Comparable Established Products

Dual alternator kits like the one pictured below are not uncommon, especially as consumers continue to add vehicle options that work to drain the battery charge, such as heating and cooling systems that continue to run when the vehicle is not moving and the battery is not receiving a continual charge. Another emerging trend in vehicle electrical power generation are high powered alternators such as the one pictured to the right that are capable of handling increased electrical demand. These alternators are typically used to operate exotic, high current demand, auto sound systems and other such aftermarket products.

Competitive Summary

 Industry & Market Analysis

In the U.S., the 2006 market was approximately 16.4 million cars and light trucks sold. Production in North America, including cars and trucks of all types, totaled 11.8 million produced in America, 2.6 million produced in Canada and 2 million produced in Mexico. Globally, about 49 million new cars were sold in 2006.

There are approximately 240 million vehicles in operation in the United States. Around the world, there are approximately 800 million cars and light trucks on the road this year. By 2020, that number will reach 1 billion.

American drivers continue to embrace the notion of customization and personalization, having purchased a record $36.72 billion worth of specialty automotive products in 2006. The number represents a 7 percent increase over 2005, when sales reached $34.28 billion.

Between 2001 and 2006, the market exhibited solid growth of 18 percent in inflation-adjusted dollars. The increasingly diverse U.S. population demonstrates increased minority participation in car culture. These factors will also help drive the market forward.

As an industry, automotive specialty equipment is often lumped into the automotive aftermarket. This is often an incorrect assumption as nearly all of the products produced, sold and installed by the industry are not just replacements for existing vehicle components.

Unlike the automotive aftermarket (repair and replacement parts), automotive specialty equipment products are not purchased out of necessity but rather out of choice—or not so much out of need but of want. As a result, industry sales have grown at rates that are two and three times what might be expected. During the last 10 years the industry has had annual increases averaging nearly 7.4 percent per year, while the U.S. economy (as measured by Gross Domestic Product—GDP) has had an average percent. In comparison, the total automotive aftermarket grew at an average annual rate of 4.5 percent (see chart left).

Now is the perfect time for a product like the Double Alternator to ride the heels of this $36 billion dollar per year trend.

Special Vehicle Industry:

The special vehicle Industry has matured into a multi-faceted, highly competitive business. Gross annual revenue exceeds $1,000,000,000.00 for the upper-echelon builders. These companies fund extensive engineering departments with degreed specialists in every sub-area of the vehicle. Most consumers have no idea about the millions of dollars and hundreds of thousands of man-hours that are expended to develop today’s platforms. The paradigm of carryover technologies limits how close a design can get to a truly optimal subsystem configuration. However, in practical application there is no question that these carryover technologies have been specifically tailored for, and by Off-Highway Vehicle design teams. Sales last year to consumers and branches of the government reached $10.7 billion.

Included in this industry is the market for special services and homeland security vehicles. Since 9/11, one of the constants mentioned in the news and within national and local governments has been homeland security.

Some of the leading manufacturers in this market are already known for their previous work with fire departments and police departments or as suppliers to the U.S. or Canadian military. However, a great deal of these companies are relatively new to this market because they are adapting products from other markets, such as van bodies, semi trailers and buses, to security work. With that said this is a highly fragmented business, with 104 identifiable players spread across the U.S. and Canada. A key characteristic of this industry is the high degree of customization, with manufacturers building products per the specifications of the customer. If a manufacturer can build one unit for a client, it can attract other customers if they are looking for a “similar” unit. Types of vehicles include:

• Mobile command centers
• SWAT vehicles
• Cash-in transit vehicles
• Prisoner transport
• Armored vehicles
• MRAP vehicles
• Hazmat vehicles
• Decontamination vehicles
• Bomb/explosive vehicles

Target Market Analysis

For the purpose of this Prospectus the target market for the Double Alternator is comprised of, but not limited to, the following:

• Trucks 135,399,945

  SUVs/Large Deluxe Vehicles 99,124,775

  6,649,337 tractor trailers

  Truck combinations 2,169,670

  Race Cars-86,000

  Boats-12,746

  Buses-83,080

   

  Off-road heavy duty equipment ( no statistics information except a 2007 revenue of $18.8 billion)

  Special Vehicles/Military Vehicles- (no statistical data except a yearly $10.7 billion revenue)

  Emergency vehicles (48,384 ambulances, 142,400 fire trucks and 900,000 police vehicles)

  Motorcycles-6,227,146

In addition this product is suitable for use on heavy duty military vehicles, farm equipment and other heavy duty equipment not specifically tracked in statistical reports. Today, we see more and more mainstream consumers retaining their vehicles. These factors all contribute to a receptive market for the introduction of a unique and useful product like the Double Alternator, making it the ideal time for a quick-to-market approach.

