Azure recently concluded a busy week abroad. Along with Ford Europe, Azure presented the Transit Connect Electric at the Birmingham, England, Commercial Vehicle Show, among the largest auto expositions in Europe. The van was very well received by those who got behind the wheel, including dozens of journalists, industry VIPs and potential customers. As the Birmingham event concluded, Transit Connect Electric quickly moved on to Aachen, Germany where it was again put to the test.
This link, Click Here, takes you to an excellent article from England's The Sun newspaper (circulation 3.5 million). The article and very positive accompanying video reflects the enthusiasm that Transit Connect Electric has met in Europe.
Back in North America, it's Day Two of the EDTA (Electric Drive Transportation Association) show in Washington D.C. where once again Azure and the Transit Connect Electric are on static display and the Transit Connect Electric vehicle is available for ride and drive activity for media, customers and federal government representatives. Azure's BalanceTM Hybrid Electric shuttle bus was also busy yesterday as it drove the EDTA Board of Directors around Washington, including a trip to the White House where the Board held meetings. The timing of the D.C. event is opportune following closely on the heels of President Obama's statement recommitting his desire to see one million electric vehicles on the road in the United States by 2015.
Sincerely,
AZD
Wednesday, April 20, 2011
Friday, April 1, 2011
Dear Friends of Azure,
Today President Barack Obama discussed the proposed clean fleet public-private partnership and other related energy issues. Earlier this week, the President called for administrative action directing that by 2015 all new vehicles purchased by Federal agencies be alternative-fuel vehicles, including hybrid and electric vehicles. The Federal government operates more than 600,000 fleet vehicles making it the largest fleet in America, ordering approximately 60,000 - 70,000 new units annually.
"The importance of this program to a company like ours, as well as to the environment, can't be overstated," said Scott Harrison, Azure Dynamics CEO. "We have interest from the government and we know that the Department of Defense has a number of initiatives for non-tactical vehicles that our products could fill. What has been lacking has been a uniform vision, which this seems to resolve."
As part of his plan, President Obama plans to cut one-third of oil imports by 2025. Large commercial fleets are heavily dependent on petroleum-based fuels, and therefore offer significant opportunities to reduce fuel use and carbon pollution. The DOE is challenging more companies to join the Clean Fleet Partnership and take advantage of Federal programs in support of clean technology adoption. President Obama also reiterated his commitment to a $7,500 tax credit for electric vehicles.
"President Obama and his team seem to agree with our belief at Azure that commercial vehicle fleets are the logical starting point to advance the adoption of alternative energy transportation en mass," said Harrison. "We applaud the President for his leadership and believe this plan will create a more predictable market for clean commercial trucks, which, in turn, helps bring down purchase costs further propelling the industry."
Ray LaHood, Secretary of Transportation, said, "We have the opportunity, and the obligation, to take action. We can change both the types and the amounts of energy that our transportation systems use while also creating good, high-paying jobs and easing everyone's burden at the pump."
President Obama announced that the initial National Clean Fleets Partnership will include AT&T, FedEx, PepsiCo, UPS, and Verizon. These five companies will agree to deploy an additional 20,000-plus advanced technology vehicles incorporating electric vehicles, alternative fuels, and fuel-saving measures into their daily operations.
Sincerely,
AZD
Forward-Looking Statements Advisory
Certain information included in this communication constitutes forward-looking statements and information and future-oriented financial information under applicable securities legislation and is provided for the purpose of expressing management's current expectations and plans for the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.
More particularly, this communication contains statements concerning Azure's anticipated: business development strategy, customer orders, product deliveries, sales, revenue and revenue growth. The forward-looking statements are based on a number of key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs and sales, target market acceptance of Azure's products, current and new product performance, availability and cost of labor and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions used to develop the forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they involve numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the forward-looking statements will not occur and that actual performance or results could differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with Azure's stage of development, history of losses and lack of historical product revenues, uncertainty as to product development and sales milestones being met, product defect and performance risks, competition for capital and market share, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability and retention of management and key personnel, exchange rate and currency fluctuations, uncertainties relating to potential delays or changes in plans with respect to product development or capital expenditures, the ability of Azure to access sufficient capital on acceptable terms, and environmental and safety risks. This is not an exhaustive list and additional information on these risks and other factors that could affect Azure's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and can be accessed through the SEDAR website at www.sedar.com.
The forward-looking statements contained in this communication are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure.
"The importance of this program to a company like ours, as well as to the environment, can't be overstated," said Scott Harrison, Azure Dynamics CEO. "We have interest from the government and we know that the Department of Defense has a number of initiatives for non-tactical vehicles that our products could fill. What has been lacking has been a uniform vision, which this seems to resolve."
As part of his plan, President Obama plans to cut one-third of oil imports by 2025. Large commercial fleets are heavily dependent on petroleum-based fuels, and therefore offer significant opportunities to reduce fuel use and carbon pollution. The DOE is challenging more companies to join the Clean Fleet Partnership and take advantage of Federal programs in support of clean technology adoption. President Obama also reiterated his commitment to a $7,500 tax credit for electric vehicles.
