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

Illinois LSV Goes Into Effect

On January 1 a new LSV law went into effect in Illinois.  There are two basic parts to the law:  first LSVs will now have to be titled and registered with the state; the second and more interesting part is that LSVs will be allowed to travel on any roads with posted speed limites of 30 mph or less unless specifically prohibited by a municipality.

This essentially creates LSV road access as the default policy.  I believe this is the first state to do so.  Other states have allowed similar access but with the added step that municipalities had to pass ordinances to explicitly allow LSV access.  This requires a certain level of initiative and interest by local officials to write and pass the ordinances.  The law should provide a boost to LSV sales in Illinois and may spur other states to adopt similar legislation. - Marc Cesare

Learn more:  www.connecttristates.com

Road Use Regulations Roundup – December

Some trends in this latest regulation roundup:

• Continued passage of ordinances allowing  LSVs and/or golf cars on local streets
• Municipalities considering regulations that will allow the use of LSVs as taxis or rental vehicles
• Trends towards expansion or restriction, depending on the locality, regarding the use of UTVs and/or mini-trucks on public streets

Illinois – Effective January 2010 Illinois will allow low-speed vehicles on any road with a posted limit of 30 mph or lower, effective January 2010. Previously, individual communities had to adopt laws to permit the use of low-speed vehicles on local roads.

Orting, WA – Passed an ordinance to allow golf cars on city streets as part of a one year pilot program.

Manhattan, KS – Amendment allows citizens may operate golf carts and “work-site utility vehicles” on city streets marked with speed limits of 30 mph or less.

Austin, TX – City officials considering legislation that would allow the use of LSVs as taxis in downtown area.

Austin, MN – Responding to farmer requests, Mower County officials drafted an ordinance that allows the use of mini-trucks on county and township roads.

Ocean City, NJ – City council voted to allow local business to rent out LSVs.

Wisconsin – Two representatives from the state legislature are sponsoring a bill to allow the use of light utility vehicles on some public roads for agricultural purposes.

West Vancouver, CA – City officials pass ordinance allowing NEVs to be used on roads with speed limits of 50 km/hr or less.

Hamlin, West Virginia – Town council approved the changes to the town’s ordinance dealing with ATVs, utility-terrain-vehicles (UTVs) and off-road motorcycles that specifically prohibits the operation of the vehicles on any streets.

Oregon – Rule change requires that as of January 1, 2010 anyone under 18 years old riding in an off-highway vehicle such as a side by side will have to wear a helmet.

ZENN To Stop LSV Production; ZAP Phasing Out Xebra?

ZENN announced that it will be stopping production of their LSV in April 2010. As had been reported earlier the company is shifting it’s focus to the development of electric drivetrains based on EEStor technology. The company reports selling about 500 of their LSVs in three years.

Learn more: Reuters.com

In another story about phasing out a vehicle, a careful examination of ZAP’s most recent quarterly findings, seem to indicate that they will be phasing out their three-wheeled Xebra model. From their 10-Q for the quarter ending September 30, 2009:

The decrease of $1.5 million (in revenue) is primarily due to the phase out of our three wheeled Xebra vehicle with reduced selling prices.

In addition the company appears to be putting less emphasis on development of the Alias model.

Research and development expenses decreased by $57,000 from $138,000 in 2008 to $81,000 for the third quarter ended September 30, 2009. The decrease was due to less work on the development of the Alias prototype vehicle

Learn more: thetruthaboutcars.com

Battery Developments and Implications for STOVs

The ongoing development of battery power holds significant potential for small, task-oriented vehicles (STOVs).  Most of the development and most discussion and analysis of battery development is in the context of powering on-road vehicles.  The crumbs off the table of this development process, however, could have a significant impact on market development of small, task-oriented vehicles.

STOVs are certainly not confined to electric power, but given the trend toward electric power in all but the off-road UTV (and derivatives) market–and that is coming, too–as well as the market drivers pushing toward electric, a focus on electric power is hardly unjustified.

In a presentation at the Industrial Utility Vehicle Technology Conference, I outlined four areas of product development that were needed to encourage market growth of the small, electric vehicle market.

• Greater range, moving from 30-40 miles to 100 miles;
• More power, deliverable through the adaptation of AC electric motors;
• Faster speeds, increasing from the upper limits now of 25 m.p.h. to the 40-45 m.p.h. range;
• Better ergonomic features, including all-weather driveability.

The ensuing years have seen improvements in all categories.  – Steve Metzger

For the full article see:  IUVMag.com

South Korean Government Targeting EV Market

Last week the South Korean government announced plans to accelerate the development of the electric vehicle industry in their country.  Revised plans now call for full-scale production of electric vehicles in 2011 instead of the previous target date of 2013.  The government views the competition to develop the next generation of automobiles and grab market share as important to South Korea’s long term economic health.

