Monday, June 20, 2011

Zombie GoKart Companies who will survive?

A few months ago I posted at the height of the financial crisis what was going on with the "Zoombie" Scooter companies.

The president of GoKart company just wrote me to tell me the same has happened in the Go Karting industry the last two years. Some companies continue to live by cannibalizing other karting companies and dealers. MRP saw a huge increase in the Go Kart business in 2006-2008 and then it just dropped. We still have some great dealers buying, but most are competing directly with two or three guys that work from home and drop ship all day long. The Chinese importers since they have no other recourse are selling to everyone.

Fortunately the Scooter Industry has gotten a little better, but go karts and buggies seem to be in a rut in 2011. Some standouts continue to be the 250cc and upward scene that are a little more profitable for the dealers and importers. So who will survive the Go Kart Zombie situation? Only time will tell. What is needed is a bigger capacity engine like the 500cc Kymco or CF MOTO in an affordable kart that gives dealers the margins they need. One company looking into this is PIT Motors. If interested in their new Go Kart lineup give them a buzz 

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