National powersports

Source: https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00047295
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THE BUSINESS OF TAIGA
Taiga was founded in 2015 with the goal of leading the electrification of off-road vehicles by pairing powersport pursuits with protecting the environment. Taiga has since worked to develop their electric technology to achieve the optimal power and acceleration, weight and thermal specifications required to compete with comparable high- performance combustion powersports vehicles. Taiga's ground-up engineering approach has resulted in electric snowmobiles and personal watercrafts ("PWCs"), with patent-pending technology platforms, software optimized proprietary integrated powertrains, and intelligent off-road connectivity.
Taiga's electric snowmobiles, comprised of the Ekko model for mountain use, the Atlas crossover model for all-terrain use and the Nomad model for touring or utility use, are designed and customizable to appeal to the needs of a broad audience. Taiga's Atlas model snowmobile can accelerate from 0 to 100 km/h in under three seconds in certain snow conditions and all models offer standard and extended range battery options with ranges up to 140 km and support DC fast charging for charging time in as little as 20 minutes to 80%. Taiga's electric PWCs, comprised of the Orca Sport, Orca Performance and Orca Performance Carbon models, offer up to two hours of range and a top speed of up to 104 km/h.
Taiga's fourth generation proprietary integrated electric powertrain technology, currently used in Taiga's snowmobiles and PWCs, is a modular hardware and software platform that has been designed to simplify its production and assembly process and decrease development time for new electric vehicle models, including a side-by-side vehicle ("SSV") targeted for production in 2022.
Taiga believes it is the only electric-focused powersports vehicle manufacturer positioned to commence mass production and distribution of its offering in the near term. Its 50,000 square foot R&D assembly facility in Montréal, Québec was commissioned in December 2020 and is expected to ramp-up production capacity to 2,000 vehicles per year by the end of 2021. Taiga also intends to build a 340,000 square foot mass-production assembly facility expected to be commissioned in 2022 and to ramp-up production capacity to 60,000 vehicles and 20,000 powertrain assemblies per year by 2025.
Taiga's approach to market is centered around four pillars: (1) sales to recreational customers of powersports vehicles, through Taiga's direct sales efforts and the development of a network of independent powersports dealers, (2) direct sales to fleet operators such as ski resorts and tour operators, commercial fleet operators in the energy, resource and transportation industries, and governmental parks, natural resource management agencies and other governmental organizations, (3) supply of powertrain assemblies to original equipment manufacturers ("OEMs") in adjacent markets, including other off-road vehicles, recreational marine, motorcycles, agriculture and commercial vehicles, construction and heavy machinery and lightweight aviation, in order to accelerate their electrification programs, and (4) aftermarket sales of parts, upgrades, apparel and other accessories.
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History
Taiga was founded in 2015 by Samuel Bruneau, its Chief Executive Officer, Gabriel Bernatchez, its Chief Technology Officer and Paul Achard, its Chief Vehicle Development Officer, who first met while obtaining their engineering degrees at McGill University more than five years prior to Taiga's inception. Taiga's founders began developing electric vehicle technology during that time as members of the McGill University Formula Electric team who designed and constructed all-electric race cars and participated in student automotive design competitions.
In 2016, Taiga produced its first electric snowmobile prototype along with its first generation electric powertrain. The following year, Taiga launched an electric snowmobile prototype designed from the ground up, the TS2 model, equipped with its second generation electric powertrain.
In 2019, Taiga launched its electric PWC prototype designed from the ground up, the Orca model, equipped with its third generation electric powertrain.
In 2020, building on its successful TS2 prototype, Taiga launched the TS3 snowmobile models (Ekko, Atlas and Nomad), equipped with its fourth generation electric powertrain and benefitting from several improvements and upgrades, including improved ergonomics and model-specific front and rear suspension offering better performance, easier servicing and lower cost. Taiga also launched two new PWC models in 2020 under the Orca brand. Taiga completed the 2020 year by raising $10 million in a Series A equity financing and completing the commissioning of its R&D assembly facility in Montréal, Québec.
