Zero appoints a new CEO

[Richard230]

It looks like they have all of the "suits" that then need to run the company now.  I hope they remember that they are making motorcycles and no one ever got rich doing that.

http://www.ultimatemotorcycling.com/2012/zero-motorcycles-names-walker-as-ceo

[Car Loss]

Ehhh, Soichiro Honda started out in mopeds, not sedans or generators.  Seems to have worked out for him, though of course postwar Japan is kind of an unusual market.

Carlos

[Richard230]

I just received a message from Sylvie Denuit, Strategy & Analysis Manager for Zero Motorcycles, asking if their new CEO, Richard Walker, could give me a call and ask about my experiences as a Zero owner.  I was offered a number of dates and times during which the call could be scheduled.  Needless to say, I wasted no time responding.  I must say that is a great idea!

I sure never had a call from BMW's CEO during my 25 years as a BMW customer, or anyone else in the company who wanted my input as a customer, for that matter. Mostly all they wanted was for me to buy their products and keep my mouth shut.  No customer opinions are needed by BMW's motorcycle division. It looks like things are different at Zero. They may not act on my comments, but it sure will feel good offering my two-cents worth.   

[kingcharles]

I just received a message from Sylvie Denuit, Strategy & Analysis Manager for Zero Motorcycles, asking if their new CEO, Richard Walker, could give me a call and ask about my experiences as a Zero owner.  I was offered a number of dates and times during which the call could be scheduled.  Needless to say, I wasted no time responding.  I must say that is a great idea!

I sure never had a call from BMW's CEO during my 25 years as a BMW customer, or anyone else in the company who wanted my input as a customer, for that matter. Mostly all they wanted was for me to buy their products and keep my mouth shut.  No customer opinions are needed by BMW's motorcycle division. It looks like things are different at Zero. They may not act on my comments, but it sure will feel good offering my two-cents worth.   

The EV business is turning out to revolutionise the motoring industry. Just look at what Tesla is doing and Brammo with Flextronics.
Also the way social media is being used by the EV leaders (nissan leaf for example) is game changing.
motoring 2.0 and Zero is starting to pick that up now too. Although they should improve on the social media front.
Vectrix totally missed the boat on these fronts and that is probably why they are not very successful.
EV's must be marketed as iPhones and Brammo seems to do well in that.

[Richard230]

I was at my local (multi-line) Zero dealer today having my two recall issues and one warranty problem (a failed turn indicator flasher unit) attended to and spoke to the shop's general manager while I was waiting.  She told me that Mr. Walker visited their shop, pretending to be a walk-in customer, before he was appointed as CEO by Zero.  She said that he asked a lot of questions about the Zero line, how well they were selling, how their relationship was with Zero, and what she thought of the future of electric motorcycles. Now that is what I call doing your due diligence homework before taking on the task of running a small electric motorcycle start-up company, after being in an organization like HP. I guess he heard some positive comments.

[Car Loss]

Now that is what I call doing your due diligence homework before taking on the task of running a small electric motorcycle start-up company, after being in an organization like HP. I guess he heard some positive comments.

...or maybe he learned his lesson, from being in an organization like HP!

I'm told that, as news of Carly Fiorina's booting got posted and read, you could hear a wave of cheering and yelling sweep across the place.  Maybe that's a Silicon-Valley legend, maybe not.  Then her successor seems to have done as badly.

I should also point out that the motorcycle business is not that big, compared to either computers or cars.  You can't hide behind layers and layers; visiting a dealership and chatting with the boss on hand should be done by even more people than just Richard Walker.

Carlos

[Car Loss]

Also the way social media is being used by the EV leaders (nissan leaf for example) is game changing.
motoring 2.0 and Zero is starting to pick that up now too. Although they should improve on the social media front.
Vectrix totally missed the boat on these fronts and that is probably why they are not very successful.
EV's must be marketed as iPhones and Brammo seems to do well in that.

