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Old 01-12-2010, 11:38 PM   #8
paulie
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paulie is on a distinguished road
 
Join Date: Feb 2008
Location: Atlanta, GA
Posts: 13
5 yr Member
Default Moving manufacturing and batteries to China to reduce costs

Cost should come down. Here is my analysis

Well if my calculations are correct
Segway costs about $5000
Batteries cost $1500 and made by Valence Technologies

Valence might be gaining some traction they have got 5 million dollars in battery orders from Smith Electric Vehicles in the last month. With the way the government is supporting the electric vehicle the cost of batteries should come down this year. Brammo who is manufacturing thier bikes in the USA was selling their electric motor cycles for 12,000 with Valence batteries and dropped the price last November to 8,000. Citing the reason for the cost reduction was due to the components costing less. The most expensive component by far is the battery. They manufacture here because they want to be made in the USA and there really isn't that much cost savings for them.

Battery cost might have already dropped for Segway but they might not be passing it on the consumer because they don't think a $500 to $700 reduction in price would change demand. I would think there are some places with out losing quality that they could reduce costs on the $3500 of the rest of the cost but I am not an expert in Segway Manfacturing.

Hopefully new management will make some positive changes! Find ways to lower the cost. I think segway has been making progress in Tourism, Policing, and Military. They just need to make the jump to mainstream.
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