"President Obama and his team seem to agree with our belief at Azure that commercial vehicle fleets are the logical starting point to advance the adoption of alternative energy transportation en mass," said Harrison. "We applaud the President for his leadership and believe this plan will create a more predictable market for clean commercial trucks, which, in turn, helps bring down purchase costs further propelling the industry."
Ray LaHood, Secretary of Transportation, said, "We have the opportunity, and the obligation, to take action. We can change both the types and the amounts of energy that our transportation systems use while also creating good, high-paying jobs and easing everyone's burden at the pump."
President Obama announced that the initial National Clean Fleets Partnership will include AT&T, FedEx, PepsiCo, UPS, and Verizon. These five companies will agree to deploy an additional 20,000-plus advanced technology vehicles incorporating electric vehicles, alternative fuels, and fuel-saving measures into their daily operations.
Sincerely,
AZD
Forward-Looking Statements Advisory
Certain information included in this communication constitutes forward-looking statements and information and future-oriented financial information under applicable securities legislation and is provided for the purpose of expressing management's current expectations and plans for the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions.
More particularly, this communication contains statements concerning Azure's anticipated: business development strategy, customer orders, product deliveries, sales, revenue and revenue growth. The forward-looking statements are based on a number of key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs and sales, target market acceptance of Azure's products, current and new product performance, availability and cost of labor and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions used to develop the forward-looking statements are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they involve numerous risks and uncertainties that contribute to the possibility that the projections and forecasts in the forward-looking statements will not occur and that actual performance or results could differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks associated with Azure's stage of development, history of losses and lack of historical product revenues, uncertainty as to product development and sales milestones being met, product defect and performance risks, competition for capital and market share, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability and retention of management and key personnel, exchange rate and currency fluctuations, uncertainties relating to potential delays or changes in plans with respect to product development or capital expenditures, the ability of Azure to access sufficient capital on acceptable terms, and environmental and safety risks. This is not an exhaustive list and additional information on these risks and other factors that could affect Azure's operations and financial results are included in reports on file with the Canadian securities regulatory authorities and can be accessed through the SEDAR website at www.sedar.com.
The forward-looking statements contained in this communication are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. Additionally, Azure undertakes no obligation to comment on the expectations of, or statements made by, third parties about Azure.
Thursday, March 31, 2011
Dear Friends of Azure,
Azure Dynamics CEO Scott Harrison was asked by The Wall Street Journal to comment on President Barack Obama's announcement yesterday that all vehicles purchased by the Federal government must be alternative fuel, including hybrid electric and electric, effective 2015. The Federal government operates a fleet of more than 600,000 vehicles, replacing 60,000 - 70,000 annually.
Mr. Harrison was also quoted in an extensive article on the President's announcement on the Bloomberg News wire. Both stories are below.
Sincerely,
AZD
Wall Street Journal:
Azure Sees Energy Plan Spurring Hybrid Vehicles
By Mike Ramsey
President Obama's promise to dramatically increase the U.S. government's purchasing of hybrid and electric vehicles represents a significant opportunity for companies pushing ahead with zero-emission vehicles, said Scott Harrison, chief executive of Azure Dynamics Corp.
Azure creates hybrid and all-electric powertrains and installs them into existing vehicle bodies made by Ford Motor Co. It produces the Transit Connect Electric commercial van as well as medium-duty hybrid delivery vehicles based on Ford's E450 chassis.
"It can't be overstated how important it is to us," Mr. Harrison said. "We have reasonable interest from the government and certainly the Department of Defense has some initiatives for non-tactical vehicles that fit our world. What has been lacking has been a uniformed vision, which this seems to resolve."
The president's announcement could speed the sales and ideally lower the costs of producing hybrid and all-electric vehicles. Companies including General Motors Co. and Nissan Motor Co., have released or plan to sell electric vehicles that could be used by the government.
Mr. Obama on Wednesday promised that the federal government will, by 2015, purchase only alternative-fuel vehicles, such as hybrid and electric cars. It is unclear how a mandate would be implemented across the federal fleet, which involves dozens of government agencies and a range of vehicle types from cars to heavy trucks.
Azure is planning to build about 700 hybrid vehicles and as many as 800 Transit Connect models this year. The company has estimated its revenue to be between $52 million and $68 million and Mr. Harrison said the company's orders to date are on track.
Azure, based in Oak Park, Mich., posted a loss of $10.8 million, or two cents a share, for the fourth quarter of 2010 compared to a loss of $8 million, or two cents a share, in the same quarter a year ago.
Mr. Harrison estimated that a sweeping government mandate to purchase hybrid vehicles or all-electric vehicles for the federal fleet, which stands at about 600,000 vehicles today, could translate into the potential for as many as 10,000 sales to Azure Dynamics.
"We see price breaks on volume at every 1,000 to 2,500 vehicles we make," he said. "When you start talking about 10,000 units, it has a snowball effect in terms of driving the price down."
