New Polaris Offerings For 2011

Between family vacation and the launch of our latest STOV study It’s been a few weeks since my last post so there have been some developments in the market to catch up on.  I’ll start with the introduction by Polaris of their 2011 product line.  Despite a down economy they have been able take market share and be aggressive in the product development with new vehicles targeting specific market segments and improvements to existing models.  New vehicles include the RANGER 500 EFI, RANGER CREW 500 and RANGER Diesel. The latter targets the agriculture segment where diesel is the preferred fuel.

Enhancements to current product offerings include increased power to RANGER XP 800 and RANGER XP 800 EPS, and power steering on the Polaris Pursuit Camo RANGER CREW 800. All 2011 RANGER products, with the exception of RANGER EV, will be outfitted with easy-buckle driver and passenger safety nets.

The RANGER RZR line will have even more razor sharp performance with a new look that increases cooling airflow by 29 percent, provides a 30 percent improvement in range and delivers increased performance as a result. The RANGER RZR 800 will receive six percent more power with the addition of the 800 H.O. engine and be more trail-friendly with new rear rack extenders.  RANGER RZR S 800 will feature new big bore shocks, be the first stock vehicle to feature ITP 900 XCT tires and will be available in two premium painted editions along with a standard edition, which will receive a new lower price. For razor sharp performance for four, Polaris will offer the RANGER RZR 4 800in two Robby Gordon packages, a painted black and red limited edition and a power steering version that includes Robby Gordon-inspired graphics.

The company also launched the civilian version of their EV LSV which originally targeted the government market and added new parts and accessories for vehicles across the product line.  Learn more:  Motorsportsnewswire.wordpress.com

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LSV Taxi Services Meeting Resistance From Traditional Taxis

In both Tampa, FL and Austin, TX taxi services using low-speed vehicles are bumping into legal and regulatory obstacles as they encroach upon the turf of traditional taxis.  The LSV taxi services are typically offered for free in a limited downtown area but drivers may accept tips and the vehicles sell advertising space on the vehicles.  Local businesses or business associations such as hotels and tourist destinations in the service area may offer support as well.

In Tampa the Hillsborough County Public Transportation Commission ruled that since tips and advertising revenue were involved the taxi service must be regulated and permitted by the county agency.  This ruling coincides with a similar ruling by a circuit judge regarding the taxi service.

In Austin Capital Cruisers, already in business, and e-Cars, planning to start a taxi service, are waiting for the city council to include LSVs in the local regulations to legalize their use as taxis.  The local transportation commission had recommended such action in the beginning of the year. In the meantime, Capital Cruisers is spending money fighting frequent traffic tickets and other legal battles with the city.

In both cities the local taxi associations are trying to either stop the services from being offered, or at a minimum, have them comply with the similar regulations. Learn more:  TBO.com

Learn more:  ABJentrepreneur.com

Update: A similar issue is occurring in Houston, TX as well with Rev Eco-Shuttle owner Erik Ibarra waiting for the city to pass ordinances and provide permits for his low speed-vehicle taxis.  Learn more:   Swamplot.com

CT&T Adds Georgia To List Of Potential Plant Sites

Korea-based LSV manufacturer CT&T has added Georgia to the list of states that could potentially host a vehicle assembly plant.  In the past year the company has also named Hawaii, South Carolina and Pennsylvania as potential locations.  The company expects to select a site by the end of the year and start production in 2011.  Learn more:  Bizjournals.com/atlanta/

Eco Trans Alliance & Cruise Car Partnership Targets Low Speed Applications

Eco Trans Alliance (ETA) and Cruise Car announced a corporate partnership that will be targeting low speed settings such as colleges, resorts, military bases, federal and local governments, residential communities, golf courses, and corporate campuses. ETA will provide solar-electric vehicle and battery technology including SunRay Solar Top Conversion Kits and Eco Ports solar-electric charging stations for Cruise Car electric vehicles. According to management the conversion kits extend vehicle range by 5-10 miles per day of driving while reducing electricity costs and the carbon footprint. Learn more: PRnewswire.com

GatorMoto Announces New LSV Utility Vehicle

Following an ongoing market trend of manufacturers producing street legal utility vehicles, GatorMoto Utility Vehicles recently announced  the Electro Bubble Buddy Mountaineer LSV.

With a 72 volt engine with DC converter to 12 volts, 5 speed electric transmission, front axle independent suspension, integrative rear axle with leaf spring and vibration absorber, rack and pinon steering with automatic rocker compensating function and front disc brake and rear drum brake with hydraulic system, this vehicle is the choice of municipalities, police, EMTs, fire departments and other applications which require more torque in the engine.  It can also be ordered with optional LED emergency light bars.  Other available options include custom graphics, custom body color, storage cover, quick charging system, DVD player with monitor, and back up cameras.

The Electro Buddy Mountaineer LSV features a Curtis Controller, Trojan 105 batteries, 12:49:1 axle ratio for climbing, AM/FM/CD with speakers, two-tone paint scheme, rear lockable trunk, DOT approved seat belts, AS-1 certified windshield, and 2 on board charger units.  Black vinyl captains chairs with adjustable backs and adjustable formed arm rests provide comfortable seating for up to four passengers.

The vehicle has an MSRP of $17,900.00 and the 5 kW model is eligible for the 10% federal tax credit.  Learn more:  Gatormotoutilityvehicles.com

Massachusetts Registers State’s First LSV

A couple from Hull, MA became the first people to register a LSV in Massachusetts. Taking advantage of the states LSV law that recently went into effect, the couple purchased a Club Car Villager 2+2.

Massachusetts' First Registered LSV In Use

Impressively, they ventured out in the open-air vehicle in the middle of a New England winter. Club Car reports that versions of the vehicle with doors and vinyl interiors will soon be available. Learn more: Wickedlocal.com

Flux Power Chosen As Wheego Battery Supplier

Last week Flux Power of Vista, CA was chosen by Wheego Electric Cars to supply batteries for the Wheego Whip LSV as well as their full speed electric vehicle, the Wheego Whip LiFe FSV, which they expect to ship this summer.

Flux Power will provide Wheego Electric Cars with advanced energy systems that combine high power and energy density with excellent safety and life cycle performance. These systems include Flux Power’s “Cell Guard™” Technology that extends the life of lithium batteries.

Flux Power combines Lithium based batteries with their proprietary management system and claim to greatly extend cycle life.

Learn more: Businesswire.com

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