Work machine volume is poised to accelerate over the next 3-5 years. E.P.A. regulations that go into effect in 2015 and 2017 will require less pollution and greater fuel efficiency. Sevcon is working on a number of programs, mainly in the hybrid engine area. The electric car segment promises to recover, as well. Renault built a limited number of city cars to begin with in 2012. Demand was strong. Bigger production volumes are slated to begin in March. Motorcycle and ATV demand has been consistent.
The long term outlook remains positive. Electric vehicles will remain a niche segment until improved battery technology expands their range. That's not on the horizon. But there are millions of short range commercial, industrial, and consumer vehicles that are candidates for hybrid and electric engines. The share count is low. So any meaningful improvement could support substantial stock price appreciation.
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