Vectrix 2007 MAXI Scooter sales severely disappointing
On January 15, Vectrix released a regulatory announcement titled "Preliminary Results." Thanks to some ABG reader comments that pointed out some just how bad the news is in this report, I thought it'd be a good idea to mention this on the front page. The short version: In 2007, Vectrix built 2,002 vehicles (the $12,000 scooter seen above) but sold just 123 of them and now has had a lot of debt.
Here are some key quotes from the statement:
During the 2007 financial year, we built 1,775 vehicles and sold in to dealers 462 of which 68 sold out to consumers. Through calendar 2007, we have built 2,002 vehicles and sold in 550 to dealers of which 123 sold out to consumers. The key financial impact of this is that for financial 2007 production and sales were not aligned and, as a result, both accounts receivable and inventory are much higher than expected. As we began financial 2008, we adjusted production due to slower than expected sales and we are increasing the number of dealers in our distribution network to accelerate vehicle sell through. [...]
While the Company has launched an innovative vehicle and created significant product awareness with consumers, dealers and government officials in the EU, North America and Australia, we have been slow to convert enthusiasm into consumer sales and as a consequence our sales results are running significantly below management's pre-IPO expectations. As a result of lower than expected sales and higher that [sic] expected inventories and a U.S. GAAP requirement that we forecast in a manner consistent with historical sales and trends, we incurred a US$9.1 million charge in cost of goods sold related to batteries and finished goods.
You can read the entire thing at the London Stock Exchange website. The question for us is, how long should we wait before we put Vectrix in the has-been pile? 2007 saw the launch of the MAXI Scooter, and Vectrix does have dealerships in seven countries now - will 2008 be the year these expensive but cool electric scooters catch on? And what's happening with the 1,879 unsold scooters?
Gallery: Vectrix Electric Scooter
Related:
[Source: London Stock Exchange.com]
Reader Comments (Page 1 of 2)
Dennis 2:39AM (1/27/2008)
Dan, I agree. The Vectrix is in a whole different class. Who wouldn't want a highway capable electric scooter? The Vectrix has captured the imagination of people who had doubts on the viability of commuting via an electric scooter but for a wider acceptance level, I feel that the price point would always be a major consideration for most. The scooter I have was manufactured in China, powered by lead acid battery w/ 60 volts rated at approx 2HP. It might not be as sexy as the Vectrix nor as quick but it gets the job done. I purchased it from a company called Mobius Business Dev. Inc. that introduced electric bikes / scooters in the Philippines. I'll try to post a pic if I can.
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Creakyneck 10:01PM (1/28/2008)
Been following the Vectrix for some time now. Basically a good design with available technology, and oh so glad it DOES NOT lOOK LIKE A HARDLEY ABLESON...
But the bottom line is price...just way too expensive, and always a "fair weather machine". As I told Vectrix in a survey, at that price, you're already halfway to a Prious, or very close to a cheap sub-compact.
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xvexsales 10:47AM (1/30/2008)
for all UK Interests
you can buy the Vectrix in London Harrods,
But you get the best price in Roma , Italy !!!
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phil easler 2:49PM (2/07/2008)
I seriously looked at the Vectrix which was said to come in at $8000/$8500, then I found out it was $11K plus shipping/tax for another $1K. Then I did some research on EVTA R-20, only goes about 40mph but only cost $2K, just 20% of the Vectrix, guess which one people will buy. Too bad it is a nice darn e-cycle, hope they make it.
Phil
Phil
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elmo033057 6:34PM (3/20/2008)
The Vectrix is a spendy piece of equipment, there is no doubt. many of the electric car/bike/scooter detractors whine that we will have to build many more power plants to keep all of these electric vehicles running. I have, however, seen a man use solar electricity to charge his electric volkswagon. Check it out on You Tube I think he calls it the "Volt". Anyway, the reason we have not moved ahead in this field of alternative energy vehicles is because the New World Odor crowd doesn't want us to have any freedom. They give our leaders their marching orders and keep stuff like this under their control. Just my thoughts....