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Market Opportunity
Taiga's Addressable Market
Management estimates that the current total addressable market for snowmobiles, PWCs and other recreational marine applications and SSVs worldwide is approximately $50 billion on an annual basis.5 In addition, management estimates that the global total addressable market for adjacent market opportunities, including other off-road vehicles, recreational marine, motorcycles, agriculture and commercial vehicles, construction and heavy machinery, and lightweight aviation, is $400 billion on an annual basis.6 See "The Business of Taiga – Market Opportunity – Adjacent Markets".
Snowmobiles are used in various snow-covered riding environments, including on-trail and off-trail, mountains, and for touring and utility purposes. On-trail models are operated at high horsepower ranges, have high engine displacement and are generally used on groomed trails for touring or utility purposes. Off-trail models, such as mountain snowmobiles, and cross-over models are generally operated at high horsepower ranges and are known for their lighter weight and longer tracks. The global snowmobile market is highly concentrated in North America, Russia and Scandinavia.
PWCs are used on lakes, rivers and oceans, are designed to accommodate one to three riders and are used primarily for recreational purposes, with a small proportion being used for utility purposes such as marine patrol and rescue.
Other recreational marine applications include inboard and outboard engines and motorized recreational boats. Inboard and outboard engines are used as the main propulsion system for recreational boats and are largely sold to boat manufacturers, in addition to consumers that are repowering their existing boats. Outboard engines are engineered to be fastened to the outside portion of the transom while inboard engines are integrated directly within the watercraft. Motorized recreational boats encompass leisure crafts such as pontoons, fishing boats, runabouts, inflatables and watersports boats.
SSVs were initially introduced as utility vehicles and in the last decade have been transformed by the introduction of vehicles designed primarily for recreational purposes. An SSV is driven much like a car, using a steering wheel and pedals, is equipped with seat belts and rollover protection bars and sits the driver and passenger side-by-side. Certain models also include one or two rows of additional seats to accommodate up to six passengers.
Powersports vehicles appeal to a wide range of users, including core consumers who tend to be enthusiasts for whom riding represents an important part of their lifestyle. The typical powersports enthusiast may own multiple vehicles and is generally seeking the latest product with the most advanced high-performance technology, as well as branded clothing and innovative and performance enhancing accessories. Taiga's target recreational customers are middle to high income earners based in North America and Europe who own homes in rural areas.
Powersports vehicles have been traditionally sold through networks of dealers and distributors. Manufacturers generally distribute their products directly to an established network of largely independent dealers or through distributors who act as intermediaries with local dealers. Manufacturers typically provide dealers with marketing and after-sale service support as well as training for service technicians. Manufacturers or their distributors typically enter into agreements with dealers which authorize dealers to market specific product lines, require them to stock service parts and perform warranty and out-of-warranty repairs and other services. Most of these contracts do not require a dealer to market products on an exclusive basis.
5 Based on top five manufacturers aggregate sales of snowmobiles, personal watercrafts and side-by-sides in 2019 and International Council of Marine Industry Associations Recreational Boating Statistics.
6 Based on OEM aggregate sales, Global Info Research report and International Council of Marine Industry Associations Recreational Boating Statistics report for adjacent applications and powertrains.
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Market Ready for Electrification
Management believes that the market for powersports vehicles will be supportive of the introduction of electric vehicles. Taiga's electric snowmobiles and PWCs compete with comparable high-performance combustion powersports vehicles in the areas of power and acceleration and thermal specifications, while, based on internal research, offering a lower total cost of ownership.
For recreational customers, electric powersports vehicles offer a quieter and emissions free experience, less maintenance and an environmentally responsible way of enjoying powersports, provided batteries are charged using renewable or other decarbonized sources of energy. Electric powersports are expected to attract new riders who would not purchase traditional powersports due to pollution and noise. In addition, electric vehicles may become in some cases the only available option for powersports riders to access certain trails and waterways as a result of increasing access restrictions due to noise and pollution.
