Case Studies

EngineeringSubjectCentreCaseStudies:

FourMiniCaseStudiesin
Entrepreneurship
February2006

Authorship
ThesecasestudieswerecommissionedbytheEngineeringSubjectCentreandwerewritten
by:

LizRead,DevelopmentManagerforEnterpriseandEntrepreneurship(Students)at
CoventryUniversity

EditedbyEngineeringSubjectCentrestaff.

PublishedbyTheHigherEducationAcademyEngineeringSubjectCentre

ISBN9781904804437
2006TheHigherEducationAcademyEngineeringSubjectCentre

Contents
Foreword...................................................................................................5
1 Bowzo:aCaseStudyinEngineeringEntrepreneurship ...............6
2 DanielPlattLimited:ACaseStudyinEngineering
Entrepreneurship .....................................................................................9
3 HiddenNation:ACaseStudyinEngineeringEntrepreneurship11
4 TheNarrowCarCompany...............................................................14

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Foreword
Thefourcasestudiesthatfolloweachhaveanumberofcommonfeatures.Theyeach
illustratethebirthofanideaandshowhowthatideacanberealisedintoamarketable
product.Eachcasestudydealswithengineeringdesignanddevelopmentissuesandeach
highlightstheimportanceofdevelopingsoundmarketingstrategiesincludingmarket
research.Theimportanceofappropriatesupportmechanismsforyoungentrepreneursis
alsocovered.Thecasestudiesillustratehowsuccessfulentrepreneursdeployarangeof
entrepreneurialskillsandknowhow.Aboveall,theentrepreneursareseentohavethe
capacitytoinnovateandexercisevision.
WearegratefultoLizRead,DevelopmentManagerforEnterpriseandEntrepreneurship
(Students)atCoventryUniversityforprovidingthesecasestudies.

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1 Bowzo:aCaseStudyinEngineeringEntrepreneurship
BowzowouldnotbewhereitistodayhadInotmetLarryTreanorwhenIwasinaplayful
moodcommentsJimOswald,jointinventorofaproductwhich,itisanticipated,will
dramaticallychangethewaytheviolinislearnt.
Jimisacareerinventoranddesignengineerwho,havingleftRollsRoyceafter25yearsin
theworldofenginecomponentsspecialisinginheatexchangers,wasreadyforsomething
new.
ItisfairtosaythatJimfoundthefirstfewmonthsafterhisreleaseuncomfortable.Hehad
spentyearsworkingonmajorprojectsinvolvingteams,manyofwhichhehadledhimself.
Hemissedteams,andhemissedthechallengeofprojectmanagement.Fortunately,Bowzo
arrivedoutofnowhereandprovidedwhatheneeded.
BothLarryandJimwereattachedtoCoventryUniversitysVisionWorksinordertogethelp
indevelopingsomenewbusinessideas.TheVisionWorksprovidesaccommodation,
telecommunicationsandcomputerfacilities,plus,perhapsmostimportantly,mentoringand
coachingservicesforstartupbusinesses.WhenLarryandJimmet,Larrywasplanningthe
launchofamultimediadesignbusinessbuthehadalsobeenaprofessionalmusicianand
violinteacher.DuringadiscussionaboutproductideasLarryrevealedhisthoughtsabouta
deviceforhelpingnoviceviolinplayerstolearnfasterandplaymoreaccuratelybybowing
straightfromthemomentofthefirstlesson.Thedevicefixestotheneckoftheviolinand
offersprecisecontroltostudentsdevelopingtheirbowingtechnique.

TheIdea
Larryunderstoodpreciselytheproblemsmanystudentshaveinbowingstraight.Theidea
wastodesignandmanufactureasimpledevicethatcontrolsthebowingtechniqueby
helpingthestudentkeepthebowstraightatalltimes.GivenJimsbackgroundinproduct
developmentandLarrysspecialistknowledgebothcouldseethepotentialofacollaboration.
Itworkedandoneyearlaterthefirstprototypeswerefinishedandmarkettestingwas
underway.

