454  Chapter 49

Table 49.1 
Business Case
Why do we need a new model?
What model will it replace?
What is the market?
Will it appeal to the young, the middle aged, families, the elderly, women, trendies, yobos?
How many can we sell per year in the UK, the USA, the EEC and other countries?
What is the competition for this type of car and what is their price?
Will the car rental companies buy it?
What is the max. and min. selling price?
What must be the max. manufacturing cost and in what country will it be built?
What name shall we give it?
Do we have a marketing plan?
Who will handle the publicity and advertising?
Do we have to train the sales force and maintenance mechanics?
What should be the insurance category?
What warranties can be given and for how long?
What are the main specifications regarding
Safety and theftproofing?
Engine size (cc) or a number of sizes?
Fuel consumption?
Emissions (pollution control)?
Catalytic converter?
Max. speed?
Max. acceleration?
Size and weight?
Styling?
Turning circle and ground clearance?
What ‘extras’ must be fitted as standard?
ABS
Power steering
Air bags
Electric windows and roof
Cruise control
Air conditioning
What % can be recycled
Investment Appraisal (options)
Should it be a Saloon, Coupé, Estate, People Carrier, Convertible, 4 × 4, Mini?
Will it have existing or newly designed engine?
Will it have existing or new platform (chassis)?
Do we need a new manufacturing plant or can we build it in an existing one?
Should the engine be cast iron or aluminium?
Should the body be steel, aluminium or fibreglass?
Do we use an existing brand name or devise a new one?
Will it be fuelled on petrol, diesel, electricity or hybrid power unit?
DCF of investment returns, NPV, cash flow?