For fleet operators, electric powersports vehicles offer significant energy and maintenance savings, as well as an increased operational efficiency resulting from integrated fleet management telematics tools and software. Data from applicants to Taiga's Fleet Program, as well as model estimates, indicate a potential average annual savings of over $2,000 per vehicle for snowmobile fleet operators.7 In addition, replacing traditional combustion models with electric models would constitute an environmentally responsible option by fleet owners and enhance their strategic and marketing efforts. For example, Taiga management estimates that the replacement of 50 snowmobiles at a ski resort would have the equivalent air quality impact of the removal of 2,000 cars from circulation for one year, provided batteries are charged using renewable or other decarbonized sources of energy.8
Taiga's competitive advantage from its electric powersports vehicle offering compared to traditional combustion engine alternatives is expected to increase over time. If electric vehicle adoption increases and larger scale production is introduced, battery costs can be expected to decrease through economies of scale gained by global battery manufacturers. Additionally, continuous innovation and investment in battery systems can be expected to continuously increase electric vehicle range and make it a viable alternative for more riders.
The anticipated lower total cost of ownership of its electric vehicles can be expected to be even greater should governments introduce purchase incentives for electric off-road vehicles similar to those currently in effect for electric on-road vehicles. For example, the province of Québec offers an up to $8,000 rebate for electric vehicles under $50,000 and a $2,000 rebate for electric motorcycles, there is a US federal tax credit for 10% of the purchase price of an electric motorcycle to a maximum of US$2,500, and in Norway an exemption from value added tax (VAT) applies to new and used vehicles that have an electric motor for propulsion.
7 Savings based on averages from data collected from fleet operators – 3,500 km travelled per snowmobile per year and $825 in maintenance costs per snowmobile per year. Costs variable dependent on gas and electricity prices per region.
8 Based on calculation using EPA emissions standards. Air quality multiplicative factor based on management calculations between differential CO + NOx + HC annual emissions between average U.S. passenger automobiles and average ski resorts snowmobile emissions. Automobile emissions are calculated from U.S. average fuel economy, annual mileage and emissions as reported by EPA. Snowmobile emissions calculated from EPA reported 2019 snowmobile emissions per fuel energy unit and Taiga collected data on average ski resort annual fuel usage.
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Source: Bloomberg NEF
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Adjacent Markets
Taiga's proprietary integrated electric powertrain technology is a modular hardware and software platform that has been designed to simplify its production and assembly process and decrease development time for new electric vehicle models. Taiga's approach to the adjacent electric vehicle markets, expected to begin in 2022, is comprised of the supply of powertrain assemblies to OEMs in adjacent markets, including other off-road vehicles (such as recreational boats, all-terrain vehicles ("ATVs") and motocross), recreational marine, motorcycles, agriculture and commercial vehicles, construction and heavy machinery, and lightweight aviation, in order to accelerate their electrification programs.
Management estimates that the current total addressable market for these products worldwide is larger than $400 billion on an annual basis.
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Competitive Strengths
Taiga believes that the following competitive strengths will contribute to its ongoing commercial success and future performance:
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Early Entrant Advantage
Taiga believes it is the only electric-focused powersports vehicle manufacturer positioned to commence mass production and distribution of its offering in the near term. Management estimates that Taiga holds a head start over other potential all-electric powersports manufacturers based on an estimated minimum three-year research and development time frame to design, pilot, validate and move to mass production of electric powersports vehicle concepts.
Considering Taiga's early entrant advantage, management expects its current competitive positioning to strengthen over time. Taiga aims to realize continuous improvements by leveraging an expected large volume of connected vehicles, well-established customer base and significant data collection and expects to continue to innovate its product offering to meet the needs of powersports vehicle owners. In addition, as a pure play electric vehicle manufacturer, Taiga's lack of legacy combustion vehicle production ensures the Company will remain fully focused on the enhancement of its current and future all-electric vehicles and powertrains.
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Cutting Edge Technology Developed Through Innovation and R&D
Taiga's proprietary integrated electric powertrain technology, comprised of the motor, inverter, battery, electronics, charger, dashboard and software, is a purpose built, high performance electric off-road powertrain. The proprietary integrated electric powertrain currently used in Taiga's snowmobiles and PWCs is the fourth generation of Taiga's electric powertrain technology, developed through years of innovation and R&D, including proprietary code developed over four years of interactive field testing.
