Introduction 2050 Motors, Inc. (http://www.2050motors.com and http://www.etfm.com) is a publicly traded company (OTCQB: ETFM) incorporated in Nevada in 2012. 2050 Motors was founded to import, market, and sell electric and gas powered carbon fiber vehicles engineered and designed in Italy and China using German technology. 2050 Motors also has the rights to assemble these vehicles in the United States.
The e-Go EV (electric vehicle) is a revolutionary new concept in the ever evolving world of electric vehicles. It will be the only production line electric car with a carbon fiber body and parts manufactured by a new process using robotic machines which significantly reduces the fabrication time and cost of carbon fiber components and the space age racing all aluminum alloy frame. The e-Go EV will seat four passengers; have a long battery life, and high energy efficiency rating up to 150+ MPG-E (energy equivalent) in urban driving due to the light weight of the vehicle.
The plans for the United States market for 2050 Motors is as follows:
1) Phase I – 2050 Motors will have the approved U.S. crash tested vehicle built and assembled in China for shipment to the United States for market entry as soon as possible. Phase I is a standalone program and will generate significant cash flow and revenues from the initial sales.
2) Phase II – On a parallel time frame with Phase I, 2050 Motors will proceed as soon as possible with the plans to acquire an assembly facility to build the e-Go in the United States. The assembly plant portion of the e-Go EV manufacturing facility, which will be duplicated in Las Vegas, Nevada or other locations under the Phase II Assembly Plant Business Plan.
|Direct Production Labor (Semi-Skilled & Skilled)||96||192||384||690|
|G&A Personnel (Engineers, Accountants, Q&A, etc.)||35||63||112||202|
|Total Direct Jobs Created||137||261||504||902|
(Indirect jobs may number 3,000+ by 2020)
Corporate History 2050 Motors is associated, under exclusive contract through Aoxin Automobile, with international corporations that have already spent many years and tens of millions of dollars in developing the car that 2050 Motors intends to sell. These companies include the Dongfeng Motor Automobile Group, which is one of the largest automobile and truck manufacturers in China; its subsidiary Aoxin Automobile, with which 2050 Motors has an exclusive licensing arrangement for the USA; and an Italian carbon fiber manufacturing company that has proven further dramatic cost reduction of carbon fiber parts manufactured for automobiles. In 2014, Dongfeng Motor sold more than 3.5 million vehicles for the China and foreign export markets.
In 2014, Yancheng Municipal State-Owned Asset Investment Group, Co. Ltd. (YMSIG), an investment and property development company founded by the Yancheng Municipal Government purchased Aoxin Automobile from Dongfeng Motor (http://www.ycinvest.cn/en/about/). YMSIG has made major equity investments in Aoxin Automobile to accelerate the production of the electric e-Go EV.
On January 20, 2015, YMSIG and Aoxin Automobile celebrated the Grand Opening of a groundbreaking 200,000 sq ft (4.5 acre) automobile manufacturing plant for the e-Go EV, which was constructed in only 4 months. The Chinese media stated (translation), "Aoxin carbon fiber new energy car (technology) created three China firsts: China's first 20,000 units (annually) Carbon-Fiber Electric-Car manufacturing plant; China's first electric car aluminum chassis robotic welding production line; China's First High-Temperature, High-Pressure, Vacuum-Assisted Carbon-Fiber molding production line.
The automobile industry dramatically needs to improve the miles per gallon ratio (mileage) because of federal standards set in place for years to come. Experts in the field agree that the automobile industry has made significant advances into increasing the efficiency of automobiles (i.e., aerodynamics, engines, tires, lubricants, etc.). The only way that is now left to substantially increase the efficiency of current vehicles is to make them either smaller or use lightweight carbon fiber to reduce their weight.
2050 Motors Management 2050 Motors management team includes PhD's and industry executives with significant experience in the automobile, energy and business sectors in the United States and the international arena. Their experience includes offers a wide range including the following:
1) The 2050 Motors team includes personnel that set many world's records for electric automobiles between 1992 and 1998; assembled and sold electric vehicles to the US market; and achieved the first crash test of an electric vehicle in the United States in 1994.
