Mercedes-Benz hoped its idea to produce luxury golf carts would be a hole-in-one, but plans for the swanky carts have landed in the bunker.
The company tells BNN the much-hyped project has been cancelled because the “business case was not feasible.”
The German automaker unveiled the so-called Mercedes-Benz Style Edition Garia Golf Car last summer, calling it a “new class of transport” that transferred “sensual purity” to a premium golf cart.
The electric vehicle featured leather seats, carbon fiber detailing, wood décor and had a top speed of 30-kilometres an hour. The company did not release a price for the vehicle.
“It’s appropriate that Mercedes has cancelled this,” Kash Pashootan, portfolio manager at First Avenue Advisory, told BNN. “10 years ago, [the carmaker was] really struggling. Part of them reinventing themselves is they’ve been able to successfully nail creating product for the younger professional market.”
He says golf carts don’t appeal to Mercedes-Benz’s new target market.
“Younger golfers, let’s say between 25-to-40 years of age, are more active,” Pashootan adds. “They’re generally in healthier shape than someone that’s 70. They don’t mind walking.”
Mercedes-Benz’s spokesperson didn’t elaborate on why the business case was “not feasible”, but the company has previously said production decisions would be based on “the reactions of the market and potential customers.”
The golf sector has suffered from slowing participation rates over the past few years, prompting several companies to exit the industry.
In August, Nike (NKE-N) announced it would stop selling golf equipment, including clubs, balls and bags, while focusing on more-lucrative golf shoes and apparel.
Adidas AG has previously indicated it wants to sell the majority of its golf business.