TheMarket
Tohelpexploretheinitialreactionsofviolinteachingprofessionalsacrosstheworld,towhat
appearedtobeabrilliantsolutiontoalongstandingproblem,bothLarryandJimfeltthat
independentmarketingexpertisewasneededatanearlystage.Somestaggeringfacts
emerged,notleastthatmorethanhalfamillionnewviolinsareboughtthroughouttheworld
eachyear.Thisprobablymeansthatalmostanotherhalfamillionsecondhandviolinsare
boughttoo,leadingtolotsoflessonsformanystudentskeentolearnfast.Themostlikely
routetomarketwasidentifiedasviathetraditionalwholesaler/distributortoretailernetwork.
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Initialresearchindicatedthattherewasamarketforalowcost,easytousedeviceandthus
thedesignengineeringandmanufacturingprioritieswereset.

Universitysupportmechanisms
ThemarketresearchwassupplementedbyfurtherinputsfromtheUniversitysDesign
Institutewhichprovidedaspecialistsupportprogrammeforsmalltomediumsized
enterprises.Thisincludedacomprehensiverangeofservicesfeaturingmarketingadvice,
productdesignandinnovationprocessesaswellasfinancialmanagementandtechnology
transfer.
Jimwasimpressed.TherangeofservicesavailablefromtheDesignInstituteisfantastic
wewereabletoputtheengineeringissuesonthetableanddealwiththeminawiderteam
contextwithinputsfromexpertsasrequired.
Theissueswereclear:

Stylinganddesignvalues.Thefirsthandmadeprototypewascertainlyfunctionalbut
neededmorework.Soonamoreaestheticshapewascreatedthataddedagreat
dealtothepresentationandpackagingoftheproduct
Durability.Newmaterialsweretestedandthebestofanumberofoptionsselected,
wewillhavetowaituntilthelaunchtoknowmoreonthispoint.
Manufacturingoptions.Lowvolumescouldbelasercutbuthighvolumesneededa
moreappropriatetechniqueforcuttingandforming.Whichwouldbebestatlaunch?
Productioncosts.Howfastwouldsalesgrowandwhatwouldbeanacceptable
pricingstructureforcustomeranddistributionchainalike?

Progresstodate
Theexcellentteamworkinvolvingtheinventor,musicians,designengineersandmarketeers
hasresultedinpreproductionprototypesthatareworkingwellinfieldtesting.Seedcapital
hasbeensecuredonthebackofthispositivemarketresearchfindingsandtheformal
productlaunchisscheduledforearlyin2006.Theteamaredeterminedtobringaproductto
marketthatoffersexcellentdesign,practicalityandthehighestquality.Tothisendattention
todetailiscriticalasaremethodicalengineeringprocesses.

Entertheentrepreneur,thenexit
Thecollisionbetweenentrepreneurandinventor/engineerwasbroughtaboutbythe
realisationoftheexistenceofamarketneed.TheymetbyaccidentandtheinventorinLarry
awakenedtheentrepreneurinJim,andanewpositionforJim,theinventor/engineer.He
admitsthathewasfeelingmoreopentootherpeoplesideasatthetimeofmeetingLarry
andsincethenhasprobablyrevertedtotypeashewaitsforthenextawakening.

Conclusions

Stayawakefornewopportunitiesbynotalwaysbeingyourself

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FourMiniCaseStudiesinEntrepreneurship

Buildawiderteamtobringinnewthinkingonproductdevelopmentissuesyou
mightbetooclosetotheopportunitytoseeitsfullpotential.
Engineersandentrepreneursareinterchangeablewhentheyeachseethemarket
needclearly.