2) The 2050 Motors team has provided significant technology transfers from 2050 Motors to its international partner, Aoxin Automobile.
3) The 2050 Motors team has extensive experience in building and producing composite and electric automobiles.
4) The 2050 Motors team understands the electric vehicle and hybrid market in the United States from direct sales experience.
2050 Motors is a fully integrated company ready to accept the most advanced automobile ever built into the United States market and we already have customers ready to purchase the vehicle once it is approved for sales in the US market and passes US safety crash test standards and DOT equipment approved standards. 2050 Motors Management Team has already been successful acquiring United States Environmental Protection Agency's (US EPA) approval and Department of Transportation's (US DOT) approval to import the first three e-Go EV demonstration vehicles into the United States.
In summary, 2050 Motors has extensive business plans, projections, business strategies, marketing programs and complete market profiles to compete with existing automobile companies. However, there are two important market strategies that we would like to review in this Executive Summary.
1) Unlike other electric automobile companies, including Tesla Motors, who required millions or billions as initial capitalization to design and create their cars, to produce prototypes and build automobile manufacturing facilities; 2050 Motors has virtually no liabilities and very minor components of overhead. This is true because all the money for the design of the e-Go EV, as previously stated, was done by other companies. The e-Go EV manufacturing plant in China, which is state-of-the-art, was also funded by our Chinese partners. 2050 Motors is entering the marketplace with a clean financial statement that has no debt service to address to any extent; and, can sell vehicles at a very low cost with significant profits even at low sales volumes. Phase I, which encompasses selling automobiles to the American market totally manufactured in China, is a stand alone project and will produce significant income. For further information please see Phase I Business Plan available upon request.
2) 2050 Motors intends to assemble the e-Go EV in the United States with US labor in the near future. This is very possible because the capital investment to build the state-of-the-art aluminum frame and carbon fiber parts of e-Go EV already exist in China. For this Phase II, of assembly of vehicles in the USA, we do not need in the United States the capital intensive equipment to build the carbon fiber parts; nor do we need to spend significant funds to build a robotic welding line for the space age aluminum frame under the e-Go EV. By concentrating our business on purchasing the parts from our partners in China then 2050 Motors can focus on the high quality simple assembly of the e-Go EV in the USA without expending significant capital reserves for manufacturing equipment. It's also possible to integrate USA made parts and components. The assembly line is relatively simple and straight forward since electric automobiles have fewer parts in them compared to internal combustion vehicles: batteries, electric motor, controller, brakes, and other minor components. Furthermore, the assembly of the vehicle will be under the supervision and management of US Quality Assurance personnel who will ensure that we built an automobile with the quality that is accustomed by US consumer market. Phase II Assembly Business Plan is also available upon request. PHASE II IS A CONSERVATIVE PROJECTION IN SALES AND CAN BE ACCELERATED IN TIME AND PRODUCTION TO MEET CUSTOMER DEMAND.
In conclusion, 2050 Motors enjoys the enormous advantages of being able to assemble the most advanced mass consumer market production automobile in the world. 2050 Motors has the exclusive license to sell, assemble and manufacture the e-Go EV in the United States without having the enormous burden that other automobile companies must carry. We estimate that even limited sales of the e-Go EV can provide good profits for 2050 Motors.
To illustrate this important factor, the Forum for Growth and Innovation, a Harvard Business School Think Tank, published a couple of articles in April and May of 2015 stating, “Why Tesla Won't Be Able To Scale” and “Tesla's Not as Disruptive as You Might Think,” which clearly state that electric automobile companies that have a significant amount of overhead (like Tesla Motors who have concentrated on the ultra luxury automobile market) will find it very difficult to expand their sales into the lower end consumer market where profit margins are much less than what they are accustomed.
Because of its ability to offer the American consumer an advanced low-priced carbon fiber vehicle, 2050 Motors could be considered to offer a true “disruptive technology” to the world.