Date: 31 March 2009On behalf of: Vectrix Corporation ("Vectrix" or "the Company")
Embargoed until: 0730hrs
Vectrix Announces Suspension of Trading Pending Publication of Accounts
http://investing.thisismoney.co.uk/security.cgi?csi=113276&action=news&story_id=2689352&rns=1
What - if anything - does this mean for current or prospective owners?
Does anyone know if the day-to-day operations are still running, like delivery of parts and new scooters, warranty repairs etc?
Ooooooooooooooo that's not a good sign. At all.
I see they're traded on a british stock market so the rules may be different than what I'm accustomed. When I've seen that phrase "suspended trading" with an American stock, it means the company failed to meet some certain requirement set by either the Securities and Exchange Commission (SEC) or the market they were trading in.
For example that article you linked mentioned failing to file papers. The SEC requires quarterly reports and an annual report, and they require the report be filed within a certain number of days of the end of the given quarter. But for there are various reasons a company may be unable to file the reports. Not all of which are they're about to go belly up ... There may be pending issues that a company has to clear up before it can be disclosed in the report, for example. It's not like I'm an expert on this, just half remembering things I've read in passing while managing my investments.
The markets also have requirements for a company to remain traded on a given exchange. Depends on the rules set by the specific exchange. For example I understand NASDAQ stocks have to remain above $5/share and if they fall below $5/share that it be for a short period of time else they'll be dumped from NASDAQ.
That article talked about needing more funding. Hurm, not a good sign. I know y'all have had a concern about their burn rate and whether Vectrix is long-term viable. They are a startup company and every startup company has a period where they're taking in less than their cost of running the business. Usually it means ramping up sales enough so their profit per unit times their volume is enough to sustain the business.
Being suspended from trading doesn't directly mean they're about to die. It's not a good sign though. Expect them to be tight-lipped about problems because they clearly don't want to spook the customers.
- David Herron, The Long Tail Pipe, davidherron.com, 7gen.com, What is Reiki
First 2 quarters of the year is the most important time for motorbike companies, when they sell the most. Vectrix should try to survive at least another quarter. They should also lower the MSRP (like last year) to their minimum to keep their stock go out.
Their current price per stock:
http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=USU923501048JEGBXAIM%20B0B6244VRX
Hi Everyone,
The writing has been on the wall for some time, it's a really sad time for all of us who have held on to the Vectrix dream for so long. It looks like those of us who own a Vectrix will now have to stick together and help each other out as best we can should we encounter any problems with our bikes. I am proposing to set up an initial website where we can collate any techical information about the Vectrix. I will post further details of this website on this and any other V is for Voltage forum just as soon as I have it set up. In the meantime please keep posting your messages.
George
Or, you could just use V.. right? What features would you need..?
- David Herron, The Long Tail Pipe, davidherron.com, 7gen.com, What is Reiki
How coincidental is that...I'm just in the process (meaning today) of finishing to set up a Vectrix Enthousiast website. It has most community website features (profile, friends, groups, picture albums, blogs, forum, etc...). I'm offering to use it to keep the Vectrix community alive.
I'm pretty new to the Vectrix community, I've owned a peugeot scootelec for a long time and was about to plan ang get a VX-2. Since I'm a professional webmaster and quite impatient, I've set up the website in the meantime.
here's the link: www.vectrixfan.com
Give me your thoughts and ideas, the forum has no sections yet and I could need your help to get it organised.
Cheers, and lets keep the Vectrix alive!!!!
what i hope that does not mean vectrix is finished does it?
Not necessarily. I wouldn't hire the grave diggers just yet. There are several options that a struggling company can persue, such as sale of the company, bankruptcy/restructuring, partnering with a stronger company, etc.
The Vectrix concept is a strong and proven one, and although any young company (and many old ones) will suffer terribly during tough economic times, if the product and design are good, those alone can survive a dormant period until someone else comes in with the backing to flip the switches back on (The Corbin Sparrow / Meyers Motors NMG is a perfect example, although they have practically priced themselves into collector car status these days).
