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

Textron Eyeing China Factory

Last week a story from a Chinese business news service reported that Textron, manufacturer of E-Z-Go vehicles is looking into establishing a plant in China for the production of LSVs.  The company would partner with a Chinese automaker and produce neighborhood electric vehicles powered by lead acid batteries.  The plant would have the potential to produce 10,000 vehicles annually.  The story noted that the Chinese market for NEVs could be ripe given government incentives and their desire for developing clean vehicles.  There was no mention of exporting the vehicles to the US.  Learn more:  blogs.edmunds.com/greencaradvisor

Discovery Energy To Be e-Ride’s Battery Supplier

Discovery Energy of Vancouver has been named the exclusive supplier of batteries to LSV manufacturer e-Ride Industries. Discover Energy’s Clean and Green EV Traction Dry Cell Batteries will be used in the vehicles. The batteries are non-hazardous and maintenance free. For the transportation market e-Ride offers the exv4 and for the utility market the exv2. Learn more: EVWorld.com

Scooter Manufacturer Eyeing Texas

National Scooter Company based in Nacogdoches, Texas is looking to break ground on a manufacturing plant for electric scooters next March.  The CEO Greg James is trying to secure federal grant money and finalize negotiations to buy a portion of Twist N’ go Scooters of Seattle.  Currently the vehicles are made in China. Plans call for the plant to be operational in March 2011.  The company will also make gas powered scooters.  The future could also include three-wheeled vehicles, collapsible vehicles, five-wheelers, off-road two-wheelers for hunters and street-legal neighborhood electric vehicles.  Learn more:  Dailysentinel.com

Oklahoma LSV Tax Credit Update

Yesterday a county judge in Oklahoma ruled in favor of vehicle purchasers, declaring that they could receive the state tax credit for the LSVs that they purchased.  The lawsuit was brought by Ada Electric Cars and H20 Sports Unlimited and other dealers joined as well including GKU Electric Vehicles LLC, Heartland Outdoors LLC, Pat’s Archery Inc., and Xtreme Cycle and ATV LLC.

The judge’s order states low-speed vehicles sold by manufacturers Tomberlin, Ruff & Tuff, Stealth, Fairplay and Bad Boy Buggie qualify for a state tax credit.  The order also includes, “any other low speed vehicles similarly equipped as those described above qualify for … ‘ the state tax credit. Specific models noted in the order include Tomberlin E-Merge E-2, Tomberlin E-Merge E-4, Tomberlin Anvil, Tomberlin E-Merge Classic, Ruff & Tuff NEV2, Ruff & Tuff NEV4, Ruff & Tuff Cruiser EV2, Ruff & Tuff Cruiser LX2, Ruff & Tuff Cruiser LX4, Ruff & Tuff Hunter 4×4, Stealth Patriot LSV, Stealth Patriot LSV 4 X 4, Fairplay EVE, Fairplay Goat and Bad Boy Buggie XT LSV.

The Oklahoma State Tax Commission responded to the announcement by stating that it would appeal the ruling.  The commission stated that the tax credits could cost the state more $40 million.  If this is true, at the high end an average tax credit of $8,000 per vehicle translates into 5,000 vehicles sold in the state and at the low end an average tax credit $4,000 per vehicle translates into 10,000 vehicles sold in the state. In either case the figures represent an enormous boost to the LSV market. – Marc Cesare

Learn more:  Enidnews.com Stilwater-newspress.com

Enidnews.com

Electric Utility Vehicles Showing Strong Growth

Despite the economic downturn the market for off-road electric utility vehicles, especially for hunters, is experiencing strong growth.  A recent story about Stealth Manufacturing reports that in 2008 the company sold 600 vehicles, five times the sales management expected.  Demand has continued to be strong in 2009 with management reporting that their

..entire production is sold out through Dec. 31.  We’ve outrun virtually every supplier we have.

Part of the growth of the Louisiana based company is attributed to their television sponsorship program with Primos Hunting Products. Stealth produces the Predator XR, Apache XR and the “Izzy” an industrial vehicle.  They are also planning to launch the Patriot LSV which went into production last week.  The company employs 38 people in a 82,000 square foot facility and is looking to expand their distribution beyond the current 70 dealers and distributors in 28 states. On the horizon is a new vehicle about which the CEO Bill Krutzer states

It’s probably going to change the complexion of the electric vehicle industry, and we’re testing it right now.  It’s a completely different electrical platform. We’re going to bring some pretty sophisticated technology to the game, and we’re not going to do anything but improve the price.

Learn more:  Thenewstar.com

Stealth Manufacturing is not the only electric utility vehicle manufacturer with a positive outlook.  The leader in the electric utility vehicle market for hunters,  Bad Boy Buggies, is expected to reach sales of $17 million this year, up from 2008, but down from a peak in 2007 of $20 million.  Despite a recent recall of their standard model the company is reports that their new XT model has been well received. They are also launching an LSV model and have had success selling their utility vehicles outside the hunting market.  A key marketing effort for them is teaming up with Bass Pro Shops which is running a test campaign in five markets.

