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

Wheego Starts Selling Highway Capable Vehicle

Wheego's Highway Capable LiFe Electric Vehicle

LSV manufacturer Wheego has started selling their LiFe electric vehicle to customers.  The two-passenger vehicle is capable of speeds up to 65 mph and has a range of 100 miles.  The car is priced at $32,995, on par with the Nissan Leaf, but for two passengers instead of four.  Learn more:  Blogs.WSJ.com

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

Electric Vehicle Dealer Files Lawsuit After Oklahoma Tax Commission Issues Tax Credit Ruling

On Thursday the Oklahoma Tax Commission issued a ruling to “clarify” a tax credit for electric vehicles that has been in effect since the mid-nineties. According to the ruling, vehicles with golf cart or go-cart like bodies or principally designed for sporting or recreation purposes do not qualify for the state tax credit which amounts to 50% of the purchase price and can be spread over five years. Consumers who previously purchased vehicles this year expecting a tax credit may not receive one depending on which vehicle they purchased. As of yesterday the commission had qualified the Wheego and Club Car’s Carryall 2 and Carryall 6 models. Learn more: NewsOK.com

Dealer Roger Gaddis of Ada Electric Cars has filed a lawsuit to get the commission’s ruling revoked. Among the vehicles that Gaddis sells are purpose built LSVs from Tomberlin which, as of now, no longer qualify for the state tax credit, although they did so last year.

I spoke with Mr. Gaddis yesterday and he stated that vehicle owners, other dealers and OEMs have contacted him about turning the lawsuit into a class action. He suspects that the new ruling was made because of an unexpected surge in tax credits related to the vehicles and subsequent lost revenue for the state. Sales of these vehicle have increased significantly fueled by a federal tax credit for 2009 that also applies to LSVs. The combined federal and state tax credits can drop the cost of some vehicles to near zero.

In support of this suspicion Gaddis noted that a tax commissioner had contacted him and wanted to know how many vehicles he had sold. Gaddis responded by asking the commissioner what sales figures had to do with whether vehicles qualify for the tax credit or not. While Gaddis would not provide specific sales figures to the commissioner or myself he told me that sales had improved “dramatically” with the dual tax credits.

Mr. Gaddis also remarked that there has never been a vehicle qualification or certifying process for vehicles to qualify for the tax credit. If the vehicle met NHTSA’s LSV standards than they qualified. Furthermore he stated that the original purpose of the tax credit was to reduce the use of fossil fuels, reduce the use of foreign oil and encourage the use of environmentally friendly vehicles.

I have placed a call with the Oklahoma Tax Commission and hope to speak to them soon. Learn more: Forbes.com,

Learn more: Adaelectriccars.com

Update: I spoke with Paula Ross the spokesperson for the Oklahoma Tax Commission late today.  She said that the emergency ruling was prompted by the large number of requests by people asking if particular vehicles qualified for the state tax credit. Previously only a minimal number of people applied for the tax credit, approximately 100 in 2008. Although the commission is still compiling figures, the number is much higher this year and a greater variety of vehicles are involved than in previous years.  The ruling was meant to clarify the situation but as Ms. Ross noted, it may have caused more confusion.

Right now the commission is gathering data in hopes of understanding the market better and clarifying the situation.  The governor has 45 days to approve the ruling, and until that approval and more information is gathered, the tax commission will refrain from releasing a complete list of qualified vehicles.  Ms. Ross also remarked that the impact on revenue will not influence the qualification of vehicles but could be something addressed by the legislature for 2010. – 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.

Wheego Electric Cars Raises An Additional $1.2 Million

Wheego Electric Cars, maker of the Wheego Whip, recently announced that the company had raised an additional $1.2 million from existing investors.  The Whip is expected to be available next month as a low speed vehicle or medium speed vehicle.  Next year, after crash testing is completed, the company hopes to sell the Whip as a full speed vehicle.  Management expects to sell 1,000 of the LSV/MSV version in the first year as they build up their dealership network to 50 dealers.  The vehicle has an MSRP of $18,500 but is also eligible for federal tax credits.  Learn more:  Atlanta Business Chronicle

Comment: Selling 1,000 of these vehicles in the first year appears to be ambitious given the economy and currently lower gas prices.  ZENN recently announced a sharp decrease in sales of their LSV which has a similar price point.  In addition, interviews I’ve conducted with electric vehicle dealers for an upcoming study also indicate a poor sales environment. MC

Wheego Eyes Shuttered Car Dealerships

According to reports the LSV manufacturer Wheego is looking at some of the recently closed car dealerships as an opportunity to build their distribution.

Wheego considers its cars the perfect product for these dealerships to preserve local employment and keep local economies from falling into further trouble.

As the story notes the dealerships may be too large for Wheego’s limited product line and some may be located in communities that do not allow LSVs.  Learn more:  Tech.blorge.com

Ruff And Tuff Vehicles Spins Off Wheego Electric Cars

RTEV has spun off Wheego Electric Cars so both companies can focus on their respective markets.  RTEV will focus on cost cutting and selling deeper into their traditional market of electric powered recreational vehicles in a difficult environment for powersports manufacturers.  Wheego will concentrate on developing the market and distribution for their Wheego Whip LSV product which will go on sale in July of this year.  Management remarked that RTEV will be trying to optimize cash flow while Wheego will be following a more capital intensive strategy to take advantage of what they see as a high growth potential market.  Learn more  prnewswire.com

Wheego Starts Taking Orders for the Whip LSV

Wheego announced yesterday that they have begun taking orders for their Wheego Whip electric vehicle.  The LSV is expected to ship in May of this year.  Last week’s announcement regarding the launch of their dealership network generated a strong response from potential vehicle buyers as well.  According to the company’s press release:

The Wheego Whip is a fully loaded two-passenger automobile with fit, finish and features that compete with any other subcompact car on the market. Remote keyless entry, air conditioning and an mp3 stereo system are standard equipment on the Whip. It retails for under $19,000, and it only costs about 3 cents per mile to operate. There is also a 10% Federal Tax credit on the purchase price of the car as a Low Speed Vehicle in 2009.

Wheego is offering a number of incentives related to the launch of the Whip including special programs for upgrading the vehicles when Lithium ion battery packs or full speed versions of the vehicle are available, as well as cash rebates for referring other customers.  Learn more

Wheego Announces Launch of Dealer Network

Wheego recently announced the official launch of their dealer network.  According to the company’s press release, their first car, the Wheego Whip will be available in May of this year and they plan to have 50 dealers in place at that time.  Commenting on the dealer network President Jeff Boyd states,

These will be a combination of traditional car dealers as well as a new type of dealer who exclusively sells electric vehicles and combines several manufacturers such ZENN, ZAP, and MILES in one dealership.

Wheego is a division of RTEV which produces electric vehicles for recreational use under the Ruff & Tuff brand and vehicles for street use under the Wheego brand.