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Vmoto Corperate VMOTO SECURES 30,000 UNIT ORDER WITH MAJOR VIETNAMESE SCOOTER GROUP
Vmoto Limited is pleased to announce that it has signed a long term agreement to develop and initially supply 30,000 engines over a 12 month period to a major Vietnamese scooter group.
The Agreement, executed by Vmoto’s Chinese based engine manufacturing company (67%), is expected to generate approximately US$5.7 million (A$6.1 mil) turnover for Vmoto over the initial 12 month period with a considerable profit contribution.
Under the terms of the Agreement, Vmoto will supply 30,000 units of a new generation water cooled, 125cc Electronic Fuel Injection (“EFI”) scooter engine to the Vietnamese group. The Vmoto 125cc water cooled engine is currently in the final pre-production prototyping and evaluation phase. The production model will be modified to the customer’s specifications, built around the existing pre- production platform. The modification, development and assessment process is expected to take approximately 8 months before commissioning into full volume production.
The delivery window is envisaged to commence around April 2009.
In accordance with the terms of the Agreement, all development and modification costs will be carried by the client, along with a confirmed initial 12 month production schedule for 30,000 units.
This transaction had not previously been forecasted in the 24 month projections for Vmoto. The Vietnam scooter and motorcycle market is very strong with over 12 million licensed scooters and motorcycles in the country. As Vietnam has recently been granted full WTO trade status, longstanding protectionist barriers are beingremoved, making joint venture manufacturing and licensing and distribution opportunities possible in the second fastest growing economy behind China.
Vmoto’s Managing Director, Patrick Davin, commented: “The Vietnamese domestic market is in excess of 1.5 million units per year. This new alliance to deliver Vmoto product in Vietnam is very exciting for the Company and only the tip of the iceberg. It practically underwrites our engine manufacturing facility with the one order. Our first OEM contract to the Korean scooter group has proven successful and a stronger business partnership is expected in the coming year. The positive feedback from our Korean client’s global distribution network has been nothing short of staggering.
The technology and new product development from our engine development team lead by Mr Li Gang and Mr Charles Chen is going to deliver world class, cutting edge scooter and motorcycle engines. The vision and Company emphasis on developing proprietary, rather than “copied” technology, is already gaining the attention of major regional and international scooter suppliers seeking the POWERED BY VMOTO option. Without putting too fine a point on it, the scale of the
VMOTO EUROPE SIGNS 3000 UNIT SCOOTER DEAL IN SPAIN
Vmoto Limited is pleased to announce that following completion of the acquisition of CSR Motorcycles Spain, the Company’s newly formed subsidiary, Vmoto Europe, has signed an agreement to supply 3,000 scooters over a 12 month period to Spanish company, Gruppo Aupper (“Aupper”).
The Aupper order is anticipated to generate approximately €3,000,000 (A$4,800,000) turnover for Vmoto in the financial year to 30 June 2009, with a considerable profit contribution. The first order of 300 units is scheduled to arrive in Spain late July.
The ECO 50cc scooter will be supplied to Aupper, a specialty publisher and book supplier, as a promotional item to be packaged in an ongoing sales and marketing campaign geared at high value publications, such as encyclopaedias.
This transaction had not previously been forecasted in the 12 month projections for Vmoto Europe. Vmoto’s Managing Director, Patrick Davin commented “the value and potential to be derived from the launch of Vmoto Europe is clearly demonstrated through the Aupper transaction. Carlos Sotelo and the European business development team are not only already winning business from traditional distribution channels, but also leveraging the product range in cooperative marketing efforts, such as the one evidenced with Aupper.
This innovative approach has provided Vmoto with a single order transaction that surpasses the total unit sales of the Vmoto brand in Australia in the last year and goes to show the huge potential that the European market has for us.
We plan to officially launch the Vmoto brand to Europe in Cologne, Germany, this November and I have every confidence that our European presence, headed by Carlos and his talented team, will be very successful.”
Vmoto Europe General Manager, Carlos Sotelo spearheaded the Aupper deal and is currently assessing other similar long term supply agreements in Europe.
published 20/06/2008 |