deals, energy, Engines
Engine Developer Raises $20M
Ryan McBride 1/20/09
The Scuderi Group, which is developing a fuel-efficient internal combustion engine, says that it has raised $20 million in private funding. The West Springfield, MA-based firm—which plans to unveil a working prototype of its engine to the auto industry in April—has raised more than $35 million, according to the company. The firm did not disclose the names of its investors.
Ryan McBride is Xconomy's correspondent. You can reach him at rmcbride@xconomy.com, or follow him on Twitter at http://twitter.com/Ryan_McBride.
1/22/09 11:00 pm
If the recommended business/profit model is based on collecting license fees from existing engine manufactures who choose to license this new engine technology platform, what will compel these manufactures to upgrade? Increased Profits?? Won’t the added technology licensing fees paid to the Scuderi Group cause the engines using this new engine technology platform to be more expensive than current engines? Yes higher MPG standards are important and the US government is pushing legislation to increase the average MPG but the increase in the MPG by the government may not be enough to compel a switch. A little scenario — If existing engines get A mpg and costs X then the new engines will get 1.2*A and the new engines will cost @20% more (royalties??). This scenario does not sound compelling enough to cause the engine manufactures to switch. Now if you start to talk about lower cost of goods for the new engine or lighter weight or tax incentives, then this sounds like a better sales model.
Just thinking out loud….
–Patrick
Patrick Quigley
First Pacific Ventures