another reminder of an image problem that the LSV industry has – that their product is often seen as only a glorified golf car.

I believe this image makes it more difficult for the industry to obtain governmental support at federal, state or local levels, whether for tax credits, financial assistance for manufacturers or road use ordinances.  In addition, it obscures the very real differences in value between LSVs and golf cars that are reflected in their respective prices. - Marc Cesare