If the company does stumble a bit, or is forced to take a nap, those of us lucky enough to already own one of these bikes will still have all the benefits that we sought adn bought, except for warranty repairs for those who are not quite so lucky. (Mik may find himself a global repairman position! ;-) But there WILL likely be a Vectrix in the future after the dust settles. After all, its a great design, a great product, and the component tooling is already there.
If all else fails, we still have a vehicle that was designed from the ground up to run off batteries. We may just be forced to convert them to open source components some day, but they should be easier to convert than converting an ICE bike.
Considering the love the current owners have for their vectrix scooters, I have high hopes of being able to keep them on the road for quite some time. We shall join together to offer knowlage and barted parts.
Something similar to the locked "Technical Reference Area"on Endless Sphere might work.
That stops good threads from getting cluttered. Only certain people have write access to it.
Good posts from other threads could also be copied into that area as "sticky threads".
In the Vectrix Technical Resources thread I tried to start collating such information, but the time constraints, and the general "forum behavior" was such that I just reverted back to posting interesting stuff in whatever thread was currently active and relevant.
My V-blog is also in a state of neglect due to time constraints. I tried to link to various interesting posts in the blog, but did not follow through with it. Too busy building the Vectux M-BMS and hazard lights etc...
But if anyone has the time to trawl VisforVoltage for posts of special interest for Vectrix repairs, then s/he could just start a much more comprehensive list of links with brief summaries on her/his blog. That way the list of links can be changed and updated repeatedly.
Easier than starting a new website, isn't it?
This information may be used entirely at your own risk.
There is always a way if there is no other way!
And here is some proof that it can indeed be done:
7777km total on my second Vectrix until today! (That is with one battery and might be a record if you consider that the batteries in other Vectrixes were replaced during the worldwide battery recall in 2008)
5289km since the Warranty was voided by Vectrix and I renamed the scooter to "Vectux". The
gearbox noise reduction procedure happened just before that, and the gearbox continues to run at reduced, even noise levels.
The side stand repair also continues to work well since then.
4954km since I fixed the Motor Controller Board for practically zero cost. (Vectrix Australia had "quoted" AU$2585.- for replacing it!)
4672km since I installed a Bussman motor controller fuse. That is way more than I ever got out of a stock fuse installed by Vectrix, and still running!
1700km since I reworked the battery and installed the M-BMS. Full details on ES.
No Warranty, No Worries, mate!
This information may be used entirely at your own risk.
There is always a way if there is no other way!
So if Vectrix did go under (I hope they dont, but being the director of two companies myself, I have to be realistic here) - would there be any legal rights for the current owners to get hold of their diagnostic software, so that we are able to support our own product that we legally own?
That's typically not the case. Typically the software assets owned by a company can be sold to other companies to defray the creditors, right? For example there are other companies trying to sell electric scooters perhaps one of them would want the Vectrix software to give them a leg up on an advanced scooter design.
- David Herron, The Long Tail Pipe, davidherron.com, 7gen.com, What is Reiki
Re: info clearinghouse
I have learned more about my Vectrix from this forum than everywhere else combined, but it would be nice to have a wiki instead of mining this collection of facts-of-varying-reliability for information. I'm sure there are still threads I haven't discovered yet.
Anyone have a server for a wiki? Or, we could easily share a Google Sites instance.
Arlo
I guess many of the Vectrix readers have the "Vectrix Page" bookmarked and do not even see what else is going on on VisforVoltage.
http://visforvoltage.org/forum/2775-vectrix-technical-resources is now a "Collaborative Handbook" page, which means that "Child pages" can be created. These seem to remain editable by the original author, but others can comment on them. So the content can be discussed and improved, with the best stuff staying on top, so to say!
I have started to drop links to interesting topics in there and have created some new child pages about the Inrush Current Limiter.
