HI
Latest news I've received says that Vectrix managed to find private investors during last month , avoiding to fill chapter 11. I cannot confirm this information anywhere else, does anybody know any further detail about this? It does seem too good to be true....
Vectrix Future - latest news
Thu, 08/27/2009 - 03:10
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Vectrix Future - latest news
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In my opinion...vectrix will continue to operate just in europe...
If you look closely, you just have to check what american dealers are doing to their vectrix's stock...Selling it on ebay...!!!
I leave in europe i haven't seen none dealer around here selling any vectrix for 5000$ (3500€) or even 7000$ (5000€)...and the feedback i have received until now from dealers in my country was "everything is operational"...
That why i asked in the other thread how many vectrix's were sold in america and in europe...
Regards
Yeah! If I got my hands on a new one by 3500€, I would buy it for sure!! No matter what it happens to the brand. It's a bargain!
Tu tens uma?
I think you are right RuFus.
I have blocked my VX1 order mid July pending better news from Vectrix.
A few days ago, my dealer said that Vectrix US is finalizing an industrial agreement with a big company by the end of the week.
A press release should be issued at the beginning of next week explaining the new industrial organisation.
I have a good level of confidence in this information (and in your analysis) as :
I hope all this information is true to become a new happy Vectrix owner...wait and see.
Best regards.
PS: Sorry for my english but I leave on the wrong (right ?) side of the Channel...
Your English is excellent! And your research impressive!
I am not so sure about your conclusions. It's true that several contenders have been negotiating for the purchase of vectrix assets. I believe a tentative agreement was reached with one group. However, none appear to be sufficiently well funded or experienced to revive a bike the sizer and complexity of the VX1, even if just sold in Europe. The potential buyers would seem to fall into 3 categories 1) A Chinese led group, favouring the CEO's idea of relabelling the Vectrix as an E-max type product. 2) A group seeking just the IP and to manufacture the collection of half built stock to recoup the expenditure, and then sell or abandon manufacture of the VX type. 3) Various UK led management/staff attempts to revive Vectrix in the UK and Europe, this may have limited appeal, but most of these efforts,have a very poor rate of success, usually because they are under capitalised. Even a group, like the Benelux distributor ESCINI , may find themselves buying into a losing situation. The other factor is that next year small EV cars will be released, and these will compete with large bike for the commuter market.
Each of these scenario's require a Chapter 11, or agreement of a creditors. I would be surprised if there wasn't a disgruntled group of creditors, particularly unsecured who would object to anything but a very open process. The insolvency of Vectrix has been handled fairly covertly, and if a Chancellor, or federal judge, suspects that the process has been anything but completely equitable, and in compliance with the rules, he will delay the process until an administrator can present a full report.
Just for fun, I contacted VPoland re: a job, and was told " only taking applications in the event something eventuates to restart manufacture'. Now that could mean anything!
marcopolo
Curiouser and curiouser!
I have a somewhat tangential question. Why did Vectrix become a US company? They started in Rome, right? Also, the US is a smaller scooter market. If I didn't happen to live here in the US I'd probably prefer to launch in Europe. Did Vectrix incorporate in the US for access to capital?
John H. Founder of Current Motor Company - opinions on this site belong to me; not to my employer
Remember: " 'lectric for local. diesel for distance" - JTH, Amp Bros || "No Gas.
Vectrix, an Alco/E-Max future?
This is a basically Chinese dominated consortium bid, the partners are mainly interested in purchasing the Vectrix IP, and sales distribution network in Europe. The Hong Kong partner is not interested in continuing to produce a product the size of the VX1 ( at least in the long term). Maybe they can see a market for an upgraded V-Max, by capitalising on the loyalty and reputation of Vectrix! Certainly this was the whole reason Mike Boyle diverted so much time and expenditure on the V-Max badge engineering collaboration. Could it be, he bought himself a job after Vectrix?
This would be of little satisfaction for devoted fans of the big bike, but may the new entity may at least employ some of the tech people.
A word of caution though, no matter what happy spin this consortium proposes, experience tells us that when all the jubilation settles down, in the long run, the VX1 will be abandoned!
I hate to sound so pessimistic and cynical, but experience has taught me that deals which look to good to be true, usually are to good to be true! So I guess, it's just a matter of wait and see.
marcopolo
I was told 176 ! How can that be verified? I have just bought an e-max 110S (which the proposed VX2 was based upon). It is supported by a strong new UK importer & distributor based in Richmond.
www.electricrevolution.co.uk
Hi John, I wonder if it had to do with the ease of selling bikes here in the US (just a guess)?. Their gamble almost payed off - they were selling fairly well last summer when oil was $140/barrel and before the economy nosedived, at least so it seemed. When I was considering buying one I called two dealers here in CA who both claimed they were selling every bike that came in. The VX-1 is fairly motorcycle-like for a scooter, which may have helped it in the US market. It probably would have made for a funny joke if last summer someone had predicted one year later they'd be selling on eBay for $3,000 under dealer cost.
Dave R.
Still pedaling you unique doom and gloom MarcoPolo! What is it with you? What is your real agenda?
Keep it shiny side up!
Hi,
Today happened funny things.
I met by chance the Vectrix agent who sold me the bike a few months ago, now he's working in "TopShop" (selling women's fashion clothing). But, he told me last month they sold 5-8 units here in Israel.
I called the Vectrix importer and he told me that they are running business as usual. They cover the 24 month warranty (I can confirm that), including spare parts, service, etc.
The other thing, I was that waiting in a red traffic light and other Vectrix was next to me. The guy told me he bought the bike a couple of weeks ago, and he doesn't know what is the red battery +/- light in the dashboard.
In other words: here things looks normal- should we be worried?
