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Pickups, SUVs and CUVs – The Bright Future of the Specialized Equipment Market

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Worksport

Pickups form the largest share of the specialty equipment industry because they are simply a great platform for modification. The Specialized Equipment Market Association (SEMA) rated Ford Motor’s (NYSE:F) F Series as the most customizable truck and its majesty, Fiat Chrysler Automobiles’ (NYSE:FCAU) Jeep Wrangler as the winner of the SUV category. And besides providing valuable opportunities for customization, pickups have taken the throne from traditional passenger cars and they show no signs of stopping.

Pickups are on the throne – and they are bringing Workhorse Group Inc along!

There are 55.9 million registered pickups in the United States, making 20% of all vehicles on the road. Led by Ford F-150, there’s also quite a bit of Toyota Motor’s (NYSE:TM) Toyota Tundra. As for a snapshot of the accesorization subsegment, total specialty-equipment sales in 2018 amounted to $12.03 billion and made 27% of the specialty-equipment retail market. These products include, maintenance oil, wax and cleaning products, trailer and towing accessories but also exterior appearance upgrades, batteries and truck bed liners. People love to add big wheels to their pickups, enhance exterior appearance so those products also always tend to do well and logically, trailer and towing products are most commonly purchased by pickup owners. But it is truck beds that provide valuable opportunities that aren’t present with other vehicle segments for utility products, such as racks and toolboxes, plus liners and bed covers.

Speaking of truck beds, no wonder Workhorse Group Inc (NASDAQ:WKHS) has its hands full with the electric start-up company occupying its strongest position to-date, both operationally and financially. During its third quarter, the company signed several partnership deals to leverage its intellectual property while more than doubling its loss of a year ago from $5.5 million to $11.5 million due to higher interest expense.
The company recorded sales of $4,000 which is quite down from $11,000 in the same period last year, however despite the fact that the company delivered fewer trucks, it did so at higher prices due to making a transition to a new generation, causing its R&D prices to increase 13%. Workhorse received a non-dilutive 10% stake in Lordstown Motors which purchased the 6.2-million-square-foot plant from General Motors Co. (NYSE: GM) on Nov. 7. Also on a brighter note, the company’s balance sheet of September 30th shows cash and cash-equivalents amounting to $9.3 million compared to only $1.5 million on December 31, 2018.

Franchise Holdings International

Meanwhile, Franchise Holdings International Inc (OTC:FNHI)’ Worksport was granted this year a third U.S. patent protecting its innovative covers that provide unique full-bed access for light trucks such as Ford F series from Ford (NYSE: F), it announced last week that it will sell their products on Amazon (NASDAQ:AMZN) and they announced today that they will invest in a productivity company that has created a calendar app. Previous companies to invest in calendars are Google (NASDAQ:GOOG), (NASDAQ:GOOGL) and Salesforce (NYSE:CRM), also Microsoft  (NASDAQ:MSFT) and Facebook Inc. (NASDAQ:FB) are active in the calendar space.  In September last year, the company received its second U.S. Patent Office trademark allowance, so now they have four in 2019 that add protection to its brand strategy. This innovative company is also looking to complete its Helios line with complimentary truck accessories able to transform sunlight into storable energy so that they can extend the driving range of forthcoming electric trucks. Worksport’s proprietary solar technology infused with its most advanced truck bed covers is more than a major breakthrough innovation, it represents an endless opportunity for future growth.

Pickup market outlook

The top pickups as far as accesorization goes are GM’s full-size pickups and surprise, Ford’s F series. But Toyota’s Tacoma and Tundra are on the list as well as Nissan Motor Co. (OTC:NSANY)’s Nissan Frontier. Of the roughly 56 million pickups in the United States today, nearly 60% of them are either GM Full-Size or Ford F-Series as these two models combined account for almost 12% of all vehicles on the road. GM and Ford’s market dominance is expected to continue with estimated additional 12 million trucks for 2026- speaking for a safe haven for the specialized car equipment industry! GM has 17.6 registered vehicles on the road with Ford following with 15.6 million. But, the rebirth of several mid-size models are also expected to provide an additional boost by bringing in new buyers, with Toyota and Nissan having quite a number of enthusiastic owners, creating a strong market for their specialty equipment. Great news for Toyota that is struggling to adapt to the ‘electrification’ era.

