Vectrix in trouble, may be for sale
by Jeremy Korzeniewski on Apr 16th 2009 at 9:44AM 
Over the last few weeks, we've heard rumblings around the internet that electric scooter maker Vectrix might not be on firm financial footing. The first signs of trouble became apparent last month as reports from the UK indicated that Vectrix "will not be able to publish its Report and Accounts for the year ended 30 September 2008 until, inter alia, the successful completion of a fund-raising exercise." That caused the London Stock Exchange to halt trading of the company's stock. The latest news from Vectrix sounds equally as discouraging.
On Tuesday, Vectrix announced that, while continuing to look for new funding, the company "will now begin to seek other strategic alternatives which could include a merger or sale of the business." Further, some 60 staff members appear to have been let go, and trading of Vectrix stock remains suspended.
We sent a note to Vectrix last week asking if they could shed any more light on the situation, but we've yet to hear back. Stay tuned.
[Source: Forbes]
Reader Comments (Page 1 of 1)
jharlan 11:13AM (4/16/2009)
For some unknown reason, Americans tend to look down on scooters (they are very popular in the rest of the world). As a scooter owner (Suzuki Burgman 400) I thought this was a cool design, but about 3K over what a comparable, good quality ice scooter should cost. Since scooters don't use much fuel, the premium for an E scooter here may not be economically justifiable. I would think scooter drivers in general don't have a lot of extra cash to throw around for the symbolism of being "greener".
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contact 11:41PM (4/16/2009)
TRUTH.
I was very interested in one until I compared it to my 2004 Honda Reflex 250cc. The used reflex destroys it in performance, range, price, etc. There is NO justification for something this high-priced with less performance.
Having said that I'm buying a new Kymco Xciting 250. Those things fly and get 75mpg.
harlanx6 12:05AM (4/17/2009)
I have heard that Kymco and Sym are good quality scoots, but they dont have any dealers near me. I am getting 60-72MPG with the Burgman 400 according to the onboard computer (which may or may not be accurate) as long as I go easy on the gas and keep it under 60 MPH. It is water cooled and has the latest California smog on it, but I have no idea what it's emissions are. It is very easy on gas.
David Herron 11:56AM (4/16/2009)
We've been discussing this on the V is for Voltage forum..
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David Herron 11:58AM (4/16/2009)
That lost the URL: http://visforvoltage.org/forum/6142-suspension-trading-what-does-it-mean
Richard in FLA 1:19PM (4/16/2009)
I see a few of things wrong with this business model. First, the range and speed. Much too small and too low. Competing with gas powered scooters, most owners don't care about the environment, they care about their wallet. The environment comes second, and that's a distant second. Second is price. Again, this follows the first reason.
Americans have a perception about scooters that says they are too week to make it day in and day out for reliability. Scooters are considered fragile. I've owned two scooter in the past, and can attest to the fact that you get what you pay for. However, the market for scooters is usually to non-affluent people. So the more expensive the scooter is, the less likely to make it in the market. In America, the driving distances are far beyond what they are in Europe (I don't know about other parts of the world), and the speeds are much higher. The perception is that they will break down faster than a motorcycle. For the most part, only well know brands like Honda, Kawasaki, Yamaha, etc. have a good reputation. These are perceived to be reliable. Unknown Chinese and other brands come across as less reliable and not worth the price. But that stigma permeates the other brands and therefore makes them perceived to be as such.
The third is safety. Scooters, with their high center of gravity, make people feel like they could fall over. If you've ever been in a windy situation, you'll no doubt have leaned considerably. Although generally not an issued, if you don't ride scooters, seeing this happen to someone else can scare the living organism out of you. With the open landscape of America, this is something that happens quite frequently.
I hope Vectrix makes it, but I'd have to say, to try to get their price structure down or come out with a different product like a three wheeler that may spark monopolistic demand.
The price of gasoline these days sure is hurting their sale as well. Why would you spend $12k for an electric scooter that needs recharging frequently, when a gasoline powered one will cost you very little and running cost are just as low? Again, it's the wallet that makes the decision. IMHO
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jpm 1:32PM (4/16/2009)
At first glance the the scooter looks bulky and heavy b/c of all that unnecessary plastic. Scooter buyers want a small motorcycle that is light and maneuverable. And besides, using all that plastic detracts from it's greenness.
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George Krpan 5:17PM (4/16/2009)
Vectrix shot too high.
It is an incredible machine but I think they overestimated the market for a maxi scooter.
If you analyzed the costs I think you would find that a Vectrix comes pretty close to a gasoline powered maxi scooter to own and operate.