Claudio
uh, would it be because the founders live in Rhodes Island?
- David Herron, The Long Tail Pipe, davidherron.com, 7gen.com, What is Reiki
Well, yes that very true, in fact all the original Vectrix contract's cite the Law of Rhode Island, but along the way they became a Delaware Corporation, with the main sales outlet in Italy, manufactured in Poland, Capital raised courtesy of the London UK (AIMS) Stock Exchange, Vectrix Europe is actually an Irish Registered Corporation! So I guess John could be forgiven his confusion!
Hey, hubcap, it's OK, if you don't know anything, or have any useful contribution, y'know it's OK just to keep quiet and learn from the way SkyObs31, research's facts before posting comment .
marcopolo
OK - flip the question then. If the founders live in Rhode Island then why did they have expensive offices in Rome?
John H. Founder of Current Motor Company - opinions on this site belong to me; not to my employer
Remember: " 'lectric for local. diesel for distance" - JTH, Amp Bros || "No Gas.
Vectrix is an american company but the main target was Europe and especially Italy because scooters are very popular there.
On the contrary, two wheels are not very welcome in US (i wasn't aware of that) so Vectrix didn't originally plan to develop the US market first.
They just were too optimistic and didn't take into account the huge price of the scooter which was/is the main obstacle to its success in Europe. I think also the range isn't enough for Italian who are not only commuters.
Jean-François
The Vx1 styling and appearance was intended to be Italian. Since Italy, and Piaggio are identified with the home of scooters, Vectrix believed the most chic and profitable place to launch the VX1 would be Italy.
The original marketing plan demanded the Italian distributor to provide large, expensively decorated showrooms, in a fashionable area. This ploy, it was predicted, would motivate the glamorous jet set and environmentally fashionable to travel by scooter! This bizarre idea emphasised the products scooter image. Actually in most markets, the scooter image proved a negative, and left a product which sold better when described as an EV or motorcycle in most countries.(despite the step through configuration, the Maxi thing never caught the imagination). The Italian connection tried to connect Vectrix with Italian fashion, but since the VX1 is really to big, heavy and complicated, to immediately appeal to the majority of female riders, the envisaged marketing advantage was false.
Price was certainly a factor! If you assess Vectrix running costs in the congested cities of the UK as a commuter vehicle instead of a car, then its very competitive. However, running costs are not so economic when comparing in Europe against a Vespa, especially a second hand Vespa. In general Vespa riders will not pay 3 0r 4 times the cost, for environmental reasons alone, in many cases Europeans see a bike as the only Vehicle the own and the Vectrix range is massive draw back. The vast sums of money spent by Vectrix on the misconceived Italian fiasco, was a total disaster! If my information is correct, When Vectrix Italy found they simply couldn't sell their stock because of over estimated demand and extensive production defects, they dumped the majority of Italian VX1 stock, some 200 odd bikes, on the naive Australian distributor, without any technical assistance or factory back-up. In fact the CEO actually passed through Australia on his way to china to negotiate the Emax deal, but refused to visit his Australian outpost! It was this behaviour that created the unfortunate problems encountered by Mik's and other Australian buyers. Evidence of this conduct was established in subsequent litigation between Vectrix and the Australian distributor. A curious aftermath of Vectrix's Italian adventure, is for some years the Vectrix in house lawyer, lived in Italy, but worked in the US! (Travel expenses met by Vectrix? First Class? Nice work if you can get it!)
The original marketing plan attempted to create the image of a glamorous, up market, Ferrari type corporation. In fact, the demographics of those who actually purchased Vectrix, reveals a buyer who would have appreciated a better product, better service and a lower price!
marcopolo
Oh, yes! I really would have liked an electric motorcycle with performance figures close to the initially advertised Vectrix specs! I bought it despite the scooter styling. So much for the better product.
Regarding better service: It sucks to pass the buck! If you are naive, learn from it! If you get ripped off, don't continue to spread the lies, or you become part of the problem.
Regarding lower price: Well, studying electronic engineering for a year at a university would probably have been more expensive, and I do not think I would have learned as much...particularly because I would not have started in the first place!
This information may be used entirely at your own risk.
There is always a way if there is no other way!
Mik, I seem to have become a voice of understanding for VA. i think uou should really reserve your anger for the Corporate bosses of Vcorp not the unfortunate dealer in Australia. The Dealer, like you, obviously loved the concept of the product, unlike you he invested his families entire wealth in the Vectrix Dream.
When the product failed VA was abandoned by the Vectrix bosses, yet still continued to maintain the best warranty and service problems they could, despite being restrained legally by Vcorp.
VA, unlike VUS did not run away from their clients, in fact most of VA's time and resources were absorbed fighting, on behalf of it's customers a prolonged battle against Vcorp.
Now I read a lot of passionate praise for the Vcorp PAID employees of VUK, but very little praise for the unpaid staff at VA who are still struggling to service customers as best they can!
I have no axe to grind in the matter, my fight is with the Directors of Corp, however I do feel that you should cut the guy's at VA a little slack!
marcopolo
Maybe VA don't talk as it should with their costumers. A close speech with them is always a good policy. VUK is doing it...
Once again, that's a pretty unfair comment!
VUK, is owned by Vectrix! Whereas VA, an independent distributor, was for a long time constrained by virtue of litigation, initiated by Vectrix, from commenting to their customers on the problems created by Vectrix. VUK, are being congratulated for whatever they are be paid to do in the UK, While Vectrix has basically abandoned the non-company owned dealers, distributors, and customers, all over the world! I would rather reserve my praise for the dealers, who unpaid are still attempting to provide service for customers.
marcopolo
I've started with a Maybe!
I just have that in mind because what I've heard from customers from both countries. It may be unfair, but people like to talk with someone who listens and replies.