Azure earlier this year announced an order for 600 hybrid-electric delivery vans from Purolator Courier Ltd. over three years.
Bloomberg:
Ford May Gain Most From Obama's Goal of Buying Only Green Cars
By Angela Greiling Keane
March 31 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to not receive a government bailout, may gain the most from President Barack Obama's push to require the government to buy only alternative-fuel vehicles by 2015.
The company's fleet and production plans will help it benefit as the U.S. ramps up purchases of cars and trucks that use fuels including electricity and natural gas, said Brett Smith, an analyst at the Center for Automotive Research. The General Services Administration, which owns about one-third of the federal government's fleet, said 49 percent of its vehicles already run on alternative fuels.
"Ford is very well positioned among the U.S. automakers for using the full technological basket," said Smith, who analyzes the market for alternative-energy vehicles at the Ann Arbor, Michigan-based research center.
As part of a plan to lower energy costs and increase the use of domestic power sources, the government should be buying only alternative-fuel vehicles within four years, Obama said in a speech yesterday in Washington. Those could include electric, hybrid-electric, natural-gas, clean-diesel and flex-fuel vehicles that use E85, a fuel that is 85 percent ethanol.
Ford, the first U.S. automaker to sell a gasoline-electric hybrid vehicle, has three hybrid vehicles and one electric plug- in on the market and plans to sell four more in North America by 2012, Susan Krusel, a spokeswoman, said in an e-mail. Ford plans to have seven E85 models, which can also use gasoline, in 2015.
Hybrids, SUVs
Ford last year passed General Motors Co. as the biggest vendor of vehicles to the U.S. government, partly on the strength of Obama administration purchases of its hybrid cars and sport-utility vehicles.
"Ford is a leader in this area, having invested billions in researching and developing new fuel-efficient products, alternative fuel options and electrified vehicles," Pete Lawson, Ford vice president of government affairs, said in an e- mail. Ford has four models that get at least 40 miles to the gallon, more than any other full-line automaker, he said.
The U.S. government has a fleet of about 600,000 vehicles, and buys 60,000 to 70,000 automobiles annually through the GSA.
The agency bought 406,679 vehicles in the past six fiscal years, or about $8.59 billion worth of cars, trucks, fire engines and ambulances, according to data obtained under a Freedom of Information request.
E85 Pumps
The government should avoid vehicles that use E85, because they can run on gasoline if the ethanol-based fuel isn't available, said Jim Kliesch, senior engineer for the Union of Concerned Scientists' clean-vehicles program in Washington.
"Flex-fuel vehicles are not a good solution unless you have pumps in place to fuel the vehicles," Kliesch said in an interview. "The president should make sure the fleet purchases aren't just packed with FFVs, to make sure they include a lot of hybrids and plug-ins."
The federal government should start with a pilot project to lease 100 electric plug-in vehicles, because the current purchase price is higher than what the government is allowed to spend, GSA Administrator Martha Johnson said at a Senate hearing yesterday.
The government's business will spur sales among companies and consumers by lowering prices for alternative-fuel vehicles as production and sales volumes increase, said Dick Cupka, Ford's commercial-vehicle sustainability program manager.
Volumes, Prices
"Showing government leadership with green fleets is a great way to get volumes up and prices down," said Roland Hwang, the San Francisco-based director of the Natural Resources Defense Council's transportation program.
Government use will help expand the alternative-fuel infrastructure, another element in consumer demand, Cupka said in an interview. Fueling infrastructure may include E85, compressed natural gas, hydrogen or clean diesel at fueling stations or electrical outlets for recharging plug-in vehicles.
"As more people buy the vehicles, there's more demand for the fueling stations," Cupka said. "It's a chicken-and-egg situation. More infrastructure leads to more customers and more customers lead to more infrastructure."
Other beneficiaries of the shift in government purchasing may include suppliers of components like electric-drive power trains, such as Azure Dynamics Corp.
"It's hard to overstate what 600,000 alternative-fuel vehicles would do for alternative power trains," Scott Harrison, chief executive officer of Oak Park, Michigan-based Azure Dynamics, said in an interview. The company, which supplies power trains for Ford's Transit Connect delivery van, in turn uses Johnson Controls Inc. to supply batteries and Borg Warner Corp. and Siemens AG for other components, he said.
Focusing on Electrics?
While Obama "talked about ethanol-powered vehicles and biodiesel" yesterday, the administration seems to be focusing on electric vehicles in the short-term, Mike Omotoso, senior manager of the global power train section of consultant JD Power & Associates, said in an interview.
Obama in his State of the Union address in January reiterated his goal of putting 1 million advanced-technology vehicles, such as plug-in and hybrid electrics, on U.S. roads by 2015. In his budget proposal in February, he called for ending a clean-diesel grant program and cutting research for hydrogen fuel-cell vehicles.
"If the ultimate goal is to reduce dependence on oil, whether the source be foreign or domestic, we should be looking at all kinds of vehicles, not just electric," Omotoso said.
