The Institute for Affordable Transportation (IAT) facilitates the localization of BUV production in developing countries by publishing a standard design. Assembly shops can bypass the product development process and purchase complete BUV kits. Factory inputs are simplified and the business model requires a small local staff.

• Purchasing:  Local company interacts with one BUV supplier where complete kits are ordered

• Logistics:  Local company expedites kits through customs and organizes land freight.  During start-up phase, Third World supply chain avoided for the most part .

• Raw Material:  None (provided in BUV kit)

• Investment:  Negligible, limited equipment and tools required, warehouse space needed

• Assembly:  "Nuts & bolts" assembly that requires limited skill, few parts, and few peopleDesign:  Utilize "proven design", modify/optimize for local market, skip R&D process

Distributors in developing countries receive BUV kits in 20-foot ocean containers (32 or more kits per container). By eliminating partial shipments, theft is reduced and consistency is enhanced. Consistency expedites the customs process as customs officials gain trust in the source. The entire ocean container is then loaded on to a truck and sent to the distributor.

BUVs will be sold both as kits (to assemblers) and as completed vehicles (to public). Local companies and entrepreneurs will notice the profit opportunities associated with BUV. Local imitations of BUVs may materialize within a year or two. As the quality increases and prices fall (due to more local content), the locally produced BUV will gain market share. Initially, the imitation BUV will continue to source critical parts (i.e. engine) from the kit supplier. In time, the local producers will optimize the design for local application. For instance, the cargo area may be expanded as the current cargo area is shortened to reduce vehicle kit size…thus reducing international freight costs. As local companies prosper, the first world BUV kit producers will gradually focus on the needs of other countries or regions. The whole process will repeat itself.

Factory Model

• Traditional “fixed location” for high volume areas (output 10-20 vehicles per day)

• Mobile factories (output 1 -2 vehicles per day)

  • truck delivers BUV kits and assemblers (if needed) on-site (not necessarily indoors)

  • traveling assemblers bring tools, assemble BUVs, and provide guidance to kit buyers

  • empty truck transports goods back to large markets enabling barter opportunities where the BUV trades for goods of equal value.

  • process is repeated…truck travels between villages, assembling per demand

• Sales to distant villages will usually be in kit form. The compact packaging of the kit allows more kits per truckload which reduces freight cost.

Sales and Service Model

• every assembler is also a dealer - consumer can purchase BUVs right at the assembly shop
• assembler is directly accountable to customer (plant must service and warranty the product)
• customer contact generates more feedback for improvements

Overseas Distributor Example

A local distributor imports the BUV kits and is adept at expediting goods through the import process. Local companies buy the kits from the distributor as a local purchase. The local company no longer deals with international business and customs. The BUV manufacturer would set-up at least two distributors per country, thereby reducing risk and allowing business to be redirected if problems arise. The local assembler purchases the BUV kits and trains employees to start branches in other villages.