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2 DanielPlattLimited:ACaseStudyinEngineering
Entrepreneurship
Introduction
WilliamWilkes,RoofTileTechnicalManageratDanielPlattLimitedandanexperienced
bricklayerandroofer,recognisedtheproblemprecisely.Buildersusingclayrooftilesoften
findthattheycannotgettherooftilestheyneedwhentheyneedthem,especiallywhen
workingonthevalleyareaofaroofwheretwopitchesmeet.During170yearsof
manufacturingnaturalclayfloortilesDanielPlatthashadtoadapttomarketneedsinan
entrepreneurialwayonmanyoccasionsandthisproblemforbuilderspresentedan
opportunitytocreatenewcustomers.
Themoveintothenichemarketforclayrooftileswasonesuchentrepreneurialresponse
whenthewidermarketforceramicproductsbecameincreasinglycompetitive.Havingmade
themove,maintainingastrong,distinctpositionintheselectednichewasvitalinorderto
maximisethevalueoftheopportunity.Theintroductionofaflexibleproductdesignwould
enabletherightproductstobeavailableexstock.
Routinelybuildersmighthavetowaitforuptoeightweeksbecauseaparticularspecification
tofitthepitchoftherooftheywereworkingonwasnotavailable.Theimplicationsinterms
oftimelostandnegativecashflowaresignificantasjobscannotbecompletedwithin
contractualterms.Producingonlyonetypeoffittinginsteadofthreewouldreducestock
levelsandimproveproductavailabilityresultinginmoresatisfiedcustomersandincreasesin
salerevenue.

TheEngineeringIssue
Roofsareconstructedwithdifferentlevelsofpitch(slope),mostcommonly40,45and50
degreepitches,eachonerequiringadifferentfittingwhichisinfactthetermusedto
describetheanglebetweenthetwowingsofavalleytile.Thetaskwastodesignasingle
tilethatwouldfitallthreeangles.Itwasrelativelyeasytogetitrightfortwoanglesbutall
threerequiredmoreconsiderationtoensuretheaestheticsandthefunctionalityofthetile
wereright,WilliamWilkesexplained.
Theprocessbeganwithacardboardtemplate,progressedtoametalangledsupportplate
andthentoapieceofextrudedclayplacedonthesupportplateandcuttorequiredshape.
Differentanglesweretriedandtestedonametalframeroofconstructionfittedwithboards
andtilelathsandlocatedwithinDanielPlattsmanufacturingfacility.Theselectedbestfits
werethenfiredandplacedontothetestroof.Itwasalongandmeticulousdesign
engineeringprocess.Asthevalleytilesdonotfeaturethenibsthatholdregularrooftileson
thelaths,precisionengineeringwasessentialasthevalleytilesateveryanglemustbe
supportedbytheregulartiles.

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InnovativeActionsSupport
DanielPlattscapacitytoexploittheopportunitywasconsiderablyenhancedbythesupport
oftheInnovativeActionsProgramme,WestMidlands.Thisregionaldevelopmentagent
providedamechanismforencouragingcompaniestothinkdifferentlyandformaking
innovationrealandeffective.DanielPlattsentrepreneurialskillsandengineeringcapability
wereboostedandaproductthatmayhaveotherwiseneverreachedthemarketwas
successfullycreated.TheteamprovidedDavidPlattwithfundingtosupporttheresearch
andproductdevelopmentprocessesincludingacoachingandmentoringservice.
Theuniversalvalleytilesarecurrentlyontestwiththebuildingtradeandpositivefeedbackis
alreadybeingreceived.Salesofrooftilesarenowprovidingcustomersforonethirdofthe
companystotaloutput.

Conclusion

10

Employdesignengineerswhoreallyknowtheirmarkets
Entrepreneurialcharacteristicscanbehandeddownfromgenerationtogenerationif
thecultureisright
Keepaheadofthemarket
Aimtodiversify,buildingoncorecompetenceswhenthemarketmoves.

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3 HiddenNation:ACaseStudyinEngineeringEntrepreneurship
TheJourneyBegins
LeePrescottsjourneyintoentrepreneurshipbeganwithhispassionforBMX(BicycleMotor
X).HegraduatedfromuniversitywithaBScinProductDesign10yearspriortoestablishing
HiddenNation.Thecompanysproductrangeiscentredonhighquality,specialistBMX
framesandcomponentswhichLeelearnedallaboutduringhisearlycareerinspecialistbike
design.Leeknewfrompersonalexperiencethatthosewhocompeteatthehighestlevelin
theBMXcircuitworldwidedemandonlythebestframesdesignedandmanufacturedtothe
higheststandards.

