No Shipping Units?

[cyberjack]

I just saw an ad on this board that said Inc. is not shipping any new units until April 2010. Is this info accurate? What is happening with any units currently in manufacturing? So if a dealer sells through all their new inventory they are unable to get new units to sell? How much sense does that make. Proliferation not a dearth of Segways makes more sense to me.

Thanks for any info.

[gbrandwood]

Where on here did you read that? Could you post a link? Thanks.

[cyberjack]

There is an ad below for a new kickstand: http://forums.segwaychat.com/showthread.php?t=23860. If you follow the link to the vendors website you will see the information:
http://www.lucentads.com/segway_for_sale.html

[Civicsman]

I just saw an ad on this board that said Inc. is not shipping any new units until April 2010. Is this info accurate?

A better way to put it might be that new units WILL be shipped after April 2010 because of the recent acquisition of Segway, Inc.

[PeteInLongBeach]

Sounds like it could be some opportunistic marketing ploy by Lucent.

[jgbackes]

I heard the same thing from my local dealer. No new machines till April.

[fxrs]

A classic way to introduce a new version of a product is to sell as much existing stock as possible.

"No new units until April" could be a way to use up the 2nd generation stock.

Alternative thoughts: Maybe the new owner wants to stop production and review/improve everything?

All-in-all, it's hard to be enthusiastic about Segways at this moment -- too many uncertainties with a new owner, lack of message/direction from the new owner, and now "product unavailability."

[gbrandwood]

There is an ad below for a new kickstand: http://forums.segwaychat.com/showthread.php?t=23860. If you follow the link to the vendors website you will see the information:
http://www.lucentads.com/segway_for_sale.htmlThanks for info. Sounds like, having been corroborated with ɟɟǝɾ, that this is the real deal. Very interesting.

Segway have historically not announced such a freeze prior to the launch of a new product - as everyone would assume a new product is around the corner and unless old stock was discounted, it would sit there.

I guess all dealers have been informed. Maybe someone has a little more detail - or have they been told to not release the detail?

[MaddFinn]

Could it be that they are moving into a different, less expensive and smaller facility, and need that time to setup?

[Efishal]

My friend who operates the local Segway dealership said he has customers waiting and he can't get any machines!

He is furious! This is going to kill a lot of dealerships.

This makes Toyota look like geniuses!

[KSagal]

My friend who operates the local Segway dealership said he has customers waiting and he can't get any machines!

He is furious! This is going to kill a lot of dealerships.

This makes Toyota look like geniuses!


The accelerator on my segway has never once gotten stuck!

I wish the company well, and we are all speculating on if this delay exists, and why...

[MTOBATTERY]

In light of the cash flow problems that existed this makes sense. I even heard things like batteries are becoming not available as well. They had stopped all manufacturing since they wouldn't be able to pay for it. This is the delay from stopping manufacturing, paying off outstanding bills, and re-establishing vendor relationships. This all seems very normal to me given what all has transpired over the past few months. Rumor has it things will start flowing again the end of next month but I'm sure there are backorders already so April/May sounds in line.

My $0.02 for what is worth.

[Bob.Kerns]

In light of the cash flow problems that existed this makes sense. I even heard things like batteries are becoming not available as well. They had stopped all manufacturing since they wouldn't be able to pay for it. This is the delay from stopping manufacturing, paying off outstanding bills, and re-establishing vendor relationships. This all seems very normal to me given what all has transpired over the past few months. Rumor has it things will start flowing again the end of next month but I'm sure there are backorders already so April/May sounds in line.

My $0.02 for what is worth.

Yeah, I was afraid that's what it meant; it points to a rather dire atmosphere and probably rather less favorable terms of sale.

The upside -- and it is DEFINITELY an upside -- is that what was bad for the previous owners is good for the new owners. Better sale terms, and a substantial backlog and pent up demand. Maybe even some renegotiations with suppliers. All this adds up to a healthier company going forward.

It makes one appreciate all the more that we HAVE new ownership. For those who depend on Segways in one way or another, the alternative doesn't bear close thinking.

[Efishal]

The delay is real. Ask any dealer.

The reasons don't matter to the dealer who has to cover months of overhead with no income and unhappy customers backing up!

The company has no regard for the dealers!

It's inexcusable.

[CovRob]

The reasons don't matter to the dealer ...
The company has no regard for the dealers!

"The company" is now in the hands of different people. Who knows what they inherited? The above comments are sweeping statements, especially as the status quo has changed.

"The company" may have ceased to exist had a new investor not been found. Where would dealers and existing customers have been then?

[KSagal]

I don't know what exactly is going on. I will not pretend to know, and will not speculate as several others are...

But there are certain facts that are not too difficult to figure out...

The statement has been made that dealers have sales and no machines. The statement has been made that the company has no regard for the dealers. Many more equally negative statements...

The facts are that the number of segways sold is not high enough for the company to have paid its debt load... Maybe they should have spent differently, maybe their debt load was too high, maybe they should have had less development costs... Okay...

But they clearly did not sell enough to stay in good shape financially... So the dealers will hurt, but not as much as the manufacturing side...

I love my segways, and hope the company comes thru all this well. But the only thing that ever made any difference and ever will, is the large scale sale and acceptance of the segway, and that simply has not happened yet... I do hope it will happen before too late...

[Efishal]

Ask any dealer how they feel about corporate!

Tell me why there has never been a serious marketing budget!

