3. Should Elio approach and automotive manufacturer directly?

No, it is not recommended for Elio to approach the manufacturers directly. It is not even in line
with their vision. The advantages and disadvantages are discussed below.
Elio’s Vision - The ability to design and manufacture, new advanced, high-tech and safe ABTS
(all-belts-to-seat) called “No compromise” seats for the entire automotive industry in other to
potentially save millions of lives.
If Elio partners with Manufacturers directly,
Advantages Disadvantages
Larger profit margins as it saves the cut that Limit the access to the automotive market for
tier 1 and 2 OEMs keep for themselves Elio
Production efficiency in mass production that Restricted to specific manufacturer due to
would help them keep the product price lesser exclusive contracts
than the market standards
Strict federal safety standards set by NHTSA Curtailing the potential profits
that would solve their problems of safety
standards
Strong financial backing More bargaining power with Manufacturers
Large manufacturer can enter into R&D Risk of the automaker to make an indigenous
contract with Elio where apart from the due product similar to the NC seat
licensing fees of the ABTS seat, they can fund
Elio for future projects by providing them
with in-house facilities

If Elio partners with Tier 1/2 ,

Advantages Disadvantages
Sufficient resources, matured strategies Less control over ABTS technology
Secured market Limited market exposure
Less financial stress Lower margins
Limit the size of the total market