Comments on: Engine Developer Raises $20M http://www.xconomy.com/boston/2009/01/20/9271/ Business + Technology in the Exponential Economy Fri, 10 Feb 2012 17:53:35 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Patrick http://www.xconomy.com/boston/2009/01/20/9271/comment-page-1/#comment-44819 Patrick Fri, 23 Jan 2009 04:00:33 +0000 http://www.xconomy.com/?p=9271#comment-44819 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 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

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