Dubai Automotive
EXECUTIVE SUMMARY
Dubai Automotive (DA) will initially assemble vehicles in Dubai from kits produced in China.
Dubai Automotive Industries (DAI) will establish a complete automotive industry in the United Arab Emirates and other friendly countries to eventually supply all components which can be more economically produced there or are needed to secure production schedules. DAI, but not DA, will also establish other assembly points outside the UAE.
RAD Motors SA, a Panama corporation, is seeking a lender as partner to invest 210 million AED into DA and DAI: 50 million initially and 160 million in phases over a 14-month startup period. Each amount invested will be due, principal and interest at 6.0% compounded annually, in 60 months from the date of investment.
In return for this investment as a loan against 100% of the assets of DA and DAI, the investor shall receive 80% of DA, which will own 50% of DAI. The other 20% of DA and 50% of DAI will be owned by RAD Motors SA.
Total shares in DA will be 25 million at a par value of 10 AED each. Total shares in DAI will be 10 million at a par value of 1 AED each. DAI will be funded as needed by DA from the 160 million AED invested over the 14-month startup period.
The Dubai is the initial vehicle to be assembled in Dubai. Primarily an 8-passenger offroad vehicle with rugged appearance, it will be available in a range from inexpensive stripped-down versions to luxury models with leather interiors and tops. It looks something like a cross between a Hummer and a dune buggy, and exciting drawings are available for view by a serious investor.
The Dubai has been designed by Chapman Ideasfactory Ltd. (CIL), a partner in RAD Motors SA. Their experience, expertise, and ability to create complete prototype vehicles from scratch can be seen at www.the-ideasfactory.com.
RAD Motors China (RMC) is an LLC in China owned 100% by RAD Motors SA. RMC, in conjunction with CIL, will develop a production prototype of the Dubai, select and develop relationships with all component suppliers, test-market the Dubai in China, refine and organize production and packaging of all subassemblies, pay for all components, arrange the most economic shipping, and give oversight and supervision for assembly of the first 100,000 units in Dubai. All costs of this will be paid for a) out of the funding specified above and b) the C.I.F. costs of the kits in Dubai.
The Dubai 80% partner in DA and 50% partner in DAI, herein called Aleph Beh (AB) will contract for, supply, and manage all personnel necessary in Dubai; and will contract for and manage all necessary office space, assembly areas, and sales locations. All costs of this will be paid for out of the difference between the C.I.F. cost of the kits and the purchase price paid by consumers.
RMC and CIL will continue to develop and market new vehicles in China, and will bring them to Dubai as fast as they can be developed and the market in Dubai can eagerly receive them.
The great advantage of all CIL-designed vehicles will be that they can be assembled in an area 10 meters by 10 meters. They do not require $300 million automated assembly lines, or the buildings over them, or the real estate under them, or the costs of maintaining them, or the costs of the people running and managing them, or the costs of breakdowns, or the costs of depreciation, or the costs of excess units produced above current market demand to keep the assembly lines going, or the huge interest costs for financing all the above.
In addition, RMC and CIL will be utilizing over 50 unique operating strategies which will enable production of vehicles at costs 15% to 35% cheaper than our competition. RAD Motors SA intends to be the largest automotive company in the world within five years of startup ... and our Dubai partner will benefit greatly by all the business we can feed into DA and DAI.
It is hoped and expected that initial funding will be final funding, and that DA and DAI can grow exponentially out of profits generated. To this end, we propose that the loan and interest payment be made at the five year point, in order to let the profits on each vehicle develop our rapid growth and quickly increase our market share.
Contact:
Bob Rutz
(479) 665-2887 in U.S.A.