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mike 11:17AM (1/21/2008)
If I only had an extra $12,000. Gas is high, home heating oil is high...
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mike 11:18AM (1/21/2008)
Where are the rich when you need them? Why aren't the rich helping this guy innovate?
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Dad 11:22AM (1/21/2008)
" (the $12,000 scooter seen above) but sold just 123 of them and now has had a lot of debt"
People vote (buy)with their pocket books. Being "green" is fun to talk about, but spending your green is completely different thing.
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Harry 10:55PM (1/22/2008)
You'd think that they would have done market research to prove that people would really want to shell out that kind of money for the machine.
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Tim 11:50AM (1/21/2008)
Form is as important as function. "Motorcycles" are a fashion statment.
Too bad the Vetrix looks like it was designed by and for French homosexuals.
Things may be different if it looked like a Harley.
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MarkR 11:52AM (1/21/2008)
Scooters never made sense to me. Basically I can do everything the scooter can by riding my bike. Might not go as fast, but I can live with that and my cost for a bicycle is about 1/12th of that of a scooter. and fuel cost just means I might need to eat a little more, no impact on my electric bill etc. and If I need more that my bike I just saddle up my truck.
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calebe 12:14PM (1/21/2008)
$12000. About $8000 to expensive.Plain and simple.
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zaedrus 12:25PM (1/21/2008)
The results aren't surprising by any means.
A huge part of the market for scooters are those who can't get a drivers license - ex-cons and 14 year olds. Considering most of them are stretching for an $800 (used) vehicle, Vectrix is relying on a much smaller part of the market.
And as much as I'D love to have an electric two wheeler (brammo), buying a conventional (4-stroke) scooter at $2000 would still be a "greener" choice than driving my car - and I can actually afford it.
It's simple economics:
1) People do things because they can afford to
2) There a lot more people who can afford less than there are who can afford more.
3) "Green" has to be competitive to survive its own fad.
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David 12:25PM (1/21/2008)
Very simple - to expensive. I would feel like I got ripped off if I spend twelve grand for an electric scooter.
Pricing should be similar to the gas version with a very small premium, then they would sell plenty of them.
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Mikael 12:52PM (1/21/2008)
Why don't they change their business model and follow what "Project Better Place" is planning to do (see previous post)? This way, they could reduce the price (lower than gas model) and rent the battery. The cost benefits of using an electric vehicle would be immediate to the user.
The comparison shown on their website is not so much encouraging: http://www.vectrix.com/Portal/3/Language/46/Page/19/Cost_Comparisons.aspx
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Dan 12:56PM (1/21/2008)
Even gas scooters aren't that cheap these days. A 400cc scooter like a Suzuki Burgman costs over $6000. The Vectrix weighs 450lbs, heavier than some motorcycles, and you need a motorcycle license to ride it. It accelerates faster than most cars, and it's (just barely) freeway legal.
Maxi scooters (gas and electric) are really like more user-friendly motorcycles.
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kert 12:54PM (1/21/2008)
Vectrix isnt actually that expensive when compared to its direct rivals : Silver Wing and T-Max.
I was considering getting one when the riding season starts, but the closest place to get it is UK ...
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Dave 1:04PM (1/21/2008)
This is disappointing news as an advocate for anything electric. I however, need a sedan and will not buy one till a reasonable sedan that is safe and affordable ($35-40K) is available. Vetrix should either lower the price or start marketing like crazy.
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Whopper 1:23PM (1/21/2008)
While I wouldn't want one, you could purchase a Vento Colt for about $3K. It is a 249cc Harley Look-alike. Gets about 70 mpg, top speed around 80 mph and weighs in about 360 lbs.
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Phil L. 1:28PM (1/21/2008)
zaedrus -
Laws in most states are written so that scooters in the over-50ccc class require a motorcycle license. The Vectrix is clearly well beyond this class, and so wouldn't apply to the "I-need-a-scooter-because-I-lost-my-license" crowd, even if they could afford it.
Personally, I like what I see of the Vectrix, though I'm simply not in that price range. Plus there's no dealer anywhere near me. And it was 8 degrees F this morning. 'Nuff said.
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