KANSAS CITY, Mo. – MotoVox is thinking outside the 'big box' to plan its future as a higher value line of lower-emission, small recreational vehicles sold through dealers.
The company started out at retail by getting its minibikes and go-karts into big box retailers like Kmart. The company won shelf space in some of the world's largest retailers to bring the MotoVox brand to consumers across the country. Standard MotoVox products were initially targeted to mass merchants with market entry price points.
Now management has set its sights on transitioning to products focused on offering a performance advantage over a price advantage with the impending launch of the MotoVox Pro line. The new specialty line will feature upgraded designs and proprietary technology that should lead to higher margins for parent company APT (American Performance Technologies) and its dealer partners. MotoVox Pro will significantly expand distribution through specialty dealers and direct sales channels.
MotoVox Pro plans to unveil a 150cc on-road production motorcycle that gets 100 to 150 mpg, built with the company’s patented SmartCarb technology.
“We believe this new motorcycle will be the cleanest and most fuel-efficient on-road production vehicle of its kind, setting a new standard that will make a significant impact on the motorsport industry,” APT executives said in a letter to shareholders. “As the demand for low-cost, environmentally friendly transportation products grows while emissions standards become more and more restrictive, our new motorcycle is expected to be a record success for MotoVox Pro. The company has already received pre-production order commitments from USA and International buyers.”
MotoVox will also unveil a new 105cc industrial engine. The engine was co-developed by APT Group and Chongqing Lifan Industry (Group) Co. The engine is the next step from the existing 79cc industrial engine used in some MotoVox products. The design provides one-third more power and is expected to increase sales of existing products as well as create a new product category for MotoVox.
Parent company APT Group has the exclusive global distribution rights for the product for small engine vehicles and global industrial engine applications such as lawn and garden products. The 105 is planned for market introduction in the third quarter.
APT invested more than $20 million between 2008 and 2013 in the development of technology, an emissions testing laboratory, and the acquisition of an 18-acre campus in Kansas City. APT entered revenue with the MotoVox line beginning in 2011 with key accounts including Sears and K-Mart and achieved $5.9 million of revenue in seven months. In 2012, it reached nearly $11 million in annual product sales. The 40 percent year-on-year growth was led by expansion into mass retailers such as Costco, PepBoys, Alco and some regional retailers.
During 2012 and 2013 the company sponsored racing teams to use the equipment, including pro riders, to increase SmartCarb's exposure.
The company built its management team and corporate infrastructure on angel investments and debt financing and recently went public. The company trades under the symbol FROZ but expects that to change in June, following approval by the federal Securities and Exchange Commission (SEC).