News Briefs

Polaris Adds Jobs – Polaris will be adding 89 jobs in their Osceola, WI plant for work related to their Indian Motorcycle and GEM product lines that were acquired last year.  Work at the plant will include engine production for motorcycles and R&D for GEM vehicles.  The company has also added 200 jobs over the last 18 months at their Spirit Lake facility which is ramping up to full production of Indian motorcycles and GEM vehicles.  Learn more:  Startribune.com

Campus Sustainability Drives Electrics – Washington State University is another example of how sustainability initiatives on campus are driving electric STOV purchases.  The university recently purchased the three GEMs for transportation and general fleet use.  The vehicles help the university meet the governor’s mandate that state entities reduce their carbon footprint.  Learn more:  News.wsu.edu

A Case For NEVs/LSVs – In this brief interview an author in the renewable energy space makes the case for NEVs/LSVs and the role for STOVs.  Learn more:  2greenenergy.com

GEM Fargo Factory Being Liquidated

The original Fargo, ND GEM factory will be liquidated starting December 6th.  After acquiring GEM, Polaris Industries moved GEM production to their plant in Spirit Lake, IA.  Items available for sale include “…excess Global Electric Motorcars vehicles, tools, equipment, office furniture, pallet racking, and a state of the art production line installed in 2003.”  Liquid Asset Partners will be conducting the liquidation.  Learn more:  PRWeb.com

Polaris Makes Another Move In The EV Market – Acquires Goupil Industrie of France

Goupil Industrie electric truck

Diversifying their portfolio of electric vehicle offerings, Polaris Industries recently purchased Goupil Industrie SA.  The privately owned French manufacturer produces a line of light duty electric trucks for a variety of commercial uses.  There were no comments by management on whether the Goupil product line would be exported to or produced in the US.

This is the third major transaction in the small electric vehicle space by Polaris this year following the acquisition of GEM and a major investment in Brammo, an electric motorcycle manufacturer known for electric powertrain expertise. The work and hauling oriented Goupil product line will complement the more people mover oriented GEM line.   Goupil’s estimated annual sales of $25 million adds to the estimated $30 million in annual sales that Polaris gained from the GEM acquisition.

Comment:  After testing the LSV market with their Breeze model for personal transportation and the electric UTV market with their electric Ranger, Polaris has now moved decisively into the space.  Management sees the global market for small electric vehicles as a growth area and have executed on that belief by purchasing this manufacturer in France and initiating GEM distribution in India.  Polaris now has a range of small EV product offerings spanning off-road and on-road, consumer and commercial, as well as work and transportation applications.  Learn more:  BizJournals.com

In related news, I noticed that Polaris also has a new website for GEM.  On their home page it is accessible under the tab “Low Emission Vehicles” along with the Breeze LSV.

GEM To Use ARI PartSmart

Polaris announced that they have selected ARI’s PartSmart to provide their GEM dealers with parts and service information for the complete line-up of vehicles.  PartSmart is already used by Polaris and Victory motorcycle dealers.  From the press release:

PartSmart is ARI’s premier parts lookup software known to more than 50,000 users worldwide. It provides the fastest way to find the right part the first time by providing more information with fewer keystrokes and mouse clicks. PartSmart interfaces with more than 90 dealer business management systems to drive even more efficiency. PartSmart offers time-saving features, including easy navigation, a single log in, a single and familiar user interface, updates via the Internet, and thumbnail browsing.

Learn more:  PRNewswire.com

Polaris Targets India For Growth

In August Polaris introduced a broad selection of their off-road vehicles (ORVs) to the Indian market.  The company expects to have twenty-five “sales touch points” in the country by the end of the year.  Management has a goal of $100 million in ORV sales by 2016.  They are also studying the feasibility of selling LSVs, leveraging their recently acquired GEM product line.  Mahindra Reva is currently selling similar vehicles with a sales target of 3,000 vehicles per year.  The government provides some incentives but infrastructure issues are an obstacle as well.  Learn more:  Business-standard.com

NEV Demonstration Project: Preliminary Report

Last month the South Bay Cities Council of Governments released a preliminary report about their NEV demonstration project.  The report was published after only 12 months of data because of “extraordinary positive results.”

The demonstration project focused on assessing the viability of NEVs on typical suburban streets in today’s development pattern.  A total of 15 households were involved  and 7 vehicles including a Vantage Crewcab,  a Columbia Summit, two Wheego Whips, a GEM e4, a GEM e2 and a Miles sedan.  The project addressed three questions:

1. Will residents regularly drive NEV/LUVs on typical suburban streets without special lanes or signage?

2. Will NEV/LUV usage produce significant environmental and economic benefits?

3. Is large-scale deployment of NEV/LUVs feasible?

The answers to the first two were a resounding ‘Yes’ and a conditional ‘Yes’ for the deployment question.  Data from the project showed that “…the average percentage of all household travel (VMT) taken in an NEV/LUV was consistently 22% across all groups. In terms of vehicle trips, the NEV/LUVs mode share averaged 26% of the round trips.“

In terms of environmental impacts “…Average participating households criteria air pollutants were reduced by 26% – 33% depending on the specific pollutant being measured.“

