Suspension of Trading - What does it mean?

Angus, this is sad to hear but do you have a reference for this? e.g. was this in a news article somewhere?

Suffice it to say that the information is accurate having come to me from a reliable source who does not want to be named. That is all I can say.

It is important to note that if Vectrix pulls off a good sales in the US and Europe for the spring/summer/fall riding season, they could emerge from this with a lot of interest from potential investors. This could lead to another round of capitol investment which would turn the lights back on in the factory (wherever that might be - it may make sense to move it to the states as shipping costs are higher than the labor cost differential). For this to happen, there needs to be strong support from the dealers to push the product. The only problem with this is that the scooter has a very high fixed price that forces a low dealer margin. This cuts out a lot of sales commission, meaning less profit for the dealer/salesman at the point of sale. This tends to make the salesmen more likely to gently guide a potential customer away from the Vectrix and onto a scooter that puts more green in the salesman's pocket. This is a real problem leading to distrust between the dealers and Vectrix, each blaming the other for low sales volume. If Vectrix would raise the dealer incentives and lower the price, sales might improve.

Even then, the price tag at the time of purchase decision becomes a very big issue. When you can buy a 500cc Chinese scooter that gets 15 miles to the liter for one third the cost of owning a Vectrix, a Suzuki for under two thirds, the difference is hard to justify to the customer. It is not likely the customer in the states would recover the cost differential over the length of time of ownership. Fuel is by far too inexpensive in the states whereas in Europe, the cost differentials are much higher, play heavy on the sales decision, and are likely recoverable over the life of the scooter.

Bad timing and bad decision making have placed Vectrix at a critical crossroads. I pray their leadership can choose the right path. Even then, they will need a lot of luck with external factors beyond their control. As they have cut almost every employee who is not management or sales, there is no margin left for error. There will be no more reports of layoffs and cost cutting. Those that are left will either turn it around or drive it under. There is no middle ground left.

I am going to buy a second VX scooter. We all should do this. This would ensure repair parts if the company does go under and possibly help give the necessary sales volume to keep Vectrix in business.

For the Europe, Vectrix have/had 2 skilled engineers from Poland and they traveled regularly throughout Europe dealers and teach them repairing the bike. One of them came directly to my home to replace my air plenum and calibrate the throttle, so I can only say that I was very satisfied my customer support so far.

I really really really really hope, they make it through the recession, because they have such a fine product and it would be a BIG waste for the human kind to let that kind of product fail.

If Vectrix does go under and my bike is unrepairable, I will probably donate it to the Technical Museum of Bistra (in my country) as my Vectrix is the only one in Slovenia:
http://johny-papagaj.moj-album.com/album/4943955/

Maybe Vectrix EU could apply for this (since it's produced in Poland):

EU bank grants $1.2 billion in loans for clean cars

(My English is limited. Sorry.)

Can we aid to Vectrix?
Perhaps this needs a new thread; but can we (the EU residents) write a letter to to the competents EU representative about this subject?. The United States residents can write to this representative, and perhaps if we are a sufficient number perhaps we can do something. I think in EU and U.S.A only due than Vectrix is a USA-EU based company.
I can write a letter in spanish , but my english is not so good, so I need help to write this letter in english.
Anyone know if Vectrix has solicited some aid to EU/USA ?
Regards.

You make a good point - since Landrover - makers of huge engined vehicles that the environmentalists tend to hit on quite a lot recently got a grant to make energy efficient vehicle, I think Vectrix being a startup, and a good one focused around customer service, would be a better idea to put some money into.

I think Vectrix made the big mistake of making the product initially too expensive - I think they would have sold a lot more units if they had come in at the price I had originally purchased mine at. - £7,000+ for the original purchase price was just too much!

My own opinion, I dont care about the environment, I dont care about saving the planet as I strongly believe that the planet does not need saving, and will correct itself if required - however I love the vectrix as a vehicle - I find it fun alongside my petrol bike and diesel car and it most certainly fills a gap.

Maybe if Vectrix started marketing more towards the fun and power aspect rather than the green aspect, they would sell more. As we are in a recession, its amazing the amount of people that I know who were devout greenies, who are now less green now that being green is starting to hit their wallets.... Strange how quickly principles fold when your mortgage is at stake ;)

My own opinion, I dont care about the environment, I dont care about saving the planet as I strongly believe that the planet does not need saving, and will correct itself if required - however I love the vectrix as a vehicle - I find it fun alongside my petrol bike and diesel car and it most certainly fills a gap.

