Columbia ParCar Recalls Vehicles For Steering Issue

Columbia ParCar, in cooperation with the Consumer Product Safety Commission (CPSC), is recalling nearly 1,400 golf, service and utility vehicles produced between July 1, 2008 through June 30, 2011, which includes 2009, 2010 and 2011 models.  The vehicles are being recalled because “…the lower steering yoke can loosen where it attaches to the steering rack and pinion, causing the driver to lose control of the vehicle and crash.”  No injuries have been reported related to the issue.  Models involved in the recall include the Eagle (P4E) Golf Vehicle, Shuttle (C6E) Personnel Carrier, Tram (C10E) Personnel Carrier, Summit (SM/SUV) Utility Vehicle, Utilitruck (EU4, EU24) Utility Vehicle and Scout (S10E) Utility Vehicle.  Check the following link for specific VINs involved. Columbia ParCar dealers will be conducting free inspections and repairs as required.  Learn more:  CPSC.gov

Prototype Hydrogen Powered Utility Vehicles Developed

A development team led by the Atlanta-based Center for Transportation and the Environment (CTE) has developed two hydrogen powered utility vehicles for the Department of Defense’s Defense Logistics Agency.  Other members of the team include the Center for Electromechanics (CEM) at The University of Texas at Austin, vehicle manufacturer Columbia ParCar, the Gas Technology Institute, and fuel cell producer Hydrogenics.  The electric utility vehicle uses a hybrid configuration with a 8.5kw fuel cell, ultracapacitors and a hydrogen supply.  The vehicle performance will be evaluated for one year at a military facility.  Initial testing of the vehicles indicates a range of 300 miles, far exceeding the typical 30-50 mile range of electric utility vehicles currently on the market.  Learn more:  Utexas.edu

Wisconsin Purchases 23 LSVs For State Parks

The Wisconsin Department of Natural Resources recently announced the purchase of 23 electric powered LSVs for use in 22 state parks.  The department purchased the vehicles from e-Ride Industries of Minnesota and Columbia ParCar of Wisconsin.  The vehicles have a utility vehicle configuration and feature enclosed cabs.  Parks management noted the low operating costs of the vehicles and lack of air pollution they produce.  Learn more:  NBC15.com

New Vehicles Entering The Market

The vibrancy of the STOV market is evidenced by the frequency in which new vehicles are entering the market, whether from new companies, existing companies expanding into new segments or exporters looking for new markets. I’ve come across the following vehicles in the past week.

EcoV LSV

EcoV LSV – The EcoV is designed by EnVironmental Transportation Solutions and will be produced and brought to market in conjunction with OEM Energy Components Group . The EcoV is fully enclosed, has range of up to 40 miles, is charged using a standard wall outlet and costs around $12,000. The launch date is undetermined at this time. Development plans also call for multi-passenger utility vehicles, a pick-up and and delivery trucks. Learn more: Earthtechling.com

Columbia Crossline LSV at the Washingotn DC Auto Show

Columbia Crossline LSV - From the Washington DC Auto Show we learn that Columbia Parcar is working on a new LSV targeting the personal transportation segment. Currently called the Crossline, the fully enclosed LSV was designed with France-based Aixam Mega, a leading producer of microcars. The vehicle is being tested with AGM batteries and may be available by the end of the year with an MSRP under $20,000. The vehicle is likely to compete directly with Tomberlin’s offerings in this segment. Learn more: Autogreenmag.com

Goupil Industrie Utility Truck

Goupil Industrie Utility Trucks – From the World Future Energy Summit in Abu Dhabi we have utility trucks produced by Goupil Industrie of France. The company currently manufacturers two tip-trucks that are popular with universities and the like, as well as box vans for delivery purposes.  The vehicles use a bank of 24 two-volt batteries and have a range of 50 to 60 miles.  They retail for the equivalent of about 25,000 USD.  With sales currently concentrated in France and Europe the company is looking for distributors in other markets.  Learn more:  TheNational.ae

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

Oklahoma Supreme Court Rules On Electric Vehicle Tax Credit

Oklahoma’s Supreme Court recently ruled that the Garfield County District Court, which had ruled in favor of LSV dealers and customers in October, did not have jurisdiction in the case and vacated that court’s order.  For dealers and customers this means that the Oklahoma Tax Commission’s previous letter rulings on qualified vehicles now apply again.  Some vehicles purchased with the understanding that they would be eligible for the state tax credit are no longer considered eligible.