Yes, one of the things that convinced me that I could go electric was a "social" app for my smartphone.  I could not only see that there were charging locations pretty much where I needed them, but there were also plenty of EV commenters who could vouch for (or put in service requests) on those chargers.  Because when you risk getting stranded, you hesitate to trust that the charger will actually work when you get there... if it is, in fact, actually there.  Call it "strange EVSE anxiety."

Carlos

[Richard230]

Last Thursday I received a call from Mr. Walker, Zero's new CEO. I spent 30 minutes speaking with him about my purchase and ownership experience, what I liked about my Zero and what I thought could be improved, along with a discussion about my riding and motorcycle ownership history and various other things.  He seems like a very nice guy and there was no indication of having a big-shot "chip" on his shoulder. Plus, he has a pleasant English accent that I had no trouble understanding.   

He mentioned that Zero will be improving their motorcycles every year for the next three years (he mentioned 2013, 2014 and 2015). He also said that they would take advantage of improvements to EV technology in the future. It appears that he is enthusiastic about electric motorcycles and their future as both basic transportation and as a sport.   

I responded that if they make the right improvements, I'll buy another Zero (after my CA rebate "contract" expires and if my granddaughters express an interest in riding).   

[Deadly Silent Ninja]

I am very curious to see what Zero will bring to the table on 2013. If they really upgrade the products and keep improving their customer care I can see them becoming the company that will bring the attention of more mainstream customers to EV. They might not have Brammo's glamor ("lustful machines"), but they have affordable products ready for purchase in numbers.
Economic ways of transportation will beat the expensive limited edition products in the next few years. All Zero needs to do is to deliver a machine that looks a little better, goes a little faster, and a little farther for more or less the same price as their current line. If every year they add 10 miles to the range, 10 mph to the speed, and a few design options (fairings, cafe racer, cruiser, etc.) they will quickly become a force in the motorcycle market.

[kingcharles]

He mentioned that Zero will be improving their motorcycles every year for the next three years (he mentioned 2013, 2014 and 2015). He also said that they would take advantage of improvements to EV technology in the future. It appears that he is enthusiastic about electric motorcycles and their future as both basic transportation and as a sport.   

I bet you that the 2013 model S will try to match/beat the Empulse performance...

[protomech]

I'm going to place my bet on a price-cut 2012 model (ZF6: $10k ZF9: $12k) with faster chargers, and a SS sportbike, dual Agni 60+ kW. Two SS models, 380 lb ZF9 7.9 kWh $17k and 420 lb ZF12 10.6 kWh $19k. Think the Saietta, but a US manufacturer and maybe one that's a little more proven.

Pipe dream? Maybe.

[Richard230]

I'm going to place my bet on a price-cut 2012 model (ZF6: $10k ZF9: $12k) with faster chargers, and a SS sportbike, dual Agni 60+ kW. Two SS models, 380 lb ZF9 7.9 kWh $17k and 420 lb ZF12 10.6 kWh $19k. Think the Saietta, but a US manufacturer and maybe one that's a little more proven.

Pipe dream? Maybe.

That would be pretty ambitious in my opinion.  I think the company is still trying to get their mass-market feet under them.  My guess would be just an update for the Zero S with a faster charger, maybe a few more cells in the pack and some reliability updates.  I think an entirely new chassis and larger motor would be too big a bite for Zero right now.  However, during my conversation with Mr. Walker, I did mention that I felt that the bike's chassis was a little cramped. That comment generated a question about my height. So there may be some interest in making the bike more comfortable for the rider.  (I just made a big improvement to my Zero S's very hard, forward-sloping seat by installing an "Butt Buffer" pad on the seat.)

I also am not betting on prices dropping much, if at all.  When Zero sent out an owner's survey (which brought my name to their attention for the CEO interview) one of the questions asked is if you would be willing to pay another $2000 for another 20 miles of range.  There were no questions (that I can recall) related to "would a lower price make you more likely to buy a new Zero".