Electric-car makers include Detroit-based GM. The company has 19 models that use alternative fuels, which may account for 40 percent of U.S. production this year, said Sharon Basel, a spokeswoman. By the end of 2012, GM wants 50 percent of the vehicles it assembles in its home market to use alternative fuels, she said.
Twelve of the Chrysler Group LLC's vehicles have engines that can run on E85 fuel, Vince Muniga, a Chrysler spokesman, said. Chrysler's goal is to have 50 percent of its fleet able to run on alternate fuels by the end of 2012, he said.
GM reorganized in bankruptcy in 2009 with $49.5 billion in government aid, while Chrysler got $12.5 billion in assistance for its reorganization that year.
Mr. Harrison was also quoted in an extensive article on the President's announcement on the Bloomberg News wire. Both stories are below.
Sincerely,
AZD
Wall Street Journal:
Azure Sees Energy Plan Spurring Hybrid Vehicles
By Mike Ramsey
President Obama's promise to dramatically increase the U.S. government's purchasing of hybrid and electric vehicles represents a significant opportunity for companies pushing ahead with zero-emission vehicles, said Scott Harrison, chief executive of Azure Dynamics Corp.
Azure creates hybrid and all-electric powertrains and installs them into existing vehicle bodies made by Ford Motor Co. It produces the Transit Connect Electric commercial van as well as medium-duty hybrid delivery vehicles based on Ford's E450 chassis.
"It can't be overstated how important it is to us," Mr. Harrison said. "We have reasonable interest from the government and certainly the Department of Defense has some initiatives for non-tactical vehicles that fit our world. What has been lacking has been a uniformed vision, which this seems to resolve."
The president's announcement could speed the sales and ideally lower the costs of producing hybrid and all-electric vehicles. Companies including General Motors Co. and Nissan Motor Co., have released or plan to sell electric vehicles that could be used by the government.
Mr. Obama on Wednesday promised that the federal government will, by 2015, purchase only alternative-fuel vehicles, such as hybrid and electric cars. It is unclear how a mandate would be implemented across the federal fleet, which involves dozens of government agencies and a range of vehicle types from cars to heavy trucks.
Azure is planning to build about 700 hybrid vehicles and as many as 800 Transit Connect models this year. The company has estimated its revenue to be between $52 million and $68 million and Mr. Harrison said the company's orders to date are on track.
Azure, based in Oak Park, Mich., posted a loss of $10.8 million, or two cents a share, for the fourth quarter of 2010 compared to a loss of $8 million, or two cents a share, in the same quarter a year ago.
Mr. Harrison estimated that a sweeping government mandate to purchase hybrid vehicles or all-electric vehicles for the federal fleet, which stands at about 600,000 vehicles today, could translate into the potential for as many as 10,000 sales to Azure Dynamics.
"We see price breaks on volume at every 1,000 to 2,500 vehicles we make," he said. "When you start talking about 10,000 units, it has a snowball effect in terms of driving the price down."
Azure earlier this year announced an order for 600 hybrid-electric delivery vans from Purolator Courier Ltd. over three years.
Bloomberg:
Ford May Gain Most From Obama's Goal of Buying Only Green Cars
By Angela Greiling Keane
March 31 (Bloomberg) -- Ford Motor Co., the only major U.S. automaker to not receive a government bailout, may gain the most from President Barack Obama's push to require the government to buy only alternative-fuel vehicles by 2015.
The company's fleet and production plans will help it benefit as the U.S. ramps up purchases of cars and trucks that use fuels including electricity and natural gas, said Brett Smith, an analyst at the Center for Automotive Research. The General Services Administration, which owns about one-third of the federal government's fleet, said 49 percent of its vehicles already run on alternative fuels.
"Ford is very well positioned among the U.S. automakers for using the full technological basket," said Smith, who analyzes the market for alternative-energy vehicles at the Ann Arbor, Michigan-based research center.
As part of a plan to lower energy costs and increase the use of domestic power sources, the government should be buying only alternative-fuel vehicles within four years, Obama said in a speech yesterday in Washington. Those could include electric, hybrid-electric, natural-gas, clean-diesel and flex-fuel vehicles that use E85, a fuel that is 85 percent ethanol.
Ford, the first U.S. automaker to sell a gasoline-electric hybrid vehicle, has three hybrid vehicles and one electric plug- in on the market and plans to sell four more in North America by 2012, Susan Krusel, a spokeswoman, said in an e-mail. Ford plans to have seven E85 models, which can also use gasoline, in 2015.
Hybrids, SUVs
Ford last year passed General Motors Co. as the biggest vendor of vehicles to the U.S. government, partly on the strength of Obama administration purchases of its hybrid cars and sport-utility vehicles.
"Ford is a leader in this area, having invested billions in researching and developing new fuel-efficient products, alternative fuel options and electrified vehicles," Pete Lawson, Ford vice president of government affairs, said in an e- mail. Ford has four models that get at least 40 miles to the gallon, more than any other full-line automaker, he said.
