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Some
of the "enablers" mentioned
previously (the internet, new materials,
etc) were not widely available or
accepted until the last decade. Since BUV-type
vehicles are not currently on the market, it
is easy to assume that an ultra low-cost
vehicle
cannot be profitably sold. Otherwise,
large companies would be serving the market
already. Restated, “Why haven’t the
multi-national corporations (MNCs) pursued
this market?”
Multi-nationals
do not pursue the market due to lack of
margin and lack of market volume (willing
buyers with money).
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The
Institute for Affordable Transportation
(IAT) believes buyers abound if
the price-points are $1000 - $3000
dollars. Tremendous growth of micro-loans
(funded by UN, World Bank, etc)
for Third World countries will help
enable small businesses to purchase
vehicles.
In
vehicle product development, a clean slate
design is very costly.
-
Companies
question the payback and are reluctant
to exert the necessary engineering
effort. IAT however, utilizes students,
who thrive on the clean slate
approach, and their engineering
effort is widely available and
inexpensive.
Large
corporations have a short-term
perspective due to pressures from the
investment community.
Foreign
governments fear that multinationals
will take advantage of them and
repatriate profits.
Consequently, governments erect
barriers or skim profits which
increases vehicle prices.
-
As a non-profit, IAT wants all
competition to thrive, including
local entrepreneurs.
-
Local companies will
continually gain market share
from the large players.
-
Foreign
governments are learning
that the IAT
exists to help, not exploit
people.
The
"car" paradigm
places a high emphasis on
appearance (first world
perspective).
-
The
BUV focuses on maximum
function at a minimum
price.
-
To
radically reduce costs,
one must discard the “traditional”
car configuration.
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