[EmpulseRider]

I also am not betting on prices dropping much, if at all.  When Zero sent out an owner's survey (which brought my name to their attention for the CEO interview) one of the questions asked is if you would be willing to pay another $2000 for another 20 miles of range.  There were no questions (that I can recall) related to "would a lower price make you more likely to buy a new Zero".

Wow, that's an expensive 20 miles. Man... Also, last I heard in the rumor mill was Zero wanted complete revisions for 2013, including a new frame with and a proper sportbike.

[protomech]

Introducing a new model while tweaking and refining the existing models will definitely be a "walk and chew bubble gum" thing. If Zero has all hands busy getting the 2012 bikes refined, then maybe they can't afford the development staff or attention to bring out an all-new bike.

Do they have room to reduce prices on the 2012 bikes? Yes, though perhaps not as much as I imagine. Assuming Brammo can bring their $17k Empulse to market next year, the existing Zero is only slightly less expensive, significantly slower, lower range, and significantly less quick to charge. I think they'll have a hard time selling the Zero @ $14k, even with a faster charger.

@ EB: I don't think Zero will scrap the existing designs (Zero is pretty competitive already against the E+), but probably will tweak and refine them.

Will they bring out an all-new design (my speculative SS)? I think they'd like to. 3 years ago Zero was reportedly considering a SS sportbike with fairings, based on the existing 3.4 kWh S. They have staff members (LFP, KK) that are very interested in performance. At Refuel 2011 they tested a prototype bike which I speculate was the powertrain test bike for the 2012 bikes. At Refuel 2012 they tested a prototype MX with dual Agni motors. I think this is a powertrain test bike for a SS bike: makes no sense to test a MX at a racetrack instead of a motocross playground ....... unless you're not really testing the MX, you're testing the dual Agni powertrain.

So now it's a question of whether they can bring out a new design while also price-cutting and tweaking the existing designs. They can reuse the existing battery modules, but they'll have to build a new, slightly larger frame (that can perhaps fit 3-4 ZF3 modules), source fairings, get a motor controller online, test and debug the dual Agni motor ..

If they haven't cut their development staff, then they've got to be working on something - and I don't think throwing a new charger in the 2012 bikes is going to keep them busy. I think the SS is the most likely candidate, but who knows if we'll see it EICMA 2012 (or ever).

Also, regarding an expensive 20 miles - a single 2.6 kWh ZF3 module bumps the ZF6 (2 modules) from $11500 to $14000 (ZF9, 3 modules). Zero and Brammo both price their marginal battery around $1000/kWh, 1 kWh is good for about 10 miles IME. So that's about what you pay either from Brammo or Zero ATM.

[Deadly Silent Ninja]

Just connecting the dots, I think they will be definitely be bringing an SS out either in 2013 or 2014. They have many bikes racing and being dead last is not really great exposure for the company. I saw someone (I forgot his name) who was the first to get trained and licensed to be a race pilot on a Zero promoting the hell out of his experience. He then sold the bike to buy a newer model (which also shows people interested in a more race-friendly bike).
Also, the beauty of an SS is that the fairings are usually a very simple way to make ugly bikes look nicer. 

Based on Richard's  conversation with Walker and protomech's comments, you can see that it wouldn't be too hard for them to get a decent and relatively cheap bike with a more race-oriented looks and performance out in the next months. And I also think that Walker's comment on making modification for 3 years mean trying something new, make it better without going crazy, and making a solid final product within the price range with which customers are comfortable.

So, my bet is on something race-like in 2013 for up to $1,000 more expensive than the current S, a revamp of the entire line on 2014 based on what they figure out on the race track and from the customers' poll, and something really awesome (by today's standards) and affordable by 2015. I still think Zero will keep pushing to keep the price more or less on the same level it is today for next year just because they have a hold on that affordable market share. If they increase the prices, they will have to compete with better bikes and it is not realistic to drop the prices with the current technology.