Taiga's proprietary integrated electric powertrain technology is a modular hardware and software platform that has been designed to simplify its production and assembly process and decrease development time for new electric vehicle models. More than 95% of powertrain parts are shared by Taiga's snowmobiles and PWCs and its SSV currently under development. This is also expected to simplify access to adjacent markets, such as other off-road vehicles, recreational marine, motorcycles, agriculture and commercial vehicles, construction and heavy machinery, and lightweight aviation, through possible future supply agreements with OEMs present in such markets.
Taiga's technology includes over 2,000 designed and proprietary parts. Taiga's patent portfolio currently comprises 11 patents pending in the United States, all of which are utility patents. These patent applications cover a wide range of proprietary technology, including vehicle control systems, integration assemblies, battery modules, battery management systems ("BMS") electronics, thermal management systems, e-drive units, and vehicle powertrain integrations, among other technology. Taiga anticipates growing its portfolio by approximately 20 additional patent applications before the end of 2021.
9 Based on OEM aggregate sales, Global Info Research report and International Council of Marine Industry Associations Recreational Boating Statistics report for adjacent applications and powertrains.
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Attractive Total Cost of Ownership Compared to Combustion
Based on internal research, Taiga's snowmobiles and PWCs offer a lower total cost of ownership relative to traditional combustion engine alternatives. Taiga's SSV, which is currently under development, is also expected to offer a lower total cost of ownership relative to traditional combustion engine alternatives.
All dollar values shown is US$.
Source: Taiga and publicly available information for competitor vehicle performance and specifications. Lifetime cost figures are based on management's estimates of average kilometers driven and maintenance costs per year. Costs are variable and dependent on electricity and gas prices.
Management expects that the lower total cost of ownership of its products can be expected to be even greater should governments introduce purchase incentives for electric off-road vehicles similar to those currently in effect for electric on-road vehicles. See "The Business of Taiga – Market Opportunity – Market Ready for Electrification".
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Well-Defined Approach to Market Centered on Four Pillars
Taiga's approach to market is centered around four pillars: (1) sales to recreational customers of powersports vehicles, through Taiga's direct sales efforts and the development of a network of independent powersports dealers, (2) direct sales to fleet operators such as ski resorts and tour operators, commercial fleet operators in the energy, resource and transportation industries, and governmental parks, natural resource management agencies and other governmental organizations, (3) supply of powertrain assemblies to OEMs in adjacent markets, including other off-road vehicles, recreational marine, motorcycles, agriculture and commercial vehicles, construction and heavy machinery, and lightweight aviation, in order to accelerate their electrification programs, and (4) aftermarket sales of parts, upgrades, apparel and other accessories.
Taiga has received over 1,500 snowmobile and PWC pre-orders to date from recreational customers and fleet operators without any pre-marketing spend and Taiga management estimates that it has received Fleet Program applications from over 200 fleet operators. Taiga has also received over 760 dealer applications from local and international powersports dealers with self-reported annual sales of more than $1 billion in the aggregate. In addition, with respect to potential powertrain supply agreements, Taiga is in active discussions with several OEMs including Fortune 500 companies present in adjacent markets.
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Well-Defined Manufacturing Strategy Ready to Scale-up Production
Taiga successfully commissioned its R&D assembly facility in Montréal, Québec in December 2020 and plans to ramp-up production capacity to 2,000 vehicles per year by the end of 2021 at such R&D assembly facility. Taiga also plans to build a state-of-the-art 340,000 square foot mass-production assembly facility in Shawinigan, Québec. The mass-production assembly facility is expected to be commissioned in 2022 and to ramp-up production capacity to 60,000 vehicles and 20,000 powertrain assemblies per year by 2025.
Taiga's manufacturing strategy includes a flexible process with interchangeable vehicle platforms, a simplified logistics flow with vertical integration of fully sourced parts and components, sub-assemblies and assemblies, and the micro-automation of battery modules and pack assemblies.