I am a "poster child" for green living. I don't own a wind turbine, don't use geothermal heating and cooling for my home, own four gas burning vehicles, a clothes dryer, a microwave oven, and I keep my house temps comfortable. I'm green because I chose not to have children. There are no untold future generations of energy and food consumers and garbage generators left from my existance here. When my wife and I are gone, someone else will take all of our stuff and use it (the ultimate recycle program). No one who produces children can ever hope to conserve enough to create a smaller impact on the planet than I already have.

I bought my Vectrix because it's the perfect (and fun) answer to about half of my commuting needs. My truck serves the other half quite well. I sincerely hope that Vectrix can weather the storm of tough economics. I don't think they did a single thing wrong other than to get on their feet at a perfectly bad time. Just when they were starting to roll, the winter set in, the world markets took a dive, and gas prices went down. Nobody's buying ANYTHING, nobody's investing, and Vectrix may not be strong enough to outlast this "turtle shell" period of ultra conservative buying. If that turns out to be the case, then I'm very glad to already HAVE one in my driveway.

My own opinion, I dont care about the environment, I dont care about saving the planet as I strongly believe that the planet does not need saving, and will correct itself if required.....

And the planet (our environment) does not care for us. It does indeed not need saving, it will just correct the problem - that's our presence and exponential population growth!

Exactly.. the thing which needs saving is our own existence on this planet. Or more likely, the continued existence of the society we live in today.

But.. y'know.. this is off-topic for the vectrix thread so let's take this line of discussion elsewhere.. ;-)

My own opinion, I dont care about the environment, I dont care about saving the planet as I strongly believe that the planet does not need saving, and will correct itself if required - however I love the vectrix as a vehicle - I find it fun alongside my petrol bike and diesel car and it most certainly fills a gap.

I am a "poster child" for green living. I don't own a wind turbine, don't use geothermal heating and cooling for my home, own four gas burning vehicles, a clothes dryer, a microwave oven, and I keep my house temps comfortable. I'm green because I chose not to have children. There are no untold future generations of energy and food consumers and garbage generators left from my existance here. When my wife and I are gone, someone else will take all of our stuff and use it (the ultimate recycle program). No one who produces children can ever hope to conserve enough to create a smaller impact on the planet than I already have.

I bought my Vectrix because it's the perfect (and fun) answer to about half of my commuting needs. My truck serves the other half quite well. I sincerely hope that Vectrix can weather the storm of tough economics. I don't think they did a single thing wrong other than to get on their feet at a perfectly bad time. Just when they were starting to roll, the winter set in, the world markets took a dive, and gas prices went down. Nobody's buying ANYTHING, nobody's investing, and Vectrix may not be strong enough to outlast this "turtle shell" period of ultra conservative buying. If that turns out to be the case, then I'm very glad to already HAVE one in my driveway.
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Its refreshing to read the views of someone holding very similar views to myself - Good on you :)

Personally I hope BMW buys Vectrix. Seems like a good match to me.

http://www.autobloggreen.com/2009/04/16/vectrix-in-trouble-may-be-for-sale/

Im still waiting for someone to come and put my firmware back to the newer version, which it was at before it was taken away.

Been cancelled on twice now, not their fault but still rather irritating.

I am being told that someone will contact me soon. Will they or wont they...

Give me the software and lend me the adaptor, and I will do it myself!!

I am a "poster child" for green living. I don't own a wind turbine, don't use geothermal heating and cooling for my home, own four gas burning vehicles, a clothes dryer, a microwave oven, and I keep my house temps comfortable. I'm green because I chose not to have children. There are no untold future generations of energy and food consumers and garbage generators left from my existance here.

Actually, most of the accelerating resource usage and greenhouse gas emissions are due to economic growth, not population growth. And population growth is one of the smaller drivers of economic growth. Economic growth is is an imperative of capitalist economics, due to it's reliance on speculative capital which, in turn, drives the search for ever expanding markets. Population is only one of the ways new markets are developed. The biggest way is mass marketing and PR that drive consumers to "need" new products. In this case of the energy sector, this is through the introduction of products that gratuitously and deliberately use more energy.

most of the accelerating resource usage and greenhouse gas emissions are due to economic growth, not population growth

That almost sounds like the argument that electric vehicles are not green because it takes energy to produce the vehicle and the electricity.

Without population growth, the consumer base declines, and capitalism settles down. But I won't argue the point. I can't possibly use as much energy as one very conservative guy with five conservative children and 20 conservative grandchildren all use.

That almost sounds like the argument that electric vehicles are not green because it takes energy to produce the vehicle and the electricity.