SUVs

With 36.7 million registered vehicles in the United States making 13% of all vehicles on US roads, top models are again led by Ford, and Ford Explorer to be exact. But then there’s Jeep taking second and third place, GM’s Chevrolet Tahoe, Toyota’s Toyota 4Runner, with Hyundai Motor Company (OTC:HYMTF) Kia Sorento taking 8th place and FCA’s Dodge Durango taking 9th place. But don’t worry about Fiat Chrysler Automobiles, as despite a miss on revenue targets, its stock gained 17.3% in October, mostly due to the good merger news with France’s Peugeout SA (OTC:PUGOY) which was announced on the same day of the earnings release.
The specialty equipment sales for the SUV segment amounted to $5.93 billion in sales in 2018, making 13% share of the market. While SUVs are not as versatile as pickups for accessorization, many owners upgrade their SUVs with utility parts and for off-roading as many SUVs topping the list are in fact often used to go off-the road.
But it is Jeep that dominates the after-market. The Jeep Wrangler is widely considered to be one of the most modified and versatile vehicles on the road today as nearly 40% of Jeep Wranglers are accessorized in some way, be it shape or form.

Crossovers are becoming more popular

Although a crossover (CUVs) are becoming more and more popular and their distinction is not always clear, they are a separate segment because SUVs are built on truck platforms whereas CUVs are built with unibody construction. With SUVs showing a long tenure, consumer interest is expected to continue in the coming years. They are more profitable for auto-manufacturers to make but there are economic factors like increased gas prices and uncertain economy could decrease consumer buying power. But when it comes to accessories, they will persevere for all those who wish to optimize their utility with a lot of specialty after-market upgrades.

CUVs

The fastest developing segment makes 17% of all vehicles on US roads amounting to 48.3 Million registered CUVs are being led with Honda Motor Co (NYSE:HMC)’s CR-V, the one and only model that crosses in between not being a true pickup nor an SUV, a true jewel for this ever evolving company. Then there’s of course, Ford Escape, Toyota RAV4, Chevrolet, Nissan, Subaru Forester and Jeep Cherokee. CUVs created 11% share of the specialized equipment market. Having outpaced even pickups, it is logical to assume consumers will turn to accessorizing CUVs like they do with SUVs. That being said, there are obstacles. The segment is fragmented as there are 120 models in operation and just as many models are expected to be sold in the future. As a consequence, it will be difficult to create products that will function across all platforms. The large number of platforms limits the opportunity for companies seeking to sell specialty parts as there is no clear single model that dominates the market. The Ford Escape and Toyota RAV4 lead the pack in terms of registrations having been out longer. However, there are many other CUVs close behind and all this diversity makes it challenging to focus on to a single model. The popularity of CUVs is not expected to subside soon but, many CUV models are relatively new and have little history with the accessorization market so there will be a challenge to decide which models to focus on. But one thing is certain, while the conventional car market continues showing signs of fatigue, pickups, SUVs and crossovers are booming- and show no signs of stopping. And even if this wasn’t case, there’s so still so much room in upgrading older models so all is bright for the specialized equipment industry when it comes to this segment. Worksport has its future guaranteed with its breakthrough solar technology that can surely disrupt the truck accessories market but Workhorse Group is also in for the ride once the company finishes its transition to the new generation as pickups are definitely here to stay.

This article is contributed by IAMNewswire.com. It was written by an independently verified journalist and is not a press release. It should not be construed as investment advice.

Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com
Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

BenzingaEditorial

News From The Vaccine World

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Less than a year before the COVID-19 started its relentless march across the globe Novavax (NASDAQ: NVAX) was facing delisting from the Nasdaq. The 33-year-old Maryland-based pharmaceutical company didn’t have a single approved shot after hundreds of millions of dollars invested in its R&D efforts. Wall Street likes to take bets on unproven biotech such as Moderna Inc (NASDAQ: MRNA), but it can be unforgiving of failure.  Fortunately, Novavax is now on the verge of getting approval in the UK, which will probably be followed by the US. Interim data have shown that its vaccine has an efficacy rate up there with the shots developed by Moderna, BioNTech (NASDAQ: BNTX) and Pfizer (NYSE: PFE), all of which are based on revolutionary mRNA technology. However, Novavax’ candidate s is cheaper and easier to transport and can be stored at room temperature for at least 24 hours. Additionally, the one-shot candidate by Johnson & Johnson (NYSE: JMJ) that can be kept at normal temperatures was granted an emergency use authorization during the weekend.

Merck and Johnson will join forces

Merck & Co Inc (NYSE: MRK) will manufacture the vaccine made by Johnson & Johnson (NYSE: JMJ) under an unusual deal that the Biden administration engineered to boost production of the single-shot ja which has been hampered by manufacturing delays.