The U.S. government has a fleet of about 600,000 vehicles, and buys 60,000 to 70,000 automobiles annually through the GSA.
The agency bought 406,679 vehicles in the past six fiscal years, or about $8.59 billion worth of cars, trucks, fire engines and ambulances, according to data obtained under a Freedom of Information request.
E85 Pumps
The government should avoid vehicles that use E85, because they can run on gasoline if the ethanol-based fuel isn't available, said Jim Kliesch, senior engineer for the Union of Concerned Scientists' clean-vehicles program in Washington.
"Flex-fuel vehicles are not a good solution unless you have pumps in place to fuel the vehicles," Kliesch said in an interview. "The president should make sure the fleet purchases aren't just packed with FFVs, to make sure they include a lot of hybrids and plug-ins."
The federal government should start with a pilot project to lease 100 electric plug-in vehicles, because the current purchase price is higher than what the government is allowed to spend, GSA Administrator Martha Johnson said at a Senate hearing yesterday.
The government's business will spur sales among companies and consumers by lowering prices for alternative-fuel vehicles as production and sales volumes increase, said Dick Cupka, Ford's commercial-vehicle sustainability program manager.
Volumes, Prices
"Showing government leadership with green fleets is a great way to get volumes up and prices down," said Roland Hwang, the San Francisco-based director of the Natural Resources Defense Council's transportation program.
Government use will help expand the alternative-fuel infrastructure, another element in consumer demand, Cupka said in an interview. Fueling infrastructure may include E85, compressed natural gas, hydrogen or clean diesel at fueling stations or electrical outlets for recharging plug-in vehicles.
"As more people buy the vehicles, there's more demand for the fueling stations," Cupka said. "It's a chicken-and-egg situation. More infrastructure leads to more customers and more customers lead to more infrastructure."
Other beneficiaries of the shift in government purchasing may include suppliers of components like electric-drive power trains, such as Azure Dynamics Corp.
"It's hard to overstate what 600,000 alternative-fuel vehicles would do for alternative power trains," Scott Harrison, chief executive officer of Oak Park, Michigan-based Azure Dynamics, said in an interview. The company, which supplies power trains for Ford's Transit Connect delivery van, in turn uses Johnson Controls Inc. to supply batteries and Borg Warner Corp. and Siemens AG for other components, he said.
Focusing on Electrics?
While Obama "talked about ethanol-powered vehicles and biodiesel" yesterday, the administration seems to be focusing on electric vehicles in the short-term, Mike Omotoso, senior manager of the global power train section of consultant JD Power & Associates, said in an interview.
Obama in his State of the Union address in January reiterated his goal of putting 1 million advanced-technology vehicles, such as plug-in and hybrid electrics, on U.S. roads by 2015. In his budget proposal in February, he called for ending a clean-diesel grant program and cutting research for hydrogen fuel-cell vehicles.
"If the ultimate goal is to reduce dependence on oil, whether the source be foreign or domestic, we should be looking at all kinds of vehicles, not just electric," Omotoso said.
Electric-car makers include Detroit-based GM. The company has 19 models that use alternative fuels, which may account for 40 percent of U.S. production this year, said Sharon Basel, a spokeswoman. By the end of 2012, GM wants 50 percent of the vehicles it assembles in its home market to use alternative fuels, she said.
Twelve of the Chrysler Group LLC's vehicles have engines that can run on E85 fuel, Vince Muniga, a Chrysler spokesman, said. Chrysler's goal is to have 50 percent of its fleet able to run on alternate fuels by the end of 2012, he said.
GM reorganized in bankruptcy in 2009 with $49.5 billion in government aid, while Chrysler got $12.5 billion in assistance for its reorganization that year.
Tuesday, December 28, 2010
Dear Friends of Azure,
At Azure Dynamics (AZD) we are coming off a solid year of technology advancements, sales growth and improved awareness of our products and the benefits they offer in this increasingly green-conscious world. Johnson Controls' $6.3 million equity investment into AZD during the second quarter and the $4 million credit facility we obtained in the third quarter are strong endorsements of our strategy and product portfolio and will help provide added muscle to fund our working capital requirements going forward.
Our core strategy of technology, product, partners and people emphasis has resulted in solid bottom line sales, margin and revenue increases, and significant cost reductions. Our proven and adaptable technology allows AZD to move product to market quickly which is critical to maintain our first-mover advantage in a dynamic industry. Following are some of AZD's most significant highlights of 2010.
Sales:
At AZD we made our first move to commercialization in 2008 and we are extremely proud of our progress since then. In 2010 we continued our focus on the BalanceTM Hybrid Electric vans and shuttle buses with impressive sales and cost improvements.
