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For Team C, ESC Toulouse:

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 an
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 were much
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.  A
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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