Learn more:  Natchezdemocrat.com

A few weeks ago I had the opportunity to talk with Eric Burns of Bad Boy Buggies. He talked about some of their improvements in their new XT model which at the time had a waiting list of customers.  The improvements include:

• An independent suspension for better performance and comfort in extreme conditions and/or extended operating times
• Better turning radius
• Re-routing of electrical cables to protect them from the elements
• Improved distribution of battery weight that impacts performance on  steep climbs
• General improvements to the construction and design of the vehicle

Some of the non-hunting markets they are looking for gains in include agriculture such as dairy farms, government fleets and construction.  Burns noted that in some of these environments the electric utility vehicle allows an operator to more easily hear other vehicles in the work area, use walkie talkies or other communication devices without turning off the engine and avoid the necessity of storing fuel on site.  Key obstacles for electric utility buyers are battery replacement costs and the range of the vehicle, which in many instances may be a perceived issue rather than actual. Bad Boy Buggies is looking to expand their distribution network in the Western US from their current strongholds in the South, Southwest and Midwest, usually centered around hunting communities.

Additional signs of strength in the electric utility vehicle market include the recent entry of Polaris, the utility vehicle market leader, and Tomberlin’s plans to launch their electric utility vehicle, the Vanish.

On a related note, the fact that both Stealth and Bad Boy Buggies are coming out with LSV versions indicates an interesting sub-segment is developing in the LSV market.  Rather than vehicles that are primarily or exclusively used on-road, another segment of users that need a mix of off-road/rough terrain capabilities and public road access is emerging.  Burns of Bad Boy Buggies noted military bases, farms and college campuses as potential buyers of these street legal UTVs. - Marc Cesare

Wheego Announces LSV To Full Speed Vehicle Trade Up Program

Last week Wheego Electric Cars announced their trade-up program that will allow customers to trade up their Wheego Whip LSV for Wheego’s Full Speed Vehicle (FSV) that is expected to launch in 2010.

Anytime within 24 months of their purchase of the Wheego LSV, a customer may trade up their Wheego LSV for a full speed Wheego (when available) and receive a trade-up credit of 50% of the original purchase price of their LSV toward the purchase of a full speed Wheego.

Any Federal or State tax credits that the customer received on their purchase of the LSV or on a new full speed car are theirs to keep and are not deducted from the trade-up value.

If the company can meet their price points for the FSV, the cost of the vehicle becomes quite attractive with the currently available federal tax credits.  The company provided the following trade up example.

Example (for illustration only; prices may vary):
Customer purchase price of Wheego LSV: $22,000
Fed Tax Credit: -$7,500
Net customer price for LSV: $14,500

Customer sample purchase price of Full Speed: $30,000
Wheego LSV Trade-up allowance: -$11,000
Fed Tax Credit: -$ 7,500
Net customer price for Full Speed Wheego: $11,500

As you can see in the example, a customer would end up spending more for the LSV than the FSV. The total cost to obtain the FSV in this example is $26,000, which is quite attractive for a full speed electric vehicle, and you get the use of an LSV for awhile. - Marc Cesare Learn more:  PRweb.com

Supply Chain News

LG Chem of South Korea will be supplying lithium-ion batteries to CT&T, the South Korean based LSV manufacturer.  CT&T last year won a contract to supply 4,000 LSVs to California police departments, and is currently looking around the Pittsburgh and Philadelphia areas for locations to build assembly plants.  Learn more:  Tradingmarkets.com

Zytek of Great Britain will be providing the Navistar and Modec joint venture with a 70kw electric powertrain for the venture’s commercial electric trucks being marketed in the Americas.  Four hundred of the trucks will be produced in 2010 using $39 million in grant money from the US government.  Learn more:  Autoevolution.com

Navy Likely To Become Major Buyer Of LSVs

In a speech this week the US Secretary of the Navy identified five key energy targets for the Navy to meet by 2020.  One of these goals is to reduce petroleum use in their commercial fleet of vehicles by 50% by 2015.  The fleet numbers approximately 50,000 vehicles.  As the vehicles are retired the Navy expects to replace them with hybrids, flex fuel and low speed vehicles. Learn more:  Greencarcongress.com

Comment: When the Army first announced their plans for purchasing LSVs they mentioned the Air Force and Navy possibly piggybacking on their efforts but this is the first time we have seen any official statements about the Navy acquiring LSVs.  While the Army’s initial purchase is 4,000 LSVs over three years, they noted that 10,000 vehicles could eventually be purchased and estimated a similar amount for each the Navy and the Air Force.  I would expect the Navy’s acquisition would boost demand for LSVs in the range of 1,000 to 2,000 vehicles per year over the next five years. With the Army and Navy on board the Air Force may also follow suit and make the US military a major factor in the market. – Marc Cesare

Flux Power Systems Targeting LSV & Golf Car Market

Flux Power, a startup led by the co-founder of vehicle manufacturer Aptera, is targeting the LSV and golf car markets with their lithium based power systems.  Flux Power’s products manage, monitor and charge lithium batteries.  Flux Power products are designed to work with batteries from a variety of manufacturers to create modular battery units.  A vehicle manufacturer or other customers could then combine units to create custom battery packs.  Smart charging technology can be integrated as well. By increasing the efficiency of lithium battery packs and thereby lowering costs, the company hopes to penetrate markets currently dominated by lead-acid batteries.  Products are expected to be available in November, 2009.  Learn more:  Earth2tech.com