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Solution-Oriented, Agile Management Team Well-Positioned to Manage Growth
Taiga was founded in 2015 by: Taiga's Chief Executive Officer, Samuel Bruneau, whose vision is to revolutionize the powersports industry with all electric off-road vehicles that outperform peers without sacrificing the environment; Taiga's Chief Technology Officer, Gabriel Bernatchez, who leads Taiga's product integration across thermal, electrical, tractive and software and is in charge of IT development; and Taiga's Chief Vehicle Development Officer, Paul Achard, who leads Taiga's vehicle platforms across snowmobile, PWC and industrial design and R&D and oversees the tractive unit and battery teams.
Taiga's management team also includes: Taiga's Chief Financial Officer, Mark Orsmond, a senior executive with U.S. and Canadian public company experience and a proven track record of managing rapidly-growing businesses to become global leaders; Taiga's Chief Operating Officer, Bernard Leblanc, a senior executive with significant experience in global supply chain and logistics, procurement, sales and distribution within world-leading manufacturing and OEMs; and Taiga's Chief Commercial Officer, Jacques Demont, a senior business development leader with several multi-national consumer brands who recently led Tesla's commercial strategy in France, including online strategy, customer experience, and brand visibility.
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Product Overview
Snowmobiles
Taiga's current line-up of electric snowmobiles is comprised of the Ekko model for mountain use, the Atlas crossover model for all-terrain use and the Nomad model for touring or utility use.
Taiga's snowmobiles are designed and customizable to appeal to the needs of a broad audience. Retail prices for Taiga's snowmobiles start at US$15,000. Taiga's snowmobiles offer peak performances in several applications and the Atlas model can accelerate from 0 to 100 km/h in under three seconds. Their electric powertrain provides instant torque and power, regardless of elevation, temperature or riding style. Furthermore, Taiga's snowmobiles offer a linear response that enables delicate control for technical maneuvers, while an endless torque band provides remarkable towing and climbing capabilities. Standard and extended range battery options offer ranges of up to 100 km and 140 km, respectively, and supports DC fast charging for charging time in as little as 20 minutes to 80%.
The table below highlights Taiga's current line-up of electric snowmobiles:
Note: The above specifications are pre-production indications and are subject to change.
The table below compares the performance of Taiga's Nomad and Atlas models to a comparable competitor combustion engine snowmobile model:
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https://preview.redd.it/1krjijxv5cm71.png?width=908&format=png&auto=webp&s=db42ca65c6cdf304ca55b33ea81b2934517c927f
Source: Taiga and publicly available information for competitor vehicle performance and specifications. Average snowmobiler distance travelled per day as reported by the International Snowmobile Manufacturers Association's 2020 Annual Fact Book.Note: The above specifications are pre-production indications and are subject to change.
Taiga's electric snowmobiles offer energy and maintenance savings, making their total cost of ownership favorable compared to combustion incumbents. See "The Business of Taiga – Competitive Strengths – Attractive Total Cost of Ownership Compared to Combustion ".
Taiga has completed the design and development phase of its current line-up of electric snowmobiles, with demonstrated prototype vehicles. Taiga is currently in the production trial phase, which requires final production part approval before initiating commercial production launch, ramping-up production capacity at Taiga’s R&D assembly facility to an annual throughput capacity of 2,000 vehicles by the end of 2021, and initiating and completing Transport Canada’s certification process. See "Manufacturing and Production – Assembly Facilities" and "Regulatory Matters and Industry Standards – Safety Regulation".
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PWCs
Taiga's current line-up of electric PWCs is comprised of the Orca Sport, Orca Performance and Orca Performance Carbon models.
Retail prices for Taiga's electric PWCs start between US$15,000 and US$24,000 depending on the model. Taiga's electric PWCs offer up to two hours of range, high performance including a top speed of 104 km/h, advanced thermal management and a class-leading power to weight ratio. PWCs require no winterization, oil changes or refueling at the dock. In 2020, Taiga's PWCs were awarded a Red Dot Product Design Award, an internationally-recognized award based on the degree of innovation, functionality, ergonomics, durability and ecological compatibility. The table below highlights Taiga's current lineup of electric PWCs:
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Note: The above specifications are pre-production indications and are subject to change.
