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Project Awards - Preliminary Evaluation
The LAFCC would like to thank both RENO and Oxygen for their proposals
to enter into a joint venture. All parties conducted extensive research
to examine the factors affecting entry of fuel cell powered taxis into
automobile market that is still primarily gasoline-dependent.
Upon careful consideration of the information presented by both French
teams, the LAFCC Management has determined that Oxygen should most likely
become the joint venture partner. The predicted production levels
closer to those originally intended by the LAFCC when the project was first conceived. Also, Oxygen presented itself as similar in size to the LAFCC, but with an already existing partnership with Volkswagen. As a successful
but small company looking to grow, LAFCC felt that this relationship with the automobile maker was useful.
Management felt that the production levels forecast by RENO were excessive,
especially for the U.S. market. There were also concerns about the
overwhelming presence of RENO with respect to joint venture structure.
change in scope from minivans as a part of the taxi market to taxis as a part of the minivan market, was not in keeping with the original intentions of LAFCC. However, this approach was very thought provoking.
All things considered, the negotiation process provided valuable experience
for the LAFCC Management Team. Both RENO and Oxygen were very professional
and punctual about all appointments. In addition, RENO is to be commended
for its enthusiasm and push to maintain communication throughout the project.
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