Quote:
Originally Posted by NeilBlanchard
I'm glad they have wheel pants, but they can't have very long trailing surfaces because those would get in the way of the door and come too close to the car when turning. I agree, the exhaust system looks terrible under there.
What makes their business plan so terrible that you just "know" instantly they are doomed to failure?
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The sales numbers that they require to be profitable would place it in the top 5 for all US sales. Each employee would have to sell more than one per day (almost 2). There is no budget for support staff (finance, service, etc). While I admire their goal, it reminds me of too many failed attempts of the past (tucker in goal, daewoo in execution). The low end of the market requires too thin of margins for a start up. For a niche product (2 seater), this would be unprecedented.
They would have been better of either one or all of:
1, starting in the bev market to pay for development and infrastructure (using government loans and incentives) (see corbin robin, tesla). Or in the alternative: start down market in a emerging market where entry barriers and competition are lower, then move up (vw, toyota)
Or 2, using a robin/uk type path where teenagers can drive them before regular cars.
Or 3, use a existing engine, and contract service/warranty to the manufacturer using direct online purchases as the primary sales method (design/build/price/deliver, like many niche items). This would help ease concerns of some customers by using a known commodity's kei car's drive train (most cottage builders).
Or several others
I do think the credit plan will be useful at this end of the market. Easy credit has helped KIA, Mitsubishi and Nissan with sales.
All and all, it will make an interesting case study, even if the correct timing for the 3c's would've been 8-10 years ago.