Yup, it's sad but true - buying any new vehicle rather than repairing an old one is not a good move with regard to ones carbon footprint. That's why the folks over on EVAlbum.com rock! Remember Reuse, Repair, Recycle.

However... one has to start somewhere and given folks' thirst for new stuff wouldn't it be better if that new stuff was at least more efficient than the old stuff?

I have one kid and I don't want to trade him in for carbon tax credits!!! (Sorry.)

That's why the folks over on EVAlbum.com rock! Remember Reuse, Repair, Recycle.

Oh, oh...THERE'S a few DAYS worth of Internet surfing!! HAHA!! ;-)

Thanks. Nice link. One to watch.

I half way seriously looked into an EV conversion of an old chopped VW that I had an option to buy, but by the time I added up all the expense of restoring the much neglected car, then converting it, and ending up with a mediocre performance (I gotta survive two miles of four lane highway several times every day), the Vectrix was a FAR better investment.

Mik - do you know what that means? Is it like the Polish subsidiary is going to become independent?

I don't read that as the polish subsidiary becoming independent, but being able to keep operating while the parent company goes through bankruptcy. But that's a wild guess hunch not based in any knowledge. Companies in bankruptcy (in U.S. law anyway) have to take each business decision to the bankruptcy judge which would interfere with a manufacturer going about their manufacturing business.

I read it slightly differently. But I'm hindered by a small bit of U.S. bankruptcy law knowledge. A company in bankruptcy (U.S. law) has every decision brought before the bankruptcy judge for review and approval. For example if the company needs to buy parts to build more bikes, or pay workers to build more bikes, that decision to do so goes before the bankruptcy judge to do so.

The way I read that announcement the Polish subsidiary would be kept free from that scrutiny and can continue its own operations.

Of course EU or Polish bankruptcy law could be totally different from what I'm accustomed to.

And of course I have no knowledge of whether any part of Vectrix is in bankruptcy. There would have been some news somewhere about that methinks.

Brammo hiring some Vectrix people...

http://visforvoltage.org/forum/6363-brammo-hires-vectrix-and-gm-execs

Knowledge will live on, even if it's by people creating or working for other companies. For example some of the people who worked for GM creating the EV1 left GM to form AC Propulsion, and AC Propulsion's drive train is powering several high end super EV sports cars like the Tesla Roadster.

As I understand the position of Vectrix, the UK listed public company has pretty well run out of cash and Shareholder support. the major shareholders and backers no longer support the company or its current CEO, Mike Boyle whose poor management and self serving arrogance are blamed for the companies troubled performance. Mr Boyle's hectoring style and obsession with rearranging the corporate financial reporting in order to obscure the true financial position of Vectrix, has led to a steady departure of all the original capable and talented marketing and technical employees. The major shareholders are probably hoping that the CEO may just be able to find a buyer, (as he promises) or at least avert some of the estimated loss of more than $3-400 million US dollars! Since Vectrix, has sold probably less than 3000 units in its history, this would equate to over
$100,000 per bike sold!!

Obviously this is not good news for the brand.

Vectrix owners from Italy to Australia, would be surprised to discover that the reason so many dealers have abandoned Vectrix is the lack of support and broken promises since the arrival of Mike Boyle as CEO.

Exactly what all the money has been squandered on will only be revealed if the company collapses and a creditors committee can review the trading history. It may surprise many Vectrix supporters as to why Vectrix has not been able to secure substantial "green" funding, grants or government backed Loan? Well the answer would appear to be Mr Boyle management style and inability to supply accurate accounting to the London (AIMS) stock exchange!

In response to complaints from dealers concerning warranty or sales problems, Mr Boyle threatens expensive litigation against the dealers or dismisses the difficulties as their fault.

The desperate attempt to re-badge a Chinese or similar small scooter as a Vectrix to attract another round of funding is an all too familiar stratagem by failing auto makers about to fold.

It's tragic to see such a potentially fine and important product fail, and possibly disappear, largely due to the ambitions of a power drunk accountant with no idea of sales marketing or even basic business people skills. My main concern is the set back such corporate failures create with investor/consumer confidence in EV manufacture.

So....I take it you don't particularly care for Mr. Boyle?

:-)

Some pretty expensive bikes we have there....but mine will keep getting drilled, painted, modified and improved, so the poor dear can sit around that campfire in heaven and tell stories!

AMEN to that, my friend!!! :-) They are expensive, but I don't treat them like fine china. These puppies get rode hard and put up wet!! :-)