The lack of a national ad campaign and marketing strategy is inexcusable.

Yep , Dean has to take some heat for this!

It shows a real naivete!

[MaddFinn]

"The company" may have ceased to exist had a new investor not been found. Where would dealers and existing customers have been then?[/QUOTE]

Right on the money!

[Isidore]

Just to say that I have been talking to some of my internal contacts and I am authorised to say that production is now going flat out to fulfil the very large number of back orders. I think the pause in production was an inevitable consequence of the change in ownership and hopefully things will be much improved now. Of course the usual caveats apply and my crystal ball my not give an accurate view of the future...

[Burke2]

We are dealers. We don't hate corporate. We respect the difficulties they have faced and the very difficult decisions they have had to make. They haven't shipped new units for several months, and now there is a lack of availability of many crucial parts as well while they renew vendor relationships and ramp up to begin production again. Yes, it's been a very unsettling time for a dealer, but can you even begin to imagine how unsettling it's been for corporate?

We are EXTREMELY RELIEVED that they found a new investor. As CovRob said and MaddFinn agreed, where would we be if they hadn't??? We don't know what the future holds, but I'm glad Isidore has heard they will be producing and shipping units again soon. We have been told not to expect any until early April. They are instituting a lot of changes here and there, and whether we like them or not, I personally think they will make the company stronger for the long haul.

Janice Burke
Segway Orange County

[CovRob]

I'm glad Isidore has heard they will be producing and shipping units again soon.
I can confirm that after a conversation today with Wayne Mitchell (C.O.O. at INC) he informs me that relationships with component suppliers have been restored, back order parts are imminently due to arrive at the factory and new machines will be rolling off the production line as promised (maybe sooner, but I have a similar crystal ball to Isidore - so perhaps expect the later dates quoted and be pleased if they arrive earlier!) I am informed that once the new owners took over and began talking to component suppliers some lead times for parts deliveries of up to 26 weeks were quoted :eek:. It is their intention to maintain a more adequate stock of components to fulfil orders in the future.

I don't think it has been an easy time at the mother-ship lately but I truly believe the new owners are Segway fans and want us all to continue to be too.

[cyberjack]

We are dealers. We don't hate corporate. We respect the difficulties they have faced and the very difficult decisions they have had to make. They haven't shipped new units for several months, and now there is a lack of availability of many crucial parts as well while they renew vendor relationships and ramp up to begin production again. Yes, it's been a very unsettling time for a dealer, but can you even begin to imagine how unsettling it's been for corporate?

We are EXTREMELY RELIEVED that they found a new investor. As CovRob said and MaddFinn agreed, where would we be if they hadn't??? We don't know what the future holds, but I'm glad Isidore has heard they will be producing and shipping units again soon. We have been told not to expect any until early April. They are instituting a lot of changes here and there, and whether we like them or not, I personally think they will make the company stronger for the long haul.

Janice Burke
Segway Orange County

I am relieved to hear a little optimism Janice, I bought my i2 from your husband in August. I enjoyed working with Segway OC and have been nervous about your status for the future. I have almost 1100 miles since I bought my i2 in August and use it to commute, so it is pretty essential to me. I hope to be buying my i3 in the future from you!

[polo_pro]

Could you find out if there are any plans to do a run of Gen 1 handlebars? At $1000 per for the last year or so, I'd think a business case could be made to make a couple hundred.

At the very least, it'd be nice if the schematic for the electronics in the handlebars was released to the owner community. A wooden shell for the handlebars exists already, and having the BOM for the electronics would allow the owner community to create a complete aftermarket part.

I can confirm that after a conversation today with Wayne Mitchell (C.O.O. at INC) he informs me that relationships with component suppliers have been restored, back order parts are imminently due to arrive at the factory and new machines will be rolling off the production line as promised (maybe sooner, but I have a similar crystal ball to Isidore - so perhaps expect the later dates quoted and be pleased if they arrive earlier!) I am informed that once the new owners took over and began talking to component suppliers some lead times for parts deliveries of up to 26 weeks were quoted :eek:. It is their intention to maintain a more adequate stock of components to fulfil orders in the future.

I don't think it has been an easy time at the mother-ship lately but I truly believe the new owners are Segway fans and want us all to continue to be too.

[CovRob]

Could you find out if there are any plans to do a run of Gen 1 handlebars?
I can but ask next time we speak.

[Bob.Kerns]

I'll point to the naysayers that having not shipped any units for a while means that there's a large backlog, that dealers will be selling.

True, there may be lost sales, and that hurts dealers. And the delay also hurts dealers. But at least some of that is delay, rather than an absence of, sales.

But the real bright spot there, is that the backlog means more revenue for the new owners, which helps the near-to-mid-term future for the company. A purchase with NO ready backlog could be an unfortunate situation for the long-term health of the company. It comes at the expense of the former owners.

[gbrandwood]

And with a shortage of supply, I guess dealers, where sales are still being taken, will not have to reduce the price so much to shift them. You know how certain products sell out around Chirstmas time and people go crazy trying to buy them... well not quite the same but Segway could be the new Turboman.. :)

[Bob.Kerns]

I'm not saying it doesn't suck to be a dealer with this going on! Dealers still have bills that don't go on hold when production goes on hold, and it could mean financial ruin for some.

But for others, the resumption of production should see them regaining some of the lost ground, and a bullet dodged, and survival.

And hey, it makes me think seriously about buying a new one, keeping my old as a spare.