The table below compares the performance of Taiga's Orca Performance Carbon and Orca Sport models to a comparable competitor snowmobile model:
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https://preview.redd.it/jcams3rx5cm71.png?width=908&format=png&auto=webp&s=87834d858227be8f76a37b66ee0aa49269103d86
Source: Taiga and publicly available information for competitor vehicle performance. Note: The above specifications are pre-production indications and are subject to change.
Taiga's electric PWCs offer energy and maintenance savings, making their total cost of ownership favorable compared to combustion based competitors. See "The Business of Taiga – Competitive Strengths – Attractive Total Cost of Ownership Compared to Combustion ".
Taiga has completed the design and development phase of its current line-up of electric PWCs, with demonstrated prototype vehicles. Taiga is currently in the production trial phase, which requires final production part approval before initiating commercial production launch, ramping-up production capacity at Taiga’s R&D assembly facility to an annual throughput capacity of 2,000 vehicles by the end of 2021, and initiating and completing Transport Canada’s certification process. See "Manufacturing and Production – Assembly Facilities" and "Regulatory Matters and Industry Standards – Safety Regulation".
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SSV
Taiga is developing a new model of electric SSV, the SxS model, which is expected to be ready for production in 2022.
Taiga is in the early stages of SSV product development. Taiga has worked on the conceptual development and planning of its SSV concept since July 2020 and is expecting to enter detailed product design and development phase starting in Q2 of 2021. Taiga is currently hiring in several engineering and management positions necessary to achieve its targeted development timeline. Taiga is targeting to begin pilot production of its SSV for deliveries to select clients in Q4 2022.
The Taiga SSV vehicles will use substantially the same electric powertrain components as deployed in its production electric snowmobiles and PWC. Taiga believes that this modular powertrain approach will allow the company to achieve an accelerated development and go-to-production timeline for its SSV vehicles.
The table below compares the expected performance of Taiga's SSV model to comparable lead acid and combustion engine SSV models:
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Source: Taiga and publicly available information for competitor vehicle performance and specifications. Note: Taiga SXS specifications are pre-production indications and are subject to change.
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Powertrain Assemblies
Taiga's proprietary integrated electric powertrain technology is a purpose built, high performance electric off-road powertrain. The electric powertrain currently used in Taiga's snowmobiles and PWCs is the fourth generation of Taiga's electric powertrain technology, developed through years of innovation and R&D. Taiga's approach to the adjacent electric vehicle markets, expected to begin in 2022, is comprised of the supply of powertrain assemblies to OEMs in adjacent markets, including other off-road vehicles, recreational marine, motorcycles, agriculture and commercial vehicles, construction and heavy machinery and lightweight aviation, in order to accelerate their electrification programs.
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Onboard Interface and Technology
Taiga's electric vehicles are all equipped with onboard computers offering configurable operating parameters that may be adjusted to user experience level and riding conditions and include GPS, LTE, Wi-Fi and Bluetooth connectivity. This intelligent off-road connectivity will enable optimization of fleet management and vehicle sharing monitoring, in addition to data informed decision-making and artificial intelligence ("AI") optimization from advanced telematics and mapping.
Taiga's onboard technology also enables ongoing maintenance services designed to save customers time and money via wireless updates and remote diagnostics. Taiga's interface is navigable through a rugged high-definition display screen.
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Parts, Upgrades, Apparel and Other Accessories
The parts Taiga intends to sell include consumables, wearable components and replacement parts. Taiga also intends to sell several accessories across all its product lines, to enhance or modify vehicle functionality and to allow riders to customize the vehicle based on their individual taste and specific needs, such as bumpers, windshields, rims, winches, passenger seats, vehicle covers and racks. Taiga also intends to sell a range of clothing and apparel in several styles adapted to its various product lines, including jackets, coats, pants, gloves, helmets, gear bags and casual sportswear items such as sweatshirts, T-shirts and hats.