In addition, we launched our Transit Connect Electric product program with a LEAD customer sales strategy. This LEAD customer program surpassed our initial sales projections with nearly 150 vans sold to a variety of who's who in our target market sectors -- delivery, utility, energy, businesses and governmental organizations. These companies are all critical to the increased acceptance and adoption of electric vehicles in North America and will ultimately become key advocates for the Transit Connect Electric product. During the year, we also added the European market to our Transit Connect Electric program. Europe's higher gas prices, familiarity with the Transit Connect and government incentives for green technology bode well for electric vehicle sales. AZD believes that once European sales start in earnest in mid 2011, they will quickly equal, or perhaps surpass, the North American sales.
Revenues:
Although the year isn't over and the final numbers aren't yet in, it's been a year of solid growth for Azure Dynamics. Revenues will be in excess of $20 million for 2010, more than double the previous year. In conjunction with our margin improvements and cost reduction program that was fully implemented in the second half of the year, this increase in revenues will give us our strongest year-end bottom line ever and will jump-start us for what we anticipate will be even more significant growth in both sales and revenues in 2011.
Product Technology:
Product technology and product excellence are our strong suits at Azure Dynamics. Our industry leading technology is flexible enough to be integrated into a whole range of applications and is the reason we were able to go from product concept to final product assembly on the Ford Transit Connect Electric in a remarkable 13 months. That's breakneck speed in the auto industry! But the Transit Connect Electric wasn't our only product focus in 2010...
• Transition to the Johnson Controls-Saft battery pack during the third quarter ensured that the Balance™ Hybrid Electric product included the latest lithium-ion technology as well as the other engineering updates aimed at improving reliability, durability and efficiency. The battery implementation was part of a broader cost containment plan that reduced the BalanceTM bill of materials by an eye-popping 40%.
• In addition to ongoing testing and validation on the BalanceTM Hybrid Electric and Transit Connect Electric products, we continued validation on the lithium ion battery and initiated a plug-in hybrid variant for the BalanceTM E-450.
• AZD's Force Drive™ technology was the power behind the winning entry in the prestigious international "X Prize" competition. Li-Ion Motors' Wave II, featuring Force Drive™ technology, earned first place in the highly competitive Alternative Side-by-Side class after performing in an intense multi-stage competition.
• In Europe, the Transit Connect Electric successfully completed the prestigious "Brighton to London Run - Future Car Challenge". The vehicle performed flawlessly in its first introduction to European media.
People:
We've often said that those who know Azure best are familiar with the importance we place on people - our employees, our customers and our partners. Just as you can judge a man by his friends, you can judge a company by its relationships, and ours are A-1.
Starting with our Board of Directors, we were delighted to welcome John Formisano as our newest member. John completed his distinguished career at Fed Ex Express as Vice President of Global Vehicles putting him at the top of one of the nation's largest and busiest vehicle fleets. John is also Chairman of the Board of CALSTART, a California-based organization formed to implement clean, efficient transportation solutions.
Our employees are our backbone and their continued tireless efforts have helped us to advance our technology portfolio while reducing costs and improving quality and performance. We can't say enough good things about them.
As mentioned earlier, our 2010 customers represent a who's who among North America's leading fleet operators - AT&T, Fed Ex Express, Purolator Courier, Southern California Edison, New York Power Authority, Cintas, Canada Post, United States Post Office to name just a few. Plus, Azure welcomed a slew of municipalities, universities and health care organizations that have added our BalanceTM shuttle bus to their respective transit fleets. And, of course, Johnson Controls, became a customer in 2010 - this in addition to its roles as both a supplier and investor in our company.
And speaking of partners, we couldn't ask for better ones. Our relationship with Ford Motor Company on the Balance™ Hybrid Electric products, and now on the Transit Connect Electric, is to our way of thinking a perfect example of how business partnerships should work. It is totally seamless, transparent and supportive. Ditto our relationship with Johnson Controls-Saft and with AM General, our newest partner now upfitting our Force Drive™ technology on to the Transit Connect.
We are grateful to each of these individuals and companies for joining us and enabling us to truly become Part of the Solution. We are at the leading edge of the green transportation movement in the significant commercial niche that will help to determine the shape of the transportation future. We think it's a good place to be, the perfect place, in fact, for a company like AZD.
Public Awareness
As our sales continue to increase and more operators are exposed to our products and what they can do, our on-the-street exposure multiplies as well. In addition, we've taken a number of steps to put AZD products in front of critical audiences.
• The Chicago Auto Show "coming out party" for the Transit Connect Electric was a home run of exposure to automotive analysts and journalists with Fox News calling the Transit Connect Electric "one of the most historic cars ever made." Transit Connect Electric's European unveiling at the Hanover (Germany) Auto Show brought new attention to this innovative vehicle across Europe.
• The Transit Connect Electric made a number of additional public appearances in 2010 including a series of demonstration drives for a variety of U.S. federal agency officials in Washington, D.C. We participated in a similar event for Canadian government officials in Ottawa this month. Transit Connect Electric was also featured in a display at the annual CALSTART Hybrid Truck User Forum (HTUF) conference in Dearborn, MI, and at the "Business of Plugging In" conference in Detroit where Michigan Governor Jennifer Granholm spent some time behind the wheel.
