Home Wine Business Editorial Technology The Sun Also Rises: Solectrac Shifts Business Model to Remain Relevant

The Sun Also Rises: Solectrac Shifts Business Model to Remain Relevant

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Interim CEO Robin Mackie addresses rumors of the company’s demise.

By Alexandra Russell

 

“I hate for the truth to ruin a good story, but we’re still here, we’re still working and we’re still developing new technologies,” says Robin Mackie, interim CEO of Solectrac, the electric tractor manufacturer that has been in the news this week for its eviction from a Santa Rosa development facility.

On April 8, 2024, the North Bay Business Journal reported that “The Sonoma County-based electric tractor company undergoing a major reorganization was evicted from its Santa Rosa location and owes $65,223 in back rent, the property owners say.”

The truth, says Mackie, is more nuanced than that. 

A new model

Robin Mackie

Mackie was brought to the Solectrac team by Ideanomics, which had purchased the agricultural company in 2020. “Following a review at the end of 2023, it was determined that our business model of establishing dealerships across the country was not working,” he says. “We needed to take a pause and rethink our approach.”

Working with investors, the previous management team was replaced and it was determined that a direct-to-consumer approach would better fit the product. Company representatives reached out to existing customers to update them on the shift, address any outstanding service issues and reassure them the company would continue to support them. 

At the same time, dealerships were contacted and informed of the change. Some asked to return product and end the relationship; others chose to continue selling the equipment.

“The dealership model put us in financial hardship,” admits Mackie. “It also separated us from the end-user, which is where the real enthusiasm for our product lies. By speaking with [customers] directly, we’re getting to know more about how these tractors are being used — what industries are prioritizing sustainability and how Solectrac fits in their long-term plans.”

Places and plans

Though closure of the Santa Rosa facility garnered headlines, says Mackie, the company is still moving forward. “That was our original development location, where [company founder] Steve Heckaroth first brought the company to light. We had a few years left on the lease, but when we reorganized it became clear we needed to shed that obligation.”

Meanwhile, in a nearby warehouse in Windsor, Calif., Solectrac is very much in business. “Work is ongoing,” Mackie confirms, “and it’s our intention to restart our engineering efforts over the next three months to move forward with new designs and ideas.”

In 2021, Solectrac was named a WINnovation Award winner by Wine Industry Network. Recognized for its “line of affordable, powerful, environmentally friendly tractors that favorably compare to their traditional diesel counterparts,” the company was seen as a possible game-changer for all types of sustainable agriculture. 

Those products remain at the core of Solectrac. By reorganizing the company’s sales model, supporting existing and curious customers and pushing through negative press, says Mackie, “We will come through this. Our tractors and equipment fill a need” that’s ever more pressing as climate change continues to impact all forms of agriculture.

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Alexandra Russell, Wine Industry Advisor
Alexandra Russell, Wine Industry Advisor

Alexandra Russell

Alexandra Russell is Managing Editor at Wine Industry Advisor. She can be reached at arussell@wineindustryadvisor.com.

 
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