The Biden administration helped to engineer the deal between the competitors after J&J, which was, experienced production hold-ups. J&J is the world’s largest healthcare company, but when it comes to vaccines, Merck has the expertise as it is one of the world’s largest vaccine makers with many approved shots.

Sanofi (NASDAQ: SNY) is another large vaccine maker that has fallen behind in the COVID-19 vaccine race and has agreed to help boost supplies of the J&J vaccine in Europe. Last month, it stated it would use its capacity to fill vials.

Novavax has finally stopped gasping for air

The CEO of Novavax, Stanley Erck, stated their candidate is more than 90% effective against the original strain, 86% effective against the U.K. strain and considerably less effective against the South African strain. According to forecasts, Novavax will generate more than $5 billion in revenue this year. As it is applying for approval for it flu shot, it will start studies on combining the Covid-19 and flu vaccine into a single shot later this year.

A story with a happy ending for everyone?

Novavax’s story resembles a Cinderella story as a little company that was on the verge of potentially closing has really been able to play with the big boys in the race for the Covid vaccine. The bottom line is that the US will have enough coronavirus vaccine doses for every adult by the end of May, which is sooner than anticipated, thanks in part to an unusual type of collaboration we didn’t see since World War II between two of the country’s largest drugmakers.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Workhorse and Worksport Both Delivered Good News This Week

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EV Update

This week began with good news in the EV world. On Monday, electric truck maker Workhorse Group (NASDAQ: WKHS) reported before market open. Its shares bounced 4.7% in midday trading Monday after the electric vehicle maker reported a surprise fourth-quarter net profit despite falling short on sales. A piece of good news were more then welcome after last week’s selloff that plunged as low as 47.5% plunge last Tuesday, after the U.S. Postal Service awarded a contract for delivery trucks exclusively to Oshkosh Corporation (NYSE: OSK), while Workhorse was widely expected to win at least a part of the contract. On Tuesday morning, tonneau-cover manufacturer Worksport (OTC: WKSP) announced it is expanding its capacity to meet increased demand. Worksport announced this morning that it received over US$2.3 Million to date from Exercised Warrants from the recent oversubscribed Regulation A offering.

Workhorse Q4 results

The company reported its net income rose to $280.5 million from $655,000 a year ago, thanks largely to income derived from its investment in Lordstown Motors (NASDAQ: RIDE), an electric pickup startup founded by Workhorse’s former chief executive. The FactSet expected a net loss of $15.1 million. Revenues increased from $3,000 to $652,000, due to a higher volume of produced and delivered trucks, but still came short of FactSet consensus of $1.2 million. According to its Chief Executive, the company is entering the new year in its strongest-ever position, both financially and operationally. With over $200 million of cash on its balance sheet and over 8,000 vehicles in its backlog, it can reliably continue building its multi-year growth plan.

The EV maker is not taking a recent high-profile defeat lying down

The company also revealed it will meet with U.S. Postal Service (USPS) management on Wednesday to discuss the latter’s recent awarding of a 10-year contract that would place Workhorse among top EV manufacturers. With at least 50,000 trucks to be manufactured within a decade, this will be the most dramatic modernization of the USPS fleet in three decades. While the USPS is one of the more financially strapped government entities, cy it’s considered to be an extremely reliable business partner. Following the USPS’s awarding of the contract to Oshkosh, Workhorse issued a press release in which it clearly stated it intends to explore all avenues that are available to non-awarded finalists in a government bidding process. Its odds of getting a second shot could depend on whether President Biden is able to force out the postmaster general who was installed last year by board members appointed by former President Donald Trump.

Worksport is expanding due to increased demand

Innovative pickup truck tonneau cover manufacturer Worksport partnered with Atlis Motor Vehicles and Hercules Electric Vehicles to configure its revolutionary TerraVis solar system for their upcoming electric pickup trucks is expanding further. The company announced on Tuesday morning it is in the final phase of a strategic manufacturing expansion discussions with a few Tier-1 and Tier-2 OEM manufacturing power houses in Canada. The company aims to expand its manufacturing into North American state-of-the-art facilities with 20,000 to 50,000 square feet of operating space to meet its recent U.S.-based Private Label customer growth.  Considering the company was awarded its first trademark in China, this is only the beginning of Worksport’s growth story, not to mention the company is also expanding outside the pickup truck market to the consumer market by extending its solar fusion line with mobile TerraVis COR™ system that can be used independently and recharged via solar or A/C power. These discussions involve logistics to ensure scalability in the manufacturing processes. The expansion will give the company control over capital expenses, greatly reducing risks of overextending its financials during periods of intense demand while building its major Automotive, Freight & Transport, Marine, and Rail ecosystems. With its CEO Steven Rossi at the helm, Workhorse is going all in to exceed customer expectations in terms of quality, innovation, convenience and last but not least, affordability.

