THE THIRD CYCLE ENGINE MARKET PLAN
Industrial Overview
Industry application for this new technology is very promising. With 180 million registered drivers in the U.S. and many times that worldwide, and the potential to increase the mileage for each one of them, this new technology provides a very sobering realization that here is an engine that can make a marked difference.
Major automobile manufacturers such as General Motors, Ford, Daimler Chrysler, Toyota, Honda and others have invested billions of dollars over time to increase miles per gallon and they continue to invest in technology for future fuel savings.
The trend within the industry is to eventually find an alternative to fossil fuel for automobiles, but that technology is well into the future and the LYDELL THIRD CYCLE technology is here now.
Target Market
The THIRD CYCLE ENGINE is a”just in time” natural fit into the existing internal combustion engine market. It is common practice today for automobile makers to choose to develop a new technology themselves and this can be accommodated through the use of a licensing agreement.
The market share potential for this product is large. Every year, there are millions of vehicles sold in this country alone and several times that worldwide. Many of those vehicles could be powered by a high efficiency THIRD CYCLE ENGINE.
Competition
There are competing technologies that include:
- Diesel engines that obtain 30 to 40% better fuel economy than gas engines, but they are bigger, heavier and at significantly more cost than like horsepower counterparts. Diesel engines account for about 7% of the engine market and because of their economy and durability are generally found in medium and heavy duty trucks.
- Other technologies
- Hybrids: Hybrid (combination gas/electric) cars and SUVs are becoming more popular. They have the distinct advantage of 25% to 35% better fuel mileage in the city and 10% to 15% better mileage on the highway. Unfortunately they have the distinct disadvantage of higher purchase price and a stiff replacement battery cost. Hybrids account for 5% of the vehicle market and that number is speculated to go up.
- All electric: There are limited all-electric vehicles on the market at this time. General Motors developed and marketed the EV-1, and Toyota marketed the all electric Rav-4, but they both have been pulled from the market.
- Fuel cells: Fuel cell cars are in the development stage and show promising results. Fuel cells have the ability to convert a gas (generally hydrogen) directly into electricity with basically water as the byproduct. This is the technology of the future, but is still many years away due to high production cost, low gas-to-electric conversion efficiency and efficient and effective ways to carry sufficient volume of gas on a vehicle.
- Gasses: Hydrogen, natural gas (LP) and propane gasses all have the ability to be used directly in place of gasoline. The up side is that they burn cleaner than gasoline, but the down side is lower specific power output, lower miles per gallon and low miles per tank full of fuel for a competitive size tank. These vehicles account for 1% of the vehicles on the road and remain at the experimental level.
Position and Plan
- Upon completion of successful prototyping and testing, the Lydell Third Stroke Engine patent rights will be made available for sale on a time limited basis. American and foreign automobile companies will have the opportunity to purchase rights to manufacture and sell this new high efficiency technology in their automobiles.
- There is no cost premium to purchase a vehicle with this new technology compared to a significant premium of a hybrid or diesel and the third stroke engine achieves much better mileage.
- There are over 200 million motor vehicles on the road today and many more worldwide. With 10 million* new U.S. vehicle sales each year, there is a rich market for a new, high efficiency automobile engine.
- New York State can benefit as there is the intention that the engine could be manufactured in N.Y.S. on a scale to meet the after-market automobile engine replacement needs.
*Bureau of Transportation Services
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