TheMarket
Themarketismatureandpopulatedbydiscerningbuyers.TheBMXmarkethaswaxedand
wanedsincethe1970s,butthroughouttheracingcircuithasremainedstrong,featuringa
numberofracingstylesandclasseswhetheritbeflatlandortrailcompetition.
FirstandforemostLeeisanengineerwhohaslearnedandunderstoodexactlywhatthe
marketwantedandcouldnotget.Therealisationawoketheentrepreneurinhimbutfirsthe
hadtogettheproductright,bothintermsofdesignandperformanceandbrandvalues.The
customersnotonlywantedhighperformancebutalsowantedtobeassociatedwitha
distinctiveanduniquenichebrandwherethebestbuyonlythebest.Furthermoreinsuchan
elitistmarketcustomersbecomesalesrepresentativesbecausetheyareproudtobe
associatedwiththebrand.

TheDesignandEngineeringIssues
Customersinthisnichespecifytheirownbikedesigningreatdetailencompassingevery
majorandminorcomponentandassembly.Thebikemustbedurable,safeandfast.
ThereforeeveryengineeringdecisionLeemadewasmarketdrivenfromtheoutsetinorder
tomeettheperformanceobjectives.
Heattreated,(853)lightweight,hardenedtubingwasselectedandsuppliedbyReynolds
TubesintheUKandapartnershipestablishedwithaCzechcompanyinordertoachievethe
requiredmanufacturingstandardswithinamarketablecost/pricestructure.Equallyas
importantastheframewerethestemsandpoststhatlinktheframetotherestofthebike.
Theseweredesignedtospecificcriteriatoo,withtheavoidanceofthreadstripping,minimal
slippageandsafetyaspriorities.Thenumberofcomponentswasreducedtominimise
possibilitiesoffailureandavoidunnecessaryproductioncosts.

MarketingStrategy
Nowtheengineerbecameevenmoreofanentrepreneur.Havingseenthemarket
opportunitytheengineerhadtogettheproducttomarket.UntilthismomentinhiscareerLee
hadworkedinlargeorganisationsalongsidesalesandmarketingcolleaguesbutnowitwas
uptohimtotaketheproducttomarket.
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Firstlythebrandhadtobeconsideredandthefirststepstakentoestablishitspositioninthe
marketplace. Carefulresearchshowedthataconnectionwithanalternativestyleandoff
beatinnovativesolutionsofferedtherightvalues.ThenameHiddenNationimplies
differenceandmystery,butfortheframeproductsomethingmorewasneededtodoitjustice
inthemarketplace.ThenameAkirawaschosen.AkiraKurosawawasarenowned
JapanesefilmmakerwhoseworkfeaturesSamuraitraditions.Akiraproducedhis
storyboardsasfullscalepaintings.Thesepaintingsareworksofartinthemselvesandgiven
JapaneseswordmakingtraditionstheinherentprecisionwastransferredtoHiddenNations
brandvalues.
Theexclusivityofthebrandwascarriedthroughtothesalesandmarketingstrategy.To
datetendealershavebeenappointedintheUK,oneinIrelandandrecentlyoneinAustralia
withnegotiationsunderwayinGermany.Thecustomershavebecomesalespeoplebecause
theyvaluetheexclusiveassociation.Thewebsiteisaninformationsiteonlywithsales
activitybeingundertakenexclusivelybythedealers,supportedbytradeadvertisingand
targetededitorialcoveragecreatedbyapublicrelationscampaign.Wordofmouth
endorsementshavealsobecomeasignificantroutetonewsales.Inthesecondyearof
tradingsalesweredoublethatofYearOneandgrowthcontinuesforwhatisstillaoneman
business.

Finance
Alloftheabovehadtobefunded.ABusinessPlanwascreatedandshowntoavarietyof
traditionalfundingsourcesbanks,venturecapitalists,businessangelsandbusiness
advisorsfromseveralinstitutions.OffersoffundingdidnotarrivebecauseLeewastoo
young,toooptimistic,wrongabouttheproduct,wrongaboutthemarket.Leegotusedto
rejectionbutcarriedonregardless.Hebackedhisownbeliefbyremortgaginghishouse
andinvesting30,000ofhisownmoney.HeremainsinfulltimeemploymentasHeadof
Designforaqueuemanagementsystemcompany,workingonHiddenNationinthe
eveningsandreinvestsalltheprofitsfromtradingactivity.