 

Distribution Channels

The Double Alternator will be primarily distributed in the United States through the Original Equipment Manufacturer (OEM) and through retail outlets including automotive parts and accessory stores such as Auto Zone and Advanced Auto. Other opportunities for offering the products to consumers are trade publications, direct mail and direct-response television. Opportunities to distribute this product are phenomenal and would enable the licensee to take financial advantage of this large global market.

Autozone, Inc., the No. 1 auto parts chain in the U.S., operates more than 4,000 stores and opens approximately 100 to 200 new stores each year. According to Hoover’s On­line, Autozone reported sales of $6.17 billion for fiscal 2007 ending in August. Genuine Parts Company (GPC) operates about 1,100 NAPA Auto Parts stores in more than 40 U.S. states. For fiscal 2007 ending in December, Genuine Parts posted sales of $10.8 billion.

Advance Auto has turned auto parts retailing into less of a one-company race. The company is now the number 2 chain after its 1998 acquisition of Sears and Roebuck’s Western Auto Supply and its 2001 purchase of Discount Auto Parts. Advance Auto Parts operates more than 3,100 stores in 40 states. Sales to commercial customers including garages, service stations, and auto dealers account for about 20 percent of revenues. The company is also a partner in online auto parts seller PartsAmerica.com. Advance Auto reported sales of $4.8 billion for fiscal 2007 ending in December.

O’Reilly Automotive sells aftermarket parts, automotive tools, professional service equipment and accessories through more than 1,830 stores and through its website. O’Reilly deals with do-it-yourself customers and professional installers and sells new and remanufactured auto parts, maintenance items, accessories, and a full line of auto body paint. Advance Auto reported sales of $2.5 billion for fiscal 2007 ending in December.  The success of these and similar worldwide companies is expected to continue into the future and therefore, the introduction of the Double Alternator into their line of products is well timed.

Product Analysis

Product Specifications

As shown below the Double Alternator is comprised of a housing with an adapter housing and is disposed between the front and rear housing sections and a drive assembly with a rotatable shaft is journalled in bearings and fitted in the housing. A pulley is fixed radially to the shaft for receiving a belt driven by the vehicle motor. Also included is a pair of rotors with each including field windings fixed radially to the shaft for rotation within one of a pair of stators with windings across which voltage is induced by rotor windings. Two sets of slip rings encircle the shaft with one of each of the set electrically connected to one of the rotor windings and insulated from the other slip rings and the shaft. Each one of a pair of three-phase full wave rectifiers is connected to one of the stators and a pair of voltage regulators controls DC voltage output. Each half of the double alternator comprises a rotor, stator, slip rings, brushes and rectifier.

In operation, from an ignition key or switch, voltage is sent to an over voltage relay to a regulator. The regulator adds positive voltage to a field wire, positive voltage to the brush and the positive slip ring to the rotor winding. Voltage flows back out of the rotor to a negative slip ring to a negative brush to ground. This circuit field/rotor is turned on and off by the regulator, which monitors the output volts. A spinning rotor with voltage creates a magnetic field. The stator windings are energized by the magnetic fields and produces voltage pulses to the rectifier. Rectifier output goes to the positive lead battery. Negative diodes are necessary for D.C. current in this system which is done by the halves separately and at the same time.

The foregoing is a broad description of the Double Alternator and should not limit suitable modifications which fall within the scope if the patent. More detail and further embodiments can be found within the text of the patent.

 Licensing Opportunities & Patent Information

Currently, we are seeking long-term unique market licensing arrangements involving the patent to make, use, manufacture, market, and distribute this new technology based on the acquisition of the intellectual property rights for each market. Please contact Mr. Ron Heidebrink to discuss this rare and lucrative new product opportunity.

Patent Information

Mr. Ron Heidebrink holds United States Utility Patent No. 7291933 filed on April 11, 2007, and issued on November 6, 2007. This patent for the Double Alternator expires in 2027, commensurate with the filing date. This patent has 19 claims that protect the exclusive design and function of the Double Alternator.