Who killed the LSV
My company, GKU Electric Vehicles, specializes in the sales, assembly and maintenance of Low Speed Vehicles (LSV). In 2009, the State of Oklahoma and the Federal government offered tax credits for green car purchases. With a 50% State tax credit plus a 50% Federal tax credit, a buyer could essentially have a clean, green vehicle at almost no cost. Thousands flocked to take advantage of the opportunity and GKU sales skyrocketed from one car a day to several hundred orders a day. We secured investors allowing us to preorder from China to meet the demand. Our mechanical staff tripled to expand assembly to continue 24 hours a day. The electric car business in Oklahoma was booming.
In September 2010, the Oklahoma Tax Commission declared that any vehicle resembling a golf cart would not be eligible for the tax credit. The OTC called this ruling a Clarification in order to avoid the legality of a Change in Law which can only be performed by the Oklahoma Legislature. Upon this news, customer’s clamored to cancel their orders and demanded refunds on their deposits. The result was devastating to our business. Eventually, the OTC retracted their statement and a list of qualified electric vehicles was compiled for public viewing. Regardless, the tax credits were still declined for all vehicles of golf car type with the exception of one produced by the largest golf car company in the world. The reason is a mystery. How Club Car got approved only shows the hypocrisy of the ok tax commission. So we tried everything we could to explain to our customers that this was just a ploy the OTC was using to stop sells and that they still would get there tax credits. We even went to the level of giving a guarantee. Many people still backed out causing us to have a very large amount of extra inventory.
Now it’s 2012 and we still have more than 400 cars in inventory, and because of the boom, most anyone who wanted an LSV in Oklahoma already has one. So we have had to find other places around the country to sell the vehicles, and for less than we even purchased them for. Most every vehicle we had sold has received the tax credit that they were promised. So in retrospect our company helped many individuals get into an electric vehicle for free and we have seen nothing for it. Every day is now a struggle, from hiring lawyers and storing the vehicles to building the vehicles and shipping them across the nation we are losing money left and right but we have no choice.
This situation also made one of the manufactures we sold for go bankrupt and we had to take over their role to get replacement parts for the vehicles. This may someday work out in our favor but those days are far from coming true. GKU has started a lawsuit against the OTC, It will be a long drawn out process and we are told it could take years to see anything come from it. I am writing this letter to explain our situation and hope it will reach anyone who has a sympathetic ear. If you are at all interested in the new and up and coming EV businesses contact me Jake Conrady at firstname.lastname@example.org. Or if you just want a great deal on a street legal electric vehicle the time is now to purchase one. You will never find a better deal than you will now. I believe in this industry and know the importance of why we as a country must head in the direction of green vehicles. Thank you for taking your time and reading my plight, we can all change the world. Low speed electric vehicles are a great place to start. Go to gkuev.com or ruggedev.com to find out more about these great products