ASupportiveUniversity
AsaproviderofLeesearlyProductDesigneducation,hisuniversitywasinvolvedatthestart
hiscareer.Muchlater,whenLeeconceivedhisideaandgrewthedesiretorunhisown
business,hewasabletojointheuniversitysVisionWorksunitwhichsupportedembryonic
startupbusinesses.VisionWorksprovidedofficeaccommodation,telecommunicationsand
computerfacilitiesand,mostimportantlyforLee,acoachingandmentoringprogramme.He
receivedtheadviceandencouragementessentialtoenablinghimtocompletetheBusiness
Plananddeveloptheconfidenceheneededtomakehispersonalinvestment.
AsLeesaysVisionWorksgavemesomeonetotalktoatatimewhenIhadtobecomean
entrepreneuraswellasadesignengineer.
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Conclusions

Marketdrivenengineeringfuelledbyapassionfortheproductandthemarketmeant
theproductbecameexactlywhatthecustomerswanted
Beinganentrepreneurcanbeaverylonelyroleandsoanobjectivementoris
valuable
Entrepreneursmakemarketsandengineerscanmakeentrepreneurs.

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4 TheNarrowCarCompany
TheEntrepreneurialItch
After25yearsofbeinginvolvedindevelopingandsellingengineeringsolutionsinthemotor
industry,HughKemphadhadenough.
Despitebeinginvolvedinengineeringandmanufacturingforallthattime,IstillfeltthatI
wantedtomakesomething,somethingwholeandcompleteandmine.
Hughhadbeenamemberofumpteenteamsbutwasneverthesoleownerandchampionof
acompleteproduct.
MyfirstideawastogetasfarawayfromthemotorIndustryaspossiblesoIdecidedtobuild
boats,especiallyasIlovesailing.However,IknewverylittleaboutbuildingboatsbutIdid
knowaboutmakingcarssopowerwonoversailinthiscase.
Fortunately,Hughhadbeenworkingonanewnarrowvehicleconcepttowardstheendofhis
sevenyearsasDirectorofEngineeringatProdriveAutomativeTechnologyinWarwickinthe
UK.Whentheentrepreneurialitchbecametoomuchtobearandhedecidedtomoveon,
themomentoftruthcoincidedwithProdrivesdecisionnottopursuethenewvehicleconcept
whichbecametheNaroCar.WithalicensefromProdrivetodeveloptheproductfromhis
ownresources,HughsetupTheNarrowCarCompany.

TheEntrepreneur
Withlongexperienceofthecorporateworldataseniorlevel,includingtimeatLotusCars
designingandbuildingenginesforGMandChrysler,Hughfeltconfidentofhisabilityto
presenthisideastoanyaudience.
Idgottechnicalknowledge,commercialnouseandpresentationskillsbutwhatIdidnot
havewasenoughmoneytotaketheNarocarfromanideatoaworkingprototype.Theres
moneyaroundforthebackend,suchaspreproductionprototypes,labour,capital
equipment,onceyouhaveprovedtheconceptwithsomethingthatworksandlookslikethe
realthingbutthereslittlemoneyaroundattheriskyend,thebeginning,forwhatisavery
newanddifferentcarconcept.
AsaclientatCoventryUniversitysVisionWorksBusinessstartupprogrammeandalsoa
partneroftheUniversitysEngineeringFaculty,somegoodadviceandpracticaldesign
engineeringsupportwasonofferwhichincludedinformationonfundingoptions.
Hughtriedanumberofpotentialcorporatepartnersforequitybasedarrangements,and
soughtsupportfromsuppliernetworksandtheEuropeanUnionsInnovativeActions
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programme.Prodrivewerewillingtoprovideengineeringcapacityatlowratesbutcashwas
needed.AftereighteenmonthsHughwasabletosecureaUKGovernmentSMARTgrantof
57,000 aprogrammethatsupportsinnovativeideasattheearlystageofdevelopment.
Thiswillbesufficienttoenableastaticrigtobebuilttotestthesteeringsystemandalsoa
mulevehicle,amovingbutframeonlyprototype.
Theentrepreneurbit,whereIfocusonanideaandseeanopportunitytodevelopithasnot
beentoodifficultbecauseofmyallroundexperiencebutwhenitcametoapplyingfor
fundingIhadabittolearn.

