Electric Scooter Maker Vectrix to go Bankrupt

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Electric scooter manufacturer Vectrix is set to file for bankruptcy in 30 days, after failing to find the cash infusion they need back in April. The move to Chapter 11 doesn’t surprise too many people close the company, citing both poor business practices and customer dissatisfaction as being reasons for the manufacturer’s demise.

For instance, the $10,495 Vectrix VX-1 electric scooter allegedly didn’t get the range that had been advertised, and also suffered from poor build quality. Dealers also complained about the order quantity size they would be forced to purchase, likely from Vectrix trying to push as much product out the door of its manufacturing line.

Vectrix motorcycles were available in more than 90 dealerships in the US, and nearly 160 dealerships worldwide. Mike Boyle, CEO and President of Vectrix, stated back in February that models and dealers were the two things holding the company back from being a big success. This statement makes us wonder though what things were driving the company forward, the logo?

A source close to the company had a different take on the reason Vectrix was floundering. “It’s just such a shame, because it was a really good idea and a decent product but lacked the appropriate price point and follow-up development. It was frustrating for those of us from the motorcycle industry who were involved, and we tried to convince them to change how they were doing things.”

Vectrix Corp. is headquartered in Middletown, R.I., an assembly facility in Wroclaw, Poland, and an R&D center in New Bedford, Mass. Employees in the U.S. were told of the likely closing of the doors when they arrived at work on July 131th.

Source: DealerNews via HFL