There are many interesting Vectrix sub-topics with some links in the replies to the
http://visforvoltage.org/forum/2775-vectrix-technical-resources thread.
Anyone interested in contributing could pick any topic s/he likes, create a "Child Page" in there and condense the lessons learned on VisforVoltage and elsewhere.
This information may be used entirely at your own risk.
There is always a way if there is no other way!
I had an email from Vectrix (UK) today relating to an outstanding firmware update on my bike today, so they are clearly still running for the moment. In fact he advised they were very busy at the moment.
Will keep an open eye on it for the moment - prepare for the worst but expect the best and all that...
A little knowledge is a dangerous thing.
Reading the actual release, the news related to the trading of SHARES, not bikes - and the only people affected directly will be shareholders (or potential shareholders). I see no problems at all with continuing to support Vectrix and hoping that they get their finances in order for the years to come.
Ill-informed speculation doesn't help owners and the company-so do bear this in mind. Vultures like misery, so there's no point in giving them a feeding frenzy/
- Raymond
Very good point - however I would have thought that Vectrix would have put an update on their "press releases" section, or somewhere on their website so that people wont be concerned if this is the case. It may put people off buying bikes otherwise thus putting them in a worse position
Would you pay £xxxx to a company that may not actually be in a position to deliver your bike, from a point of view like myself that knows little about the shares system, based purely on their balance sheet? Not talking small sums of money here.
Hi everyone,
For what it's worth here's my take on the situation.
1. The Vectrix is an amazing scooter ... by far the best electric scooter currently on the market ...with blistering acceleration and performance, as all current owners know.
2. None of us want to see Vectrix go under ... far from it ... we want to see them thrive and lead the way.
However, there have been several factors recently which give me cause for concern :
3. At the back end of last year there was a price hike of £1,000 on top of the already steep retail price which has brought the selling price up to just under £7,000.In the present economic climate who can afford this price?
4. At the same time they downgraded the stated range of the Vectrix from 68 miles to a mere 35 - 55 miles ! Not very impressive!
5. They've launched a new 50mph Version called the VX-1E with .... wait for it ... Lead Acid batteries ... and a stated range ( when the weather's warm ) of just 20 - 30 miles. To quote their own website blurb : The best news of all? The VX-1E brings all this at a surprisingly affordable price .... of almost £6,000 !
6. They also have a further model in the pipeline, called the Vectrix VX-2, which is in fact a re-badged, Chinese-made Emax. As far as I can learn it will have silicon lead batteries, a range of 40 - 55 miles, but sadly no regenerative braking. It will be available for around £3,695 ( There are plenty of Chinese-made, electric mopeds with similar performance on Ebay with prices ranging from £795 - £1,500 ).
7. Then there is the financial situation of the company .... probably very dire .... but nobody knows for sure just how bad, as they haven't posted their annual accounts for the year ending 31st March 2009 ... hence the reason their shares have been suspended from trading on the London Stockmarket.
I, like other Vectrix owners would appreciate some reassurance from the company that they will still be around to support us in the future.
George
No company can give you that kind of reassurance. Without customers, it ain't possible. WE are Vectrix's greatest asset, yet so many here are already declaring them dead and gone. That's unfortunate, as the economy itself throws a huge punch in every company's face, we shouldn't be throwing a second one right behind it.
All Vectrix needs to survive is another round of OPEC screwing. Gas went back down to socially acceptable levels and the economy took a dive, neither of which is good for any energy conservation company.
Let's wish them all the best, and sing praises to them, instead of walking away.
This would be quite difficult for them. The release (concerning the suspension of SHARE trading) was a requirement of their seeking a delay in the filing of their financials. Adding any further comment could possibly exacerbate the situation further. As long as they answer the phone, service the machines and continue to innovate, I won;t worry too much.
I don't know if you've seen the latest 'vehicle' from the GM/Segway ideas factory? That looks like a revamped Sinclair C5 and destined for oblivion - something good old Vectrix should comfortably avid!
