New Auto Manufacturer
New Auto Manufacturer
(OP)
I have a question for those of you far more familiar with the automotive industry than me: What would it take to start up a new auto manufacturer, from scratch? Would it take 10 years and a billion+ dollars? Is it even possible in this day and age?
I am wondering if it would be possible for a new company to enter the market now, especially with the North American manufacturers seeming to lose market share every day.
I am wondering if it would be possible for a new company to enter the market now, especially with the North American manufacturers seeming to lose market share every day.





RE: New Auto Manufacturer
Regulatory compliance is a nightmare.
I don't know the sort of vehicle you are proposing, but it might be worth considering building something that is not subject to such a heavy regulatory environment; e.g. something with two or three wheels such that it qualifies as a motorcycle. No collision standards and looser emission standards. Product liability can still be a nasty thorn in your side.
RE: New Auto Manufacturer
I think it would be difficult to do a first world car from the ground up, as the lead time particularly on engine design and development is so long.
But why would you want to - just buy Volve or Hummer or Saturn or Fiat.
Or buy parts in and become an assembler. Then design your own parts as necessary down the track. There are plenty of companies who will help you do this - you could buy an entire assembly line if you felt like it.
Cheers
Greg Locock
SIG:Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.
RE: New Auto Manufacturer
For successes, look into how Saleen moved from a modifier of Fords into a small OEM, or how Factory Five went from manufacturing Cobra replicas into designing and selling their new supercar, the GTM. Sure, they're selling it as a kit car, but it could be another way to get started (possibly without the regulatory issues mentioned above). Since they're private companies, you will probably have trouble finding out info about their finances though.
For the European market there's Spyker, Koenigsegg, Ultima, Noble, and others, all started in the last 15-20 years.
It is possible, but you're probably not going to get an answer as to how and how much on this forum.
Bob
RE: New Auto Manufacturer
RE: New Auto Manufacturer
Would it be possible to build a 4 wheeled vehicle, but license it as a "motorcycle" so the regulatory standards are looser? Might this be a way to speed development with out working for years on those issues? I'm pretty sure that wouldn't fly, but lately I've been seeing a lot more 3 wheeled vehicles on the roads, lots of them more creative and interesting than most new cars. Does the looser regulatory environment for those vehicles encourage more creative development?
RE: New Auto Manufacturer
RE: New Auto Manufacturer
Don't know how they're doing now, though.
RE: New Auto Manufacturer
The kit car route would be a better option, since you circumvent the NHTSA reqts, and reduce your assembly costs.
-Dave
Everything should be designed as simple as possible, but not simpler.
RE: New Auto Manufacturer
The "low speed electric" vehicles also seem to circumvent the crash regulations (and the emission regulations) but their usage is severely restricted - to the point of being almost completely useless, even if they were allowed here (Ontario, Canada).
RE: New Auto Manufacturer
yeah, all those companies I mentioned are low-volume sports cars. I'm betting that the profit margin on a "normal" car would be too low to justify the investment to set up the company (not to mention establishing a dealer network, etc). Besides, I'm betting that 99.999% of the people who want to start an automotive company from scratch will be auto enthusiasts and will have dreams of making the world's greatest sports car, not the world's greatest grocery getter (no offense intended to those who build or have a passion for grocery getters).
Bob
RE: New Auto Manufacturer
You get:
a new body outer, and interior.
carryover floorpan
Some chassis mods
substantial upgrade to an engine
a new trans
better crash
A new engine from scratch would be about 7 years of develoment.
KSor, are you thinking about the X prize?
Cheers
Greg Locock
SIG:Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.
RE: New Auto Manufacturer
Suppose I had a fully developed design for a car, and managed to produce a few. How long would it take to jump thru all the regulatory hoops? Are the regulations designed to keep new companies out of the market?
I will be interested to see how many companies actually pursue the X-Prize. Some of the requirements are pretty harsh, such as the 100 mpg, plus the min. acceleration and top speed requirements.
RE: New Auto Manufacturer
Having gone thru it once with a street car...I like race cars better :)
-Dave
Everything should be designed as simple as possible, but not simpler.
RE: New Auto Manufacturer
The Aptera qualifies as a motorcycle, so they don't have to pass crash testing, but that said the company is pursuing crash testing anyway for their own peace of mind and the safety of the customers. The upside is that they don't have a deadline to meet for it.
The regulations are intended as much to make sure that victims of a crash are well protected as much as they are for driver's protection. And this applies to pedestrians as well. You can't just design something radical and put it on the mass production market because it might cut pedestrian's legs off when you hit them or the like. So after designing to all their specifications you have to go thru crash testing, destroying quite a few of your cars to make sure that everything passes. The regs aren't there to keep startups out of the market, but the fact that they have evolved over time to where they are now (on the shoulders of crappy and dangerous startup cars from the 50s and 60s that lead to a lot of problems) pretty much insures that startups can't break into the market.
There are huge losses to incur in before you can start selling, and unless your car is the perfect vehicle then you may never sell enough to break even anyway.
RE: New Auto Manufacturer
Cheers
Greg Locock
SIG:Please see FAQ731-376: Eng-Tips.com Forum Policies for tips on how to make the best use of Eng-Tips.
RE: New Auto Manufacturer
I suspect you need two primary things to start a new car company...
- ...lots of expertise building cars, which you can acquire by building motorcycles or limited production sports cars.
- ...stupid competitors, unable to capitalize on their market share or technical expertise.
In the early seventies, the cheapest pieces of Japanese junk had front disc brakes and bucket seats long before the Americans installed this stuff even on mid-priced cars.I also remember the Consumer Reports article explaining that compact cars have inadequate room for adults in the back seat, with the exception of the Dodge Dart, and all imports.
JHG
RE: New Auto Manufacturer