CycleElectric Newsletter April 2002

CycleElectric Newsletter focuses on the light electric vehicle industry world wide. It is written and published by associates of CycleElectric International Consulting Group--and reflects their opinions and interests.

In This Issue:
Aprilia Seeking Dealers in USA -- exciting product now available
A Bright Future But Difficult Days Today -- a look at 2001 sales.
CycleElectric is Growing and Changing-- Consulting services company
Frustration and Impatience in the Light Electric Vehicle Industry--the role of the readers of this newsletter

Aprilia Seeking Dealers in the USA
Aprilia's electric bicycle was on the cover of Popular Science, and featured in Time Magazine. This exciting looking and exciting to ride bike is now available in the USA. Dealers are being recruited by Aprilia USA, working with CycleElectric. Contact Heather O'Donnell at hodonnell@cycleeelectric.com , 1-941-872-0567

A Bright Future But Difficult Days TodaySales of small stand up scooters were growing very rapidly in the USA before Sept. 11. This growth seems to be starting up again, six months after the attack. Electric Bicycle sales have been almost stagnant -- except for China, where growth is rapid.
Small stand up scooters are popular with a variety of users in the USA, but strongest with teenagers. Prices have dropped over the last two years, and many models are retailing for $200 - 350.00
Serious problems with quality, parts and service along with high rates of returns of low priced products to retailers has created a demand for better quality goods -- which is being met by only a few companies.
Electric bicycle sales were close to static in USA, EU and Japan. Significant growth occurred in China.
It is CycleElectric's opinion that a difficult economy and the terrorist attacks were only part contributors to the slow growth of electric bicycles. The EU and the USA still have not undertaken sustained and significant marketing--Instead relying on word of mouth and PR efforts to communicate with consumers.
The performance of the existing product is disappointing to consumers. This must change for the industry to grow. The ability to climb hills and achieve satisfactory range must be developed.
Regulatory issues need to adapt to the needs of the consumers and the industry in many countries. An industry cannot grow when the legal status of the product is uncertain or unsuited to the needs of the consumers.
The industry needs more consumer research, and real marketing campaigns. This is a high information product, and the story needs to be told to the consumers through advertising.
Market statistics (bikes and scooters) are available in the 2002 Edition of Electric Bicycles World Wide by Frank Jamerson. Order from elecbike@aol.com .

CycleElectric is Changing and Growing
New people have joined the 7 existing staff at CycleElectric:
John Kuropchak, VP of New Business Development, is the primary sales person for CycleElectric. John looks forward to meeting all the established customers of CycleElectric, as well as new customers at the Taipei Cycle Show and at the Shanghai Bicycle Show. (Johnkuropchak@earthlink.net) Phone 1-760-409-1039
Heather O'Donnell has worked at Total EV and at Extra Energy. She has extensive knowledge of the market, the dealers and the products. She managed Electron Bikes -- an electric vehicle retailer in Tulsa, Oklahoma. Heather is now working with CycleElectric. She will be at the Taipei Cycle Show. hodonnell@cycleelectric.com, 1-941-872-0567
CycleElectric is expanding the information available to consumers, dealers and the industry. Visit www.electric-bikes.com to see our new website growing and improving. Your company or products can have a prominent listing -- contact John Kuropchak (Johnkuropchak@earthlink.net) to learn more.
Here is what CycleElectric does:
CycleElectric Services by Business Type
Distributor / Importer
· Assist in finding and establishing a dealer network
· Assist in finding and establishing parts and warranty service outlets
· Marketing research
· Comparative price analysis and assistance in establishing a pricing structure
· Aid in selecting a manufacturing partner in Asia, Europe, or the US
· Translation services
· Introduction to the manufacturers and suppliers in Asia, Europe, or the US
Manufacturers
· Introductions into the US, European, and Asian market
· Competitive studies
· Market research
· Assist in finding buyers or investors
· Assist in establishing a distribution network
· Assist in establishing partnerships in US, Asia, and Europe
· Arrange for the testing and rating of component parts
· Assist in finding parts and components
· Design assistance
· Assist in securing DOT certification and other regulatory requirements
· Assist is selecting component suppliers in Asia, Europe, or the US.
· Personalized travel assistance and translation services in Asia and Europe.
Investors
· Due Diligence
· Assist in setting up partnership arrangements with manufacturers and distributors
· Assist with introductions to Asian and European companies
· Introduction to Chinese and Taiwanese government and trade officials
· Personalized travel assistance and translation services in Asia and Europe.
Fund Raisers
· Help in telling their story.
· Background presentations on the LEV industry
Retailers
· Publications
· Aid in finding suppliers
· Aid in initial start up (inventor, product mix, retail space design, business plan, etc.)

Frustration and Impatience in the Light Electric Vehicle Industry Today
By the Editor
Almost all of the readers of this newsletter believe that human beings will benefit from nonpolluting, highly efficient, low cost transportation such as electric bicycles and scooters.
Almost all of these readers are frustrated that the light electric vehicle industry has had such slow development. Early expectations of large sales numbers have not been realized. Some electric vehicle companies such as Electric Bicycle Company, Zapworld.com, Kynast, Total EV, and others have struggled or failed. Ford and others have abandoned their electric bike efforts.
Our industry is very young. In fact, since the products have only recently become "consumer-friendly", it could be argued that we have not yet really been born as an industry.
All emerging industries go through a period where new ideas are tried, new technologies are experimented with, and new companies are organized, operate for a time and fail. In this process, there is a core group of people who believe in the product, and are accumulating the knowledge gained in the failed (or successful) experiments. As the companies form, operate and fail, this core group is often the managers and the staff that move on to the next company.
Eventually, this core group accumulates enough expertise and experience that they know the correct way to design, build and market the product. This core group learns what the customers will want to buy, who the customers are, where they live, and how to communicate with them.
As in many industries before, the core group of light electric vehicle people will be the backbone and the managers of the successful companies that will make light electric vehicles one of the most important manufactured products of the new century.
That core group reads this newsletter (I am proud to say). For all of you, I remind you that it took decades for automobiles to become a satisfactory product. It took nearly a decade for PDAs to succeed. Even PC computers took much longer than our fledgling industry has yet experienced.
We have a bright future. And we are on the correct path to that future.