E X E C U T I V E    S U M M A R Y

R A D M O T O R S

The World's First 100% Virtual Car Company:

• Is designed to start up in China by taking full advantage of the many adverse situations there, including the ferociously competitive automotive market.

• Is designed to become the largest car company in the world within 5 years of initial funding, with no IPO or further funding.

• Will start production one year from funding, reach 50,000 units per month in Month 24, 150,000 in Month 36, 450,000 in Month 48, and 850,000 in Month 60.

• Has a China entry strategy designed to quickly get full Government support.

• Will thrive in a climate where intellectual property is routinely stolen immediately, completely, and continuously.

• Will use construction methods pioneered by Colin Chapman and used to build tens of thousands of Lotus sports cars.

• Will be based on ideas developed over an 18-year friendship with John DeLorean. When he died March 19, 2005, I had been trying to raise the first $100 million to start this company in the U.S.

• Will be building cars in most of the 36 countries between Japan and Morocco by Month 36.

• Will be building cars in most of the countries in the world by Month 60.

• Will combine 53 unique operating strategies into an unbeatable operation.

• Will be flexible enough to turn on a dime as world and market conditions change.

• Will move quickly from competing, to being its own competition.

• Will have highly-motivated contractors and employees with performance-based compensation. These will do less than 1% of the total work.  Like eBay, over 99% of the work will be done by others.

• Will build only custom cars and trucks.  No unsold cars.  No extra inventory.

• Will accept only orders placed on the Internet, cash up front, the way computers are ordered today at www.dell.com.

• Will have a zero advertising budget, replaced by a highly efficient PR program utilizing three major programs which generate substantial profits.

• Will have a many-faceted marketing program that will surpass anything ever seen in the automotive industry.

• Will also target two undersold, overlapping “niche” markets totaling an estimated 15 million new buyers per year.

Major costs of manufacturing cars and trucks include: 

• Automated assembly lines

• Ongoing design costs

• Ongoing prototype engineering costs

• Union contracts

• Advertising

• Inventory of unsold cars and flooring costs

• Model years

• Employees

• Depreciation of all equipment

• Obsolescence of equipment

• Obsolescence of methods

• Ownership of buildings and real estate

• Benefit and retirement funding

• Salaries

• Poor guesswork as to what buyers will buy 3 years from now

• Same poor guesswork torpedoing suppliers and raising prices

• Cost of money to finance all the above

Eliminating most or all the above will result in better cars at prices 15% to 35% less, quality for quality, than our competition ... resulting in very happy lifetime customers!

RAD Motors will involve the best people available in its creation, manufacturing, marketing, and sales: 

• A network of well over 20,000 already-existing potential dealer/assemblers in the first 36 countries of our target market, who will invest an average of $50,000 each in equities and cash

• A worldwide network of car and component designers who will pay us to market their designs

• The creators and builders of the world’s all-time toughest, lightest, and cheapest car frames

• The highly successful industrialist with the best reputation for establishing enterprises like this in China

• A very unusual man with at least ten thousand people eager to join RAD Motors in building and marketing these cars in the first 36 countries of our target market

• An exponentially-growing, highly-motivated sales force which will be the largest in the world within 3 years of initial production

• A vast network of redundant and eager suppliers of components and subassemblies who will get paid in half the normal time, or less ... even COD!

• Tens of thousands of owners of high-traffic locations competing to become dealerships ... at no cost to us.

• Chapman Associates, a 10% partner of RAD Motors, headed by Colin Spooner, the automotive design genius who knows not only how to put it all together, but has already done much of it before during a brilliant 40-year career both with Lotus (where he was Colin Chapman’s Design Chief, and where he was also responsible for getting John DeLorean’s stainless steel gullwings into production) ... and later when he gained experience specifically relevant to this project while working for GM at PATAC in China.

RAD Motors will: 

• Cut prototype-to-production time from 3 years to near zero.

• Create cars with HP to weight ratios that beat all competition, with resulting fuel economies which also beat the competition.

• Create frame designs with the highest passenger protection, lowest production costs, and longevity which beats all competition by a factor of at least 3

• Create car designs with the most exciting shapes:  everything from Lamborghini-shaped sports cars to SUVs twice as boxy and ugly as Hummers.

• Make it possible for a buyer to purchase anything from a barely-street-legal version of our simplest car for under $3,000, up to $40,000+ luxury versions, on the same frame.

• Create a complete set of frames to cover everything from Formula 1 cars to 3-ton trucks.

• Have some models which can instantly convert from driver + 8 passengers to driver + 2200-lb. load

• Have some models which can convert inexpensively, easily, and quickly from sedan to pickup to van to convertible

• Within 3 years of initial production, introduce some 4WD models which eliminate transmissions, drive shafts, differentials, and gear boxes

• Within 3 years of initial production, introduce the lightest and most fuel efficient engines in the world

• Create FOREVER cars which can always be upgraded with new parts and accessories; and with every part, including the frame and motor, easily and inexpensively replaceable using only hand tools

• Back up our buyers with a highly-profitable new-and used-parts system which consistently ensures the highest resale values (for the whole car or for parts) in the industry

• Create a new and unique system of selling cars which automatically ensures exponential sales for the first 3 years in any new market

RAD Motors will become the eBay of the automotive world.  Over 99% of its unprecedented exponential growth rate will be driven by the efforts and investments of others, exactly like eBay.  These others will eagerly continue to do nearly 100% of the design, production, marketing, and sales ... and will continue to pay RAD Motors for the privilege!

RAD Motors will change the way the automotive industry operates, just as Seiko re-invented the watch industry in 1978.  The introductory ad for the first digital watch read, “Someday, all watches will be made like this.”  That “someday” came less than two years later.  The same kind of revolution is about to hit the automotive world.

RAD Motors is designed to grow exponentially to become the largest car company in the world within five years, reaching a rate of 10 million cars per year worldwide in Month 60 from initial funding.

In Good to Great "Hedgehog Concept" terms, RAD Motors:
Is deeply passionate about Creating and Serving Lifetime Customers,
Will be best in the world at Creating and Serving Lifetime Customers, and
Its economic engine will be driven by Creating and Serving Lifetime Customers.

NOTE:  Proprietary information not fully revealed in our 79-page Business Plan will be fully explained to any partners or joint venturers at the time of agreement.  The RAD Motors Business Plan and further information can be obtained from:

Robert L. Rutz
206 Madison 3180
Huntsville, AR 72740, USA
Phone:  479-665-2887
Email:  BobRutz@MadisonCounty.net

 
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