Gas Prices about to Explode, get ready for EV and Scooter Sales

We need to take a serious look at what's happening in the US Powersports Sector, I think this will be an important topic in two weeks at the Dealer Expo. I feel that having lost over 300 scooter shops in the last two year our industry is unprepared for what is going to happen this summer.



A lack of trained dealers, good dealers with no cash, and a saturation of fly by night Chinese companies with no regard for warranties, parts, or consumer rights could further damage our industry despite a quick rise in sales. Also, another 2008 rise would be unsustainable. Many of us are still recovering from what happened last time.



I don't think oil prices will increase to the 2008 levels of $147 a barrel, but they are going to go up. Anyone watching the news in America can see that the oil-futures contracts rose to the highest level on record this year Friday, spurred by unrest in Egypt that could threaten key oil shipments. Worse case scenario the president leaves, some new people take over and they might not be very friendly with Israel ensuring that gas prices go up.



Either way America needs energy independence. The whole Middle east is way too volatile. I've been blogging about Chavez in Venezuela for months now and he's not a fan of Obama or anything related to the US, if anything he's helping the FARC and other organizations that aren't exactly friendly to us either. To put it in simple terms we need to stop sending money to dictators and rich Middle East pseudo-monarchy's.



Some thoughts going into Dealer Expo this year



We need EV companies that actually want to invest in the industry and produce products that are:

1. Affordable

2. Profitable for the stores

3. Easy to finance

4. and Work - this is the key since most of the EV Motorcycles dont work or are too expensive when they do work.



Some companies in Taiwan have some great mid-range comparable to the 50cc - 100cc units for example the MIO electric by SYM http://www.youtube.com/watch?v=5-OywwS_pl4





Kymco, ETON, PGO are all working on their own solar/EV/Hybrid combos and they have the US scooter market in the US with established distribution models, but their technology isn't as good as some of the new start ups.



Then you have some of the new companies in the US like Vectrix, Current Motors, and others who are new and don't have the distribution or dealer network. You can't just buy into a distribution network - it takes years to build. So it's the chicken and the egg for many of these companies that can't live off investors or shares forever much like the original Vectrix did.



= See the Scooter Maven working on the first Vectrix prototype back in 2005 below.

http://www.youtube.com/watch?v=LNfLCtrbvak





http://www.youtube.com/watch?v=LsBJGUaHTlg





So you have to have sales. You also need more federal incentives because once the local and state incentives run out, the companies will either leave for China, close up in the USA or declare bankruptcy like Vectrix did and leave US consumers with a bunch of EV units that have no warranty.



We need clear objectives.

http://www.youtube.com/watch?v=ob-AKS_PtZk







The US Scooter Industry



1. We need to train the dealer network. Selling the cheapest Chinese scooter further destroys the business.

2. We need to show them how to check for DOT, EPA, and liability insurance

3. Step away from the fly by night guys, one lawsuit could cost you your business

4. Focus on long term profits like service and parts. The money gentlemen is in the parts and in repairing / servicing all brands of scooters.



440,000 motorcycles were sold in the USA in 2010. That means that there were 82,000 units less than in 2009 for MIC ( Motorcycle Industry Council ) members reported. This really is just the tip of the iceberg because companies like United Motors, Keeway, TNG scooters, CPI, Diamo and others never reported how many ATVs, Scooters, EV Electric scooters, or Motorcycles they sold. So of the 30 plus second and third tier brands none of those were ever factored in the good or bad years like 2007 to 2010 so you have a huge gap in what the numbers really mean. To me it means over 300 scooter dealers closed and with good reason because the market couldn't sustain them.



Now we enter a new phase where some counties and cities only have one scooter shop.



Will you meet the demand as gas prices go up? or will you help create your own competition because you don't rise to the market challenges of 2011 as gas prices go up? These are the questions the industry will face as 2011 has sales rise again for the first time in 2 years.



All that is needed now is for the dealer base to target them as the price of gas rises and to sell good products. Remember every unit is someones first scooter so why ruin a lifelong client by selling him an inferior product. Maybe its just me, but I know this is part of the problem with the industry.



DEALER EXPO 2011

Some thoughts on where we need to steer the conversation this year at the Dealer Expo for the conferences.



Our time is limited, I will be speaking at two meeting halls and the rest of the time at our booth. At the booth we need to sell like all companies, but I want to hear where the industry is going, have fun, and make sure we do it in a way that is sustainable.



A lot of people made a lot of money in 2007/2008 and got out. Many who stayed closed in 2009/2010. I hate to see a repeat of this roller coaster, we have to make sure the business continues in the right way and be it electric or gas powered scooters that we are going in the right direction.





For more information on finding used scooter parts follow the link to the current issue of Scoot Magazine with the Scooter Maven article on how to find parts.



http://scootmagazine.zt02.net/zetanextpages/ScootMagazine_Dec_2010.html?currentState=32_S



If you need more help finding parts or need more articles visit our site www.mrp-speed.com



MRP distributes OEM parts for TNG (CMSI) select models of CF Moto Daelim Motors Korea ( parts should appear on website by mid July) Malaguti of Italy (www.Malaguti.com) Keeway Southeast (Keeway Vento QJ Andretti Yamati models)

CPI Taiwan Powersports Factory Brands PSF Diamo Cubik (matches OEM Vento part numbers) as well as QJ and ZNEN (who manufacture bikes for a variety of scooter importers) such as FlyScooters Lance BMS Qlink models that were ZNEN corresponding to matching TNG parts. Every scooter is someone's first ride we help the dealers and consumers find those hard to find parts. Doesn't matter what brand it is we've been doing the Chinese scooter parts thing since 2004 so we can help you find the right part. Since January 2009 MRP has expanded by acquiring the QJ -- Keeway Southeast distribution parts warehouse the Diamo USA / LS Motorsports / Italjet USA parts warehouse CPI -- TAIWAN Distribution and TNG Scooters. The company has OEM parts for Malaguti scooters of Italy Benelli (acquired by QJ in 2006) the Italian brand now made in China and sold in the USA under the Andretti name MH Motorhispania of Spain RX Loncin Lifan Linhai Zongshen Wangye MS UTVs and CPI Taiwan.



MRP is the only source for UMGLOBAL United Motors of America scooter parts now that United Motors (www.UMGlobal.com) has closed in the USA. We also offer Hyosung parts as well Franco Morini kits for scooters.



In addition the company distributes performance parts from Athena Malossi Turbo Kit Innova Vee Rubber Duro Bando Gates Powerlink Posh Maxxis Namura Scooter Ninja Slipstreamer and MRP. Products carried by MRP can be obtain exclusively at select Motorcycle Dealerships and Repair Shops in the USA. MRP is the one stop wholesale ONLY scooter buggy and ATV parts distributor.





For a list of retailers visit www.mrp-speed.com When it comes to parts we have it all: From Scooters to Chinese UTVs we got it.