- Raymond
Yes, I've seen it and it's ugly. It's strange, that our national TV's website reported it in the headline as the fastest electric two wheeler on the road.
I posted a comment negating their statement and linking to Youtube videos of Killacycle and Vectrix.
News reporters, today, have become useless.
If you're talking about that goofy cage looking thing I saw on Fox News this morning, good lord! What's with these "future of transportation" companies? Why do they think the average vehicle owner wants to ride/drive something that is embarrassing to own, to say the least?
My Vectrix is pushing the limits of what I am comfortable being seen on, and although I have no use for "sport bike" styling, I secretly wish they would spend some development time on a change of body style, rather than adding different performance versions of the same basic machine. In America, scooters are NOT the norm, and although this is one of the best looking scooters around, it won't "blend in" with the majority of our rides.
The same goes for the cute, but sticks out like a sore thumb, NMG from Myers Motors, and the way too futuristic for this quarter century Aptera.
Is there any wonder the Prius is the number one selling car in America? Not only is it the most fuel efficient offering we have, but although it ain't exactly pretty, it doesn't look like it brought you here from another planet! HAHA!! ;-)
If an alien is going to survive on THIS planet, he dang well better look like you're average Joe on the outside!! HAHA!!! :-)
This is what we're talking about, right?
Maybe Vectrix EU could apply for this (since it's produced in Poland):
EU bank grants $1.2 billion in loans for clean cars
no wonder gm is in trouble, they are wasting thier time and money on this segway thing...they should have gone in with vectrix and never have trashed thier ev-1 years ago...they would be way ahead...but nooooo they have to listen to bush and the oil companies...now they are getting it good..its too bad...but i still want a vectrix..lol
At least this time GM didnt make the mistake to create a good looking functional car like vehicle (EV1) which is accepted by buyers and which then had to be forcefully withdrawn from the market (cumpulsive recalls) and crashed by GM to follow GM's internal strategy (Bush and Oil companies???). The new vehicle will simply crash from day one as there will be no customers willing to look like an idiot in a rubbish bin on wheels. The big automotive industry sinply has no interest in creating oconomical vehicles which will reduce revenues from oil and maintenance industry. A shame . . .
Reffering to GM, (i dont want them to bust) but they seriously deserve to bust, same as chrysler and all those Auto companies who have desperately tried to stop Automobile evolution, like they did with TUCKER 50 or 60 years ago. By impeding a new company with revolutonary ideas like; seatbelts, turning headlights, Aerodinamic design etc.. etc.. these would have forced them to invest and keep investing to be up to date.It was easier to join (the big three) and make life impossible for TUCKER with the help of .....(goverments,judges, whatever)
Now, TESLA, FISKER, VECTRIX and others are the new TUCKERS and the goverment should be helping them and not GM, Chrysler and Ford.
By the way this Segway is rubbish but what about the three wheel ZAP? isnt that even worse?
Excellent visual!! :-)
Vectrix just had another round of layoffs. The only people left in New Bedford are the core, fist full of people who started with the company before they went public. A single Electrical Engineer, Mechanical Engineer, Technician, Customer Service Rep, local clown, and Senior Manager are all that remain. The factory in Poland is all but shut down with only eight people there to sweep the floors, ship repair parts, work on finding another use for the factory, and turn out the lights. Supposedly, this cost cutting will allow operations until September of 2009 but that is likely predicated on an unrealistic spring/summer sales number that could only be met if gas tops $5/gal in the US (not bloody likely).
The word is that Vectrix is up for sale. Suspended trading is likely because the company is looking at either bankruptcy, pending sale of the company, or recapitalization from a big new investor. In light of the the recent massive layoff, a new investor is not likely. As there is no company interested in assuming the massive debt Vectrix has accumulated in these days of tight credit, a sale can almost be ruled out. If the spring sales numbers are as poor as the economy predicts, I would bet on chapter 7.
I hope Obama and the US government wakes up and bails out an idea worth saving...
Well, this makes me truly sad.
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