It appears that the bulk of the rulings by the commission are not in favor of the manufacturers.  For example, the Badboy Buggie XT LSV, the Stealth Patriot LSV, the Fairplay EVE, Fairplay Goat, American Custom Golfcars Hummers H3, American Custom Golfcars Escalade, American Custom Golfcars Roadster Limo and Titan UTV Hunting Buggy do not qualify.  Per the commission they do not qualify because…

The term ‘qualified electric motor vehicle property’ shall not apply to vehicles known as ‘golf carts,’ ‘go-carts’ and other motor vehicles which are manufactured principally for use off the streets and highways.

Some of the vehicles that do qualify include:

• Most but not all Bigman models
• Club Car Carryall 2 & 6 LSVs
• Columbia ParCar Mega Truck models and Summit models with enclosures
• All the GEM models
• A few of the Star models
• Wheego Whip

The complete set of ruling letters for twenty-three manufacturers can be found here.  Learn more:  EdmondSun.com

Comment: When I first spoke with the Oklahoma Tax Commission after their initial ruling they  talked about trying to clarify the law and that revenue concerns were not the issue.  When they appealed the district court’s ruling they noted that the tax credit could cost the state upwards of $40 million. In my opinion they are trying to avoid losing revenue from tax credits. It would be interesting to see, in detail, how they are deciding which vehicles qualify and which ones don’t. – Marc Cesare

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

Tax Credit Update

Previously I posted a story about GEM stating their vehicles qualified for a federal plug-in electric vehicle tax credit. I have since checked on other manufacturers such as Tomberlin, Columbia ParCar and Wheego and they are also claiming their LSVs qualify for the tax credit as well. Columbia ParCar’s website has some good information on the subject. LSVs are apparently eligible for two tax credits in 2009, the larger EESA or plug-in tax credit and the smaller ARRA LSV tax credit, but taxpayers can only claim one for a given vehicle. The EESA tax credit should provide a significant boost to sales of LSVs for the remainder of 2009.

Columbia ParCar Wins U.S. Army Order For Nearly 800 LSVs

Columbia ParCar recently announced that they have won an order to supply 799 LSVs for the US Army.  The LSVs will be used at 47 US Army installations in the US and Puerto Rico and are part of a three year plan to purchase 4,000 LSVs.  The plan calls for 800 LSVs to be acquired in 2009, 1,600 in 2010 and another 1,600 in 2011.  The vehicles will be  used for passenger transport, security patrol, maintenance and delivery services.  According to Columbia ParCar’s Scott Breckley, Vice President of Sales and Marketing, “438 vehicles are four-passenger models and the remaining 361 units are utility vehicles capable of transporting two passengers and cargo.” Learn more:  Columbia ParCar

Comment: This order is another example of the growing importance of the military segment for LSVs and utility vehicles.  Kawasaki and Polaris have previously won contracts to supply utility vehicles and the Army’s LSV program represents a significant chunk of the LSV market.  For utility vehicles, vehicle performance in specific field applications and favorable price points compared to previous vehicle options available is driving demand.  Polaris, according to their latest presentation to investors, considers the military segment a significant new market development initiative in their global market strategy.  For the LSVs, the military is replacing more expensive larger vehicles and saving on fuel costs, while still being able to perform the necessary tasks. – Marc Cesare

Army Leases The First Of 4,000 LSVs

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.

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