TheNaroCar
NarrowbecameNarowhennamingthevehicle,whichfeaturesanarrowtrack,offeringthe
trafficevadingagilityofamotorcyclewiththecomfort,safetyandloadcapabilityofacar.
Oneortwopersonmodelsarepossiblewithflexiblecapacityforcarryingloads.Itstalland
visibleandnarrow,itslightandefficientandthereallycleverbitisinthesteeringsystem
whichfeaturesrollcontrolcapabilitythatenablesstabilitytobeachievedautomaticallyeven
thoughthevehicleleanslikeamotorbike.
Thesoftwarethatcontrolsthesteeringsystemhasmanyotherapplications.Forexample,
wearelookingatapplicationstoimprovetransportoptionsforthedisabled.

Fundingthefrontend
ThefrontendofthevehiclebecameatwopartissueforHughKemp.Hehadalreadylearnt
thatfundingforproofofconceptwashardtoachieveanditwasverymuchthefrontendof
thecarthatneededfundinginordertoproveitsworth.
ThemainissuewasthatIfounditwasvitaltotailormyapplicationpreciselytotheparticular
fundersthemesandinterests.Itcanbefrustratinghavingtobendyourownprioritiestofit
someoneelsesbutifthatswhatittakesIwouldadviseanyentrepreneurtodoso.

Markets
Thepotentialmarketsaremanyandvariedandwithproofofconcept,itremainstobeseen
howeachnichecanbedeveloped.
Anumberofmarketscouldbenefit,including:theendcustomerwhocouldenjoyastep
changeinpersonaltransportanewvehiclemarketsegmentfornichemanufacturersand
newsystemtechnologyforsuppliersofsystemssuchastherollcontrolandsteerbywire
systems.Notleastofcourse,TheNarrowCarCompanyitself.
Thevehicleconceptwillprovidealternativechoiceforpersonalandcitytransport.Thereisa
segmentofthemarketwherecurrentlynothingisofferedfromtodaysautomobile
manufacturersandthisiswheretheNaroispitched.TheresashortcarsuchastheSmart,
butnotanarrowvehicleunlessyoushifttoamotorcycle,whichisunacceptabletomanyfor
avarietyofreasons.Itisthereforeimportanttorealisethattheproductsemergingfromthis
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projectcouldhelptolaunchawholenewbusinessstreamfortheUKautomotive
manufacturingsectoraswellaslicensingopportunitiesoverseas.
Asacommutervehicletheproductcouldprovidetravelincomfortatnormalmotorway
speedsandthenfindgapsinthecitytraffictomaintainasensiblespeedtocompletethe
journey.Onceatthedestination,parkinginathirdofthespaceoccupiedbyaconventional
passengercarispossible.Asjourneyscanbeachievedwith30%ofnormalfuel
consumption,theNarocaralsoprovidesbothcostandenvironmentalbenefits.
AsataxitheNarocarcouldprovideanalternativeforthoseindividualswhovaluetimeand
needtotravelaroundourcitiestotightschedules. VirginLimoBikesprovideaserviceinthe
cityforthosewhodontmindgettingwetasapillionrideronamotorcycle.TheNarovehicle
willprovidetheidealplatformtoexpandthisserviceforafainterheartedpassenger.
StatisticsshowthatCityofLondonvehiclespeedsatpeaktimesarepassengercarsat3
mph,busesandconventionaltaxisat5mphanddispatchridersat15mph.AstheNarohas
thesamefootprintsasdispatchbikes,athreefoldreductioninjourneytimescouldbe
achieved.Asthetaxiindustryprogressestohailingbymobilephone,theopportunityforthe
appropriatesizevehicletobedispatchedtothecallerwouldmakesignificantreductionsin
congestion,gaseousemissionsandCO2,andprovideshorterwaitingandjourneytimesfor
singlepassengers.
Thefinalapplicationasacitydeliveryvehiclewouldhelpcutcostsandpollutioncausedby
oversizedvansusedbylogisticsoperators.Initialdesignsrangefromaflatbedforcarrying
awkwardshapeloads,toaboxvanconceptfortheRoyalMail.Thereisevenabikerack
attachmentfortheoutwardboundcouple.

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