Outlook

Workhorse aims to increase production to three trucks a day by the end of this month and reach a daily output of 10 trucks by the end of June. Worksport is aiming to become a Tier 1 OEM manufacturer of solar-powered tonneau covers for electric makers and by the looks of it, it’s well on track, especially as it successfully closed its $4 million Regulation A offering at the beginning February well ahead of the scheduled closing due in November 2021. Demand that is fueling Worksport to rapid growth is key, which is why Workhorse isn’t willing to take USPS’ no for answer.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaPRs

Worksport Receives over US$2.3 Million to date from Exercised Warrants

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WKSP

TORONTO – March 4th, 2021 — Worksport Ltd (OTC: WKSP) (or the “Company”) is announcing that following the success of their previously oversubscribed Regulation-A public offering, the Company has received over US$2,300,000 from investors who have exercised their warrants.  Having close to 20% of outstanding warrants exercised in such short order following the closeout of the offering again signals the strong interest and support from Worksport’s dedicated investors and shareholders alike.

This additional influx of capital will go to work towards its strategic North American and Chinese manufacturing investments as well as in the development of its TerraVis™ solar tonneau cover system and TerraVis COR™ mobile energy storage system (ESS).

“We would like to take this second opportunity to again express our sincere gratitude by thanking those who invested, continue to share our vision of a bright future, and managed to exercise their warrants in a quick turnaround,” said Worksport CEO Steven Rossi.  “We are in the midst of a major growth period for the Company as we continue to receive this additional working capital that will all but ensure the realization of both the TerraVis™ tonneau cover system and its allied TerraVis COR™ mobile energy storage system to market.  As was stated earlier this week, the Company is deep in discussions with high profile market players as strategic means for rapid & sustainable growth.  Worksport has a myriad of amazing developments in the works and will be updating shareholders on several projects as they become material.”

Investors are reminded that they may redeem their warrants anytime within a period of 12 months from the time of their investment at a price of 20 cents ($0.20) per share.  Worksport strongly encourages investors to exercise their warrants before they expire, especially as they are currently in the money as of the time of this writing.  Warrant redemption can be executed directly with Worksport by emailing the completed warrant redemption form (previously emailed to them) to Faran Ali at fali@worksport.com. They may also call 1 (888) 506-2013 or (917) 793-1634 for assistance through the process.

To stay up-to-date on all the latest Worksport news… investors, shareholders, and supporters are encouraged to follow the company’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram, as well as sign up for the company’s newsletters at www.worksport.com and www.goterravis.com.  Worksport will continue to update investors, shareholders, and supporters to maintain the highest level of disclosure and information dissemination as Worksport continues to grow and develop at a very rapid pace.

About Worksport Ltd.

Worksport Ltd. (currently OTCQB: WKSP) develops and manufactures high quality, modular, attractively priced tonneau covers and solar-powered systems for light-duty trucks such as the Sierra, Silverado, Canyon, RAM, Ford F-Series, et al. and consumer adventures & emergency/ disaster-recovery purposes, where portable energy is a necessity.  The modular, redefining Worksport TerraVis™ tonneau cover system is being mindfully designed for the jobsite contractor and off-road, light-duty trucker – for work and play – to sustainably supply extra energy for those additional miles.  Its allied TerraVis COR™ mobile energy storage system (ESS), expected to launch by end of 2021, will be another redefining product targeted for vacationers, second-home owners, and campers.  Plans are also being constructed to address the dire adoption & scaling needs of the EV markets with grid micro-charging stations to provide convenience and efficiency in recharging to smaller form-factor EVs.  For more information, please visit www.worksport.com and www.goterravis.com.

Connect with Worksport:

LinkedIn

Facebook

Twitter

Instagram

For further information please contact:

Mr. Steven Rossi
CEO & Director

Worksport, Ltd

T: 1-888-554-8789
E: srossi@worksport.com

 

Forward-Looking Statements

This document may contain forward-looking statements, relating to Worksport, Ltd. operations or to the environment in which it operates, which are based on Company estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Worksport, Ltd.’s control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. Worksport, Ltd. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. No Stock Exchange or Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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