The all-electric Vectrix will be back in 2010 with new backing. Reorganized under the title New Vectrix, the early signs are encouraging in some ways, yet troubling in others.
First, let’s take a look at the good news. The best-possible scenario for Vectrix was takeover by its largest supplier – Singapore-based Gold Peak Batteries, a subsidiary of the massive Gold Peak Industries out of Hong Kong. Not only does GP have deep pockets, but also is a sales and tech leader in the rechargeable battery business.
Gold Peak - a global rechargeable battery sales and tech leader
Reliable sources indicate GP will transition the flagship Vectrix VX-1 from NiMH to lithium-based technology in the next year or so. A three-wheeled version of the Vectrix (ala Piaggio) is expected soon - lithium powered from the start. The lower-cost models announced last year before bankruptcy are still expected to hit the market this year.
We rec
ognize that Vectrix has to find ways to cut costs and adjust expectations. It would be a mistake, though, if New Vectrix focuses too heavily on fleet sales to college campuses and police departments – sales that came few and far between before the bankruptcy. Fleet sales cannot take off without a higher level of consumer acceptance, not to mention a strong network of dealers offering support. In one of its few early accomplishments, Vectrix made a lot of progress in establishing a diverse dealer network through the efforts of North American Sales Director Chuck Schram. Apparently, it appears that Schram won’t be back at Vectrix – and that signals a less-than-impressive consumer marketing effort from the retooled company. New Vectrix has done very little to indicate that the brand is not only alive, but improvements are on the way. We don’t see signs of a viable brand marketing strategy emerging.
VX-1 - the Vectrix original
As a first effort, we were impressed with the overall quality and performance of the original VX-1. Our test rides brought out wide grins. Surely, the range of all-electric scooters will need to improve in order to achieve substantially increased sales. We believe the GP takeover is a good fit for New Vectrix, and extending range between charge-ups will be a priority under new management. Now, oddly, it looks like getting marketing right might be the highest hurdle for New Vectrix to overcome.
Vectrix UPDATE
Not surprisingly, we heard some feedback from those who have a history with Vectrix. We should give added credit where it’s due based on the efforts of the original management group. Victor Pritzker headed the North American sales effort and guided the ambitious plan that set up 100 dealerships in the first year. Chuck Schram was part of that initial effort, working in the Midwest - where ScooterMaxi.com is located, and then he headed North American sales after restructuring.
In his comments to us, Pritzker spoke about the “can-do spirit” of his Vectrix sales staff that worked successfully to set up the largest electric motorcycle dealership network in the country. The downturn in the economy not only triggered a sharp drop-off within the motorcycle/large scooter segment, but gas prices plummeted and the appeal of all-electric maxi-scooters inevitably suffered. Speaking for the former staff he had directed, Pritzker stated, “Even though all of these individuals are of the highest quality, most-experienced members of the industry, their current employment prospects remain difficult and troubling.”
Pritzker isn’t at all sure where New Vectrix is headed, noting that new managers have “taken over a very troubled company in very troubled times.” So, keeping their plans for the future close to the vest isn’t at all surprising. “The new owners may have taken a very brave step in taking on this challenge; or a very naive one... Only time will tell.”
