Club Car Announces First Low-Speed Passenger Vehicle

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

Newly Formed GPSI Holdings Leading GPS Provider For Golf Course

Earlier this month Falconhead Capital announced the formation of GPSI Holdings through the merger of GPS Industries, ProLink Systems and other assets.  The newly formed company provides golf car mounted gps services to nearly 1,000 golf courses, primarily in North America and Europe. Professional golfer Greg Norman has a “significant equity stake in GPSI and has entered into an agreement to promote the company`s business.”  The new company has also partnered with golf car manufacturer Club Car to utilize it’s sales force.  Learn more:  Reuters.com

Golf Car Fleets Going Solar

Jockey Club Kau Sai Chau Public Course in Hong Kong and the Sebonack Golf Club in Southhampton, N.Y recently became the first golf courses to completely power their golf car fleets with solar power.  Both fleets used Club Car’s SolarDrive system to retrofit their existing Club Car fleets.  Management expects to reduce costs in the long-term through energy savings.  The Hong Kong facility converted 205 golf cars and the club in New York converted 40 golf cars. The solar panels typically cost about $2,700 but can be eligible for tax incentives as well.  they are supplied by SolarDrive of Denmark that has a marketing partnership with Club Car. Learn more:  Golfcarnews.com

Comment: While capital costs for retrofitting may be an issue for some fleet managers, if savings can be realized in a reasonable amount of time this type of product will be another factor in the continuing trend towards more electric powered golf cars.  Combined with the recent introduction of golf cars with AC drive and increased environmental concerns the trend towards electric could significantly accelerate. – Marc Cesare

Cart Mart Acquires Pacific Golf Cars

Cart Mart, one of the largest distributors of golf car, transportation and industrial vehicles in Southern California, recently announced their acquisition of Pacific Golf Cars.  Pacific Golf Cars has been San Diego’s exclusive Club Car dealer for over thirty years.  The acquisitions adds the Club Car brand to Cart Mart’s existing line-up which includes Yamaha, Taylor-Dunn and Fairplay.  Learn more:  Earthtimes.org.

Electric Vehicle Dealer Files Lawsuit After Oklahoma Tax Commission Issues Tax Credit Ruling

On Thursday the Oklahoma Tax Commission issued a ruling to “clarify” a tax credit for electric vehicles that has been in effect since the mid-nineties. According to the ruling, vehicles with golf cart or go-cart like bodies or principally designed for sporting or recreation purposes do not qualify for the state tax credit which amounts to 50% of the purchase price and can be spread over five years. Consumers who previously purchased vehicles this year expecting a tax credit may not receive one depending on which vehicle they purchased. As of yesterday the commission had qualified the Wheego and Club Car’s Carryall 2 and Carryall 6 models. Learn more: NewsOK.com

Dealer Roger Gaddis of Ada Electric Cars has filed a lawsuit to get the commission’s ruling revoked. Among the vehicles that Gaddis sells are purpose built LSVs from Tomberlin which, as of now, no longer qualify for the state tax credit, although they did so last year.

I spoke with Mr. Gaddis yesterday and he stated that vehicle owners, other dealers and OEMs have contacted him about turning the lawsuit into a class action. He suspects that the new ruling was made because of an unexpected surge in tax credits related to the vehicles and subsequent lost revenue for the state. Sales of these vehicle have increased significantly fueled by a federal tax credit for 2009 that also applies to LSVs. The combined federal and state tax credits can drop the cost of some vehicles to near zero.

In support of this suspicion Gaddis noted that a tax commissioner had contacted him and wanted to know how many vehicles he had sold. Gaddis responded by asking the commissioner what sales figures had to do with whether vehicles qualify for the tax credit or not. While Gaddis would not provide specific sales figures to the commissioner or myself he told me that sales had improved “dramatically” with the dual tax credits.

Mr. Gaddis also remarked that there has never been a vehicle qualification or certifying process for vehicles to qualify for the tax credit. If the vehicle met NHTSA’s LSV standards than they qualified. Furthermore he stated that the original purpose of the tax credit was to reduce the use of fossil fuels, reduce the use of foreign oil and encourage the use of environmentally friendly vehicles.

I have placed a call with the Oklahoma Tax Commission and hope to speak to them soon. Learn more: Forbes.com,

Learn more: Adaelectriccars.com

Update: I spoke with Paula Ross the spokesperson for the Oklahoma Tax Commission late today.  She said that the emergency ruling was prompted by the large number of requests by people asking if particular vehicles qualified for the state tax credit. Previously only a minimal number of people applied for the tax credit, approximately 100 in 2008. Although the commission is still compiling figures, the number is much higher this year and a greater variety of vehicles are involved than in previous years.  The ruling was meant to clarify the situation but as Ms. Ross noted, it may have caused more confusion.

Right now the commission is gathering data in hopes of understanding the market better and clarifying the situation.  The governor has 45 days to approve the ruling, and until that approval and more information is gathered, the tax commission will refrain from releasing a complete list of qualified vehicles.  Ms. Ross also remarked that the impact on revenue will not influence the qualification of vehicles but could be something addressed by the legislature for 2010. – Marc Cesare

SolarMotion Laboratories Partners With Southwest Section PGA

Arizona based SolarMotion Laboratories has become a Technology Sponsor  of the Southwest Section PGA.  The company makes solar powered golf car roofs that are compatible with golf cars from the three leading manufacturers, E-Z-Go, Club Car and Yamaha.  SolarMotion plans to launch their product in the next two months and the solar roofs will come with a four year warrantee.  According to management, the company has partnered with Standard Renewable Energy and Kyocera Solar. Learn more:  Russellchrist.wordpress.com

Club Car Extends European Tour Sponsorship

Continuing a relationship that started in 1999, Club Car has extended their agreement to be the official golf car and utility vehicle and sponsor of the European tour. At least 70 Club Car golf cars are in use at each European Tour event. Learn more: sportsbizasia.com

Golf Car Manufacturers In the Rough

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.

Bobcat Turns To Polaris To Produce “Work” Vehicles

Bobcat has entered into a strategic alliance with Polaris to co-develop vehicles for the work segment of the utility vehicle market. The first vehicles are expected to hit the market in the latter half of 2010 and replace Bobcat’s 2100, 2200 and 2300 utility vehicles currently manufactured by Club Car. Bobcat and Club Car were both part of Ingersoll Rand before Bobcat was acquired by Doosan Infracore in late 2007. The alliance will help Polaris expand beyond their strengths in the powersports/recreational vehicle segment. Bobcat reports that only 20 of 1,800 Polaris dealers currently sell Bobcat products. The agreement will not have an affect Bob Cat’s Tool Cat line or the Polaris Ranger line. Learn more