H2GO(TM) systems to initially target, concentrate and focus on big-rig fleet owners/operators.
Emphasis on Sales to Big-Rig Fleet Trucks; Licensed Manufacturer Now Projects $3.8 Billion in Revenue Over the First Three Years
There are approximately 360,000 trucking companies operating millions of trucks on U.S. roads today. These large trucks are the backbone of the shipping and commercial industries and average only 5-7 miles per gallon nationally. Their annual fuel consumption accounts for 12.8% of the total automotive fuel purchased in one year. Every tenth of a mile increase in fuel efficiency will increase the truck owner\'s bottom line. With more that 100,000 miles of over-the-road field trials completed on big-rig trucks, H2GO(TM) has consistently delivered a 20% to 30% reduction in CO2 gases and an equally impressive mileage improvement.
Ronn Motors CEO Ronn Maxwell commented, "It was an obvious strategic move for us to focus our H2GO(TM) marketing and sales effort on the fleet truck market. As fuel cost is one of the largest operating expenses on these big-rigs and with the considerable number of miles put on these trucks every day, the savings to owner/operators is significant and the payback is realized in a matter of weeks. As well, H2GO(TM) provides a sustainable, eco-friendly, aftermarket technology that will allow these fleet owners to meet and exceed impending government emission regulations without costly upgrades to their existing trucks."
Ronn Motors has contracted with Frigette Energy Systems of Fort Worth, Texas to manufacture, market and distribute the H2GO(TM) product through Frigette\'s extensive dealer and distribution network that includes over 300,000 customers. Under the agreement with Frigette, Ronn Motors receives a royalty for each unit sold and shipped.
Phillip Kreymer, Director of Marketing for Frigette, stated, "We are very comfortable with the original projections of one million H2GO(TM) systems over three years, commencing in 2010. With a strong focus now on sales to the large fleet trucks, we believe that approximately 80% of the systems will go to satisfy demand in this market, with the remaining 20% projected to serve the automobile market. The anticipated H2GO(TM) retail price point for big-rig trucks will be in the range of $4,500 to $5,000. This would generate sales revenue in the range of $3.8 billion to $4.2 billion for the H2GO(TM) system over this three year period."