• AZD CEO Scott Harrison made two significant appearances on Canada's Business News Network during 2010 and was featured in a number of interviews including a recent one at the Reuters Automotive Summit. AZD products were featured in The New York Times, the Toronto Globe & Mail and literally hundreds of other print, TV and online publications throughout the world.
And in conclusion...
As we said earlier, from just about every angle, 2010 was a very good year for Azure Dynamics.
The economy is starting to come back and businesses are responding, looking at their needs and making purchase decisions they delayed during the recession. There are federal, state and local incentives available to help them do that. Our products are performing well in many of the hardest working fleets on the planet. Meanwhile, the move to green is getting greener and AZD products are ready with the answers that most fleets are looking for. We used the "down time" of the recession wisely and our technology and manufacturing are up and ready to go.
So we're almost there. We expect 2011 to be a banner year for our company and we expect 2012 to be even better. The stars are aligning and our promises are becoming deliverables.
We wish you all the happiest of holidays and a New Year that brings you only things you want. We are grateful for your partnership and appreciate your friendship and we look forward to achieving new heights together.
Sincerely,
The Azure Dynamics Team
Our core strategy of technology, product, partners and people emphasis has resulted in solid bottom line sales, margin and revenue increases, and significant cost reductions. Our proven and adaptable technology allows AZD to move product to market quickly which is critical to maintain our first-mover advantage in a dynamic industry. Following are some of AZD's most significant highlights of 2010.
Sales:
At AZD we made our first move to commercialization in 2008 and we are extremely proud of our progress since then. In 2010 we continued our focus on the BalanceTM Hybrid Electric vans and shuttle buses with impressive sales and cost improvements.
In addition, we launched our Transit Connect Electric product program with a LEAD customer sales strategy. This LEAD customer program surpassed our initial sales projections with nearly 150 vans sold to a variety of who's who in our target market sectors -- delivery, utility, energy, businesses and governmental organizations. These companies are all critical to the increased acceptance and adoption of electric vehicles in North America and will ultimately become key advocates for the Transit Connect Electric product. During the year, we also added the European market to our Transit Connect Electric program. Europe's higher gas prices, familiarity with the Transit Connect and government incentives for green technology bode well for electric vehicle sales. AZD believes that once European sales start in earnest in mid 2011, they will quickly equal, or perhaps surpass, the North American sales.
Revenues:
Although the year isn't over and the final numbers aren't yet in, it's been a year of solid growth for Azure Dynamics. Revenues will be in excess of $20 million for 2010, more than double the previous year. In conjunction with our margin improvements and cost reduction program that was fully implemented in the second half of the year, this increase in revenues will give us our strongest year-end bottom line ever and will jump-start us for what we anticipate will be even more significant growth in both sales and revenues in 2011.
Product Technology:
Product technology and product excellence are our strong suits at Azure Dynamics. Our industry leading technology is flexible enough to be integrated into a whole range of applications and is the reason we were able to go from product concept to final product assembly on the Ford Transit Connect Electric in a remarkable 13 months. That's breakneck speed in the auto industry! But the Transit Connect Electric wasn't our only product focus in 2010...
• Transition to the Johnson Controls-Saft battery pack during the third quarter ensured that the Balance™ Hybrid Electric product included the latest lithium-ion technology as well as the other engineering updates aimed at improving reliability, durability and efficiency. The battery implementation was part of a broader cost containment plan that reduced the BalanceTM bill of materials by an eye-popping 40%.
• In addition to ongoing testing and validation on the BalanceTM Hybrid Electric and Transit Connect Electric products, we continued validation on the lithium ion battery and initiated a plug-in hybrid variant for the BalanceTM E-450.
• AZD's Force Drive™ technology was the power behind the winning entry in the prestigious international "X Prize" competition. Li-Ion Motors' Wave II, featuring Force Drive™ technology, earned first place in the highly competitive Alternative Side-by-Side class after performing in an intense multi-stage competition.
• In Europe, the Transit Connect Electric successfully completed the prestigious "Brighton to London Run - Future Car Challenge". The vehicle performed flawlessly in its first introduction to European media.
People:
We've often said that those who know Azure best are familiar with the importance we place on people - our employees, our customers and our partners. Just as you can judge a man by his friends, you can judge a company by its relationships, and ours are A-1.
Starting with our Board of Directors, we were delighted to welcome John Formisano as our newest member. John completed his distinguished career at Fed Ex Express as Vice President of Global Vehicles putting him at the top of one of the nation's largest and busiest vehicle fleets. John is also Chairman of the Board of CALSTART, a California-based organization formed to implement clean, efficient transportation solutions.
Our employees are our backbone and their continued tireless efforts have helped us to advance our technology portfolio while reducing costs and improving quality and performance. We can't say enough good things about them.