A range of automobiles including hybrid, plug-in and fuel cell powered will be supported.  The target goal is for South Korea to account for a 10% share of the global EV production by 2015.  Ironically, the country does not currently allow EVs to be operated on any roads.  However, as part of this initiative, the parliament is passing legislation to allow EVs including NEVs to be driven on the country’s roads.  Learn more:  yonhapnews.co.kr

LSV Market Segment Spotlight: Municipalities & Universities

I came across a couple of stories in the last week that I believe are representative of two key market segments for LSVs:  municipalities and universities, as well as the versatility of the vehicles.

In the first, the city of Hoboken is looking to replace full size vehicles in their parking enforcement department with LSVs. For the municipality the key factors are a significantly lower capital cost for the vehicle, drastically lower operating costs and reduced maintenance costs.  A secondary consideration are the environmental benefits.

“I’m very concerned about saving money for the city of Hoboken and saving the environment and I think it’s really going to reduce costs,” said Hoboken acting Mayor Dawn Zimmer after completing her ride around town.

The vehicles will mainly be used for transporting the meter readers but their  configurations will also allow them to carry the necessary equipment for booting cars.

Learn more:  NJ.com/hobokennow/

In the other story Princeton University is replacing small pickup trucks with LSVs configured as utility trucks.  A driving factor in their decision is the university wide goal of sustainability.  They are impressed by the efficiency of the vehicles and the reduction in gas consumption that can be realized.

“Electric cars are much more efficient. They use less energy to travel the same amount of miles as a gas-powered vehicle,” said Roger Demareski, the assistant vice president for facilities for plant, who oversees the pilot program.

In order to expand the streets the vehicles can be legally driven on the university had to work with the local towns to change their LSV ordinances.  Some towns only allowed LSVs on streets with a 25 mph speed limit but a shift to a 35 mph limit allows vehicle access to all parts of the campus.

Learn more:  Princeton.edu

In both cases the LSVs are replacing gas-powered vehicles and they represent important market segments for LSVs, especially in a slow economy.  The cost savings realized by the vehicles, the environmental benefits and various federal and state funding available for these type of vehicles help drive these market segments while others may be faltering.- Marc Cesare

Federal Tax Credit Appears To Be Significantly Boosting LSV Sales

Based on stories from around the country, the federal tax credit for new plug-in electric vehicles purchased during 2009 is providing a significant boost to LSV sales. The tax credit is included as part of the Emergency Economic Stabilization Act (EESA) and is credit of $2,500 to $7,500 for a four wheeled vehicle that draws propulsion using a rechargeable battery with at least four kilowatt hours of capacity. The base credit is $2,500 and increases depending on the size of the battery pack.  An additional $417 is added for each kilowatt hour above four kilowatts hours.  For many LSV this equates to a tax credit of roughly $4,000 to $6,000 depending on the brand of LSV and the battery pack option chosen.

A Tomberlin dealer in Oklahoma has reported a “dramatic” increase in sales, Bad Boy Buggies is hoping to launch their street legal vehicle shortly to take advantage of the tax credit fueled demand and in a recent story out of South Carolina a dealer reported a sales jump from 10 to 60 vehicles per month because of the tax credit.  South Carolina adds a state tax credit equal to 20% of the federal tax credit and Oklahoma adds a 50% tax credit for electric vehicles.  In addition, the major LSV manufacturers are all prominently touting the tax credit on their websites, often with the specific tax credit available for each model.  Learn more:  SCNow.com

NHTSA Proposes Requirement To Prevent Vehicle Rollaway

According to Trailer-bodybuilders.com:

The National Highway Traffic Safety Administration (NHTSA) issued a Notice of Proposed Rulemaking (NPRM) proposing to place a requirement in the Federal Motor Vehicle Safety Standards (FMVSS) that motor vehicles 10,000 lbs. gross vehicle weight rating (GVWR) and below, excluding walk-in vans with an automatic transmission that includes a “park” position, manufactured for sale after Sept. 1, 2010 be equipped with a brake transmission shift interlock (BTSI).

This interlock will require that the service brake pedal be depressed before the transmission can be shifted out of “park” and will function in any starting system key position.

NHTSA is issuing this document in response to a statutory mandate in the Cameron Gulbransen Kids Transportation Safety Act of 2007.

Based on changes to which type of vehicles would be covered by the regulation, low-speed vehicles would have to meet this proposed requirement. Learn more:  Trailer-bodybuilders.com