To facilitate deployment a number of barriers need to be lessened including vehicle price, vehicle quality, consumer education and local government incentives.  The authors also suggested a medium speed vehicle class would help the transition away from gas autos.  The project will run a total of 18 months until October 31, 2011.  Learn more:  Southbaycities.org

GEM’s Fargo Plant To Close

Polaris Industries, which recently acquired Global Electric Motorcars, will be closing GEM’s manufacturing facility and offices by the end of the year.  GEM’s operations will be integrated into Polaris’ Spirit Lake, IA manufacturing plant, product development facilities in Wyoming and corporate headquarters in Medina, MN.  Some of the 80 people now employed at the Fargo location have been offered jobs at these new locations.  Learn more:  Startribune.com

Polaris Acquires GEM

Yesterday Polaris Industries announced that they will acquire Global Electric Motorcars, LLC (GEM) from the Chrysler Group.  GEM has annual sales estimated to be $30 million and has been the leading LSV manufacturer.  IMS estimates their annual sales volume to be around 3,000 units, although they have been under pressure lately as more manufacturers have entered the market.  The sale will take about two months to complete and will strengthen Polaris’s On-Road division.  Polaris also recently acquired Indian Motorcycle.   Learn more:  Tradershuddle.com

Comment:  GEM is strong in the commercial LSV segment particularly in government and fleet sales to end user such as parks and universities.  Polaris already has their Breeze LSV for the consumer personal transportation market and an LSV version of their Ranger EV which originally targeted the military segment but has commercial applications as well.  The acquisition gives Polaris probably the most recognized brand in the LSV market and saves them time and money spent developing a brand of their own.  GEM has not substantially changed their vehicles in recent years so they will definitely benefit from high level and continuous innovation that Polaris puts into their product lines, as witnessed by their model development in the UTV market.  In addition, Polaris has an existing network of dealers that is around ten times the size of GEM’s current network.  The acquisition could add a real boost to the level of competition in the LSV market.

Another question is whether Polaris will be seeking more acquisitions in this space.  While GEM is more oriented to the commercial market, a company like Tomberlin produces LSVs targeting the consumer market.  Tomberlin’s management has a relationship with Polaris from helping them develop some of their off-road products in the past.  Tomberlin also has other products such as the Vanish electric UTV, electric ATVs and the Schwinn brand of scooters that could supplement Polaris’s existing product lines .

What’s Cooking on the STOV

Highlighting some of the many applications for small, task-oriented vehicles

Pheasant Gamekeeper UTV - Park House Pheasantries in the UK uses three Kubota RTV900′s to manage their gamekeeping operation which involves rearing up to 50,000 pheasants a year for small to large shoots.  The UTVs are used for a variety of tasks including game crop spraying with a front mounted sprayer, hauling feed, dumping gravel, pulling out stuck vehicles and transporting dogs.  Besides the horsepower, ground clearance and power steering the owner purchased the street legal version of the vehicle to provide additional flexibility.  Learn more:  Constructionnewsportal.com

LSV Police Patrol Vehicles – The Wetumpka Police Department in Alabama recently purchased two GEMs for use at community events and patrolling select neighborhoods.  Obtained with grant money, the department likes the smaller size and relatively silent vehicles for nighttime patrols and community events.  They also expect to save money on fuel and maintenance costs.  Learn more: Blog.al.com

Rural Real Estate Selling – A Wisconsin real estate agent specializing in selling properties for hunting, recreation and rural homes uses a Polaris Ranger to show clients around various properties.  The rural and sometimes large size of the tracts require a vehicle with off-road capabilities to provide clients with an up close look at the properties.  Learn more:  Wisconsin State Journal

Park Maintenance – Wisconsin’s state parks department recently purchased 15 E-Ride electric vehicles from E-Ride Industries for cleaning and maintenance at parks around the state. Some units were customized with full-length aluminum enclosures to protect the payload.  Compared to the full-size trucks they replace, the vehicles cost less up front to purchase, have lower fuel costs, lower maintenance costs and a smaller carbon footprint.  In addition, the parks department has received positive feedback regarding the vehicles from park visitors.  Learn more:  WisBusiness.com

Are Electric LSVs Taking Market Share From Gas UTVs?

While I’ve come across many instances of gas and electric STOVs replacing full-size pickup trucks, I’ve seen fewer stories about electric LSVs replacing gas UTVs but in the past few weeks I came across two. In both cases the electric vehicle offered cost advantages and a better set of features for the end use application.

The first is from Albany, GA where the local police department replaced a 12 year old gas powered Kawasaki Mule with a GEM for use in parking enforcement.  Learning from the local US Marine base experience and evaluation, the department estimates that they will save about $6,000 a year in gas, oil change and maintenance expense each year.  The GEM also has better features for parking enforcement including an enclosed cab, rear and side mirrors, warning lights, a fan for summer use and a heater for winter use. Learn more:  Albanyherald.com

In the second instance, River Falls Municipal Utilities in Wisconsin replaced a John Deere Gator with a Polaris NEV.  In this case, they tested the vehicle for several weeks by performing tasks around the wastewater treatment plant.  The utility also received a $5,009 grant from Wisconsin Electric Power.  Management sees the vehicle being used for both off-road and on-road uses such as driving downtown for supplies or town meetings.  A cab enclosure will be purchased in the future to enable year round use.  Learn more:  Riverfallsjournal.com