Vectrix 2007 MAXI Scooter sales severely disappointing
Filed under: EV/Plug-in, On Two Wheels, Vectrix
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?
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Reader Comments (Page 1 of 2)
1-21-2008 @ 11:17AM
mike said...
If I only had an extra $12,000. Gas is high, home heating oil is high...
Reply
1-21-2008 @ 11:18AM
mike said...
Where are the rich when you need them? Why aren't the rich helping this guy innovate?
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1-21-2008 @ 11:22AM
Dad said...
" (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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1-21-2008 @ 11:50AM
Tim said...
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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1-21-2008 @ 11:52AM
MarkR said...
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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1-21-2008 @ 12:14PM
calebe said...
$12000. About $8000 to expensive.Plain and simple.
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1-21-2008 @ 12:25PM
David said...
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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1-21-2008 @ 12:25PM
zaedrus said...
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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1-21-2008 @ 12:52PM
Mikael said...
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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1-21-2008 @ 12:54PM
kert said...
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 ...
Reply
1-21-2008 @ 12:56PM
Dan said...
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.
Reply
1-21-2008 @ 1:04PM
Dave said...
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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1-21-2008 @ 1:23PM
Whopper said...
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.
Reply
1-21-2008 @ 1:28PM
Phil L. said...
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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1-21-2008 @ 1:59PM
David said...
Gas Scooter $1,399 new
http://www.vento.com/web/pub/usa/moto_galeria.asp?zone=EUA&Id=16&moto=Zip%20LI
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1-21-2008 @ 2:47PM
Dr. Kenneth Noisewater said...
I'd need at least 100mi range and 80mph freeway-riding capability to justify that price, along with ABS.
Frankly, if they could electrify a BMW C1 or equivalent, with adequate range, that would be IDEAL.
Maybe when those nanosilicon batteries are available and you can get 700+mi per charge...
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1-21-2008 @ 4:32PM
kert said...
:: "I-need-a-scooter-because-I-lost-my-license" crowd
There are plenty of way cheaper electric scooters for these crowds available, like Oxygen.
A few are very good build quality, but hey, 50cc scooters generally arent anyway.
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1-21-2008 @ 4:42PM
kert said...
er .. ouch .. the stock of vectrix has been .. less than spectacular success. symbol VRX.L on yahoo finance.
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1-21-2008 @ 5:14PM
Domenick said...
I have to concur with most of the previous comments. $12,000 for this vehicle is too much. Given it's performance numbers, including range, $8,000 would be much more reasonable. That being said, this is a pretty good product from the feedback I've read from Vectrix buyers. There ought to be enough people with enough money in this country to buy these up. Perhaps they could get some distribution via Hammacher Schlemmer. They already carry the Tango and Myer Motors vehicle.
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1-21-2008 @ 5:18PM
A.Brien said...
Real results compare to the dream of been green. Why pay more and have less autonomy, speed and long
recharge time. Even battery lift-truck are replace by hydrogen fuelcell in some warehouse. The main reason in my point of view for these poor sales
are long recharge time, it's something that will never dissapeer. 4-6 hours when you sleep at home
is easy but if you go far for a while then 4-6 hours if you wait at the restaurant while using the electricity of somebody else is not the same feeling.
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