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JDred 7:58PM (4/16/2009)
Just like Segway, they had a piss-poor business model. If you introduce a new product, pricing high so you can recover investment costs right away often leads to failure. Which is too bad, I was very interested in the Vetrix and it would have suited my needs perfectly. But a 10,000+ I can get a much better gas powered maxi-Scooter that goes farther.
They better start taking notes from Zero, but even Zero has room for improvement.
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V. Srinivasan 10:26PM (5/17/2009)
U.S. is not the right market for Vectrix; they should approach a company like Bajaj Auto in Mumbai, India, who would love such a revolutionary product and would even bail out Vectrix from the present financial situation they are in!
In the product claim as as good as they say it is, they could sell a million scooters (Vectrix) in India over the next few years!
Vectrix may be a sleeping giant, as far as Indian market is concerned!
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Joaquin Medina 1:07PM (6/30/2009)
Hello.My English is limited (I´m spanish). Sorry.
I've owned a 250 cc. gas scooter (Peugeot Geopolis 250): is a good gasoline scooter. Currently. I own a Vectrix VX-1:. The Vectrix is more stable (and confortable) than the gas scooter, the reason is simple: The battery weight about 90 kg. and is situated under: so the Vectrix is heavier compared to the Geopolis but is more stable and more easy to drive. The vectrix accelerates more than the Geopolis. The mas speed is electronically limited to 105 Km/h in the Vectix, the Geopolis has a max velocity higher. I´ve owned the scooter gas for 1 year, and I My Vectrix is 6 months old now. My verdict: I prefer the Vectrix : more stable, more secure (the breaks are very very good), they need no maintenance, and the electricity costs are very small (about 0,70 € /100 km.)
I don´t know if the economical global balance is favorable to the Vectix or nto (the Vectrix price is very high). But I think we need consider another questions (and not only the economical ones): the contamination generated by the Vectrix is considerably smaller: I´ve recently read the people dead for contaminations problems is more than the people dead for traffic accidents, and the traffic accidents is one of the mains causes of mortality here in Europe; and we need preserve our planet (is the only one home we have)
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Neil 11:51PM (7/05/2009)
Richard in Fla:
I think you meant 'weak' right?!
Anyway, I do not wish to bash Americans but you're right in many ways.
Also, most (not all) Americans think they're 'green' but in reality they're anything but.
I thought I'd conduct an experiment a while ago. I picked people with stinking huge SUVs and asked them if they were 'greenies'. Each said a firm unequivocal 'yes'!
My boss just bought an Escalade and thinks she's a 'greenie'.
Here they're long on talk but short on action.
Now to the Vectrix.
I love the bike but I had to rule it out. Read the numbers, its 60 mile range was at 25mph!!
The poor range and marginal top speed rules out about 80% of its potential customers. Including me.
I hadn't heard a dicky bird out of them and now I know why. It's a shame.
I'm sorry Vectrix, I wanted to go green but $10k was just too much.
You can get a Burgman or Silverwing for $8k and as we're in a global slump you can see why they Vectrix faltered.
But you know what? The thing I'm mad about is the fact that Honda or Suzuki could make a viable Escooter, or collaborated with a startup like Vectrix. But they refuse to do it.
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Steve 4:40PM (7/14/2009)
I've owned a Vectrix maxi-scooter for 10 months now and ridden over 4,000 miles. I think it's fantastic and really fits my needs. My daily commute is a round trip of almost 50 miles and I recharge at home and work. I also use it at weekends to go to the shops or just to enjoy it and go for a ride.
My running costs are almost nothing and I'm happy in the knowledge that it'll never need oil, coolant, filters or spark plugs, not to mentioned petrol! People need to be a bit more open minded and look past the price tag. It doesn't take a lot of maths to work out how long it'll be before you break even. Sure, the Vectrix wasn't cheap, but you get what you pay for.
cdansreau 1:57AM (7/27/2009)
i was very interested initially in the Vectrix scooter. This is when they were promoting it for fuel cell usage. the attraction was the 140 mile range. My understanding was that they were also planning an after market home hrydrogen fuel recharging center. My work at that time required a 50 mile round trip and i needed a 25 mile range extension for extra travel. They deviated from the fuel cell concept when the Battery only version of the vectrix went into production. The battery only vehicles are not satisfactory for my commutes.
My experience with Vectrix is disappointing. It took two years to get a battery only vehicle into production from press notice. The fuel cell vehicle initially promoted was cancelled apparently. To top things off they had created a lower performance model as a marketing strategy. Why?? They put themselves right into mainstream competition with a higher priced model. If they had created the fuel cell version, a hybrid, lighter weight batteies, or small charging range extender that could be used in a parking lot they would have survived. My feeling is that when they stopped developing things that would increase the range their ship started to sink.
Charlie
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Larry 3:07PM (8/05/2009)
I just saw one of these for sale in Wichita, KS for $8500 (new).
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