EXECUTIVE SUMMARY
European Auto Group was founded in 2014 with the expectation of rapid expansion in the automotive engineering and parts production industry. The Company solicits financial backing in order to be able to introduce its current, and future products to a global market (described below).
Business Description
European Auto Group (EAG) was founded in 2014 with a foundation in European auto service and performance modifications. The company specialized in exotic vehicle service. EAG successfully converted the world’s first Ferrari F430 from F1 gearbox to traditional manual;
which became the donor to the redeveloped Lancia Stratos. The company transitioned from vehicle service to manual conversions on primarily exotic vehicles.
The company Gated Six was born. Home of the "Gated Scud", the world’s only gated manual Ferrari 430 Scuderia. Gated Six has a track record of 70 (as of January 2021) manual conversions in the Ferrari F430/360 model market, and world’s first successful Ferrari 599 manual conversion; focusing on the mass market, Gated Six converted the world’s first Toyota Supra (A90).
The Company currently employs 7 full-time employees.
Business Mission
To bring the manual gearbox back into the hands of enthusiasts.
New Product
After a period of thorough trial and error, the Company is prepared to introduce the following
products to market:
Manual Conversion Kits: Turn-key kits, including all parts required for manual conversion of automatic, dual clutch, or automated manual vehicles, to traditional manual gearbox. Gated Six
kits are OEM quality and often utilize existing infrastructure.
Kits/models ready to offer: Ferrari 360, Ferrari F430, Ferrari 599, 575, 612, Toyota Supra (A90).
Models in development include: Ferrari California, Lamborghini Huracan
Based on customer requests and interest in the following models, we plan on developing: Ferrari FF, 458, 488, Audi R8, Lamborghini Aventador, Murcialago, Gallardo, Mercedes AMG GT and SLS, Chevy Corvette (C8), Shelby GT500 (2020).
Gated Six Manual Conversion Kits offer all parts needed to convert these gearbox types to traditional manual. Major parts vary depending on original gearbox type, but traditionally include: clutch, clutch pedal, clutch hydraulics, shifter, linkages, ECU programming, and interior trim components.
Gated Six is building relationships with vehicle manufacturers with the intent to provide "build to order" manual gearbox variants of current and future models.
FUNDING REQUEST
The Company requests a total of $1,000,000.00. The funding proceeds will be used for the following purposes:
Production of already developed parts, additional R&D on future model products, assembly and installation labor, machining equipment and supplies, and available inventory for retail and wholesale distribution.
We expect to break-even within a 1 year time period following the introduction of our product.
**Future kits will require research and development costs, in addition to previous costs.
II. BUSINESS SUMMARY
Industry Overview
In the United States, the entire automotive aftermarket/auto care industry including medium and heavy-duty sales is about 381,000,000,000 dollars.
Major auto manufacturers are removing manual gearboxes from their product lines. Enthusiast
customers have expressed a demand for a traditional manual gearbox experience, and is not met by the manufacturer. We intend to meet this demand and fill the market void with the steps outlined above.
Research shows that consumers in this industry primarily focus on the following factors when
making purchasing decisions: Quality of product, availability, turnaround, warranty support, notoriety, integrity.
Business Goals and Objectives
Short Term:
To introduce "off the shelf" kits, available for order, including all needed parts, tools, and
instructions.
To expand the product/model range of said kits.
Expand marketing and product development.
Long Term:
Convert a significant percentage (2.5%) of several models: Ferrari 360, F430, 599, 575, 612, Lamborghini Gallardo, Murcialago, Huracan.
Provide kits/conversions for additional and future models that are mass produced Corvette C8, Shelby GT500.
Acquire factory level support, allowing for vehicle manufacturer warranty and distribution.
Follow up with a EV (Electric retrofit) and manual conversion to petrol powered platforms (Year 2025+)
III. MARKETING SUMMARY
Target Markets
The Company's major target markets include Automotive Enthusiasts and Purists. The estimated number of potential clients lies within approximately 2.5% of each supplied model variant.
Distribution Strategy
Distribution provided by current partnerships, future distribution prospects may include but not limited to: independent auto repair facilities, factory dealerships,
independent dealerships, vehicle manufacturers, and independent enthusiasts.
PROJECTIONS and Analysis are available upon request.