Vectrix Corporation has notified dealers that they’ve been unsuccessful finding new investors and are preparing to file for bankruptcy:
July 14, 2009
Dear Vectrix Dealer,
Most of you are aware that Vectrix has been seeking new investors and or a purchaser for our business. To date those efforts have not met with success.
As all of you know these are some of the most challenging financial markets in our industry’s recent history and our ability to continue as an independent company is doubtful.
It is with extreme regret that I need to inform you that we have taken additional reductions in our operations and without new funding preparing for a bankruptcy filing over the next 30 days. I am attaching the press release that we published today.
I want to thank you for your support and vision you shared with us in the electric market. In my heart I don’t believe Vectrix will disappear but today we have to deal with the financial realities.
Sincerely,
Mike Boyle
President, CEO
The Vectrix was expensive and imperfect, but whatever happens, it will always be remembered as the first and arguably best electric scooter of its era. Reading all the press hype about the not-all-that-great, long-delayed, and equally expensive Piaggio MP3 hybrid in the past few weeks makes this news all the more sad. A Vectrix dealer tells me “It is a shame (Vectrix) did not focus on improving the one product they had but instead spent millions on new products and future R&D that never came to market.” I agree with that, a three-wheeler and two cheaper, less exciting models seem rather foolhardy when the flagship product never sold well in the first place, but it probably made sense to explore other products.
I am sorry to see this happen, but honestly I think it was inevitable even without the rotten economic times.
The cost of a Vectrix was just too high to make it a viable choice for anything but a niche within what is already a niche market.
Make an electric scooter that’s within spitting distance of the cost of a Buddy with comparable range and speed and you could sell them like hotcakes.
I hope we haven’t heard the last from Vectrix. As a dealer, I never really felt the price (which had gotten to about 7 grand with their last rebate offer) was the sticking point. It was range. “I can’t get back and forth from work in 30 miles…..”
As a rider who put over 4400 miles on a Vectrix in one year and won the CWC on it, I know that it fills the transportation needs of a freeway capable scooter about 95 percent of the time. I am in no way a fan of the style, but the ride is still better than any motor vehicle I’ve ever encountered (I drove a Tesla this spring).
The technology is worth resurecting from bankruptcy, and I suspect a big player will be involved.
Hope you’re right, Bob.
The rebate made it far more competitive, but it really needed top-notch marketing and advertising (and ten times the media saturation) to get off the ground, it never really got much of a buzz, probably because it was so uninteresting looking. The technology deserved more distinctive packaging and branding.
Bb.
I guess Vectrix filed for Chapter 11:
http://www.plasticsnews.com/headlines2.html?id=16734