Car makers optimistic despite slowdown

Golf Course News, Jan 2002 by Overbeck, Andrew

The economic slowdown, the events of Sept. 11, stagnant levels of participation and a sharp downturn in new golf construction have combined to create tremendous uncertainty in the marketplace. However, while most golf car makers report that buyers have deferred or delayed purchases in the last few months, some are cautiously optimistic about 2002.

"There has been some softness in the market as buyers go back and look at their fourth quarter balance sheets," said Dewey Holland, Club Car's vice president and business manager for golf. "New construction starts are down, but we look at the age of fleets and the fact that people understand the value of new cars and the quality they bring to the image of the course. We are cantiously optimistic about 2002."

Lower interest rates and other leasing incentives are also driving car maker's confidence.

"The irony of the whole thing [customers delaying purchases] is that financing costs are at an all time low," said Todd Sauey, president of Columbia Par Car. "They can lock in at rates that will not go any lower."

To help customers justify the purchase of a new fleet of vehicles, car makers are working to introduce new products, add new features and roll out new concepts.

CLUB CAR

Club Car formally launched its new IQ System in July and 2001 sales quickly exceeded the company's expectations, said Holland. This year its cars will all come with the IQ option that lets courses run diagnostics on and customize the performance of their fleets.

"Through the hand-held controller, you can analyze any system failures and change settings for speed and acceleration and braking sensitivity," said Holland. More than a third of its customers have ordered the system on new vehicles.

The company is also following up on leads created by its partnership with GPS provider, UpLink. The system is currently on 42 courses and the alliance fits in with the company's overall solutions-based selling strategy, said Holland.

"We are looking at improving a course's profitability." he said. "Our 1-PASS is a handicapped vehicle that expands the market the CAFE Express beverage car offers more revenue capacity, and the GPS system offers the ability to add to revenues and profits."

YAMAHA

In addition to implementing its five year warranty program this year, Yamaha Golf Cars is working on new products that are slated to roll out of its new factory in Newnan, Ga., later this summer.

At this year's trade shows, president Bill Szarowicz said the company will showcase some "exciting concepts for the future" along the lines of its new "tougher than golf' marketing strategy.

"The Battle Ready Vehicle (BRV) that OGIO introduced earlier this year was based on a Yamaha car and fits well into our plan," he said. "We will have some similar looking things in our display," he said. "We are supplying OGIO with 200 to 300 of our cars for the BRV concept."

While Szarowicz declined to comment on how many of these concepts will make it to production, he said new products will be unveiled in July.

E-Z-GO

E-Z-GO is pinning its 2002 efforts on increasing the market's awareness of its GPS system that is provided through an alliance with ProLink.

"When you consider that a lot of courses are struggling right now with revenue generation and differentiation, we have shown that ProLink can be a helpful tool to a golf course," said Ron Skenes, marketing communications coordinator for E-Z-GO.

The system is currently used by more than 200 courses. Skenes said the company expects the increasing popularity of GPS to drive sales.

"Golf car fleets are still revenue generators even in tough economic times," he said. "We need to educate the market on the value that GPS adds."

The company is still working on its Eagle adaptive golf car that is expected to be ready for the market this year.

COLUMBIA PAR CAR

Columbia's newest car with the ACE EPS using permanent magnet technology went into production in June and is currently in use on six golf courses across the country. According to president Todd Sauey, the reaction from the marketplace has been positive. He expects the product to sell well during its first full season of availability.

Sauey said the new car is lighter and more efficient than previous cars while offering the same amount of torque as a gasoline model.