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Technology and Product Development
R&D is a core component of Taiga's business strategy that will enable Taiga to continue its leadership position in electric powersports vehicle technology and reduce production costs. Taiga's R&D team of approximately 40 engineers and other professionals conducts its activities from Taiga's headquarters and R&D assembly facility in Montréal, Québec. Taiga's R&D team includes Gabriel Bernatchez, Taiga's co-founder and Chief Technology Officer, who leads product integration across thermal, electrical, tractive and software and is in charge of IT development, as well as Paul Achard, Taiga's co-founder and Chief Vehicle Development Officer, who leads vehicle platforms across snowmobile, PWC and industrial design and R&D and oversees the tractive unit and battery teams.
Taiga's R&D efforts to date have resulted in several accomplishments, including Taiga's proprietary integrated high performance electric off-road powertrain technology and electric snowmobiles and PWCs designed from the ground up. These accomplishments have largely contributed to Taiga's current competitive advantage. Specifically, management believes that Taiga is the only electric-focused powersports vehicle manufacturer positioned to commence mass production and distribution of its offering in the near term.
Taiga expects its R&D team to grow and its R&D expenses to remain significant in the foreseeable future to facilitate the continued expansion and improvement of its product offering. More specifically, Taiga intends to invest approximately $20 million over the next two years to fund its continuing product and battery system R&D and innovation and to advance the development of its new SSV model, its next generation electric powertrain and other product line extensions.
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Intellectual Property
Taiga understands the importance of intellectual property ("IP") and the significant role IP protection will play in its ongoing success. Taiga protects its core technology and know-how both in Canada and abroad through a combination of intellectual property rights including patents, trademarks, copyrights and trade secrets. Taiga's engineering and legal departments work closely together to continuously review and analyze Taiga's advanced research and product development activities to capture innovation at an early stage, and patent protect the innovation that is aligned with Taiga's business objectives. Robust information management processes, including the use of confidentiality agreements with employees, consultants, suppliers and business partners, safeguard Taiga's know-how, engineering skill and other confidential and proprietary information.
Taiga's patent portfolio currently comprises 11 patents pending in the United States, all of which are utility patents. These patent applications cover a wide range of proprietary technology, including vehicle control systems, integration assemblies, battery modules, battery management systems, electronics, thermal management systems, e-drive units, and vehicle powertrain integrations, among other technology. Taiga anticipates growing its portfolio by approximately another 20 patent applications before the end of 2021.
Taiga has registered the "Taiga" trademark in Canada and has applied for trademark registration in the United States.
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Manufacturing and Production
Assembly Facilities
Taiga plans to assemble its products at two facilities located in the province of Québec, Canada.
Taiga's 50,000 square foot R&D assembly facility in Montréal (Lasalle), Québec was commissioned in December 2020 and is expected to ramp-up production capacity to 2,000 vehicles per year by the end of 2021. Capital expenditures of $4 million are expected to be incurred in order for the facility to reach peak production capacity.
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Taiga also plans to build a state-of-the-art 340,000 square foot mass-production assembly facility expected to be commissioned in 2022 and to ramp-up production capacity to 60,000 vehicles and 20,000 powertrain assemblies per year by 2025. Based on Taiga's plans, this facility will have the scale and advanced automation tools to achieve Takt time of six minutes by 2025. Taiga expects to incur capital expenditures of approximately $50 million in connection with the commissioning and ramp-up of the mass-production facility. The below chart sets forth certain key milestones and the anticipated period during which they will be achieved:
Period
H1 2021 H2 2021 2022 2025
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Meg Argubright is the 2015 Hare & Hound Women’s champion, she’s served as Chairwoman of the National Hare and Hound Association (NHHA) for the past 5 years, and is the newly appointed Motorsports Marketing Manager for the KTM Group. Jacob Argubright is the 2019 National Hare & Hound Pro Champion, runs his own race team, and is also a part-time web and graphic designer. See what’s new with the Argubrights in this episode of The Dirt Buzz.
Link to Podcast: https://dirtbuzz.buzzsprout.com/1579741/8118112-episode-013-meg-and-jacob-argubright-powersports-power-couple