As mentioned earlier, our 2010 customers represent a who's who among North America's leading fleet operators - AT&T, Fed Ex Express, Purolator Courier, Southern California Edison, New York Power Authority, Cintas, Canada Post, United States Post Office to name just a few. Plus, Azure welcomed a slew of municipalities, universities and health care organizations that have added our BalanceTM shuttle bus to their respective transit fleets. And, of course, Johnson Controls, became a customer in 2010 - this in addition to its roles as both a supplier and investor in our company.
And speaking of partners, we couldn't ask for better ones. Our relationship with Ford Motor Company on the Balance™ Hybrid Electric products, and now on the Transit Connect Electric, is to our way of thinking a perfect example of how business partnerships should work. It is totally seamless, transparent and supportive. Ditto our relationship with Johnson Controls-Saft and with AM General, our newest partner now upfitting our Force Drive™ technology on to the Transit Connect.
We are grateful to each of these individuals and companies for joining us and enabling us to truly become Part of the Solution. We are at the leading edge of the green transportation movement in the significant commercial niche that will help to determine the shape of the transportation future. We think it's a good place to be, the perfect place, in fact, for a company like AZD.
Public Awareness
As our sales continue to increase and more operators are exposed to our products and what they can do, our on-the-street exposure multiplies as well. In addition, we've taken a number of steps to put AZD products in front of critical audiences.
• The Chicago Auto Show "coming out party" for the Transit Connect Electric was a home run of exposure to automotive analysts and journalists with Fox News calling the Transit Connect Electric "one of the most historic cars ever made." Transit Connect Electric's European unveiling at the Hanover (Germany) Auto Show brought new attention to this innovative vehicle across Europe.
• The Transit Connect Electric made a number of additional public appearances in 2010 including a series of demonstration drives for a variety of U.S. federal agency officials in Washington, D.C. We participated in a similar event for Canadian government officials in Ottawa this month. Transit Connect Electric was also featured in a display at the annual CALSTART Hybrid Truck User Forum (HTUF) conference in Dearborn, MI, and at the "Business of Plugging In" conference in Detroit where Michigan Governor Jennifer Granholm spent some time behind the wheel.
• AZD CEO Scott Harrison made two significant appearances on Canada's Business News Network during 2010 and was featured in a number of interviews including a recent one at the Reuters Automotive Summit. AZD products were featured in The New York Times, the Toronto Globe & Mail and literally hundreds of other print, TV and online publications throughout the world.
And in conclusion...
As we said earlier, from just about every angle, 2010 was a very good year for Azure Dynamics.
The economy is starting to come back and businesses are responding, looking at their needs and making purchase decisions they delayed during the recession. There are federal, state and local incentives available to help them do that. Our products are performing well in many of the hardest working fleets on the planet. Meanwhile, the move to green is getting greener and AZD products are ready with the answers that most fleets are looking for. We used the "down time" of the recession wisely and our technology and manufacturing are up and ready to go.
So we're almost there. We expect 2011 to be a banner year for our company and we expect 2012 to be even better. The stars are aligning and our promises are becoming deliverables.
We wish you all the happiest of holidays and a New Year that brings you only things you want. We are grateful for your partnership and appreciate your friendship and we look forward to achieving new heights together.
Sincerely,
The Azure Dynamics Team
Thursday, December 9, 2010
Dear Friends of Azure,
At a media event held yesterday at the AM General assembly location in Livonia, MI, Azure and its partners announced that the initial Transit Connect Electric (TCE) vans with Azure's ForceDrive drive train are on schedule and ready to ship as planned. The media guests were impressed with the partnerships' ability to bring the TCE to market just 13 months after the initial collaboration was announced. This speed to market underscored AZD engineering know-how and the flexibility of the ForceDrive EV powertrain.
As part of the event, Ron Iacobelli, chief technology officer, and Curt Huston, chief operating officer, discussed the TCE's technology and key drivers propelling the EV market in Azure's direction. NBC, ABC, and Fox affiliates, various radio stations and many print and on-line media journalists participated in the event. Following are a selection of print articles for your review.
New York Times: Ford Starts to Ship an Electric Delivery Van
Automotive Fleet: Ford & Azure Dynamics Mark Production and Delivery of First Transit Connect Electrics
Wall Street Journal: Ford Begins Shipping Electric Vans
Oakland Press: Ford, Azure ship electric vans
Detroit News: Ford begins to ship all-electric Transit Connect vans
Sincerely,
AZD
Thursday, October 28, 2010
Dear Friends of Azure,
For those of you who missed the live broadcast of Scott Harrison's BNN interview this morning please click on the link below where Scott discusses the recent Transit Connect Electric contract with Canada Post as well as his views on the electric vehicle industry and Azure's role in it.
BNN Interview
Sincerely,
AZD
BNN Interview
Sincerely,
AZD
Dear Friends of Azure,
Scott Harrison will participate in a BNN national interview this morning (Thursday, 10/28) at approximately 10:50 am (eastern time) to discuss the recent Transit Connect Electric sale to Canada Post as well as other Azure business updates.
Sincerely,
AZD
Sincerely,
AZD
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