ETMO interesting read:
Wednesday, June 06, 2007 14:41 ET
Drew Philp
Jun 06, 2007 (The Bakersfield Californian - McClatchy-Tribune Information Services via COMTEX) -- Remember those old dune buggies with the four-cylinder VW engines that gave motor sports lovers hours of family fun? They've been updated, souped up and supercharged, and now law enforcement agencies are using them to keep some of America's most rugged terrain safe.
Alan McCaa (pronounced like McKay) owner of Extreme Motorsports of California, located here in Bakersfield, is making these "SandCars," and business is growing exponentially. On Thursday McCaa signed a $39 million deal with Made in USA Industries to make 400 law enforcement editions of his SandCars.
Made in USA Industries, based in El Monte, said in a press release that it has chosen to work with Extreme Motorsports because it manufactures "the most rugged and technologically advanced SandCars in the industry." McCaa has also expanded the business by acquiring a financing company, moving to a larger production facility and looking to the 2008 Olympic games in China as a venue for international exposure.
McCaa says that anti-terrorist and border patrol agencies are looking at his cars to take some of the workload wear and tear off their on-road police vehicles.
"We can equip these cars with almost anything," he said. "Pelican Mobile laptops, infrared cameras, armor plating." As well as selling to American markets, McCaa will be taking a tour of the Middle East this month to sell potentially millions of dollars worth of SandCars to governments looking for feasible ways to protect oil fields.
McCaa says Saudi Arabia is particularly interested in the vehicles, and he is "85 percent confident" that a foreign deal will come through.
"There has been a need for these cars in the military for a long time," said Marty Fiolka editorial director of Off-Road Business magazine. "A lot of technology used in the Hummers was started in off- road vehicles."
He added that the SandCar market "has been good for a long time and there is a very steady growth." The $39 million contract was just what McCaa was hoping for, and if he can close even one deal with a company in the Middle East, revenue will be boosted by as much as $50 million dollars.
The SandCars that McCaa fabricates are what would be referred to as "dune buggies" 30 years ago. But McCaa's cars no longer house wimpy four cylinder engines. The cars can hold up to eight cylinder Corvette engines, and at 450 horsepower can travel upwards of 110 mph.
Founded in 1983, Extreme Motorsports began building SandCars for personal clients. Two years ago McCaa restructured the business, and in 2006 Extreme Motorsports became the world's only publicly traded SandCar company.
Although McCaa has diversified his business and is looking for larger markets, he still builds SandCars for private clients.
"Too fast," is how 61-year-old Jerry Frith describes his $80,000 sand car purchased from Extreme Motorsports, which can travel 100 mph.
"It does amaze you with the economy (falling) that people are spending money on these cars," he said.
McCaa attributes the interest in SandCars, and the early expansion of his business, to people wanting to spend more time with their families.
"People are spending more money on all recreation activities," he said. "Our typical demographic is a family who has saved for months to buy one of these things." The company's SandCars are expensive, ranging from a base model starting at about $15,000 to upwards of $100,000 for custom rides. With the recent acquisition of Southern Offroad Vehicle Services, a financing company, buyers now can receive in-house financing for a SandCar, or lease one like a traditional automobile.
McCaa will continue selling SandCars to private clients, but "government and law enforcement will end up being the bread and butter of our company," he said. He believes governments and law enforcement agencies are taking notice of SandCars as a quick way to burst in and out of remote sites.
"We would like to have one, and it probably would be useful," said Tyson Davis, sergeant in charge of the Kern County Sheriff's off highway vehicle division. "but the cost is overwhelming." The Department uses off road motorcycles and quads to patrol Kern County's wilderness areas.
If necessary to accommodate the new production demands, McCaa will increase the number of employees in his Bakersfield shop to about 20 from 7, and consider automating his process to improve production time. Plans for an even bigger production facility are in the works.
As for his SandCars appearing at the 2008 Olympic games in Beijing, China, McCaa remains confident.
"I think we have a 60-40 chance" of receiving a contract, he said.
The SandCars would potentially be featured as an on-site attraction for visitors to the Olympic games. McCaa sent a representative to China within the last month to place a bid with the Beijing SandCar Association.
"The exposure is nice not only for us," McCaa said, "but for Bakersfield in general. We're talking worldwide recognition."
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